nasty nasty day for the mkt...its been a while...still would be leary of homebuilders and financials with mortgage exposure. the mortgage exposure companies may be a bit oversold as i think jobs and income will still keep losses fairly low even though loan to values are creeping up...but homebuilders....they will continue to get hurt
i have my $40 bid in for 500 shares to get started. they report on the 31st.
i will scale down my position to 35 over time and then wait .
i really dodged a major bullet when i pulled my bids in the homebuilders. WWHEW !! i want to own JOE since i am down here and talk to some of the middle mgt guys and i see what the potential is over the long term.
i am adding to my position in home depot. there is a dutch tender on the table from 39-44 but i am not sure in this environment hd can do the financing. if they can do the deal it will significantly reduce the float.
i am adding to C and BAC. note that bank of america raised their dividend by 14% to an annual $2.56 which yields 5.3%. not a bad return while you wait for the fear to leave the mkt. 85% is tax exempt under present law. the major money center banks are not exposed to any serious degree to sub prime. imho i think you are getting a GREAT opty to buy some of the great financial companies while they are on the clearance table.
I like C, but BAC really pissed me off when I was a customer, many years ago when they started charging me to walk in the door to deposit money. Over the years, I heard many other individuals whom they have greatly upset via terrible practices. I know they focus on the businesses as their customers, but if they abuse the everyday individual, they will not think twice about abusing their larger accounts. For those reasons, I would never help them continue their mission, whatever that happens to be.
jeez...i am really surprised. i have my checking acct at bac. no fees, very helpful and friendly people ( in sedona, anyway ), and the best internet banking i have ever experienced. they are making tons of money because they are global and well diversified. as a shareholder i am pleased and as a customer i am very pleased. they are the only bank besides wachovia that have branches in the places i hang out. btw, i just opened an acct at wachovia. they own World Savings which they got through by buying golden west financial. world savings has the best cd reates in the country.
Glad to hear that you are having a better experience than me and people I know who had accounts at BAC. Maybe they have changed their ways somewhat, but I still hear accounts of people who are treated without a care in the world about keeping them as customers at BAC.
Fundamentally, BAC looks good on paper, but when I invest, it isn't 100% about the money. I also have to feel good about the company and their practice, and I just don't get that feeling with BAC. To each his own, though. That IS what makes the world go around, and keeps it interesting.