Sion's How To Invest Thread [Everything you need to invest properly and much more...]

A.J. Trillzynski

lol @ Facebook still dropping today when most everything else is up, shit is a debacle by now

Sion

black caesar wrote: »

Sion what are some good dividend stocks you recommend?

ConocoPhillips, GE, Wells Fargo, Fairfax Financial, Total SA, New York Community Bancorp, GE, JP Morgan, Goldman Sachs, Eni S.p.A , BP oil, and that's it for now. Most of those companies I listed are selling at very low prices relative to book value, have low p/e ratios, have large profit margins, consistent and long track records of earnings & dividend payments and are very strong internally. Notice how most the companies I listed are oil companies LOLOL. People are worrying about the price of oil not realizing that there are oil companies that don't depend entirely on where oil is going (like ConocoPhillips). Oil is already too high, oil should be around $60-$70 a barrel, that's still a good price for oil.

Sion

darkone360 wrote: »

Good lookin out Sion. Yeah hook me up wit that detailed analysis.

Bank of America (BAC): This company is selling at the lowest price its ever been at in its history. People think BAC is in trouble still but all of its major problems are behind it. They're extremely well capitalized too - they are sitting on $120 billion dollars. Enough to pay off off their debts, go private and still buy out a competitor LOLOL. At these prices you're practically getting BAC for nothing. Also for management, they have one of the best CEOs you can find in Brian Moynihan who was responsible for turning Bank of NY Mellon into one of the most prominent banks in America. The earnings for BAC on paper look bleak but the reason why it shows up as negative is because they took $7.3 billion dollars and put it aside for litigations/lawsuits and for new financial rules that are gonna make it tough on banks to profit. Aside from that tho they are still very profitable. This is a long term hold you want, in the long run BAC and the rest of its peers are gonna be selling at extremely excessive prices. I think with that $120 billion they're sitting on as soon as they get the green light they are gonna pay most of it out in dividends.

Warren Buffett also bought 5 billion dollars worth of preferred stock - if it's good for his money then it's good for yours fam.


Wells Fargo (WFC): The best bank in the world by far. During the recession when most of its rivals were going bankrupt or broke they doubled their size and made record profits (about $12.9 billion dollars). Wells Fargo is personally my biggest holding. WFC also has the industry record for cross sales (cross sales = how many products a client has for ex. checking accounts, mortgage, insurance, brokerage accounts, credit cards,etc.) by far with a ratio of 5-7 products per customer - meaning that people who bank with them are more than likely to bank with them for the very long term. The fees they will charge those customers will also keep WFC at the top forever. They don't have any major or direct investments in Europe and they have top management putting out good loans and getting very strong returns. They too like BAC are very strong financially and will continue to be so for many many years to come. WFC is the type of company you can retire on. They will also be increasing the dividend soon.


Nintendo (NTDOY): There's no competition for them. They have 60% of the gaming market, the best and most renowned franchises, and are financially stronger than any of their competitors. They have a long term track record that can't be matched. Nintendo has amazing management and is selling at the lowest price it's ever been at relative to Book Value in 20 years. People are worried about Apple but Apple hasn't even created a console yet - but remember people once said that Bill Gates and Microsoft would topple Nintendo but in the gaming market they dont even hold a light to Sony in terms of market share. Both of Nintendo's major competitors are bigger than them but even with all the money in the world and some of the richest people in the world they couldn't beat Nintendo. Nintendo has been around for 200 years and will be around for another 200 years. Watch when that Wii U comes out...... *rubs hands together*


ConocoPhillips (COP): I bought this company in 2009 and sold in 2011 - doubling my money in the process. STUPID move on my part I shoulda held on LOLOL. COP is prolly one of the best oil companies in the world and has prolly one of the best management teams in the world too. What I like about COP tho is that they don't need high oil prices to be very profitable, because they have a lot of refining facilities and gas stations it's better for oil to be at a lower price for them because then their costs stay low but still even with high oil prices they've found a way to make big profits. Strong dividend pay outs, strong balance sheet, good business model and management aaaand it sells at a very good price too at the moment.

Another very good one is Petrobras but for now lets just focus on North America lolol.


