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Author: SuperStocker (Page 14 of 16)

United States Real Estate Prices Expected to Go Lower

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On January 31, 2009

In Other Stock Tips

Looking at the prices of real estate in the 2005-2006 levels, we had homes in California going over $500k-600k that have now dropped 30-40% from these levels.  The median price of a home in March 2007 as reported by C.A.R. was an astounding $582,930 for a single-family detached home.  In March 2008, this dropped 29% to $413,980.  The projected for 2009 will be at $358,000.  With federal interest rates at all-time lows 0-.25% and the trend continuing from December 2008, we can expect things to finally stop declining.  This does mean there will be huge changes but it does mean growth will finally begin and you can expect prices to start steadying out.

The line between interest rates and california housing prices is not a direct connection especially with the inflated house prices.  The prices we saw from 2005-2006 in California will not be those levels for quite a long time.  Also, remember prices move inversely with interest rates.  Nationally, when the interest rates start rising again which will probably be a while with the economy these days, the prices of the houses will have to decrease to retain affordability.  Before that even occurs, the housing price levels still need to fall furthur.

There’s no stock tips in this article, but some strong information concerning the real estate situation.  The California real estate is not representative of the whole national situation but it does help reflect many of the problems we are seeing nationally and I hope it helps clarify what to expect in the future.  Check out this link to see a bit more of where this housing trend will continue and what we should be doing right now.

Dividends are the Way to Richness Part II

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On January 27, 2009

In Dividend Stock

Smirnoff, Jonnie Walker, Guiness, Baileys, Captain Morgan, Cuervo, have you heard of any of these liquors?  All of these are owned by Diageo, stock ticker DEO, and they continue to sell even during our current depression.  An article from Smart Money states that “Diageo’s balance sheet, paradoxically, can become stronger the longer some of its products sit in the warehouse. That’s because while the products of most companies lose value the longer they remain unsold, more than a quarter of Diageo’s revenues come from some form of whiskey, which often commands higher prices as it gets older.”  How many companies do you know have inventory that makes more money the longer it sits?  This company can sell during good times and bad because everyone around the world drinks.  The president is even shifting advertising to the more ‘moderately’ priced alcohol because of the economic slowdown.  Sounds like they have all corners covered.

With a dividend yield of 6.10% at the current price of $52.08, this looks to be a great  bargain.  Even if the prices drop furthur and the economy goes down, you will get a much better yield from this then the bank.  You might as well drink some of those woes away while waiting also, and you can with the dividend.  Maybe your drink is some delicious Bailey’s on the rocks, or you like to mix it up with Bailey’s and Guiness, whatever your preference, you will be living up to drinks that continue to sell in bars, liquor stores, markets, etc.

Dividend Stocks Are the Way to Richness

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On January 25, 2009

In Dividend Stock

I’ve been doing research on dividend stocks lately.  As the market continues to plummet and things continue to worsen, dividend stocks will allow you to continue to win.  They work for long-term investors.  People that can wait it out a few years.  As they wait, they get rewarded.  I have a couple stocks I like currently that are pretty safe and if you have money to invest it will make you pretty rich in a few years.

RSO, Resource Capital Corporation, is a very conservative REIT.  They give out loans to commercial buildings.  As the whole subprime mess unraveled, they continued to make profit and collect mortages.  They did an excellent job of checking their clients out and making sure they would not default on their loans.  Their stock has plummeted to a low as of friday to $3.09.  This is a very cheap price for a stock that is giving a dividend yearly of $1.56.  That means if you buy it right now, you will have a dividend of 50.50%!  In just two years, you will not only make your money back but you will continue to collect awesome dividends.  If you are thinking this might be a little risky, here’s a link that tells how they have been punished by the subprime crisis.

HTE, Harvest Energy Trust, is a open-ended investment trust in Canada.  Their primary investments are in oil-related industries including shale-mining, oil refining, and drilling.  They also do invest heavily in petroleum and natural gas.  Right now, with crude oil hitting lows of $33, their stock price has dropped to $8.71.  This is a real bargain for a stock yielding $2.85.  This gives you a dividend of 32.80%.  As with all stocks, make sure you do your due diligence!  I mention DD because HTE will get taxed in 2011 by the Canadian government and this will lower the dividend.  I do believe buying at this time will continually yield a pretty good dividend.  As oil prices go back up, you will see this stock price go up and you will happily be enjoying a nice dividend no matter what happens in the future.  I do believe oil prices will rebound, and I also believe this will rebound sooner than later.

