Stock Tips?

[RightFieldCoder]

I have some money in a rollover IRA. I have it diversified a little, even money in Exxon/Moble stock, HP stock, General Mills stock, a foreign stock mutual fund, and a small company stock mutual fund.

 

I haven't been happy with General Mills' stock and want to dump it and invest somewhere else, but I can't decide what to do with it. I'm only 28 and this is a roll over (I have another 401 with my current employer) so I feel I can be kind of risky with this money for at least 10 years. Can anyone suggest a stock or mutual fund to dump it in? Even just general help or sector you think would go well with my portfolio would be good info.

[2hoophead]

If I had some extra money I would love to invest in Kohl's stock

 

I have a feeling they are about to split again. http://forum.brewerfan.net/images/smilies/smile.gif

[dadofandrew]

Unless you want to invest in the market yourself, just go to Money or a financial site like that, and do a portfolio manager, it will tell you where/how to invest in mutual funds.

 

At under 30, I'd be in almost all stocks, mostly high risk, aggressive growth. Just make sure you choose a fund with low fees, 0.5% or less is what i look for.

 

I mostly pick stocks that are beaten down, but solid choices. I bought Home Depot at 33-35 and sold it at 41 this morning. Best Buy is another I own that is recently in a funk.

[Jode403]

If nothing else, you could add the money to a target retirement or life cycle fund closest to your retirement date. All the big fund companies offer them (Vanguard, Fidelity, T. Rowe Price, etc.).

 

I looked through my IRA, which is mostly in invidivdual stocks (about 25% in funds, the rest in stocks). It's hard for me to find a stock I'd suggest as undervalued right now, due to the extended run-up we've had since last summer. I try to follow dadofandrew's approach and buy a company's stock when it's temporarily beaten down or out of favor. I got Microsoft (MSFT) last July at around $21.75, and it's now at $30.01. Similarly, I picked up Franklin Resources (BEN) in July at ~$85, and it closed today at $134.91. I still hold both as I don't feel they're overvalued yet. I picked up Johnson & Johnson (JNJ) in November, but that one hasn't done much for me yet. I'm down a few percent on that one (about 5%). If you're patient enough, you'll eventually be able to pick up something at a good bargain. I have about ten stocks that I'm watching now, but they haven't dropped enough for me to buy in.

 

One stock that I've held for about three years, and that you may consider, is Oshkosh Truck (OSK). They're very good at allocating capital to smart acquisitions, then driving margin improvement at acquired companies. It's near a 52-week high and maybe a little expensive P/E-wise, but for a long-term purchase I think that one will pay off well. I also took a small flyer on TomoTherapy (TTPY), a Madison company that recently came public. They're growing rapidly, and just at the point of turning profits now. However, being a smaller company, there is an added element of risk there. I also have a decent portion of my portfolio in blue-chip large cap companies like Citigroup ©, General Electric (GE), Procter & Gamble (PG), along with JNJ and MSFT. They all pay dividends and carry a little less risk than some of the smaller companies I own.

[InsomniacInkRoss]

If I had any sort of money to even think about maybe doing anything with besides eating a shelter

 

I would invest in Toyota

 

Once they take over the light truck market, it's allllll over

[rluzinski]

Hydro-electric power

trains

Auto-car.

[JenksFan5]

There are a couple of stocks that I currently own that I would recommend. BioCryst Pharmaceuticals (BCRX) is currently priced at a value in my opinion. They recently had a little hiccup in testing one of there cancer treatment drugs that caused the stock to plummet, but if they work out the problem, the stock will likely bounce back. It is priced at around $6.60 today. I bought it at $7.17 a share. My goal is to sell at $12-$14 a share. This stock is not without risk, but it is not a penny stock either. The company has developed and is developing some innovative drugs.

 

Another company that I own is a flashy pick, but they have done such a good job in promoting their brand that I think the sky is the limit. I am talking about Under Armour Inc (UA). I bought this stock out of the gate at $26 a share and sold once at $45 and repurchased the stock at $34.50 back in August. I am holding this one long-term as I feel this company is the next Nike. Look around at the high school and college kids and see what they are wearing these days. It is mainly Under Armour performance apparel. They have so quickly gained a share in the market and have promoted their brand extremely well in a very short time. Again, a risky pick, but with an extremely high ceiling.

 

Just my two cents. Past performance is no gaurantee of future results. Please read a prospectus before investing.

[nullbyte]

For long-term investments, index funds are relatively safe and provide good returns.

[InsomniacInkRoss]

eating and shelter is what i meant to type

 

not eating a shelter

 

hahaha

[mothershipconnection]

Look around at the high school and college kids and see what they are wearing these days. It is mainly Under Armour performance apparel. They have so quickly gained a share in the market and have promoted their brand extremely well in a very short time. Again, a risky pick, but with an extremely high ceiling

 

You have to be extremely careful with a fickle group like this. When I was that age, lots of people wore FUBU and I was a big fan of Ecko clothes. Then you can go back to the early 90's when Starter was the hottest sports apparel company. See how much of those you see on 18-21 year-olds now. I just don't think they have a particularly wide moat, or one that will be enduring.