Fairfax Financial Holdings (FFH): FFH is the Berkshire Hathaway of Canada. It has one of the best track records in the world too. The stock price might seem a bit excessive - about $415 a share but it is worth it. If you had put 10k in their stock back when it was at $3.25 a share 25 years ago you'd have well over $10,000,000 today. I believe that with them being far stronger today than ever, selling at a fair price and having over $1200 a share in float money working for shareholders and a track record of an average 22% annual returns on their portfolio over 25 years that they will continue to put out good numbers and earnings for investors for the very very long term. This is a company I also have a significant chunk of my money in.

traestar

Sion. wrote: »

traestar wrote: »

Sion, I find this interesting about JP Morgan and I thought about what you said
http://www.dividendstocksonline.com/2012/05/jp-morgan-chase-jpm-sees-an-unlikely-upgrade/

After days of negative press and downgrades following the announcement that JP Morgan realized a $2B loss from derivative trading the company received what some will consider a timely upgrade today from Standpoint Research. Standpoint upgraded JPM from a hold to a buy on May 14th with a price target of $43 per share.

Standpoint said the upgrade was based on the 20% decline in JPM stock over the last 7 weeks. An analyst also commented that the 9% decline the stock saw on Friday was an over reaction.

Many other investors and investment firms fear that there may still be news to come. The market will have to wait and see what comes next but for now, JPM still has very solid dividend fundaments. JPM closed at $36.96 today, May 14th.

Dividend Fundamentals
The company pays an annual dividend of $1.20 which gives it a 2.8% dividend yield compared to its 5 year yield average of 2.2%. It has a payout ratio of 23% and a 3 year dividend growth rate of 60%. JPM started paying dividends in 1827 and has increased its dividend for 2 consecutive years.

The company’s most recent ex-dividend date was April 3rd, 2012 with a pay date of April 30th, 2012. No future dividend payouts have been announced at this time.

Stock Performance
JP Morgan stock is down 17% in the last 12 months but is up almost 10% in the last 6 months. The company has a market cap of 136B and a P/E ratio of 8. Some of the company’s biggest competitors include Wells Fargo, Bank of America and Citigroup.

JPM is currently not ranked on our top 100 dividend list. For more information on JP Morgan visit our dividend sectors page that covers Financial dividend stocks.

JPM is a very good company, and it's selling at a very good price too. Great management, amazing track record, large & sustainable profit margins, well capitalized and will make a very fine investment in the long run. In the short term, I expect more volatility but if you do see that I'd recommend buying up more if it declines so that you can lower your average cost.

Believe me tho, the derivatives loss is not something you have to worry about. JP Morgan's exposure to Europe is more dangerous than a derivatives loss but even that is not a big deal to JPM because they are well hedged for catastrophe as they proved in 2011. JPM has more than enough money to take care of a mere 2 billion dollar loss (& yes 2 billion is miniscule to them), and they make more than enough too.

The power of these central banks, lol! As soon as I get funds, I'm definitely buying JPM and holding

darkone360

Once again Sion, you dropped that knowledge. Thanks for the tips

deadeye

Thanks for the knowledge Sion.

deadeye

reaperbong wrote: »

@deadeye - check out my Forex thread on currency trading: http://community.allhiphop.com/discussion/457828/forex-trading#latest

haven't had a chance to really add to it since i'm still demoing but i WILL start the real deal as soon as i get some time off work and a whole few days able to devote to it.. start practicing and let us know how it's working out

Don't know how I missed this.

Props, I'm gonna check that out.

Sion

No problem gentlemen. Hope it helps.

Sion

Sion. wrote: »

deadeye wrote: »

Sion,

what do you know about currency trading?

Meaning, if I wanted to get into that, how would I go about making money off the euro going down and the dollar going up?

Or maybe just the euro going down for that matter.

The Euro right now I'd hold off of, partly because it's still possible that a country or two may leave the Eurozone. If that happens I don't know what would happen to the euro or what the governments and ECB (European Central Bank) would do.....

http://business.financialpost.com/2012/05/23/greece-exit-would-trigger-wave-of-disasters-for-europes-banks/

Well dayum......

http://www.reuters.com/article/2012/05/23/us-eurozone-greece-idUSBRE84M0P420120523

A.J. Trillzynski

so are my stocks pretty much fucked because of Europe about to plunge into a deep recession or will it be good ultimately because people will put their money into the US markets? Value investing is a true test of patience let me tell you, goes against every instinct to sit and watch yourself lose money every day, shit's wild.

