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Wednesday, December 10, 2014

super stocks, the long and short of getting rich, rich, rich/ part 2

super stocks, the long and short of getting rich, rich,  rich/ part 2

fction
Edward w Pritchard

Muddy Waters the blues singer writes " you can't lose what you ain't  got , you can't spend what you never had". Profound advice from the blues man when it comes to the stock market.

Unfortunately many good folks will relearn Muddy's lesson over the next year or two because of  changes on the employment scene concerning paternalism by companies forcing people to manage their own 401K's.

It would be grand if America still had a solid system of pensions as the backbone of most people's security and safety. Alas, you can't lose what you never had.

Beware, no one can steer through the complexities of the stock markets up's and down's successfully anymore if they are forced to be fully invested.

America has cracked up somehow. Author has wrote before about Alibaba's listing on the American stock exchanges. It is just one example that something is askew here. A communist Chinese company for Pete's sake. We shall learn in time.

The free market is so brutal. Learn to live under modest circumstances less despite your hard work, diligence, and luck, the lack of paternalism by the American system towards the middle class will trip you up as well.

Me, "had money in the bank lose my money ain't that sad" [1]. Listen to one crying in the wilderness in warning; unless you are very, very smart and lucky get some investment advice and then take what whoever gives it says with a huge grain of salt. The times they are about to be a changing when it comes to the stock market and your retirement.

People get desperate when they start losing money and their security. Smarter people than us have out lived their money.

Here's what I wrote before, which no one read the first time:

{1] " lose my money ain't that sad. " by Muddy Waters blues man.
end


Super stocks, the long and short of getting rich, rich, rich

fiction
Edward w Pritchard

The legitimate in vogue super stocks making up the indexes slog higher and higher driving the closely watched averages up with them while the other half of stocks begin to deteriorate. No matter.

Does anyone understand the Alibaba [ symbol baba] business model? No matter. Potential business opportunity drives up the stock price allowing the on line retailer to investigate further business opportunities in Media, and other secret market sectors. Success drives success. The [ Baba] insiders need someone to sell to. What happens to [Baba] if China returns to a "stricter " form of Communism?  Who cares. The stock is not the company. By then the champagne will have flowed and early investors will have become rich, rich, rich. As a refresher on [baba] about a month ago it came public in an IPO priced at $68 opening trades around $90 and currently trades at $108. Sounds like 1929 bull market to us. Lawyers out there. How would you like to try to unlock information on [baba] for shareholders. The company is from China, members of the communist party occupy the board and the America investors buy some hybrid form of ADR's. No matter. No one ever went broke by being bullish on American business.

For fun watch the stocks of Dendreon [ dndn] and Herbalife [hlf]. It's soap opera wall street style. Watch the shareholder value disappear. Listen to the CFO twist his words. Hear the bag holders cry and hope for a buyout at last years stock price. It's more interesting than day time TV.

What's in your portfolio? Do you know what your money is doing today?
end

update

since author wrote above
Dendreon is in chapter 11 common stock currently at eleven cents and.

and, Herbalife is about to surprise long term investors again with compliance to Federal pressure annihilating it's once
envious [to other businesses] profit margins.

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