Friday, October 10, 2008

Why it is the best time to put your cash into stocks

After suffering its worst week ever, American stock markets are poised to be the place for bargain hunters. Many well-known, established companies have lost more than 50% of their shares' value over the past few weeks. Companies, the likes of CitiGroup, Intel, General Motors, Ford, and Alcoa are at or near their 52 week lows. Actually in the case of GM, it is 52 year low. These companies are either world leaders in their industries, or hold too much value to the American economy to let them go bankrupt. Take GM and Ford for example. Both companies have more than a half Million employees between them. Add to that the numbers employed by their parts' suppliers, dealerships' salespersons, and many other tangent industries. For these two companies to go under will most likely result in an economic situation that makes the great depression look like a time of boom in comparison.

My long Term stock picks include:


Company Current Share Price Ticker
Ford
the US government will do everything in its power to help Ford and GM stay operational. Letting them close shop (or sold to a foreign investor) is like cancelling the 4th of July!
$1.99 F
General Motors $4.89 GM
Citi Group
Despite losing to Wells Fargo in acquiring Wachovia, Citi remains one of the largest financial companies in the world
$14.11 C
AIG
the US government has too much of a stake in AIG to let go under.
$2.33 AIG
Intel
Without doubt, the most dominant Chip maker.
$15.19 INTC
Sun Microsystems
After a reverse stock split, it is back to the low single digit. Most likely due to general market conditions.
$4.80 JAVA
Alcoa
The worlds' largest Aluminium and American Stable.
$11.25 AA
The Home depot
If you can't sell you house in this market, might as well improve it to add value. This is where the Home depot comes into play. Even after the market recovers, HD will still benefit from a resurrected housing market.
$19.75 HD
General Electric
Probably the most diverse company (that's not a holding company) in the world. GE is worth at least $50 once markets recover. Its decline is attributed to the decline of its financial unit.
$21.50 GE
Bank of America
The most stable Banking company in the US. Acquired Country Wide for pennies on the dollar.
$20.87 BAC

6 comments:

Amr Hourani said...

Hi,
Actually it is the worst time to invest in stock with free fall indexes!

the ideal time would be soon, but not now! it should begin to establish ponits on the chart first and reflect to the opposite side, then it would be the ideal time for investement.

TRANS FRONTIER CONSULTANTS said...

good blog

Globalorama said...

Amr,
Actually the worst time was a year ago, when the Dow Jones was at 14000. But, going in now carries the possibility of losing ~5%. But, You will equally miss on ths possibility of the first 10%-15% on the upside march.

TFC,
thank you.

Amr Hourani said...

yes i twice what you said; no one can invest when index is in the mid high points.

currently the shares are lowering more and more, and the index is falling.. so for a short or even long term investement to make the MAX profit, it is not the ideal time, but it would be the sooner.

thank you for your valuable information..

nice blog, i will keep tuned..

Amr Hourani said...

.. and yes, in April / end of march in every year you can make good profit even if the market is "wage3" but under the condiftion of companies performance

Connex and Partners said...

5 months after this post. It is still the best time for the stocks :)