A.J. Trillzynski

god damn i can't believe how volatile the markets are right now. i was down $400 earlier today and like 'here we go again' and now we just closed out with every stock in the green and i'm up $60. unpredictable as hell right now, i wonder what caused the upturn?

Sion

reaperbong wrote: »

so are my stocks pretty much fucked because of Europe about to plunge into a deep recession or will it be good ultimately because people will put their money into the US markets? Value investing is a true test of patience let me tell you, goes against every instinct to sit and watch yourself lose money every day, shit's wild.

A bit of the former but more so the latter. With your portfolio you will be fine. But in the short term if Greece leaves the Eurozone I think it might present a great buying opportunity for stocks should they dip. Then again markets might rally on news IF Greece does leave the Eurozone as most of Europe's worries will be behind them (Greece already is but the market hasn't realized it yet). And yeah with Europe currently in a recession you're gonna start seeing people pull money out of that economy & run for stability and safety which appears to be the U.S. so with that being said I'm still very optimistic that by the end of the year 2012, U.S. stock markets will do well. The U.S. seems to be the only major economy that is doing well - China is looking down, Japan is in the toilet, Europe is ravaged, Canada has a housing bubble, the Americans are the only ones doing it right LOLOL. Look at the price of oil droppin, that's a result of people looking for liquidity & buying up U.S. dollar assets.

& Yeah value investing is LOLOL but if you can make out of this without selling I can assure you, that you will be laughing to the bank. Cuz when stocks turnaround they move up quick (look at 2009 & 2010).

Smash_Adams

Hey SIon what do you think about GWBU?

some info

Owns the exclusive manufacturing rights to the Start Fuel Efficiency and Emission Device (FEED), an aftermarket device for internal combustion engines that enhances performance by causing fuel to combust more efficiently and completely

GWBU recently announced major potential contracts that could yield over 60 million dollar USD in revenue!

SeekingAlpha editor recently compared GWBU to Westport Innovations (NASDAQ:WPRT). WPRT is a 1.41 billion dollar company trading over $25.00! WPRT traded in the past around $5.00 and reached over $50.00 at some point as well!

Anything you can find out will be greatly appreciated. Thanks man

Sion

Astronaut_King wrote: »

Hey SIon what do you think about GWBU?

some info

Owns the exclusive manufacturing rights to the Start Fuel Efficiency and Emission Device (FEED), an aftermarket device for internal combustion engines that enhances performance by causing fuel to combust more efficiently and completely

GWBU recently announced major potential contracts that could yield over 60 million dollar USD in revenue!

SeekingAlpha editor recently compared GWBU to Westport Innovations (NASDAQ:WPRT). WPRT is a 1.41 billion dollar company trading over $25.00! WPRT traded in the past around $5.00 and reached over $50.00 at some point as well!

Anything you can find out will be greatly appreciated. Thanks man

Seems like a newly listed company, I can't find anything on its financial standing or past profits. I wouldn't invest in it until it released financial reports on it's financial health.

I'm not saying it's good nor bad, I'm just saying more information on its finances needs to be released.


That one company they're comparing it to tho - WPRT.... has not turned a profit in net income in over 10 years LOLOL.....

Sion

Yikes......

Facebook market makers' losses total at least $100 million
http://www.reuters.com/article/2012/05/25/us-facebook-fidelity-thousands-idUSBRE84N10120120525

In other news..... EU urges Greece to stay in euro, plans for possible exit
http://www.reuters.com/article/2012/05/24/us-eurozone-greece-idUSBRE84M0P420120524


Markets will worry a great deal and probably fall too but if you're the objective type and did your homework you'll see that Greece only makes up for 2.3% of the EU's economy not to mention, Greece leaving the EU would be WAY cheaper & easier for everyone else. They defaulted back in 1995 and have always been a third world country. The EU has what it takes to weed through this mess.

http://www.bloomberg.com/news/2012-05-24/frozen-europe-means-ecb-must-resort-to-ela-as-finance-lights-dim.html

traestar

Sion. wrote: »

Yikes......

Facebook market makers' losses total at least $100 million
http://www.reuters.com/article/2012/05/25/us-facebook-fidelity-thousands-idUSBRE84N10120120525

In other news..... EU urges Greece to stay in euro, plans for possible exit
http://www.reuters.com/article/2012/05/24/us-eurozone-greece-idUSBRE84M0P420120524


Markets will worry a great deal and probably fall too but if you're the objective type and did your homework you'll see that Greece only makes up for 2.3% of the EU's economy not to mention, Greece leaving the EU would be WAY cheaper & easier for everyone else. They defaulted back in 1995 and have always been a third world country. The EU has what it takes to weed through this mess.

http://www.bloomberg.com/news/2012-05-24/frozen-europe-means-ecb-must-resort-to-ela-as-finance-lights-dim.html

WOW and I know you've heard this FB premarket price story where now shareholders are filing class action and arbitrary lawsuit I forgot the other one . Not a good look, this is why I wait out.

black caesar

Sion is Switzerland going to take a hit?

Sion

black caesar wrote: »

Sion is Switzerland going to take a hit?

Not sure, I think every country around the world will take a hit, some smaller some larger than others. I don't think Switzerland will take a significant hit tho. Maybe a minor hit but nothing too serious, but anything can happen. LOLOL the swiss were smart, when the EU tried to court them to join they declined with the quickness. They not giving up their right to print money to get married to 27 countries with no prenup LOLOL.

Sion

Yo those who plan on buying up facebook put options..... are in danger of losing a lot of money. Niggas is crazy if they think Mark Zuckerberg is gonna let them nerf the common stock of his company to shit.

traestar

Sion. wrote: »

Yo those who plan on buying up facebook put options..... are in danger of losing a lot of money. Niggas is crazy if they think Mark Zuckerberg is gonna let them nerf the common stock of his company to shit.

I hope my co-worker didn't do that

A.J. Trillzynski

huge losses today.. now is the time to buy if you're looking to get in. keep an eye out on Wells Fargo if it dips below 30 that's an easy buy

Sion

Everyone keep in mind that stock markets are falling b/c everyone around the world is dumping Euros and equities and are putting them in more stable countries such as the U.S. and the U.S. dollar (almost exactly as I predicted they would back in December 2011), that's why the dollar is strengthening and oil and gold are falling (b/c the US Dollar is strengthening). People are hoarding cash right now in the U.S. which means that at some point in the future (maybe 3rd or 4th quarter) stock markets see huge surges once more positive economic news comes out of the U.S. and people start spending that cash and US Dollars they're buying up. NOW is a very very good time to be buying equities and if you lost some money b/c of the fall in stock markets, now would be a good time to average down your cost.

Oh and Europe is only going to get worse, it will take a while for Europe to turn around b/c there's so many countries and MOST of them can't print money any more to stimulate themselves.


Buy Wells Fargo LOLOLOLOL, and for those looking for huge dividends and bargains, the energy sector has many oil companies currently selling for cheap with very high dividend yields that are sustainable for the long term.

KarolinaSouftoLACali

So how do i go about purchasing shares....who/where do i go
or is it all online???

Sion

KarolinaSouftoLACali wrote: »

So how do i go about purchasing shares....who/where do i go
or is it all online???

Most of it is all online and it's easier that way although your could do it through phone or by visiting your bank. In order to purchase shares you will have to go to your bank to open a brokerage account or a discount brokerage like say E-Trade, Charles Schwabb, Questrade, Scottrade, Interactive Brokers or wherever. It's probably better tho if you open a brokerage account with your local bank as they can step-by-step guide you through the process.

But yeah basically you'd open a brokerage account, after that you'd deposit money into it and from there you can start purchasing shares.

Sion

I'd like to add.... even tho I recommended Finmeccanica early on in this thread, I don't think anyone should be buying it right now. Even tho it's selling at a ridiculous low price and one could see an incredibly huge profit if they are willing to hold I have found that there are better buys in Europe and also that such a huge upside may take a long time to realize.

It is very cheap selling at a third of book value but it's profit margins nor returns on equity are high enough to justify investment. But if the stock goes to par (book value) at current prices one could see a 70% profit. FNC is not for the feint of heart and if you're looking to buy European stocks there are better buys like Volkswagen and others.