If you have some money in your bank, put some of it in these two stocks.  Why not collect a fatty dividend!  When the market finally moves up, you will continually be rewarded and when the time comes when you need to sell, you can surely bet the price of these stocks will be more than it is right now!

Get Ready to Make Quick Cash for New Years

By

On December 21, 2008

In Super Stock

The new year is upon us, with it, we can expect many great things.  President Obama is taking office and will be putting his policies in full force.  This includes includes more funding for alternative energy projects, more funding for road contruction projects, helping the automobile industry out, and even more bailing out of companies.  This means we can make some big bucks!  He stated that it will take a long time before we get out of this mess.  This normally would be a problem, but I’m looking to make money right away and I know everyone else is too after losing tons of cash in 2008.

2009, let’s get ready for the January stock rally.  In the past, we have had a nice January rally when the past year had a drop of 20% or more.  We sure hit that mark for 2008.  I’m betting the January rally will be big and then you can expect downturns for the rest of the year.  We are already in a depression, and I would not bet things will be moving back up for a long-time.  However, I’m looking to buy some cheap energy, pharmaceticuls, and health-care stocks, stuff that is on President Obama’s agenda.

With that note, I leave you with three picks.
DVN – Devon Energy currently at $66.79
UNH – United Healthcare currently at $26.49
PFE – Pfizir at $17.30

Pfizir might be a good trade long-term as you get a whopping 7% dividend.  But I’m looking for quick cash, so I will sell end of January!  Enjoy!

Will the bleeding ever end?

By

On October 27, 2008

In Other Stock Tips

This is most definitely the worst stock market crash since the 1929 Great Depression.  The stock market is about to reach a total drop of 50% from this year’s high.  This is an unprecedented amount of loss money that has never reached this bad before.  Jim Cramer stated last month that he expected the stock market to drop for another 20% before it might bottom out.  Many speculators and advisors are stating that the market will not start moving up until 2009.  So, how should you take advantage of the situation?

I was thinking of doing some short-selling and buying on the dips.  The stock market lately has been still dropping lower and lower.  We almost reached the Dow Jones low of 8,000 today.  Who knows, it might hit that mark tomorrow.  This might have also been the day to buy before another sky-rocketing jump.  I will wait this one out.  I know when inflation finally hits, you will see the precious metals, gold, and silver start moving up.  But it takes time for inflation to factor in and I do believe there is a good chance for more downtown.  There has been a lot of votalitiy in this market.  Hopefully we see some bottoming out soon and we can start trying out one of these strategies and gaining some of our hard earned cash back.

Was last week the bottom?

By

On September 21, 2008

In Other Stock Tips

If you have been reading any of the news headlines, you’ll notice in big letters ‘AIG GOING BANKRUPT, GOVERNMENT SUMMONED TO HELP’.  We had a huge 500 point drop on monday and then many fluctuations the rest of the week.  Thursday and Friday showed a huge rally that pretty much covered the whole drop from the week.  The government’s bailout scheme worked and brought the market back up.  Good for us who own stocks, bad for everyone else because we will all be part of the bailout helping the government pay out those taxes.

Tomorrow, we will either see another drop in stocks or see the stocks rise as part of the usual election rally.  I see a good chance of it dropping as short-selling is being banned for the rest of the year, which will artifically make the market rise temporarily, but finally drop again as people will just start selling the stocks.  Again, with last weeks’ news headlines like the Wall Street Journal’s big letter ‘CRISIS ON WALL STREET’, the blood might already be on the streets and its time for the recovery.  I do believe we will finally see a rise in the stocks before the year’s end.  If not the election rally, there will be the usual year-end rally.  I’m looking at november to be key.  But if you are in the stocks like me and don’t need the money right away, just hold on those stocks and let’s ride with the market.

Commodities Just Keep On Dropping

By

On September 4, 2008

In Other Stock Tips

Will the hurting ever stop?  Silver stocks are falling, oil stocks are dropping, and all of the energy stocks are going down.  Its funny to see the financials actually moving up in this turmoil.  I do believe the commodities are due for an up-turn.  If you take a look at the silver, the prices have dropped below $13 an ounce.  This year it hit an high over $20 an ounce.  I’m hoping it starts moving up earlier than later.  Make my CDE move up, not down 🙂

No matter what happens in the presidential election there will be a place for uranium.  Nuclear energy will be the next strong point to fixing our energy problems.  Nuclear energy is clean and has many more safty measures than in the past to keep things safe.  Look for stocks like USU to go up.

