What’s your thesis on Merill? Worth taking a position now or after the next write down…
As with most US financial institutions, I think it is premature to believe the worst is behind us. I expect another down-leg for banking stocks and then, I might consider buying a few. What makes you believe that this crappy stock has bottomed out? The Fed pumping in money like that is that would solve every problem? The appearance of a long-term investor?
I don’t know if its bottomed but what I am trying to figure out is how close to the bottom. I think we’re approaching a time where if you can hold for 5 years, we are getting close to some really good financial buys. If we’re close tot he bottom I’m getting close to considering a buy on many financials and if i have to eat another 10% or so before it starts to uptick then… I do know the last time the financial were a solid buy was approximately 5 years ago (maybe 6 now) and in market turmoil is the time to be considering buying stocks that get beaten down. I put this post up to see what others think and to hopefully garner some perspective i orginally may not have thought of. The more thought the better… I don’t know what is a buy or when (who does) but i do think financials are getting close.
stay away from US financials, there’s ample money to be made elsewhere
Wow, it never ceases to amaze me how many people, even those on the forum, think they can call bottoms.
Mlpguy - not calling bottoms, wouldn’t have a clue…read my posts carefully and you’ll see i’m not calling for anything… Just trying to figure out pot odds, so to speak.
There’s an article in WSJ today that follows along with the OP called “Even the Smart Money Looks Bad.” It’s interesting to read about how a few of the “professionals” are losing big bucks on their investments.
I think MER is attractive at current levels, but I would wait until after the drop the next shoe when they report quarterly earnings. In the meantime, I am dumping MER before year-end for tax-loss purposes and using that to offset massive gains in AAPL. I will take up a position again after the 30 day wash-rule restriction.
MER looks good from a valuation standpoint but remember that you’re not there to know what their full exposure is; so it’s not worth it. Either wait til the summer or immediately look elsewhere.
"I think we’re approaching a time where if you can hold for 5 years, we are getting close to some really good financial buys. " Please give some constructive analysis on why “we are getting close to some really good financial buys” Such statements are worthless. Answer this: why would you buy into a company that just did a convertible deal giving the lender the option to buy your stock at a price that is LOWER than the current price? What most recent transaction does this remind you of? What happened to that bank’s investment?
anyone make money on this?
strikershank Wrote: ------------------------------------------------------- >> I think we’re approaching a time where if you can > hold for 5 years, we are getting close to some > really good financial buys. Think about the opportunity cost of waiting for 5 years for your MER to do something.