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The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

joecct said:
Think its a good time to SELL SELL SELL???
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Once QE3 happens, it is time to BUY BUY BUY! That's the only way you're going to be able to afford groceries, as your working salary sure as heck won't.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

The jobs number came out today, and 372,000 first-time claims. Hopefully you have your purchase ladders set up, as I think we'll be seeing a halfway decent buying opportunity.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

FlagDUDE08 said:
Once QE3 happens, it is time to BUY BUY BUY! That's the only way you're going to be able to afford groceries, as your working salary sure as heck won't.
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I'm not into the ins and outs of the market. If the market tanks, wouldn't it be a good idea to get out while it's still up and then get back in when it's near the floor??
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

joecct said:
I'm not into the ins and outs of the market. If the market tanks, wouldn't it be a good idea to get out while it's still up and then get back in when it's near the floor??
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Putting money into the market typically makes prices go up, especially commodities. ;) Buy low sell high is Market 101.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

ScoobyDoo said:
Just like I didn't fall for the housing boom, I also didn't fall for Facebook.
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I made 10% off it. The trick is to find common market patterns in order to give you a better idea as to what will happen, have a logical attack plan that includes an exit strategy (even if it's long term, but in my case it was short term, so the exit plan is important), but most important of all, STICK TO YOUR PLAN! Never let emotion guide your decision-making, and you'd be surprised how far you can go. There were plenty of times I wanted to cut my losses at $26, but kept telling myself to give the amount of time I promised, the price went up to over $32 on my "day of reckoning", and I got out ahead of the game. Sure it went a little higher, but there's never any shame in taking a profit, because it's more than you had when you started.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

This is for those that may not understand how market prices work, just a little 101:

The first rule of thumb is that market prices ARE NOT SET LIKE YOU WOULD SEE IN A GROCERY STORE. They are much more like how an auction works, mainly excepting in the fact that "first matching bid wins". If you look at any market information about a stock, particularly on Yahoo Finance (you WILL NOT see it on Google Finance), you will see two things known as "bid" and "ask", where you'll see a price multiplied by a number. The price for "bid" and "ask" is the highest and lowest (respectively) amount where a trader would like to buy or sell (respectively). Want to buy a stock right away? Put in a bid for the ask price. Vice versa is true for selling. What is the multiplier, you ask? Simple, that's the volume of shares involved in the request. This is always in hundreds of shares, though it looks like Yahoo will list the hundreds for you, but some do not. Obviously, if you're bidding on 200 shares of a stock, but someone is only offering 100 shares at the price you want, then you get the 100 shares at your price, and assuming you did a limit order, you have to wait for another person to come along and make the offer before you can get the other 100 shares.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Anyone else making bank on the health care stocks? I'm starting to wonder if that's a bubble ready to burst based upon any future Obamacare actions.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

FlagDUDE08 said:
And yet, some posters on here still think this is a company worth the investment: http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910
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Too bad the "GM losing $49k per Volt" thing is just another dumb talking point. It's based on the entire R&D divided by current sales, as if there will never be another unit sold. That's laughable. It's like saying if you spend $10M to drill an oil well, and you've only got $1M back after the first week of production, then that well "costs you $9M per week." Beyond stupid.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Kepler said:
Too bad the "GM losing $49k per Volt" thing is just another dumb talking point. It's based on the entire R&D divided by current sales, as if there will never be another unit sold. That's laughable. It's like saying if you spend $10M to drill an oil well, and you've only got $1M back after the first week of production, then that well "costs you $9M per week." Beyond stupid.
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Obviously we can wait a couple of years to see if people will buy it, but if they don't, we have the new Edsel on our hands.
 
Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Kepler said:
Too bad the "GM losing $49k per Volt" thing is just another dumb talking point. It's based on the entire R&D divided by current sales, as if there will never be another unit sold. That's laughable. It's like saying if you spend $10M to drill an oil well, and you've only got $1M back after the first week of production, then that well "costs you $9M per week." Beyond stupid.
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You're correct, of course, that it's stupid to allocate R&D only over the current sales, and Reuters were morons to report it that way - primarily because it allows critics like you to focus on that faux pas rather than the larger picture.

Let's do a little math: the actual cost to build a vehicle was estimated to be between $20k and $32k. Call it $25k. With a $40k sticker, that means GM makes $15k per car. To recoup their initial $1.2B investment, therefore, they'd have to sell 80,000 cars. They've sold 13,000 so far this year, which would scale to 17,000 for the year. So their break even point would be 5 years out - assuming that they aren't paying interest on their initial investment (which of course they are) and assuming that they don't spend another dime on R&D or marketing in the next 5 years (which of course they will) and assuming that sales don't fall off due to better competitors on the market (which there already are and definitely will be). Also, their sales are only what they are because of the sweetheart lease deals they've been giving, so there's no way that their margin is $15k on the ones they're producing now, pushing their break-even that much farther down the road. The farther out that gets, the more they're going to have to spend on tech refresh and re-design, so they're going to be chasing their tail on this for years and years to come - I would be shocked (no pun intended) if the Volt ever breaks even, much less gets anywhere near a respectable profit margin.
 
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Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

FlagDUDE08 said:
http://blogs.wsj.com/economics/2012/09/13/live-blog-fed-decision-and-bernanke-press-conference-2/

It's official, the Federal Reserve has announced QE3. In addition, it has not announced a firm end to how long QE3 will last, meaning the country has a possibility of undergoing hyper-inflation.

The stock market surged at that news, and then pulled back.
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At least one person thinks it will add welcome clarity. "my initial assessment is that this is a huge positive step." But I don't know.

Kepler said:
Too bad the "GM losing $49k per Volt" thing is just another dumb talking point. It's based on the entire R&D divided by current sales, as if there will never be another unit sold. That's laughable. It's like saying if you spend $10M to drill an oil well, and you've only got $1M back after the first week of production, then that well "costs you $9M per week." Beyond stupid.
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The trouble here is that the Volt model is already obsolete. There are better, cheaper, alternatives all over the place. They need to boost their R&D pace. Granted, past R&D will contribute to the future success of the next generation, lessening the $ hit per unit as you pointed out. But the next generation might not be able to count on the same level of subsidies either.

What I meant is that designing a car is in no way at all comparable to drilling an oil well, in terms of initial investment and future returns. It needs to be profitable right away.
 
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Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

FlagDUDE08 said:
Alls I know is that $4/gallon gas is here to stay.
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sucks. I've got to start living more locally. Then if 300,000,000 other people do the same thing, gas will get cheap again for a while so I can drive around more and see the Obama addition to Mt. Rushmore and whatnot.
 
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