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Stop Buying These Stocks

A few weeks ago, my Foolish friends Brian Richards and Tim Hanson profiled five stocks they felt investors should avoid. Their argument struck me as pretty straightforward: Investors would be well-served to avoid companies with opaque financial statements (like Citigroup (NYSE: C  ) ) or complicated government ties (like, um, Citigroup).

Apparently many members of our community disagreed.

Pointing to their significant short-term gains in stocks such as Bank of America (NYSE: BAC  ) and Ford (NYSE: F  ) , many readers (rather rudely, in my opinion) insisted that Brian and Tim’s analysis was invalid.

This comment from IronBob is a good representation of the feedback that Brian and Tim received:

INCREDIBLE! Thanks for the advice! I'm glad I'm ignoring it as I almost doubled my money on Ford in less than two months!

While I’m happy for IronBob, I’d like to caution readers that his returns are hardly typical -- and that short-term speculating in no-moat companies is simply not a sound investing strategy.

Just say no ... to short-term speculation
Jumping in and out of stocks is certainly exciting, and -- if you're lucky -- it can result in some satisfying short-term profits. But over the long haul, active trading is a loser's game.

For starters, you have to correctly predict both the direction and the timing of a stock's move, which most experts agree is impossible to do with any consistency. Anyone can get lucky once or twice, but repeatedly? Forget it.

And then there are the frictional costs of taxes and trading commissions, which can combine to take a big bite out of your returns.

Plus, there's the unfortunate fact that we humans make for lousy traders. We tend to sense patterns that don't exist, overreact to innocuous stimuli, sell our winners too soon, and hang on to our losers for too long.

In an oft-cited study, professors Brad Barber and Terrance Odean found a strong correlation between active trading tendencies and abysmal stock returns. In other words, the more frequently their subjects traded in and out of stocks, the worse their portfolios performed.

A perfect storm for poor performance
Unfortunately, the current climate has created the ideal scenario for short-term speculation.

Investors of all shapes and sizes have lost a significant amount of money in a relatively short time span. The heightened market volatility has made for some sensational short-term price swings. And the economy appears to be headed down the tubes.

Based on the volume and content of our reader comments and hate mail, it’s clear that these factors have combined to make investors increasingly short-term-oriented and willing to invest in companies with highly uncertain futures. During the market rally over the last month or so, these traits have been rewarded. But if history is any guide, that will not be the case over the long haul.

What this means for you
In other words, if you're interested in preserving your capital and accumulating long-term wealth, stay away from short-term speculation in subpar companies.

Don't buy First Solar (Nasdaq: FSLR  ) because you're counting on a jolt from President Obama's alternative energy program. This company specializes in an unproven technology that is rapidly evolving, and it has a host of competent competitors. The potential rewards in this space could be vast -- or nonexistent.

Don't buy Bank of America or Citigroup because you heard that banks would benefit from the elimination of mark-to-market accounting. Nobody can say for sure exactly what insidious assets sit on these companies' balance sheets.

Don't buy Sirius XM Radio (Nasdaq: SIRI  ) because of Liberty Media’s recent capital infusion. This company is anchored to the auto industry, loaded with debt, and always willing to dilute shareholders.

Don't buy Stone Energy because a talking head on TV said that oil can't possibly go any lower. In fact, don't buy a stock based on anything that you hear on TV!

So what should I buy, smart guy?
That's easy. Concentrate on buying great businesses -- companies with straightforward business models, sound balance sheets, strong financial statements, and shareholder-friendly management. If you buy such businesses when they trade at a significant discount to intrinsic value, it's highly likely that you'll make a lot of money over the long term.

Instead of the companies I mentioned earlier, why not buy shares of Marvel Entertainment (NYSE: MVL  ) , your friendly neighborhood comic book company? Its characters are timeless, and its financials are gorgeous, thanks to the high-margin licensing business. Based on the strength of its Spider-Man franchise and a powerful new movie studio segment, Marvel has soared 705% since David Gardner first recommended it to Motley Fool Stock Advisor members back in July 2002.

Or how about Costco Wholesale (Nasdaq: COST  ) ? This membership warehouse retailer has strong recurring revenues, pristine financials, great growth potential, and perhaps the most shareholder-friendly CEO around in Jim Sinegal. This great business has always traded at a premium price, but today, it trades at its cheapest level in years. This stock is up only 25% from where Tom Gardner recommended it way back in May 2002 -- but that sure beats the negative 23% return for the S&P 500 over the same time period!

To read more about Marvel, Costco, and the rest of David and Tom's top selections, click here to take a free 30-day trial of Stock Advisor. As always, there is no obligation to subscribe.

Already subscribed to Stock Advisor? Log in at the top of this page.

Rich Greifner would happily buy shares of Costco if he could ever stop writing about it. Stupid Foolish disclosure policy. Costco and Marvel are Motley Fool Stock Advisor recommendations. Costco is also an Inside Value pick. The Motley Fool owns shares of Costco.


Read/Post Comments (72) | Recommend This Article (141)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 26, 2009, at 10:32 AM, Bootluver wrote:

    Its interesting to still see people trying to give advice on what stock to buy or not buy. In the old days (pre 2000) people would usualy listen to experienced market folks and take their advice on what stock will best for their needs. This was all done by market pros who dissected companies earnings , profits and potential market abilities and other indicators. Well folks...that old stock market we knew and loved and gone forever, and its best we just call it as it is. A twisted mess of wreckage destroyed by greed and maniplulation. Now some would argue that greed is necessary to make the world go 'round, but there has to be limits. There has to be some truth as to what is really going on. There is none of that. I blame the US Government for this. Not watching the children on Wall Street and the Big Banks as they swindled the entire world out of untold amounts of cash. I personaly believe we are seeing the beginning of the end of this type of Capitolism on the planet. The moves being made today are only a bandaid for the very short term, when the bleeding begins again, watch out! As far the stock market, pick a stock with a newspaper and a dart board. Any one telling you they could advise you better is just trying to hang on to the good Ole' days. Those times are over. The US will fall in a way similar to the Roman Empire. Give the Romans credit though, they lasted alot longer then we will. A shame to see such a great country fade to black cause of a virtual handfull of greedy men, thats the legacy of the United States of America.

  • Report this Comment On April 26, 2009, at 10:34 AM, maxot wrote:

    I tell you what you stick cautiously with your stocks with a maximum 30-50% upside.

    Takes some trading skill to pick such companies. Even still you dont pick the best safe companies with the likes of COP offering much better potential and a safer company.

    Ill stick to my Citi. I guess you would have criticised my buying them at $1.50?

    Also when I bought Ford $1.30

    LVS $4

    AIB $1

    :Lets meet up at year end and compare

  • Report this Comment On April 26, 2009, at 10:35 AM, r0b50 wrote:

    What kind of article is this?

    Oh well you made money on some stocks we don't think you are smart enough to do your homeowrk and think there is a reasonable margin of safety...oh no, please stay away from stocks unless we tell you it's safe because you could lose money.