Another material to start watching is steel.  These stocks have dropped over 20% within the week.  Termium (TX) has a forward PE of 3.5.  It’s the lowest I’ve seen for such a big company.  One thing that kept it dropping was the nationalization of the Sidor mine in Venezuela.  It dropped more when the sale negotiations with the president did not work out.  You can bet that this stock is close to its low and its time for it to start moving up again.

How Long Can It Go?

By

On September 2, 2008

In Super Stock

North American Palladium (PAL) is again hitting it’s low set 6 months ago and the same low in 2005 which is around $3.50.  Both times it stood in that ground for a month or two, then it sky-rocketted up to $9!  Tomorrow, if it is still around $3.50, I might go ahead and make my move and buy some more.   I’m running both on technical and fundamental research.  Technical in that the stock is again reaching its bottom, so its time to move up.  Fundamentally, this is a material that should be moving up with the inflationary concerns.  I do not think it can stay low for so long.

Couer d’Alene Mines (CDE) is also moving downward.  Silver is continuing its move down with gold.  Bleh, I will continue to hold onto my shares but if it goes down more I might justify it to get some more.  Commodity stocks move up and down quickly but if you are willing to play the same there is money to be made quickly also.  I do hope its bottoming out.  All the other silver stocks continue to move up.  I hope dilution does not continue to stop this stock!  What is management doing to this company!

Fannie Mae and Freddic Mac Rising to Big Cash or Another Fake

By

On August 28, 2008

In Other Stock Tips

Fannie Mae (FNM) and Freddie Mac (FRE) having almost doubled their stock prices within the last five days.  Last week, on Friday, they were both stated to be going bankrupt, out of cash, and the government would be better off just letting them die off.  The reasoning was the amount of cash to keep them up within the billions would leave little to cover other costs.  The FDIC after the IndyMac failure only has so much money to cover other banks that go bankrupt.  I heard the early 90s had the same bank problems.

Now, I do think the economy has only one way to go, UP!  It’s been so bad lately with the foreclosures and banks failures, but I do believe we are slowly recovering.  I also don’t think the government will let these two mortgage lenders go down the hole.  If you knock over one domino, you’d be sure to hit many more down the ways.  If these two fall down, the hurting will not stop for quite a long time.

I also believe George Bush is in part of this.  This economy is pretty crappy and it works to the Republicans advantage.  They are about helping businesses and cutting taxes.  These are two things that all Americans are looking at currently.  You can be sure when the elections come in November that it will have some impact on their vote.  This especially with the amount of people unemployed and the continuing growth of inflation.

When election time is done and the votes are in, John McCain or Barack Obama will be in office.  No matter who wins, you can bet the stock market will finally rise.  All those banks shorting stocks will finally cover.  People holding onto their money will start investing again.  Good riddens George Bush!  Either guy will definitely do a better job than him.

Anyways, there should be a dip coming up next week for those short sellers.  However, long-term expect these two mortgage lenders to go up.  They will not go bankrupt.  Banks might be short selling them but they know they can only fall with them if they belly up.

I have not written for a while, but last friday, I did buy some sharts of Fannie Mae.  I sold on Monday, bleh!  I made a few hundred bucks, but if I see a good opening again, I’ll buy and let you know.  I bought very quickly on friday when I saw the really, really low price in the stock.  I wanted to buy and sell it’s recovery and it worked out perfectly.  I might do more quick buys and sells if it continues to work.

Long-term: commodities will continue to move up.  Silver and gold need to rise as inflation rises.

Financial Stocks Bottomed Out?

By

On August 16, 2008

In Other Stock Tips

On Seeking Alpha, there was an article that stated that the DOW bottomed out at July 31, 2008.  It also stated that the financial stocks had bottomed out too.  How can we find out if this is true?  First, Bank of America has finally moved up.  It was at a bottom of $20 but now currently trades at $30.  One stock in particular that has unlimited potential but contains lots of risk is Washington Mutual (WM).

Washington Mutual is trading in the $5s to which a few months ago it traded as high as $50.  In the past few days, there has been heavy institutional buying.  I do not know what these guys know, but I’m for sure one to look more into this stock.  If it hits $5, I will put some money down and take the risk.  For such a cheap price, you could lose your cash but you could also hit a gem that will never see this price again.  I do believe most of the subprime loans have already been factored into this stock.  Even though there will continue to be more foreclosures and bankruptcies, I think the stock traders have already took this stock to the cleaners.  The dividend has been cut which is good for the company so it can start raising money.

I personally use Washington Mutual for some of my bank transactions.  It has been so far a smooth ride and I doubt it will be a bank to fail.  There is a potential chance for a buy-out and it be nice to get part of that cash that flows into it.

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