Your Opinions and suggestions

[MrHolli]

Hello everyone I have been investing for about 1-2 years and haven't really had too much success. I don't have that much money right now. I am currently thinking of purchasing CEG, Amgen, Pepsi, Yum, Monsanto, and Joy Global. What are your thoughts? Currently I have small stakes in the following BQI, V, ANPI, ENT, FRG, PGJ, and SIRI. Thanks in advance.

[aquaswim47]

Originally Posted by MrHolli

Hello everyone I have been investing for about 1-2 years and haven't really had too much success. I don't have that much money right now. I am currently thinking of purchasing CEG, Amgen, Pepsi, Yum, Monsanto, and Joy Global. What are your thoughts? Currently I have small stakes in the following BQI, V, ANPI, ENT, FRG, PGJ, and SIRI. Thanks in advance.

I've been invested myself since February of 2007 and in mutual funds since April of 2006. I know that it's difficult.

I really like your new picks. I'm going to in my next message go stock by stock.

I really like CEG, but be sure to include it in the JOYG basket. EXC, SLB, and COP are also stocks I'd consider for that basket. CAT and DE may also be good for that basket. In fact, I plan on buying CEG on Monday (unless GS drops by 20%, than I'll back up the truck on that instead). CEG has over a 7% dividend yield.

AMGN is a good company, but I like TEVA, JNJ, ABT, and BIIB (Biogen) better.

I like Monsanto (MON), but the fertilizer sector is extremely volatile. Potash and Scotts Miracle Grow are also considerations, but in this case, I really like Monsanto.

While YUM is a solid company in China, I really prefer MCD.

Pepsi is solid. KO, PG, and GIS are ones you should also consider. I own GIS personally.

I prefer MA to V in that it has a decent ROE but V does have a much, much lower price to book ratio than V. V also has a higher operating margin.

I think of BQI as a sell unless you think its cash-flow situation will change. Right now, it has a great balance sheet, but a problem cash-flow statement. It's similar to what Nastech Pharmaceuticals used to be a year ago in the biotech sector; it's new symbol is MRNA. That company continues to bleed cash, and is down to $18.45 million of equity down from $39 million of equity nine months ago. In fact, I don't like any of the stocks you own since I think it's a good idea to stay away from penny stocks.

PGJ is a risky Chinese play, but I do like the stocks held by it. I agree with Stocktrading that China is extremely risky even at these low levels.

[MrHolli]

So I have really taken a beating these past few weeks. I am thinking of just cutting my losses and get out with something. Let's say I come out with $500 to reinvest. What would you suggest I try to get in on? Your help and suggestions are appreciated.

[Fredledingue]

Everybody took a beating. (My portfolio lost almost 10% last week... just one example among thousands).

The companies you mentioned look good. I can't tell you which one to pick as it would require more research and analysis, which is something that you have to do on a personal basis.

If I were you I'd look at value stocks (book ratio, low PE, high dividend etc) more than
growth stocks because with a recession ahead growth forecast can be questioned or in jeopardy.

[Ray The Money Man]

Good advice. We should ignore the fundamentals right now. I don't trust any stocks. If he is looking to start long term positions obviously it is a good time. Standard rules apply. Diversify, some dividend players and at least 1 or 2 non cyclical consumer position.

[aquaswim47]

Thanks to Jim Cramer, I bought GIS and JNJ last week. Yesterday, I sold GOOG at a 10.2% loss, since I sold @ $374; the initial purchase was at $416.47 several months ago.

I got, thus far, into MMM, UTX, EXC, JNJ, and SPLS. I just need to get into GE, but it will need to fall 31 cents per share for the limit order to execute.

Yeah, I am down around 16.2% so I've definitely held it together (but it has become more aggressive, thus there's always that chance to relinquish some of that advantage if it goes lower).

[Ray The Money Man]

One day since my last post on this thread....and I still say don't trust any stocks. Even I have been adding to my long term positions...no more. Sell every chance you get. And develop a plan, we are headed down!