Are you buying stocks now that prices...

**Joubert**[$] · #1 07-20-2002, 01:36 PM

...have been hammered? The general bloodbath means that there appear to be some tantalizing buys out there -- companies with physical assets and otherwise strong balance sheets that got sold off like everyone else.

I don't mean this to be a tout board, but I'm still very high on Ford. I just switched my weekly plan to begin accumulating F again. They're down around 12 1/3, and I thought they were a steal at 15-16 months ago.

Interestingly enough, Forbes.com picked up on this theme too.

Excerpt from article:

Among consumer products Ford Motor (NYSE:F - News) (17, F, down from 41 in 1999, www.ford.com) is a real steal at 1.4 times cash flow, 20% of annual revenue--with a 3.7% dividend yield.

Whole article:
http://biz.yahoo.com/fo/020719/buy_stocks_now_1.html

Magick1 · #2 07-20-2002, 03:37 PM

I have done a little buying. Nothing major.

Unfortunately, I think we will be seeing more downturns, especially Ford since they think this might be the only profit they show for this year?

We'll have to see, might be able to get even better bargins in the near future!

brian_igo · #3 07-20-2002, 04:25 PM

I've added a little to the stocks I already have but I haven't bought into any new companies. I'm not waiting for better bargains, I just can't afford to put a lot in right now.

Regarding Ford, I agree that it is a bargain now by the numbers. But the big (more like effing immense) questions are the top management, quality and their product lines. I'm almost totally a product guy when I look at a company, and I don't see Ford picking up steam until a couple of these questions are answered.

Brian

erik_kosberg · #4 07-22-2002, 02:06 PM

FWIW, it doesn't look to me that we have any real capitulation going on. Even on a day like today with all of the major indices down sharply, the advance/decline numbers don't seem to indicate a bottom. Down volume is swamping up volume on the New York exchange and the Amex, but up and down volume are nearly equal on the Nasdaq today. In a true throw in the towel type of bottom, I'd expect all three to show something like 10 to 1 down versus up volume for several days in a row.

And on the subject of cars, I heard an ad on the radio yesterday from a Chevy dealer that was not only offering a 0% interest rate but also touting a $0 down payment, for all practical purposes a negative interest rate. How exactly are they going to make any money on that? I know that car maufacturers tend to make money on parts and repairs more so than on initial sales, but I'd hate to be a new car dealer in the current environment. The manufacturers seem to be flat out desperate to sell cars, much like in 1928.

**AuntieEmma**[$] · #5 07-22-2002, 03:56 PM

Quote:

much like in 1928

That era has been on my mind too.

I'm wondering -- is this just an unwinding of the bubble or are we heading into a flat-out full scale Depression?

I mean, I'm literally "wondering" -- I have no idea, no real sense that it's one thing or the other, though I guess I'm leaning slightly towards the idea that it's just the bubble unwinding and at some point (sooner than in 22 years!) we'll start drifting back up.

murasaki · #6 08-02-2002, 08:27 PM

We're systematically investing as usual and maximizing our tax shelters. My husband and I both went over 8 years of service a few months ago and had bumped up our investment amounts considerably because of that, not really because of the stock market. But it's been a nice bonus to think we're acquiring more shares than we normally would have with the same amount. Of course, I try not to think about our unrealized losses at the moment...

--naomi

**Joubert**[$] · #7 08-03-2002, 09:52 PM

Article today highlighting Warren Buffet's acquisitions of late. He's value-shopping and picking up some sweet equity at low, low prices:Warren Buffet Active In Down Market

**AuntieEmma**[$] · #8 08-03-2002, 10:24 PM

Well, Warren Buffet's a smart guy.

Then again, so is Erik Kosberg.

Beats me what to do.

**Joubert**[$] · #9 08-03-2002, 10:27 PM

I think Warren should hire Erik, but that's just my take.

I'm in the "beats me" category too, Auntie. So I'm just meandering along, doing what I always did.

**AuntieEmma**[$] · #10 08-03-2002, 10:34 PM

Quote:

I think Warren should hire Erik, but that's just my take.

So Warren would be screaming "Buy telecom!" Buy energy!"

And Erik would be screaming "Dump telecom! Dump energy! Buy gold!"

I'd like to be a fly on the wall in that conference.

Seriously, I find both the bulls and the bears so convincing right now, that I'm just sitting motionless in the middle.

**Joubert**[$] · #11 08-03-2002, 10:38 PM

I think Erik would be screaming, "How many shares of Class A do I get, Warren?"