[MHgb]

But Starter's commercials didn't have AJ Hawk saying "Click Clack."

 

Big difference.

[BuckyTuba]

my company's stock has dropped from 52 to 45 in the past few weeks, it might be a good time to pick up some of their stock... progress energy "PGN"

[dadofandrew]

Best Buy is down to 42 or 43...they are the market leader and people are not going to stop buying electronics. That's a screaming buy right now. I'll be picking up some on Tuesday, when Sharebuilder allows cheap purchases.

[Diskono]

Quote:

---

But Starter's commercials didn't have AJ Hawk saying "Click Clack."

 

Big difference.

---

First you grip the hat, then you flip the hat, then you raise the hat, then you slam the hat...

[dadofandrew]

WHI is a Puerto Rican bank that dropped almost 40% today because it only made 12 cents a share last quarter, down from 16 cents per, and the 18 cents that was expected.

 

It isn't for the fainthearted, or to bet the farm on, but it's a bank with almost $8B in assets and a book value of $7.50 a share (currently trading at $3.40).

 

I'm adding more tomorrow, and I bought a bunch today after the drop. If you have some money in your portfolio that you are willing to risk a loss on, but may double or triple, this is the one.

[JenksFan5]

You have to be extremely careful with a fickle group like this. When I was that age, lots of people wore FUBU and I was a big fan of Ecko clothes. Then you can go back to the early 90's when Starter was the hottest sports apparel company. See how much of those you see on 18-21 year-olds now. I just don't think they have a particularly wide moat, or one that will be enduring.

 

Under Armour is a much more specialized market than simply a retail clothing line. Ecko and Fubu are not of the same caliber and do not have the same brand recognition. Under Armour has cornered the market on performance apparel in a ton of different sports, from football to hunting. Two totally different lines so I don't think you can compare the two, but each person is entitled to his/her opinion.

 

I feel Under Armour is much more than just a clothing company, but I could be wrong. I put my money where my mouth is and it could bite me, but I doubt it.

[Barbs4339]

One thing I wish I had more knowledge about and wish I could get more involved in is the stock market. What is the best way to learn more about it?

[BMuch]

I would recommend investopedia.com to learn about different terms.

 

There are a number of stock picking games at different websites that can get you a feel for the market.

[dadofandrew]

motleyfool.com is a good one.

[Team Canada]

If nothing else, you could add the money to a target retirement or life cycle fund closest to your retirement date. All the big fund companies offer them

 

I don't know about other companies, but when I looked at Fidelity's "Freedom" funds compared to the other mutual fund options options we have, the performance was crap. It's probably good for someone who doesn't know anything and doesn't want to think about it very much, but I definitely didn't want to do that.

[Jode403]

You may very well be right. Fidelity's funds, in general, have struggled for quite some time. Many of their funds that were top performers during the 1990's are badly lagging today, and have seen net outflows during an otherwise strong market. One thing that affects performance of these funds is the asset allocation strategies they use. You can look at one fund company with a year 2045 retirement fund and it'll have 25% in bonds, while another company has a fund for the same year with less than 10% in bonds. Same thing with the allocation between small, mid, and large cap sectors. To say one is better than the other is difficult without knowing an individual's risk tolerance. I personally don't have any money in a target retirement fund, though my company (Sentry) offers some that have performed well. My 401k is allocated between bond, foreign, and market-cap sector funds. My IRA is in mostly individual stocks, with a few actively-managed "go-anywhere" type of funds mixed in (and DODFX for international exposure). I'm 25 so my risk tolerance is pretty high.

 

It's nice to see this thread has gained some traction. I hope we can continue to have finance discussions from time to time on this board.

[JenksFan5]

It turned out to be a good call to buy Under Armour (UA) back when it dropped to $34/share.

 

Today, UA reported profit growth of over 50% from the second quarter of 2006 and as a result, shares spiked at $64.75 before pulling back to $61.41, but still ending up over 15% in the past two days.

 

I had a sell order in @ 64.50 so I sold at its peak and plan to buy it back at another reasonable opportunity, hopefully around $56/share if it gets down to that level again.

 

I think we may have a rival to Nike very shortly. Maybe I won't go that far, but the company is destined for good things.

[Brewer Fever]

My tip is get out of the stock market and buy commodities. The stock market just finished a period of hyper inflation and will be in an overall bear mode for the next 15-20 years while commodity prices soar during the same timeframe.

[dadofandrew]

I sure do not see much downside in financials right now. Huge profits, but many are scared of the impact of possible rising rates and housing. Many banks have little or no money in mortgages, and the entire sector looks strong.

[bbrauch2000]

Quote:

---

My tip is get out of the stock market and buy commodities. The stock market just finished a period of hyper inflation and will be in an overall bear mode for the next 15-20 years while commodity prices soar during the same timeframe.

---

 

I trade commodities for a job and its a big switch from stocks so if anyone is thinking about this, be sure you understand what you are getting into before you jump in. You can hit a few right and miss one and lose more than you thought you were investing to begin with. The volatility can be way too much for most