wisdomous.com

A few things have happened since i last reported on my market activities

BBT - sold it at $43.50 on Sep. 19 2008 - here for once I made the right move.

BHBC - in August 2008 i bought at $0.90 and sold a week later at $1.61 - i just could not resist.

WM - Washington Mutual got taken over by FDIC and equity was wiped out - that one hurt

LEH - Lehman Brothers was pushed into bankruptcy  and all the equity was wiped out - ouch

NT - Nortel filed for bankruptcy wiping out shareholders - ouch again

BAC - Bank of America shares fell to as low as $3.77 (Feb 5 2009) and they slashed their dividend to a 4 cents (annually)

F - well it is down to around $2, I still have faith in Ford long term, they seem to be the healthiest out of the big three (Ford, GM, Chrysler). I sold F at a loss to book a tax loss. I will re-buy in 30 days as i don’t feel the stock will move much during that time

SIRI - Sirus has merged with XM which is good, but they have a mountain of debt, and in the current environment that’s not something to be taken lightly. I don’t think the stock will go anywhere in the next 30 days so i have sold it for a tax loss and will rebuy in 30 days. I still feel that long term they are a good prospect. Although, satelite telephones never went mainstream.

IRBT -  Irobot is a company that will be huge in the future, they are the leading robotics company and in my opinion robotics will be HUGE in the future. They are a steal (in my opinion) at the current price ($8)

DOW and S&P 500 bothe indexes are good places to putmoney in, I thought the DOW presents value at 10000 and S&P at 1000. As of today (FEB 6 2009) the Dow is at 8250 and S&P is at 850, which in my mind is a steal of a long term investment. Like i said i am spacing my purchases 2 weeks apart and buying on negative days (where the indexes dip)

XLF - In my last update i wrote that despite of the risk i do like financial stocks. Well, after taking a hit on Lehman and WaMu I decided to go a bit safer route. XLF is an Exchange Traded Fund (ETF) that holds all the major financials. I got into it twice: first at $11 and then at $10. As of today it is at $9.62

GE - General Electric is well diversified, plus it hold my favorite TV network: NBC. I got in at $13.01. For now they are sticking with their dividend and they are still making money.

BX - Here i was betting on the “smart money”. I thinkBlackstone’s business is going to thrive once we get past this downturn. Yes, they reported a loss but I still have faith. I got in at $8, today they are sitting at $5.38

June was a busy month for me and for the financial markets. I have added to my holdings:

BBT - low price, high dividend, solid balance sheet - what’s not to like?

WM - this is more of a speculative purchase, TPG paid $8.75 a share a few months back. So I figured $6.59 is not too bad 

BAC - I added some shares of BAC at current price the dividend works out to 10%

As you can tell i am liking financials right now. They may decline for a few months even through 2009, but when the rebound comes they are going to shoot up. Meanwhile BAC and BBT pay good dividends. I am eyeing 2 more banks: BHBC and ABCW.  ABCW seems like a solid buy with a 9% dividend. BHBC is more of a speculative buy.

I am also load up on some F shares, I think at $4.50 it is a steal. Keep in mind Kerkorian paid $8.50 for 20 million shares and around $7 for 100 million shares. He must know something.

Both the DOW and NASDAQ officially entered the BEAR territory. FOr most is a sell signal, for me it is buying time. I am going to space out my purchases at least 2 weeks apart as no-one knows how long or how deep the current slump will go. If you have extra money but the DOW index, long term it is an awesome investment.

Here are my current holdings: