The Stock Market Is Killing Me Today!

[macker]

Originally Posted by I-Hate-Hulse

RIM getting pounded today, down to $59.xx. I don't agree with the CIT analyst that downgraded them on the basis of competition from Motorola's Android. Ultimately I don't expect the hit to be as bad as he's citing right now.

I agree. It is trading at 13X earnings and 25% earnings growth. Apple is growing a bit faster but Nokia and Motorola are the ones losing market share. RIM is a great company with great management and a great product going through a rough patch until they release their latest and greatest gadget. This sector has been commoditized and there is a ton of competition, specifically from Apple, which have a lot of apps that RIM doesn't have. iPhones are eating into them right now and unless they can come out with a killer app it could have significant problems. If you could get it around $55 right before Christmas for a short hold I don't see much risk. RIM is very widely held and followed though.

[Slava]

You guys can get newsletters, PM me your email addresses and I'll add you to the list. (There are no "buy this stock NOW" kind of statements here though...its more general strategy and discussion that you will see.)

[Slava]

I thought I would post here that Berkshire Hathaway is buying Burlington Northern Sante Fe. It will be the largest transaction ever for Berkshire and to accomplish this the BRK.B shares are to be split 50-1. These new shares will sell for about $65 each based on their current valuation.

[Phanuthier]

Originally Posted by Slava

I thought I would post here that Berkshire Hathaway is buying Burlington Northern Sante Fe. It will be the largest transaction ever for Berkshire and to accomplish this the BRK.B shares are to be split 50-1. These new shares will sell for about $65 each based on their current valuation.

I actually own a lot of shares of BNI, and its up 30% today. (Bought it about a year ago). I see that investors will get $100 per share or BRK shares.

For those that are more active in stock trading, worth selling today?

[dre]

Nice profit! I would put a trailing stop if you are thinking of selling. If it goes
up, so does your stop loss. The one emotion I found hardest to control was greed.

[red sky]

If you lean towards riskier investments take a look at Noront Resources, trading on the Venture Exchange. They are an exploration mining company and are currently the leading co. of the Ring of Fire in Ontario. They have a bunch of drills turning as we speak and assays continue to come back with good nickel grades as well as having a huge chromite deposit. They have tendered a take over offer for Freewest Resources, another company in the Ring of Fire. Cliffs, a major company in the mining industry, has a stake in Freewest (FWR) and seems to be interested in the area. These deposit, once proven up, can be mined. However, I would imagine a major trying to take a larger position in the future.

Ticker: NOT.v

[Slava]

Originally Posted by Phanuthier

I actually own a lot of shares of BNI, and its up 30% today. (Bought it about a year ago). I see that investors will get $100 per share or BRK shares.

For those that are more active in stock trading, worth selling today?

You will either have the choice to exchange your shares for the $100 each (and the stock closed at near that today) or you can exchange them for shares in Berkshire Hathaway. The deal should be closed in the first 1/4 of 2010.

[macker]

Buffett called Squawk Box today :
http://www.gurufocus.com/news.php?id=73378

"America must grow and prosper for railroads to do well."

"All in bet on the economic future of the United States."

"Business has not bounced very much yet. It will but it hasn't yet. Residential real estate has improved. We haven't been building as many houses so exces inventories have been worked off. Commercial real estate is another story."

"To finance BNI 34 Billion deal : 16 billion cash of which borrowing 8 billion from banks. Won't be making any huge deals for awhile."

"Last September when Bernanke and Paulson steped in to guarantee money markets we were right on the brink and things and the system have been changed in material ways now".

"Loves pay for performance".

"America is about business and business and greatness go hand in hands and business will always be important to America".

"Newspapers have a terrible future".

"This country will solve it's problems". "I remember back in the early 80's we thought Germany and Japan were going to eat our lunch and we thought we were all going to be working at Mcdonalds and cutting each others hair to keep busy but we have added tens of millions of jobs since then". "12% of US GDP is going to exports and 35 years ago only 5% was so we are making things the world wants".


All aboard

[DuffMan]

Well, these past couple of weeks have sucked mightily.

[Komskies]

I've made over $1200 on Berkshire Hathaway this week. Go me!

[IliketoPuck]

Well done sir. Someday I will afford myself a class A share or three.

[Table 5]

Originally Posted by IliketoPuck

Someday I will afford myself a class A share or three.

I'd like to think so too, but by the time most of us could finally afford one, Buffet will probably no longer be around.

[IliketoPuck]

So true, I would like to think that the eventual successors wouldn't change his strategies too much though. I kind of like the idea of a share being something not used for speculation.

[I-Hate-Hulse]

Interesting to see Apple give up most of it's runup for the iPad. $215 to $192. Conversely, RIM has gained a fair bit, but as usual, can't maintain momentum.

[MoneyGuy]

Originally Posted by DuffMan

Well, these past couple of weeks have been terrific because I'm young and won't need my money for a very long time so I can now buy more at cheaper prices.

Fixed for accuracy.

[Phanuthier]

I hold 12 stocks right now, I don't know if thats "spreading it around" ...

[ah123]

Originally Posted by fotze

Do most people who get options and whatnot in the company they work at sell them? I have pretty much sold none, so I have a way too large amount of my personal wealth in it. You always hear that you should spread your money around so thin that you are never at risk but you never seem to make money. I feel more confident having money in a company I know way more about than any other. I still feel unease since you are always told to never have all your eggs in one basket, does anyone else risk the way I am?

My approach is to sell the shares I get from my company once a year -- my paycheque & pension are already dependent on the company. If the company were to pull an Enron, I don't lose everything...

[calgaryrocks]

Originally Posted by MoneyGuy

Fixed for accuracy.

understood, but for a young person who already has all their investment money in stocks, it has sucked the last few weeks watching those stocks lose value. sure you can buy them for cheap right now, but that requires selling those very stocks at a loss. its a gamble, at $30 a trade, I'll just leave them in until the market swings the other way. after all, i do have time on my side

[Slava]

Originally Posted by calgaryrocks

understood, but for a young person who already has all their investment money in stocks, it has sucked the last few weeks watching those stocks lose value. sure you can buy them for cheap right now, but that requires selling those very stocks at a loss. its a gamble, at $30 a trade, I'll just leave them in until the market swings the other way. after all, i do have time on my side

I know what you mean and I tend to agree. I am fully invested...but will be putting more in as the markets drop and investments I've had my eye on are more attractive.

[Slava]

Originally Posted by fotze

Do most people who get options and whatnot in the company they work at sell them? I have pretty much sold none, so I have a way too large amount of my personal wealth in it. You always hear that you should spread your money around so thin that you are never at risk but you never seem to make money. I feel more confident having money in a company I know way more about than any other. I still feel unease since you are always told to never have all your eggs in one basket, does anyone else risk the way I am?

I can see not holding too many stocks to make sure that your gains count. If you are an owner of a company and have control then having all of your money, income, health benefits and such there is fine. It would make me uneasy to keep all of that with one company where I didn't have a controlling influence though...but maybe that is just me.