    Oh wait, most of you already did listening to the 'experts' and their amazing analytical skills!

    Ah yes, Analysts. They'll save us!

    I know that they always tell us to sell before the drop and never have a price cliff dive before they realize they need to 'adjust' their analysis to reflect the new trend.

    You know, the one they never saw coming to begin with!

    Rely on yourself and the homework you do.

    Stick to things you know or can understand.

    Buy and sell in phases to make sure you are right.

    Never fall in love and be prepared to change your mind if you are wrong.

    Lord knows we can't do ANY worse than the morons at Moody's, or the rest of these analysts who are the very reason that short term stock gains are all that companies care about to begin with.

  • Report this Comment On April 26, 2009, at 10:46 AM, maxot wrote:

    Article is condescending patronising drivel.

    I would hazard from people who were recommending companies back in 07/08 at 10 times what they are trading at now.

  • Report this Comment On April 26, 2009, at 10:55 AM, Xciteddon wrote:

    Buying stock in the above mentioned article is playing with fire. When these companies go bankrupt, and they surely will. You as a common shareholder will only see some return when and if all the debts and preferred shareholders are paid first. You can never guess when a bankruptcy will happen. The stock could be selling a $10.00 a share and they still file. The stock price could have gone up yesterday. Doesn't matter. :-( . Bankruptcies can and often do take a long time to be finalized. If you do see some return, it could be months or even years! Go ahead! play with fire. When they file, you won't be able to get out fast enough. They are not going to notify you the day before. Just a word to the wise. Its not worth the risk. Have a happy day!

    D

  • Report this Comment On April 26, 2009, at 11:03 AM, maxot wrote:

    Yeah BAC and C are going bankrupt.

    Fair play

    SP500 to below 500 as well I guess?

  • Report this Comment On April 26, 2009, at 11:05 AM, nouser2009 wrote:

    I disagree with your article. You always seem to point the big winners. I was a member of the fool subscription hidden gems and other subscriptions from fool.com and i know i loaded the truck with HPY when you were touting it as a screaming buy at $31+/sh... look at it now... why don't you talk about the failures too?

    IMHO, F is a decent buy and was definitely a "screaming" buy a month ago when is was flirting with 1-2sh.

  • Report this Comment On April 26, 2009, at 11:07 AM, Dewangski1 wrote:

    "Don't buy Bank of America or Citigroup because you heard that banks would benefit from the elimination of mark-to-market accounting. Nobody can say for sure exactly what insidious assets sit on these companies' balance sheets."

    You are exactly right with this comment.

    BUT....why not buy these companies based on (what appears to be) government rescue. 6 months ago, it was bloody murder, the end of the world. Earnings season rolls in and banks are operating at a profit, but are still "loaded with toxic assets."

    Questions: What happens if the monster doesn't come out of the closet? What happens if everything the government has done starts to kick in and people stop defaulting and start making payments. What happens if credit markets loosen up? What happens to these banks then?

    It's not going to happen tomorrow, or the next day, probably not within a year, but with the major financial companies being almost guaranteed survival through this, is it possible that if you had 20 years, that there will be one point in this time where these companies will be higher than today? I answered "Yes" to this question, and that's why I own C and BAC.

  • Report this Comment On April 26, 2009, at 12:36 PM, eaenglish10 wrote:

    I agree with the article. Thanks

  • Report this Comment On April 26, 2009, at 12:46 PM, Collaredkitty wrote:

    I disagree entirely. I firmly hold the view that by the time the motley fool, recommends *anything*, everyone else already knows about it. That and selling when cramer says to buy, are two of the best gauges you can find in today's markets if you follow the lemming blogs.

    Why is this? Well, it's quite simple. People give credence to what you say, and like sheep, they run out and buy buy buy. Well, when they buy buy buy, the profit potential goes to sh1t sh1t sh1t due to volume, and if I'm holding that position, I sell sell sell.

    Not to mention the fact that the motley fool is generally wrong, short-sighted, or incorrectly establishing metrics on its analysis in almost any case.

    Now, please come back at me with your half-witticisms and soundboard driven commentary.

  • Report this Comment On April 26, 2009, at 1:17 PM, Fredlee009 wrote:

    I was going rip this article, but I see no positives, so I will just go ahead and pile on anyway.

    Please dont ever write another article. Your article is full of false and bad information, that would work terribly for most investors. Dont buy Sirius? Really? Ok....

    Date: April 26, 2009.

    Ill remember you said that. Current price is .43 cents.

    I will see you when its at .80 cents.

    Ill tell you what, regardless of your article Im going to buy SiriusXM based on you telling me not too. Going to load up on Monday. Sounds like your scared or somethig. Banks? Great buy here too, in my opinion. Mark to market accounting rule literally makes them take off. Regardless of your stupid opinion, In my opinion of course. Ive never read an article by an author telling me not to buy a stock, and had it tank. NEVER.

  • Report this Comment On April 26, 2009, at 1:18 PM, Fredlee009 wrote:

    The main stream media HAS NEVER warned me away from a stock tanking, that stayed tanked. NEVER NEVER NEVER NEVER NEVER NEVER.

  • Report this Comment On April 26, 2009, at 1:24 PM, w0zzie wrote:

    You've gotten an awful lot of mileage out of that Marvel pick. Good for you! Isn't it time to move on?

    Ford is a strong company with a good product. Their moat is their brand, and their market position is greatly enhanced by GM's weakness. US-loyal car buyers may likely drift to Ford in the months and years ahead. I believe Ford is a bit over-bought at this point, but to denigrate these peoples' investments as nothing but speculation does them a disservice. Richards and Hanson were wrong - the stock was a buy at the time they offered their opinion.

    Further, there's nothing wrong with trading on an obvious, if temporary, market innefficiency. That's what your Ford buyers have done, and they were right to do it. While long-term buy-and-hold is the best way to invest, it's certainly not the only way, and imaginative, thoughtful investors know that.

  • Report this Comment On April 26, 2009, at 1:40 PM, stkdn wrote:

    And why would I sell a stock that has an INCREASE in it's star value???? Ford is NOT going to increase in their 5 dollar value? OK if you say so. I've already made 16 percent on my money in Ford. They are going to go bankrupt? Don't think so.SIRI is solid as well until 2010,unless Liberty goes under as well.Someone had a reason to bail out this company. There stock not going any higher? It was at 62 cents a share at one time. Should be at LEAST a dollar by the end of summer. It's articles like this that ruin a stock when it is just starting a recovery. I still can't believe you would rag on the only true American car maker that is standing,or at least trying to,stand on it's own Shame on you.

  • Report this Comment On April 26, 2009, at 2:09 PM, kingman48 wrote:

    Your picks are what averaging 32% in the last 2 years. No thanks , as Donald Trump once said i can loose my own money I don't need your help

  • Report this Comment On April 26, 2009, at 2:30 PM, thunder86 wrote:

    When a company touts a stock them says "sell" look for their short-selling associates or they are themselves shorting the stock. The author, like Cramer has been guilty of saying sell as individuals in the know make money as the stock falls. I'm keeping CITI, BAC, and SIRI. CITI and BAC both have enormous revenue streams and are established names and SIRI is uniquely positioned in its market space.

