Small is the new big....
Is JOE worth buying ???
- Thread starter goofer
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Small is the new big....
There are people out there who think that we'll see a repeat of the 2004-06 frenzied high-priced condo/home/lot grab & flip.....I'd bet the rent money that it's not going to happen again in my lifetime.
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Shelly, remember you are only 29 years old and your lifetime is going to go out into the next century. Please reconsider your betting of the rent money.
Said goofer
Well, JOE is at 39.42 now.
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My bias is against shorting JOE is over now (actually has been over for a few dollars), and I agree that a long bias should be investigated slowly now.
Doubling Down?? Averaging Down?? Many a fortune were painfully thrown to the wind, during the last popping bubble (Tech/Internet Stocks in 2001 through 2002 end) by betting that the "good times" would come back quickly, rather than die painfully until everyone HATES the asset class.
When my neighbors and your neighbors start speaking of real estate investments, as poison, it'll be time to re-invest fully.
time will tell.
Doubling Down?? Averaging Down?? Many a fortune were painfully thrown to the wind, during the last popping bubble (Tech/Internet Stocks in 2001 through 2002 end) by betting that the "good times" would come back quickly, rather than die painfully until everyone HATES the asset class.
When my neighbors and your neighbors start speaking of real estate investments, as poison, it'll be time to re-invest fully.
time will tell.
I, for one do not want to see the Fed lower the fed funds rate this week. It would send a signal that anyone who has screwed up because of their own greed or stupidity would be bailed out by the Fed. Individuals as wells as corporations need to be held responsible for their own actions. Only if the general economy and the broad financial system is breached by the credit crunch caused by subprime/junk bond financing and a domino effect hits the financial system, should the Fed act by lowering rates. But we are far from that. Banks have tightened up their lending requirements only recently. The fear caused by the bankruptcy of various subprime mortgage companies and the blow up of 2 Bear Stearns hedge funds that invested in subprime junk, were the events that caused the financial panic the last 10 days. On further reflection,those may be just the excuses for a much needed correction of 10% in the market. It was just 2 short weeks ago when everyone was celebrating Dow 14000 !! There will be further financial "thumpins" in the weeks ahead but I do not think the large money center banks and investment banks will fail. They will have big write downs but they will prevail. The poorly managed institutions such as subprime and junk financings investors {hedge funds} and providers of subprime credit (such as American Home) , will suffer most of the carnage and bankruptcies. I have said before that the only way to cure the cancer is radical surgery......that is what is happening now. The job of the astute investor is to identify the opportunities and buy the companies that have been tossed out because of the panic that has ensued. If the Bank of America, JP Morgan Chase, Citicorp or Goldman Sachs were to ever fail.....that would create a world-wide depression worse than 1929-1932. We are very far from that happening.
Goofer...
I think you are right about the possibility that there may soon be a buying opportunity in some stocks. But I don't think that includes JOE. This company is totally premised on using their land for development. There is a huge inventory overhang in Florida currently (and particularly Bay County where JOE has a lot of property), which will take some time to work off. Given tightened mortgage hurdles, higher rates, and the uncertainty surrounding the sub-prime, Alt, etc mortgages, this stock is not going anywhere soon.
I am not ragging you about JOE going under $40, but you said this was very unlikely. Look at the chart, there is distribution big time. You'd be a better buyer at 31.
I think you are right about the possibility that there may soon be a buying opportunity in some stocks. But I don't think that includes JOE. This company is totally premised on using their land for development. There is a huge inventory overhang in Florida currently (and particularly Bay County where JOE has a lot of property), which will take some time to work off. Given tightened mortgage hurdles, higher rates, and the uncertainty surrounding the sub-prime, Alt, etc mortgages, this stock is not going anywhere soon.
I am not ragging you about JOE going under $40, but you said this was very unlikely. Look at the chart, there is distribution big time. You'd be a better buyer at 31.