for a first time invester, what stock would be a good idea?
Answers
3963 points
MNSL answered one month ago …
Some of the options are:
Invest in massively undervalued hidden gems
Invest in high dividend yield stocks (undervalued)
Invest in neglected stocks with great growth potential in the future.
Invest in next rotating stocks, sectors
3963 points
MNSL answered one month ago …
Another option especially for next decade.
In addition, invest in simple companies with less debt, protected market for their products, opportunities for expansion, better cost control systems, innovative ideas, ability to generate income irrespective of economic situations and less impact from currency fluctuations etc.
Some of these types of global companies will have biggest growth in their business life during next 10 years. In addition to strong demand for their main products and sub products, their fixed assets such as land, also will appreciate rapidly.
176 points
JPL answered one month ago …
Hi, survivalman2012,
MNSL gave you some good options. That would take some time and work on your part.
Please correct me if I’m wrong, but guessing from your previous and present questions, you might not be ready yet, but you are eager to jump in, a situation which might make you vulnerable to lose money in a “pump & dump” scheme.
So, to "keep you safe”, I like to suggest Annaly – NLY. But please do your own research before you buy.
That said, also realize that your question about what to buy is very difficult for people to answer, because we don’t know your personal situation, such as time frame, risk tolerance, psychology/emotional aspects, etc. I.e. What’s good for one person might not be good for you.
Here’s Annaly:
If you want something relatively safe, a “product” that is guaranteed by the US government, good earnings- right now P/E ratio ( forward earnings) is only 6.2, good dividend – right now forward yield is 16.0%, good price to book ratio – right now it’s less than 1.1, etc. Then consider Annaly, NLY on New York Exchange. Today’s close is $17.22.
Looking at the technicals, it’s hitting support at about $17.00 , and it’s oversold.
It has come down recently from a high of $19.00. I think it came down because Australia has very recently raised their interest rate, thereby creating the perception that NLY’s future earnings will be lower, or perhaps mortgage REITS in general were coming down, or because Bank of America had recently downgraded NLY from “outperform” to “neutral”.
But if you like a stock that is relatively cheap, guaranteed by the US government, that has good earnings, and gives you 16% annualized yield, then NLY is a better buy now than before it dropped.
If you do buy, please be prepared to sell at the first sign of Federal interest rate increase. If you don’t sell, others will, and that will bring the price down.
Disclosure, I do have several small bullish positions in the form of short, naked puts on NLY. And I intend to add to my positions next week, so I really hope the price stays down for a while.
Hope the above helps.
JPL
10/16/2009