  • Report this Comment On April 26, 2009, at 2:31 PM, Valueinv wrote:

    No need to buy Marvel Comics.

    Your article is funnier than any comic book.

  • Report this Comment On April 26, 2009, at 3:36 PM, ddouge wrote:

    I agree with your article. Fact is CITI and BAC for all intents and purposes are bankrupt. Without tarp they could not function tomorrow.

    The purpose of tarp was to allow these bankrupt companies to continue to function since they were incapable of doing it on their own without tarp.

    Nothing has changed with these companies fundamentally making them any better investments today than they were 2 months ago

  • Report this Comment On April 26, 2009, at 4:05 PM, MADACASTO wrote:

    TMF needs to stay away from absolute declarations about buying and selling like I need to stay away from volatile stocks. Condescending indeed. I want to see a statistical track record on TMF stock recommendations, over time, including recommended acquisitions and dispositions. Heck, why not throw in the complete contradictions that nobody is holding them to task on. When this is done, we'll all see what a laughingstock this outfit is. Cute writing style though.

    Those who cannot do, teach. Those who cannot teach, sell hokey advice and use scare tactics in the process.

  • Report this Comment On April 26, 2009, at 4:27 PM, unimichael88 wrote:

    Ford was down to almost a dollar a share. Great time to get in. It over 5 dollars currently. They have not taken any bailout money and have a lot of loyal customers. They also have a hit with the ford fusion hybrid( i think thats the model.) Buyers are avoiding Chrysler like the plague. They are almost certainly headed for bankruptcy. GM is not much better off. Ford is the only one standing on its own. Invest in Ford and invest in America.

  • Report this Comment On April 26, 2009, at 5:54 PM, yeshuasaves wrote:

    I'm not a "trained" or even seasoned investor. But I'm finally doing something I wish I had done a long time ago...investing in America as well as our world economy! As for Ford, back in November I bought in, and have made, as of Friday, a 137.86% gain (that's after my comission to buy), and even when I bought higher (it went up before going down again last month) I've still made 37.70% on my second round. Overall, I've made a 79.15% return on both buys. It may go down again--that's the market. But I trust my homework and my common sense. Ford is still around and, in my opinion, solid. But ups and downs and highs and lows are what the stockmarket is made of. It's risky. Even when I was laid off, I left my F shares alone. People ARE becoming more "buy American" again. I've seen way too many new Focuses driven in my neighborhood to sell F. And I'm in a big, prosperous area. I'm glad I bought Ford, and glad I held onto my Chase stock which is almost where it was before the crash! Glad even more so that I trust the brain God gave me! I'll take other's advice into consideration, as should everyone. But please do your own research and then weigh on what you're willing to lose. I'm happy for my decision and will sell when "I" am ready. I'm glad others agree with me. :)

  • Report this Comment On April 26, 2009, at 7:57 PM, andreordu wrote:

    BUY whatever they say DON'T BUY, they realy have noclue of what are they talking about, who writes these stupid articals?

    Buy BAC, C, SIRI, CTIC, F

  • Report this Comment On April 26, 2009, at 7:57 PM, DEALWITHTHEDAY wrote:

    1st Posting, having been reading for a while now. I am amazed that I either have to be a long term investor or a short term trader. My Logic tells me that a combination of both worlds would be prudent. If I invest in a Stock, ETF, and it makes a large fast run up it seems only prudent to take some of the table. If that is a short term that is what the market did and what it is. If it runs up slow and I keep it for a longer period of time to make gains then again that is the market. I set my price in and out and when it gets there it gets there. Sorry but all this back and forth and I wrong or your wrong is crazy. I want to make money and you want to make money.

  • Report this Comment On April 26, 2009, at 9:31 PM, 72SIGAR wrote:

    Why I waist my money on this bs subscription is a wonder to me. Yes, I bought BAC at 4.16 sold it 6.80. watched it go up and then back down bought it around 7 dumped it around 8.36 and I am the fool. How about u tell your readers we are worthless twits, go out an d do your own homework, learn Tech analysis, and learn to trade in a range, because we are at best nothing more than a bunch of B.S. artists that have crap articles, recycle th esame crap and tell are readers to go long on XOM. MSFT, ORACLE and other blue chiips. The only fool is me for waisting my money on this foolish site.

  • Report this Comment On April 26, 2009, at 10:12 PM, Z1chopper wrote:

    I like so many others have been pretty much been screwed over. Company got sold for nothing and we all last our options. We were asked to hold our options because it was good for the company to see it's officers holding the stock. Maybe even buy some.

    No one asked us if they could sell the company for pennies on the dollar. Americans screwing Americans is the American way. So what's new.

    From now on I am out for ME and my family. I may loose my home. This is so bad for so many people. I thought I would be able to retire soon. But it is all gone. Now what do we do?

    I still invest what litle I have but sell every friday. I take my profits period. If we crash again I can buy in lower.

    Hold your profits close.

    Your family needs to be fed.

    Just another slob trying to get by.

  • Report this Comment On April 26, 2009, at 10:16 PM, Z1chopper wrote:

    Oh by the way I don't blame the Fools for my problems just myself.

    Have a nice day.

  • Report this Comment On April 26, 2009, at 10:52 PM, JAYEFKAY wrote:

    Maybe this will be a fresh thought on Ford.

    After 9/11, fear was in the air and the stock market dove, especially the airline stocks. I think every single one of them was under $5, most were closer to $1. People were afraid, they weren't flying, and it was all fire and brimstone.

    I remember thinking, there's no way airline travel goes away in this country. An airline or two might disappear, but they can't all go away. But I didn't invest. Sure enough, some airlines went away, some merged, but if I had bought an equal amount of all the majors I could have pocketed multiple 20 baggers.

    Call me stupid, but I feel the same way about the car industry. No way they all go away. Now there's only two you can buy directly, Ford and GM. I bought an equal amount in both, figuring that in the unlikely event that one of them went away, the other should only do better.

    I bought GM at 5, Ford at 2. GM is at 1.60 or so, Ford at 5. I'm going to put a limit on Ford and hold GM, because I still just don't believe the dem govt will let the uaw enter bankruptcy.

    In the end, isn't investing an art? It has a lot of pieces and parts. Any insight, technique or tool you can use to carve some advantage for yourself is helpful. Fundamentals, technical indicators, momentum, experience, common sense.

    I think it's a stock picker's paradise out there right now, which is why I just subscribed. Good luck --

  • Report this Comment On April 26, 2009, at 11:53 PM, texmexus wrote:

    LOL. "Don't buy Sirius XM Radio (Nasdaq: SIRI) This company is anchored to the auto industry" says the fool.

