September Idea of the Month: Buy Loews, Sell High

by Travis Johnson, Stock Gumshoe | October 1, 2008 10:40 pm

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Source URL: https://www.stockgumshoe.com/2008/10/september-idea-of-the-month-buy-loews-sell-high/


8 responses to “September Idea of the Month: Buy Loews, Sell High”

  1. JOHN BRAZELTON says:

    L – 3 for 5 trading under the trendline. Both weekly and monthly momentum turned nagative. Weekly for this company usually is 10 – 11 weeks. Monthly for this one is usually 9 months. Bearish target is $26 so if you have to own this, be sure to tranche in. If you read the disclosure, you may want to own the Jan ’10 $30’s and sell the Dec ’08 $35’s for a $6.60 dr. You should be able to roll this one every three months Until Jan ’10. You must manage the trade and may want to wait to see how this one trades around the bottom of the trading range at $32. Other strategies are available. Let me know.

  2. brenda says:

    Certainly the shares are taking yet another hit this morning — the absolute panic about the bailout/rescue plan is giving stocks the Mexican jumping bean disease, I really should turn off CNBC and start reading weekly magazines instead of newspapers.

  3. encallede says:

    I received an e-mail from Leebs Complete Investor, which touts the #1 commodity stock, being the 3rd largest copper producer in the world, the 6th largest aluminum producer, the 3rd largest nickel producer as well as being strong in production of coal,silver,lead,uranium and zinc.
    Would you please comment on what stock this might be and is it a good investment?

  4. nedskape1 says:

    Hi Gumshoe
    If CNA mentions “SubPrime” in their Annual Report & reduced earnings in the same breath, the stock will hit $20 > $ 25 sooner than later – like about 5 minutes later – maybe lower….
    Likewise even with the $700B Bailout – instalment 1 of 3 for a total of $2.1+ Trillion over the next two years – covering Sub-Prime, Alt-arm (April/May 2009) & Commercial Lending – the Market will soon decide it is not enough & continue its overall down-trend.
    By the way has anyone told Congress they are up for $2.1T – not just the $700B their voting on now- or is everyone only being told what they need to know (Shades of “You Can’t Handle The Truth!!!)

  5. brenda says:

    Well, with the way the market is going I can’t encourage anyone to look at Loews versus the competitors I mentioned — at these prices, I’d be much happier with buying Markel or Berkshire. Loews deserves to be cheaper than those two, but neither of them has the baggage that Loews does. I have an order in to sell Loews, possibly to replace it with some shares of Boardwalk Partners, since that’s their division that I’m most confident in at the moment. Will let you know if it trips.

  6. cprohrer says:

    Travis
    When you get in barroom fight like this market…I doesn’t matter much what you do.

    You know…Someone here mentioned what’s touted as the “Ultimate Recession Stock”.
    A recession stock doesn’t protect anyone from anything.
    It just recovers faster….Sometimes.

    Apropos to nothing whatever….I’ll wager you won’t have another contest anytime soon…
    I’m surprised someone hasn’t entered the Russell 2000 Ultra.

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