Comments on: “Free Money — the Ultimate Recession Stock”

By: Chris

Chris — Mon, 30 Nov 2009 02:31:25 +0000

Hi, just discovered the Stock Gumshoe today. Lots of great analysis. And your analyses look good, and the sleuthing is cool.

So as I poke around and check tickers on all these stocks you’ve sleuthed out, I see that NDN was indeed the ONE STOCK to own if I was going to own just one stock starting in Jul 28, 2008. It’s up 80% today and was double it’s 7/28/08 price earlier in the month.

Did Sosnowski have other good/lucky recession picks?

By: asafp

asafp — Sun, 27 Jul 2008 02:14:44 +0000

Another stock in the same category as NDN and BIG is Fred’s FRED. I’ve shopped at Fred’s and enjoyed it. Seems to be well run and has a variety of inexpensive merchandise. An alternative to Walmart, Costco, Sam’s. You can get in and out much quicker.

Chart seems ok. Caution: it’s a Toby Smith pick.

By: Allblack

Allblack — Sat, 26 Jul 2008 23:52:14 +0000

Hi Gumshoe & Gumshoers,

The company listed is LINC Energy, listed on the Australian Stock exchange, there are some threads that maybe worth a look.http://www.hotcopper.com.au/search_do.asp
Current price is AUD$3.26, it dropped AUD .51 cents on Friday 25th July.
ASX Code: LNC

By: diana c

diana c — Sat, 26 Jul 2008 01:04:36 +0000

Gumshoe–I enjoy your humorous comments and your explanations of copywriter’s glowing words. Ambrian Capital has gone down considerably since you wrote about it. What do you think of it now?

By: Donato

Donato — Fri, 25 Jul 2008 18:45:17 +0000

Anthony . . .
If you want your capital guaranteed, and are happy with a yield of 2%, why does it have to be an “ordinary stock”? With these parameters, I can only see one possible “end game” that you are looking for . . .

You want a stock that carries the guarantee it will never decrease, but also guarantees a minimum growth of 2% annually. Sane people do not enter the stock market (buy individual stocks) with expectations so low. What you have actually described is almost an annuity. You can get CD’s and money market accounts that pay 4 – 5% annually, and are government insured. Just be sure to spread anything over 100K around.

There are annuities available that pay a minimum of 2 – 5% annually, with the potential of earning more when the market is doing well, but are then capped at something like 12 – 17% annually on the upside. Some annuities available today are nothing like the annuities of yesterday. The only problem in your case might be the potential to liquidate quickly.

If you really want to be in the market yourself, and not rely on another’s management expertise, then you have to assume risk. That degree of risk is up to you. Simply put, the easiest way to make money in the market is to buy low and sell high. That being said, which portion of the market is currently taking a beating . . .

Financials. Buy low and sell high. The financial indexes are currently down. Way down. Technically, I don’t think you can invest directly in an index, but there are funds that are managed to move the same as the indexes.

I think we are approaching the bottom. There is still much volatility ahead, but I’m starting to load up on an ETF (exchange traded fund) that actually moves at twice the rate of a financial index. Since I don’t have a crystal ball, I will make several purchases during the course of the next year. If it drops below 10, I’ll probably just spend my total sum on it. That fund is UYG. I believe in the American economy, and that it will recover. If you don’t, and you think the financials are doomed forever, then buy SKF (I think is the ticker). SKF moves at twice the inverse of a financial index.

Another option might be the Zweig Total Return Fund (ZTR). I do not own ZTR. The objective of the fund is to return 10% annual yield. And I think, but am not positive, that when I first ran across this fund, I saw somewhere that if the yield falls below 10%, then some of yield is structured to give you tax advantages.