    It’s actually very funny. As far as I know the polar bear population is declining. But the human population is in good shape and multiplying. Fast. So, for as long as they need to commute they will buy cars. And yes, the new car sales did hit a bump in the past few months, mostly because the banks stopped lending. But it looks like that is almost over. So what if GM is in trouble? People will buy Hondas or who knows what, maybe Fiats. And don't forget the new IPhone is coming, and so is the Palm Pre. Anyone thought of that? But let's not forget, that there is no competition. In other words if you want satellite radio no matter what you drive or what kind of phone you have, there is only one place to buy it. It's called SIRIUS XM Radio. Guess what, it works everywhere in the world. Even on line, on your computer. I can't tell if you this stock is cheap at 44 cents, just as I couldn’t tell if it was cheap at 7 cents few months ago. What I know, is that something is worth exactly what someone pays for it. And it looks like they even paid 63 cents for it last week. So, this stock it is worth something. Only the time will tell us what this stock is really worth. But it looks like it survived pretty good this week after the big sellout because of the fake news. And even then some people thought it was cheap and bought it. Some thought it was garbage and dumped it, some thought it was gold and bought it. One last thing, people seem to forget how stock trading works. Buy the stock with the price you like and put it up for sale at the price you want. If everybody will stick to this principle, we will get what we want. But if there are no orders in place it is kind of hard for the price to go up. Eventually it will, on a high volume day when the stock is overbought but it will decline soon since there is no support. A lot of people sell as soon as they read something on the internet. Don't get influenced by these ridiculous articles. Pay attention to the company news and that's it. Unless these people have their DNA identical to Nostradamus they have no clue. Stick to your gut feeling and your common sense. If you lose money because of your judgment it's your money. But if you lose money based on what these articles tell you, then you lost it because of them. And what's funny, you can lose money by listening to the guy that wrote this article and not buy this stock. I did that by listening to somebody that told me it was a bad buy at 8 cents. But I bought it at 14 cents. I did lose $6,000.00 just by listening to this guy. Ironically when he saw me making money he bought at 22 cents and immediately got out at 25. He's asking me every day if sold. Anyhow, good luck trading.

  • Report this Comment On April 27, 2009, at 1:15 AM, ArizonaWildcats wrote:

    Remember the good 'ol days, when Motley Fool was relevant? I believe the last time that was the case was around 1998

  • Report this Comment On April 27, 2009, at 6:45 AM, dvillone1 wrote:

    I have put a ton of money into your stupid service as far as my value of my wallet goes. Please leave my pocketbook alone and quit dissing my present investments. Shut your pie hole and move on like most of these guys said. You guys haven't made me any money and most of these guys commenting here have made some pretty good returns off of the very stocks you say to stay away from. Get a real job and shut up. I put money in your pocket to pay your stupid good for nothing salary and you are destroying my attempts to invest in other stocks. Shut your pie hole.

  • Report this Comment On April 27, 2009, at 8:21 AM, cbrathw8 wrote:

    The original article was pathetic, but this is truly abysmal for all the reasons that have been pointed out. If you don't think F, BAC or C are well on their way up, you have NO BUSINESS recommending stocks.

  • Report this Comment On April 27, 2009, at 9:33 AM, Shopessmart wrote:

    What a horrid article.

    The Motley Fool is fundamentally a "traders" tool (or at least that is what the worthless managment would lead you to believe) which offers their views on equities.

    We have no real assurances that your views are not bought and sold by the companies that you cover other than your disclaimer.

    This article is a slap in the face of traders who have been trading with success.

    The article by Tim and Brian was worthless. The fact that the author of this article claims some responses were rude may very well be a testament to the level of worthless-ness of the original article.

    Special note to MF- Do not ever solicit me to pay for anything I may read in the future from MF because as far as I am concerned, you guys owe me.

  • Report this Comment On April 27, 2009, at 10:01 AM, fcrc124 wrote:

    Well I am going to cancel my subsctiption now. I am relatively new to trading, but I have done a great deal of reading on trading on fundementals and technical trading. So to say that technical trading is a bad idea and that you should just buy long.......means that when an crash happens you must lose half of your money. Even if you bought a bunch of good companies. So your only answer is to take it and let other make money off of the stock market while you wait 10 years to start to regain your investment.

    In the article that was referenced you forgot to mention that it was stated to not buy GE as well. Looking at BAC and GE for a 5 year time frame when GE was 9 dollars a share and BAC was 7 dollars a share, do you really think these companies will not be around in 5 years? Do you think that they will be worth more then 7 and 9 dollars? I do because they are solid companies. BAC did not need a government bailout but was told to take one by the government. They then took the money to buy Merryl Lynch. That may have been a bad deal but do you think that the US will let them fail now after forcing them to take money? I do not think so. These companies will be her in 20 years.

  • Report this Comment On April 27, 2009, at 10:41 AM, smaulcap wrote:

    What an article!

    The writer is so full of crap, his eyes must be brown.

    "Jumping in and out of stocks is certainly exciting, and -- if you're lucky -- it can result in some satisfying short-term profits. But over the long haul, active trading is a loser's game."

    Oh yea.....Is that so? Says who?

    It's 10.04AM, I just sold 500 shares of FSLR that I bought at the open, in the red at $145.50. I just sold it in the green at $149.35. I'm just a novice neophyte.

    I came into the market in late November with a buy and hold mentality. I built a portfolio of solid name, well known stocks, like this guy is talking about. They were doing well. Come February, Those stocks were making me a looser, big time. March 2nd, I sold em all, took the loss. March 4th I started trading. In a week and a half I made back all the money I lost. Since then, I'm making money. Good money. And I make it just about every day. Now and then I end up having to hold a stock for a day or two because it didn't do what I expected, then I sell it, make money. Do I loose on some? Sure. But........My gains vastly outnumber my minor losses. And, the losses are due to my inpatience and inexperience.

    I see "buy and hold" as my grandfathers method. Okay.....I'm not investing, I'm trading. So what! I'm making money. Yea I pay taxes on it, and I have my Schwab commisions on today's trade of FSLR. The commission totals a big $19.00...HA! That's the price I pay. I'm happy to pay it. The best part is....I sleep well tonight. I made $1925.00. Not a bad day's pay for a good night's sleep. My money is out of the market and safe. And.......I did it all before 10:30 AM. Yea I pay higher taxes and a petty commision. So What! That's a small price to pay. A good night's sleep..........That's priceless.

    That's it, I'm done for the day. I'm taking my $1925 and I'm going fishing. What if the market crashes you say? Well........That don't effect me, I'm not invested. I said bye bye to buy and hold. The writer of this article sounds to me like he is on the loosing end of a buy and hold strategy. You know.....Misery loves company.

  • Report this Comment On April 27, 2009, at 11:17 PM, smaulcap wrote:

    Help us keep this a respectfully Foolish area!

    MF wants respect. After they give us an article that is not only disrespectful, but down right insulting to traders / investors.

    This guy Greifner is promoting buy and hold. However, he recommends that you do not buy and hold BAC, or C. Not to mention F. I guess he sees no future in BAC, C, and F. WOW!.....That's a mind blower. This guy could not have been sober when he wrote this article. He sounds seriously confused, and unqualified to be giving advise to anyone. He wants you to buy and hold. But....Don't buy and hold First Solar? HUH?! GOD! Don't listen to this guy. He thinks that solar is an "unproven technology." Solar WAS an unproven technology 35 years ago. Solar is currently in use successfully around the world. Where have you been Man? Wake up!

