Yeah, he says don't buy just b/c of that b/c too many variables that could go against you. I just read that chapter a couple days ago and then this situation came up where I could try and wrap my head around it a little better with a real time scenario.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
When a company gets bought out, there are different ways that the buyer can buy the stock. An all cash buy out, so you would get cash for your shares. Now there is not always a premium on the shares. GPRO which is trading at around $11/ share, may get bought out at 11 and you don't make any profit. A bid for the company may come in at $8 per share in which case you lose more money. Sometimes a buyout comes in the form of cash and stock or conversion. There are deals where company xyz buys abc for 10 billion but gives abc shareholders 5billion cash and 5 billion worth of xyz shares. It could also be all stock, where abc share holders gets converted into xyz shares.
The bottom line is don't ever worry about the possibility of getting a buyout. Because even if you get a buy out, you may still lose money. GPRO may go all the way down to $5 per share and then get bought for $6. OR
And this is real important, Oil companies will go into bankruptcy and bigger oil companies will scoop in and buy the assets for pennies on the dollar. So don't hold onto an oil company because it has assets/ oil fields with millions of barrels of oil and you hope it gets bought out.
Okay so I got into aapl a couple dollars ago and now it's up over $100 again. Am I being dumb or missing something important by selling it at a little profit and then immediately buying the shares back? Now the only reason I'm thinking of doing it is because I have a bunch of free trades when I opened my account. Once they're used up I know for just a little bit of money I'll get eaten up with the commissions and fees. My thinking is I can have the same amount of AAPL and then get a couple more shares of something else too.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
I don't understand what you mean. If you sell your aapl shares... and then try to immediately buy them back you're going to end up with the exact same amount of money and shares in aapl.Originally Posted by rds_nc
Oh yeahI guess I should just leave it all alone. I need it to go back down to make money.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
Oh yeah
so you shorted aapl?
No, I figured I was overlooking something so I didn't do anything until someone pointed out that I don't know what the hell I'm doing first. Just buy and hang on should be my strategy for now, I'm not smarter than all the pros.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
Are you saying that you want to sell now and lock in profits and then hope it goes down more and you can buy it back cheaper? If so, what I do is sell part of what I'm holding, locking in profits. And let the rest ride it out. If price drops I add more, if price continues to rise then I don't sell till it hits my target. I like to scale into a position as well as scale out.
Keep in mind AAPl reports in a few days.
That's what I was thinking.
I think that after their report they'll drop back down again when everyone freaks out and the market falls some more. If not I feel like I can still get back in without taking much of a hit in the long term. Trying to use up my free trades while I have them to turn a couple bucks.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
Fidelity is a good place to look. Fund manager is important also, you can do a search on a fund's symbol on their website, and get info such as Morningstar rating, expenses, management etc.,
What's the smallest number of shares you buy to make it worth it? Looking at stocks like Alphabet or Amazon you could eat up your entire contribution to your IRA with just 7 or 8 shares.
Is there a good researching site to look up different stocks by different categories? Think of redtube but for stocks. Like I want to look at financial sector stocks with big dividends or start up tech stocks with low debt balance sheets. And you could just click around to look at different ideas for a couple hours in an afternoon.
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
This is the wrong way to look at it. It isn't about the number of shares, but the overall amount of money, valuations, and percentages. I never look at how much per share a stock goes up or down in dollar amounts. I only focus on return percentages as that is the only way to compare performance of companies.
http://www.finviz.com/screener.ashx
Your broker may also have a screener.
Large share price prevents me also, but it is a mental
Thanos was the hero
when you can buy partial shares, share price no longer matters.i would like to see them split personally though and figured they would if they can break and hold 800 for a while. but i based that on nothing.
What's Cramer's scoreboard about in the background. I get the date but how does he set the scores for bulls and bears?
He/him
Kayak fishing in a Native Slayer Max 12.5
Lowrance Elite 9 ti2
Back when I watched, the scores were the scores of the games that he follows. He's a big Philly fan of most sports.
Thanos was the hero
Understand that everything you see on TV is not the whole truth, The networks all have their own agenda !! EspeciallY CNBC. That said, I do like the "" fast money"" guys. They give you different perspectives. Your investment $ have already made you approx 15%, approx., what ever your tax rate is, right ??? Dont be in a rush, Market is terrible right now. I'm a 100% cash right now. Also a scottrade IRA account has NO fees !!!! Your in control of your own money !
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