posted on Oct, 15 2008 @ 04:13 PM
(originally intended to be posted in my other thread)
Ok, we will start out with one of my stock favorites, JPM.
JPM fell about 5% today. Its sitting at 38.49 at close today. I would not buy right now, but if you bought it at 36-38, I wouldn't sell either. I
would hold onto this stock for the long term. Its one of the strongest banks in this credit crisis, and it will survive it. If JPM, for some
unbelievable reason, were to go under, it would not matter what stock you had invested in because the market would crash.
Summary: Hold onto JPM. If it drops to 35 or less, it is a definate buy. I think it will fall short of its target, but it will still be a profitable
stock to have.
Next, WFC. It is right with JPM as one of the strongest banks in the financial market. Even with its announced drop in profits, it still remains very
strong, and only lost half a percent today. It is one of those safe banks to have stock in. If it falls under 30, it is a long term buy. It will come
out strong, especially with the acquisition it engaged in later on down the road. Don't sell it if you bought it, unless you are feeling risky and
think you can sell now and rebuy down the road. That takes a real good understanding of knowing when positive and negative speculation is going to
take place, and how long it would last. I would recommend just holding onto it.
Summary: WFC is a good buy under 30 dollars. Another long term investing stock as far as the financials go. Its temporary drop in profit will not be
an issue by mid to late 2009 and you will be glad you bought it when the market bottoms out soon.
Next, C (citigroup)- Let me put this in very simple terms. No. Tomorrow they will be a contributor to the further falling of stocks. I would bet they
will be among the losers of tomorrows probable drop in stocks. They seem unable to turn a profit, and this 3rd quater announcement due tomorrow,
probably won't be any different. I personally think C could fall anywhere from 12-18% with tomorrows 3rd quater earnings announcement.
Summary: Don't buy. I would sell it. I think tomorrow will be a negative day for C. If you really have faith in C long term stability, sell the stock
tomorrow and rebuy it later on when you feel that it has bottomed out. Personally I would get away from it.
Next, MS. Sell it. If you bought it when I told you, and you didn't already sell it like I said, sell it. You are still turning about 100% profit.
SELL IT. They are NOT something you want to own for the long term. It is just unnecessary to take risk after turning that kind of profit. MS is one of
those stocks that got a temporary fix. Long term, this company is a big risk. BIG risk. Short term, knowing when the speculation would drive the stock
up made it a solid investment, but long term it is a no.
Summary: Sell. Sell. Sell. That is all there is to it. It is one of those stock you bought recently, KNOWING that the bear ralley would give you your
turn to engage in profit taking. Don't wait on others to do what you should.
Next, GS. Though not as urgent as MS, I would still sell it. They are more stable, but still a risk. For long term investing, you should be waiting on
the sidelines for WFC and JPM to get to a bargin price. Don't hold onto GS when you are already ahead. Certainly don't buy it here. Same advice I
gave from MS applies here. Sell in and get your piece of the pie before it disappears to somebody else.
Summary: Sell it. No reason to risk in a company like this. It is simply not a smart move.
Overall: Tomorrow is a day to sell these financial stocks, though like I said, you should have done that today. If you own C, get rid of it. If you
own MS, get rid of that too. If you want to hold onto GS, fine, but I would get rid of that as well. JPM and WFC prove to be definately worth sticking
with if you have it, and buying it when the price is right.
JPM and WFC will prove good in the long term. In the short term, get out of the market and watch for signs of the next bear ralley to take advantage
of. Also look for a bottom so you know when to buy the stocks that will pull through this crisis.
DISCLAIMER: I am not responsible for any actions you take. You should consider the risks involved in buying stocks before you do it. This is simply my
advice, and what I would do.