    He wants you to buy a Comic Book company, Marvel Comics. Make a long term investment in a Comic Book company. But don't invest in BAC or First Solar, that would be reckless.

    Greifner.......Don't give up your day job. You'll never make it as a stock advisor.

    And, MF......Please don't insult and abuse your readers. Practice what you preach.

    Marvel Comics?....Geesh. Myself and those who read this article have bigger fish to fry. We are serious trader / investors.

    With this ridiculous article, MF, you blew your credibility sky high.

  • Report this Comment On April 28, 2009, at 8:36 AM, MPov wrote:

    I bought F at under $2. I figured that it looked like the strongest of the 3 US car makers. Plus, my wife and I were shopping for a new car a few months ago and wound up buying a Taurus X. We looked at a lot of different brands of cars, and I was VERY impressed with the Ford lineup overall. They have some real winners, and the quality has improved dramatically. Frankly I never thought I would buy an American car but a trip to the Ford showroom really changed my mind. I think they can hold their own with the Japanese, Koreans et al.

    So, I guess I'm taking a small gamble that they will avoid bankruptcy. If they do, they will be in a great competitive position. Am expecting my modest investment to pay off 10-fold over time.

  • Report this Comment On April 28, 2009, at 11:49 AM, chessss wrote:

    IGNORANCE OF THE ISSUES NEVER CEASES TO SURPRISE ME. WHO DO YOU THINK MADE THE MIDDLE CLASS IN AMERICA? IT WAS THE HARD WORKING ILL TREATED WORKERS WHO FORMED UNIONS AND FORCED A LITTLE DEMOCRACY ON THE DICTATOR TYPE MANAGEMENT OF THE COMPANIES. WAGES ARE ONLY 10% OF THE COMPANIES COSTS! DO YOU LIKE S/S OR WOULD YOU RATHER HAVE YOUR RETIREMENT ONLY IN STOCKS?

  • Report this Comment On April 28, 2009, at 4:21 PM, exitplan wrote:

    What's with all the anger? First off, no one saw this (crisis) coming except a few and they are the last people you should be listening to now.

    There is some truth on both sides and only the future will tell who got it right. My investing in F and GE plays off what both sides are saying. I started with GE @8.78, 6000 shares. This comeback on the heels of losing their AAA rating singled a buy for me. Do'nt kid yourselfs if you got in @6.00 and felt there was little risk.But hey, congrats on a risky trade! I bought 14000 more shares @11.00 when it became clear that the new range was 10.50-12.50 and the call options + continued positive news pointed higher.With F I got in @4.20,10000 shares when GS put it on their conviction buy list + no govt $$. Once again, if you bought @ 1.50 great but risky trade. If F can hold a range of 6.50-8.50 I will add another 10000 shares.

    Why cant you play both sides of this debate? Please let me know what you fellow fools think!

  • Report this Comment On April 28, 2009, at 4:38 PM, JRutsch05 wrote:

    I bought Sirius stock when it was @ 0.06 and sold @ 0.39 I am glad I stock it out and did not listen to articles like this. It paid for my college tuition.

  • Report this Comment On April 28, 2009, at 6:32 PM, beertrain wrote:

    Dear Fellow members,

    I find it amazing how you waste time drafting emails that are rude and condescending. The commentary is something to be expected from teenagers not informed investors.

    You should see disagreement as necessary in the investment world as the reality is seen differently by the buyer and seller.

    This site can be used to add to the individual and group investment body of knowledge or it can be misused to protray one person's knowledge is more superior than another which in my humble opinion adds no value.

    I can agree with the author and each contributor in part. I am not going to waste my time picking apart the deficincies in each comment, but rather suggest as a whole, this space can be better used to provide opinions on both sides of the trade.

    We like to criticize the experts. many make themselves to be easy targets. Let's have a reality check........Reality......anyone who is paid for their service can be declared an "expert". Reality.......only about 10% of the analysists are truly exceptional. Reality.......it is unlikely you will get free advice from an exceptional analyst or a working investment strategy. I am not suggesting the author is or is not truly exceptional. I will suggest the article is incomplete and omits needed information to make an informed decision. Based on the content of the emails sent in response to the article, I doubt many of you have the time or inclination to write an educated rebutal.

    There are many very intelligent people using this site. Some may be in the group above, and just venting.........but the commentary makes it difficult to distinguish.

    Let's try something different, like providing informative opinions and/or articles that can assist other members in becoming successful investors. Present your strategy(ies) that have contibuted to your successes.

    At the end of the day, advice can be used or dismissed. Savy investors take what is useful and dismiss the rest without fanfair. If you use this site, you should be willing to contribute to the greater good. Give it a try!!

  • Report this Comment On April 28, 2009, at 8:44 PM, swantly wrote:

    I didn't have the guts to buy any of the above stocks, although I did add USG to my portfolio at $7. This was another stock on the Fool's list of stocks that they recommended not to buy, stating:

    "recovery for USG shares could eventually yield a tidy sum, but even this patient Fool would prefer a more direct route to profit."

    I thought 100% return in 3 months was a pretty direct route myself. Warren Buffet has invested heavily in USG. In Buffet I trust.

    I agree with the above authors sentiments that constructive comments are far more useful. Having said that, I get infuriated by articles written by self-proclaimed professionals which give nothing but excuses for past mistakes or bad calls that they make, while failing to congratulate those fools who are savvy and make money - dismissing their success as dumb luck.

    Also, if I hear about Marvel Entertainment again, I might throw up.

  • Report this Comment On April 28, 2009, at 10:45 PM, beertrain wrote:

    Dear Swantly and other fellow members,

    The trade on USG, C, BAC, F, GM and others from today's vantage point seems brilliant. When you make a 100% gain, you are indend a genius on THAT trade.

    Now let's understand what you did compared to what the author may have been trying to tell you. These stocks have potential to increase in value, as you have experienced. They also had, in my opinion an equal or greater potential to head South.

    Why?

    I hope you pay attention here. All had and still have huge debt compared to their cash flows. If they fail to meet their debt payment(s) they will follow suit with Leyman Brothers, Dana Corp and others over the past12 months. If this happens, your common shares will become worthless, ie. zero! When a stock heads south and is trading for pennies, you can view it as a screaming good deal OR you can see the investor sentiment is the stock needs capitalizartion or it will fail. No ability to refinance, then you are toast.

    The author should take the time to educate you on the risk reward side of the business inorder for you to make informed decisions. The REWARD can be great if you are willing to accept the RISK.

    IF you understand the risk associated with the decision then you MIGHT be on firm ground. To illustrate this point, let's step back and focus on the financial industry. The problem surfacing today in the financial institutions is the affect of not understanding RISK. The financial institutions have accepted risk that is yet to be totally defined and made assumptions that have proven invalid. In example, the "financial institutions" have given out credit cards like treats at Halloween, created mortgage vehicles that would make the dead turn in their grave, created and traded investment vehicles that only a few if any really understand. If you are in the banking business, YOU know exacting what I am talking about. If you don't know, you should take the time to find out.

