« Chipping from the Rough | Home | Dating-love-sex-marriage »
You better get some gold.
By fred | February 8, 2008
My first comments to start this thing off is – “If you haven’t any good solid gold stocks you better darn well get some – cause gold is not going to get cheaper, especially with the idiots we still have running things in Washington.”
Next these are the guidelines I have used for years to select good stocks:
BUYING RIGHT – PICKING GOOD STOCKS
A. Insiders are buying, not just a few shares, or just a few insiders but a large amount of insiders have been accumulating shares during the past twelve months.
B. Stocks with a Price Earnings (P/E) of under 15% – turn a round situations.
C. Stocks with their stock price at, under, or only slightly above the stocks book value.
D. Current revenues are moving up, good news and volume up.
E. Stocks with a low share price. It is a proven fact that a one to five-dollar stock in a healthy company can and will double far faster than a company with shares far higher in dollar value. If you are seeking huge percentage gains – look for low priced stocks, stocks where – whatever hammered the shares down, is now over, and the company is recovering. Somewhat difficult to find – extremely rewarding when you do. If you are seeking huge percentage gains – look for lower priced stocks on the three major exchanges, I am not referring to OTC or Pink Sheet stocks.
NOTE: USUALLY I LIKE TO HOLD STOCKS FOR A THREE YEAR PERIOD, OFTEN THEY MAY NOT SHOW BIG RESULTS UNTIL THE SECOND OR EVEN THE THIRD YEAR BEFORE THEY EXPLODE OR GREATLY INCREASE IN VALUE.
———————————————————————————
Topics: Stocks I Like | 3 Comments »
February 10th, 2008 at 4:55 pm
Uncle Fred: Congratulations on your new Blog – it seems to me a perfect arrangement for you and allows you to be creative, but not under the gun time-wise. I do have a couple of questions regarding stocks. First what is a “Pink Sheet” you referred to earlier? Also doesn’t the extremely volatile nature of the recent stock market ups and downs worry you? I know you have said in the past to never gamble with money you can’t afford to lose, and that is what keeps me from taking a chance on such a volatile market.
Regards,
Janet Anderson
February 12th, 2008 at 12:20 pm
Dearest Jan, “Pink Sheets” and “Over the counter” stocks are basically the same thing. They are usually very tiny companies that do not have to report to the FTC (U.S. Federal trade commission) so there is very little oversight and control. So you have to be very careful buying those stocks, that said I have made my biggest profits on those companies, also had my greatest losses. NEVER buy a pink or over the counter stock unless you are darn sure you know the facts.
With anything, markets react tooooo much. Large, financially strong, great companies have their stock dropping for no reason at all. If you know what you are doing you will love the present market, as there a some very large, very sound companies with good finances, where their stock is in the toilet now. Not for any fault of their own but because the market is in a overall negetive mood. If you have a time frame of several years, and have the guts to buy now and not pay attention of the stocks up and downs for a year or two you can make huge profits now. It takes a lot of guts but once the Democrats get back in and start to straighten out the mess we are in financially those stocks will move up bigtime.
I think in the next years, five to ten years. gold will move up to $1,000 to $1,500 an ounce, the reason for my remarks at the beginning of this BLOG.
Thanks Janet for joining, I asked other friend too and am a bit disappointed that they did not.
Love ya, Fred
February 16th, 2008 at 9:24 pm
Hey Uncle Fred, I know you like the gold stocks but what about the ETF for gold the GLD? It follows the price of gold and trades like a stock. I think it maybe due for a consolidation or correction to $83 or $84. I agree the long term trend remains intact and I’ve heard some prediction of $2000 per oz. I’m a skeptical as always when I hear everyone on TV barking buy but sometimes they get it right. I like Uncle Ed’s Yamana and may buy some more on the next pull back. Thanks. John
Dear Johnny – I have had no experience with ETF – GLD. Sounds like it would be a good deal. My major bitch with a lot of these is – “Why pay someone to do something that you can do yourself.” Don’t they charge a fairly hefty fee to manage money? Seems if you put your money in Yamana and a few other good solid gold companies you can invest yourself and save the fees. Of course, I may be being a cheap SOB, so maybe they are a good idea, they certainly should be far better informed than guys like us.
I hope Yamana does pull back for you, but I always hate to hear that waiting comment stuff, especially if you are convinced it is going up so much? The you are screwed and will pay more. What if the stock does not pull back, where is it now, I haven’t looked at for days. It is pulls back so you make a couple bucks extra, not important. At anyrate if you really think gold will go over $1,000 per ounce – does it really matter if you buy it a few dollars higher or lower now. If you think in the next five to ten years gold will go to $1,000 or the $1,500 or more per ounce predicted, then you are foolish to fart around to hopefully save a ten dollar bill here and there, my advise is go for it now, not later. Follow your convictions. Uncle Fred