Stocks!

[DavidM]

If you took my advice on MA you are a very happy camper!  (It has doubled since September)  I am currently looking at FRPT! 

[Mark C.]

Hi Dave!

  Checked out FRPT and it looks like a great company, but trading at a very high P/E right now (70.3).  In looking at the chart over the last few years it looks to me like it has made a very big move already.

   All that means is that the stock's risk to reward ratio is at dangerous levels.  There are better values in the market for a patient investor.

                                                          God bless,  Mark C.

[DavidM]

Yes and I have plenty of large caps that are slowly plugging along but I am looking at the fact that this company can't keep up with the demands + the Dems just backed off of the timetables. Also, you can always safegard your investment! Put a stop sale at 2 bucks below the current price!

[Mark C.]

Dave,

  I can tell you are looking for some exciting action where the stakes are high!  What you need to do is open a commodity futures trading account where you're guaranteed to experience some real high rolling!

   Futures trading will not plod along and can make or lose you a fortune in a single day!

  I have traded futures for over 10 years now, and though it has been very interesting/exciting, I figure I've just about broken even.  I've been doing investing in stocks for the last 4 years as well and have quietly, and in a very boring manner, almost doubled my principle.

  We all like the excitement of taking a risk in the hope of striking it rich, but I think it wise to limit this kind of trading to a small pot of money and look at it as entertainment----- kind of like going to Vegas and having some fun.

                                                                    God Bless,  Mark C.

[DavidM]

Yes I agree, You have to use money you are willing to lose, I have yet to lose anything! (You can deduct your loses from your taxes!)

[Oscar]

Dave,

One of my sons-in-law worked for Circuit City for several years.  They had a program for employees where they were able to deduct a portion of their pay to buy Circuit City stock at a reduced price.  So, every month you picked up a share or two.  Over time, this really added up.

For most of his term of employment the stock was doing very well, steadily trending upward in value.  He used to enjoy telling me how much his stock was worth as the value went higher and higher.

Then....

The company announced that it was losing money due to competition and had to make some major changes to stay in business and return to profitability. One of the changes eleminated his job. The stock price plummeted rapidly to only a small percentage of its highest value.  It has recovered some in the years since then...but still is worth way less than half its highest value.

Caryl and I invest in mutual funds.  The overall value has climbed slowly but steadily for the last 20 years or so.  We do not see the exciting gains you speak of.  We also do not see the disastrous losses that business downturns can produce.

There have been two big business downturns and a few small ones since we have been doing this.  The overall value of the funds has remained pretty stable through all of these.  The worst downturn produced a drop in the the collective value of all the funds of around 5-6%.  They had made a "comeback" within 6 months and were growing again.  Some of them never lost value at all.

So...we will probably not be making the Forbes' list of the 100 richest folks anytime soon.  But we are content with what we have...and that is worth much too.

BTW, do you understand that if you decide to sell your stock that you must pay capital gain taxes on it.  It is added to your overall income, and can push you into the top tax bracket.  Ouch!

Tom Maddux

[DavidM]

Anyone notice frpt?!!!!   Tom, I have a mutual fund that has made around 8% American B Funds. Sorry bout your relative. I met a coworker who lost her life savings (60 grand) in Broadcom. As I mentioned I have conservative investments. I have four retirement incomes- Teachers, S.S., + 2 mutuals so I figure this gives me room to play. (She, the co-worker, has been able to deduct her loses from her property-taxes over a five year period) So she isn't out anything. Yes, I had to pay 6 grand for the MSO stock I sold. I still came out with 9 grand for free! 

[Oscar]

Dave,

Regarding Social Security.  Remember that STRS retirees have between 40-60% of their SS benefits deducted from their checks because they already have a public employee retirement.

Tom