    Wait that is not al! The "on the books" debt is HUGE compared to cash flow (mrq) and the total cash flow (TTM). This information is readily available through Value Line, Yahoo Financial, this site and others. What is not readily available............The undisclosed debt or otherwise known as "off the books debt" that is "parked" in STP vehicles. It would take accounting experts hours to assess the value of assets awaiting disposition by pouring through 10-K financial reports. If you have not gone to this level of rigor, then you have to admit, you don't have a clue as to the level of risk you are embarking upon. In essence, the author is correct, but fails to provide the full explanation. I invite any and all discussion on this topic.

    The bottom line: The risk inherent with these stocks are not for everyone (the author should clearly spell this out). If you are retired and on a fixed income, no one in their right mind would recommend it. If you are a young investor with a 40 year horizon, an action junkie, and need a thrill, then go for it, because you will have plenty of time to rebound and learn from your mistakes. I am NOT finding fault with your making money, only pointing out the darker side of the decision.

    Other things to consider:

    If you think the TARP money is going to fix GM and Chrysler, you are saddly mistaken. They have to start selling automobiles or they are finished.

    If you think the TARP money is going to fix the banks, you are mistaken again. Ask youself...... do we have a handle on the credit cards, student loans and corporate paper? Do you know how to assess the assets in the STP's? If not, you are in for a nice surprise!

    Swapping strategy................use value investing to define candidate stocks with VALUE, buy them at a STEEP discount......use technical analysis to assist with the entry and exit points. I have found it to be effective and if properly executed, you can increase your batting average your portfolio performance and minimize risk.

    By the way, stop blaming others for their "bad" advice, and start doing your own homework! Happy hunting!

  • Report this Comment On April 29, 2009, at 7:24 AM, Varchild2008 wrote:

    Sorry the perception of rudeness occured in response to Brian Richards and Tim telling people what they should and should not buy...

    But that doesn't erase the fact that Brian and Tim are analysts I listen to the least.

    These are analysts telling people not to EVER get into Penny Stocks.... Even though such great stalwarts of today's market were Penny Stocks at one point.. Dow Corning, Sun Hydraulics, Activision/Blizzard, and if I am not mistaken... even Amazon.

    Everyone has their own perspective of what company belongs in their Long Term Strategy holdings and what company deserves a short term catalyst driven trade.

    No... People can't and shouldn't trade in and out of stocks. But, that doesn't mean once in awhile...that somehow...it's forbidden.... to make a trade occasionally when you have overwhelming belief and confidence and research to justify it.

    Take (FORD) for example... I stayed away from Ford since March of 2008. I avoided the share price drop to $1.01. However, I got into FORD recently at $5.07.

    Is this automatically a bad decision? Should I Seriously... SELL my FORD just because Brian and Tim said so? How hypocritical of Brian and Tim to tell people to be long term investors but at the same time to FRET and PANIC over short-term obstacles and set-backs in otherwise great American Name Brand corporations like BAC and FORD.

    You can't have it both ways! Brian and Tim can't say DON'T BUY... SELL !! SELL!!! In one side of their mouthes and in the other claim to be Motley Fool Long Term investors.

  • Report this Comment On April 29, 2009, at 7:27 AM, Varchild2008 wrote:

    P.S. I am keeping my OUTPERFORM rating on Citigroup, Ford, and Bank of America thanks to this article.

    Brian and Tim are wrong. My Caps Score in those 3 names will prove it.

  • Report this Comment On April 29, 2009, at 8:09 AM, persario11 wrote:

    "And then there are the frictional costs of taxes and trading commissions, which can combine to take a big bite out of your returns."

    Commish of $7 in & $7 out, Taxes? If I pay alot in taxes means Im making alot.

    I read the fools books, and I would recomend them, but I am loosing respect for their site. I realize this isnt a traders site, but marvel? mvl will run out of heros to make movies of before americans quit buying american cars.

  • Report this Comment On April 29, 2009, at 12:46 PM, vapoly01 wrote:

    It seems like 14 year olds are spamming the comment sections.

    The fact that you made x% trading very risky companies in the past few months is irrelevant.

    Think you can keep it up for another two months? Ten years? Good luck.

  • Report this Comment On April 29, 2009, at 2:48 PM, mpendragon wrote:

    My take on Ford is that they are the most viable of the the big 3 US automakers right now and for the foreseeable future. They were making meaningful gains before the economic crisis and they should pick up market share even if GM and Chrysler don't collapse.

  • Report this Comment On April 29, 2009, at 4:14 PM, ranger66 wrote:

    I have been investing in the stock market for 40 years now. I have never seen a company 1)Write so many articles touting so many stocks. (How can you ever be totally wrong. 2)Give so much bad advice. 3) Oh, yes everyone should wait util the market corrects to 422 and then rush right in according to MF's then current advice. I've said it before, and I 'll said it again. If the market corrects below 666 S&P, so many things will change that the US will not be a country much longer. I bought Hidden Gens last year. Was not great.

  • Report this Comment On April 29, 2009, at 7:35 PM, oghowie wrote:

    Don't buy First Solar?

    Look what happened today.

    I think most of us will do well not to listen to your advice.

  • Report this Comment On April 29, 2009, at 10:20 PM, tomd728 wrote:

    The above are some of the best posts I have ever read!Sound like a Book Review ? Get some...

    And Rise Up !!!!!!!!!!!!!!!!

    Tom

  • Report this Comment On April 30, 2009, at 7:40 AM, ldanby1952 wrote:

    The Fool is always goona gave some good picks and sone bad picks.The trick is that they buy more and bigginner winners than loosers .What has struck me the most that theFool is CONSTANTLY trying to sell additional services to supplement what they told us their original obective was.This service I now consider

    a hype to get you to buy more service from them.Enough of the sales hype and how about a little more accurate stock info. as you service originally promised. If this does not change I will not be renewing my subscription to TMF.

  • Report this Comment On April 30, 2009, at 12:46 PM, 123spot wrote:

    I know we are all excited and more than a little upset; but I want all of you young winners out to remember the warning lurking behind this article and reconsider 100% day-trading with your future. Right now you are turning these quick profits with more luck than skill because of the current historic volatility. What is working for you now as you get revenge on those who took your buy-and hold investments this same way, will not work when the markets return to normal- and they will. Keep your eyes on the ball and adjust before you hear the train whistle. The advice above is well given. Fool on.Peace

  • Report this Comment On April 30, 2009, at 1:32 PM, DiscoFinance wrote:

    there is a movie about SiriusXM coming out. The stock and the company is growing!!! I saw the trailer at stockshockmovie.com

  • Report this Comment On April 30, 2009, at 8:26 PM, mistersilentp wrote:

    Hmmmm, don't buy SIRIUS/XM?

    For Pete's sake!!!.....it's like 40 cents a share....why not buy a ton of it?...a ton of it I say!!!!

  • Report this Comment On April 30, 2009, at 10:29 PM, cfwlew wrote:

    Unfortunately, I have to side with many on this forum and say I'm going to go with the short term view point. I "listened" and invested like the "experts" said and how most 401K's only allow you too, well rated growth and value mutual funds. So I let an "expert" manage my money if you will. So now that I'm down 50% thank you very much "experts" "professionals" why would I believe a word your saying, seriously. If you did not tell your people to sell like there's no tomorrow when the market was falling then you do not have their best interests in mind. I sold out most of my holdings at 12k, and what was left at 8400. I'm very disappointed that I didn't sell it all at 12K. I do feel a great sense of pressure to make back the money that I lost. If I swing/day trade and make money currently that earns some of what I lost back seriously who are you to say bad, bad, bad. It's an issue of credibility the investment "advisors" "professionals" etc.. are faced with. They have none in my mind. They deceived us and then got bailed at the taxpayers expense and wormed their way deep into our government to boot. I've made many double digits trades on half the stocks mentioned in this article I'm glad I'm earning it back a little how can you seriously critize that?

  • Report this Comment On April 30, 2009, at 10:38 PM, potnottoc wrote:

    I agree with some of the comments ( be nice and take it or leave it). I am getting the feeling that metals, not gold so much, but silver and copper companys can make the most money in the long run. Inflation is waiting in the wings. How else will the debts, ( including national ) be paid. My preference: These companys be US , Canadian, Or English based. ( I don't expect these countries to fall or start a war with us) I would like to see the histories of some of these co.s. I have never been in the market, but feel its' time to protect my money.

    ole cottontop, and I need some good advice

  • Report this Comment On May 01, 2009, at 11:06 AM, ShannonPhD wrote:

    "Instead of the companies I mentioned earlier, why not buy shares of Marvel Entertainment (NYSE: MVL), your friendly neighborhood comic book company? Its characters are timeless, and its financials are gorgeous, thanks to the high-margin licensing business. Based on the strength of its Spider-Man franchise and a powerful new movie studio segment, Marvel has soared 705% since David Gardner first recommended it to Motley Fool Stock Advisor members back in July 2002."

    Ummmm. Your advice is absurdly inconsistent. In July 2002, marvel was just emerging from Chapter 11 Bankruptcy based on a major downturn in the trading card/comic industry after the collector boom of 1993-1999. Sound familiar? If it does, it's because Marvel in 20002 was pretty much in an identical situation to Citi and Ford in 2009.

    You may need to do a little bit of research before making absurd claims about how people have made 700% returns after buying into a company a few months after it emerged from bankruptcy---duh, of course they did.

  • Report this Comment On May 01, 2009, at 5:06 PM, stan8331 wrote:

    Of course it would be extremely dangerous to base one's entire portfolio on companies that have a fair chance of going bankrupt. But the thesis of this article seems to be that nobody should speculate, EVER. That just makes no sense. For one thing, having some small speculative positions just flat makes investing more fun. And if there was ever a time for speculation, it's when the prices of fairly decent companies have been driven down to penny stock territory.

    I don't claim to know anything about the financial health of CITI or BAC, and I haven't invested in either. I have made small investments in Ford and Sirius because I think both have fairly good prospects for survival. Ford has not accepted any government money, and they are making progress on reducing their debt. Moreover, they make competitive products that people are willing to buy (their recent sales surpassed Toyota). Sure things still COULD go south, but that's true of any investment.

    Likewise with Sirius, what seems lost in their large debt is the fact that they offer a service that loyal customers are willing to pay for. Yes, bankruptcy is still a possibility, but the couple hundred bucks I spent on SIRI isn't in any way essential to my investment success. There's a reasonable rationale for them to pull through, and if they do I'll make a little spending money.

    My suggestion: try to lighten up a little.

  • Report this Comment On May 01, 2009, at 9:05 PM, Craigster69 wrote:

    You will never see BAC, C, AIG lower then the prices they are now, I am one that goes against the grain, and I believe these will be some of the biggest gainers in the end. Own all 3, and in it for the long haul. Only 1 word

    CA-CHING

  • Report this Comment On May 02, 2009, at 12:03 AM, bmi2000 wrote:

    i disagree with this article. check the volatility of BAC. I have been trading it using its volatility. March was great. I just shorted it down and bought it back in april and rode it up. With stocks well below the 200MA and volatility high, working for a long term investment doesnt seem to be the best way to get ahead. we can all site great stocks from years ago that have made huge gains. but TODAY that is not the case. things will straighten out sometime and consistency and confidence will return to he market. But not today. Volatility trading does appear to be the flavor of the day in the markets based on what is happening.I also belong to a volatility service. The returns are impressive and and the accuracy has been amazing. Once things start to rally I don't know I would use their sevice but when it is dog eat dog like today you use what works. In the meantime i will work BAC up and down and pray that it doesnt get nationized.As for marvell entertainemnt. the vast majority of the growth was done between 2002 and 2004. It is about 25 percent higher today than 2004.Even at it is highest it was only 30 percent higher than 2004 thats around 6% annual. there are other ways that were better during that last five years to make money.

  • Report this Comment On May 02, 2009, at 2:42 AM, Dadw5boys wrote:

    I have seen article that are meant to run people out of their positions and drive the stock price down.

    Apparently some very weathy person miss the run and wanted to buy in cheap.

    Story runs knocking stock people sell out price drops some people make very large buys are made and then a new story runs and price goes back up.

    Strange to watch espically when it is the same 8 people who write the storys knocking the stocks and 10 different people pumping up the stock after the large buys are made.

  • Report this Comment On May 02, 2009, at 9:45 AM, billschlusser wrote:

    Rich Greifner's article proves my point that I am never interested what other Fools think, do and loose/(win).

    I am paying good money for the advice I am getting from The Gardener brothers and his helpers. And I expect to follow them through thick and thin.

  • Report this Comment On May 02, 2009, at 1:41 PM, Ibeatmykids wrote:

    I don't like to give advice such opinionated advice such as "do buy" or "dont buy" these stocks. I might tell you that I am buying or selling a particluar stock for a particular reason but I will never tell a person to buy or sell a stock. Apparently the author doesn't mind this at all and is willing to look like a fool when he is not 100% correct which is highly likely no matter who you are.

  • Report this Comment On May 02, 2009, at 3:57 PM, InteligenceRealm wrote:

    I strongly disagree with the article recommendations. First the information that there are double the number of shorts for the banking stocks is not appearing anywhere in there. Nowadays a lot of the articles from CNN are providing incorrect information, partially true. Comments like "the market is down 3 digits" when it was 1.46% down, make the point. The authors of this article are going along the same path. Because there are a lot of people, including large organizations, that have interests to keep these stocks going down I tend to disregard most of the advice coming in the media lately.

    I bought C when it was going down, at $7, then at $3.5 and BAC at $8.5. Not the best timing for the first buy, but considering the levels where they were before the 2008 recession and in 2000 I think that was an excellent move. The fact that they still have issues means nothing. AIG (I bought at $1.5) received the most of the Government financing $140 because they were insuring these guys (banks) and a lot others. The Lehman's collapse was a huge mistake and they will not let it happen again with financial stocks or else the consequences will be dire. Perhaps these stocks will not go to the same levels were they were in 2000 and 2008, but for sure they will grow. I do expect them to double until the next recession kicks in. I moved into stocks from gold recently, dumped all gold and bought only stocks. In this market, and with these prices I got F, MSFT, AMD, INTC, and mostly US banks (MS, JPM, WFC, AXP, STI, FITB) and Canadian banks stocks (RY, CM, BMO, TD). The banking sector was hit the hardest after the real estate sector. They will have the most of the growth when the market will come back in a couple of years. I was considering also the real estate stocks but because the market is so fragmented I went with banks.

    I would buy Costco, or Marvel if I would want no risk and a bit of return. My understanding is that Coca-Cola stock had a < 10% price decrease during this recession. Some companies keep going and they are not affected.

    I love recessions. Best time to start making money.

    Cheers!

  • Report this Comment On May 02, 2009, at 6:47 PM, buckro100 wrote:

    Based on your recent advice to sell First Solar, I sold and it went up some $35 the following day. Thanks for your sage advice I lost out on about $4,000. Thanks a lot.

    buckro

  • Report this Comment On May 02, 2009, at 7:14 PM, Flmtgguy wrote:

    After reading this article I have come to the conclusion that I am no longer a fool. Since December I have doubled my money on the backs of F and BAC. ( along with GE, FAS, LNC, MSFT, YHOO and a few others.I have traded them within a range using stops, sold cash covered puts and covered calls. Buy and hold killed me in the past. I will never invest that way again. My only word of caution is that you do have to be active and not passive with these techniques. And yes, I use both fundamental and technical analysis to make my trades. I also agree with some of the other comments that the "Fool" seems to tout the same stocks over and over lately. By what I read my portfolio should be about 80% in Marvel.

  • Report this Comment On May 02, 2009, at 7:18 PM, wuff3t wrote:

    Many of the comments on here seem to be from people who want to trade short-term and eschew the long-term buy-to-hold approach. If that's how they want to do things fine, but why on earth are they even bothering to visit TMF website?

    The comment "The Motley Fool is fundamentally a "traders" tool (or at least that is what the worthless managment would lead you to believe)..." is the most blatant example of this misunderstanding. TMF is most definitely NOT a traders' tool - they are quite clear about that. Despite the differences in opinion between the various authors they all have one thing in common: they advocate buying fundamentally strong companies and holding them over the long-term.

    Why are so many people wasting their time seeking out a website whose articles can only possibly disappoint them by failing to fulfil their needs? Bizarre behaviour.

  • Report this Comment On May 03, 2009, at 6:19 PM, Deskal wrote:

    Rich,

    I just had to respond to your comments for two reasons. In October 2008, faced with the fact that my four pension plans that I had entrusted to the best financial experts had on average lost 60% of their value, I decided to take personal responsibility for my financial future. I researched MF and decided to join the million dollar portfolio and paid $500. Ten minutes after joining I asked for and received my money back - why? - because the first recommendation your good selves made was Anglo Irish bank and you waxed on about the celtic tiger. The dogs in the street in Dublin knew there was a problem with Anglo and subsequently they were nationalised and all shareholders lost all value. So, I was a little disillusioned with MF but decided that you guys still provided pointers to decent opportunities. On 1st November with no previous trading knowledge I put $100k into an account with the online broker who had the lowest trading commissions. I then started to buy and sell stocks and do exactly what you advised in your article not to do. Over the six months from 1 Nov to 30 April I have made 331 trades - of these, 155 were sales and there are 21 stocks in the account today. I have held the stocks from 5 minutes to 90 days. Of the 155 sales, I made a profit after commissions on 155 of these. Of the 21 I now hold, 7 are in the money, 9 I am confident will be in the money in the next 2 weeks and 5 I am not happy with but do expect to turn into profit eventually.

    How much did I make? Net profit after all expenses $23,000 representing a net annual return of 46%. Whether I can continue to do this I don't know but would thoroughly disagree with your comments on short term trading. I spend on average 10-12 hours a week trading and researching. Next I plan to add another $100k into my account and double my average deal size. I do get some good stock tips from MF and that is why I will continue to subscribe to MF. However, 2 minutes reading Bloomberg's comments on the London exchange prior to the opening of the NYSE has given me most of my profits.

  • Report this Comment On May 06, 2009, at 2:55 PM, Davis72 wrote:

    I have never read such total incompetence in my life.

    You have no clue as to what you’re talking about.

    I bought 5000 shares of Citi at 1.50 and again at 3.01, I also bought calls on Citi as well as calls on BAC and 2500 shares of BAC at 6.50 and again at 10.50.

    I bought FSLR at 105.00, darn what a terrible investment that was

    So let me ask you how you still have a job?

    I also will buy stocks and hold them for 5 minutes or 5 months or 5 years it all depends on what the chart tells me not some incompetent like you Mr. Greifner.

    Folks if you can’t learn to trade for yourself then NEVER let some analyst tell you what to do that is making money if he wins or loses yours.

  • Report this Comment On May 14, 2009, at 12:08 PM, Morfax wrote:

    1) Many of the comments here seem to be made by traders and short term speculators; I don't think those are the target audience of this article; good luck to those who do risk a trade now in these volitle markets!!

    2) Some of the comments made here have terrible spelling and refer to the author as "stupid" or a "moron". That is childish and you lose your credibility; proof what you wrote before you press "send" for more respect.

    3) Many of the Fools who write these articles are writers or journalists, not financial anaylsts, and many of the articles are rehashed updates of articles previously published. Read the article, reseach the stocks mentioned, then make your own informed decision based on your own goals and investing/trading style/discipline.The purpose of the Foolish articles is to give you new investing ideas. If your style is to buy every stock someone tells you to buy, then find a mutual fund manager you agree with.

  • Report this Comment On November 23, 2009, at 6:30 PM, Ironbob wrote:

    OOPS, I have to take back my "almost doubled my money on Ford" comment! It should now read "almost quadrupled my money on Ford".

  • Report this Comment On April 05, 2010, at 4:33 PM, Ironbob wrote:

    Three months later, it's now a quadruple.

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Rich Greifner
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NASD 4,765.38 16.98 0.36%

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Related Tickers

12/19/2014 4:04 PM
BAC $17.62 Up +0.09 +0.51%
Bank of America CAPS Rating: ****
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Citigroup Inc CAPS Rating: ***
COST $141.77 Up +0.21 +0.15%
Costco Wholesale CAPS Rating: *****
F $15.03 Up +0.22 +1.49%
Ford CAPS Rating: ****
FSLR $45.03 Down -0.18 -0.40%
First Solar CAPS Rating: **
SIRI $3.47 Up +0.02 +0.43%
Sirius XM Radio CAPS Rating: ***

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