I'm tempted myself but would be more comfortable if that infamous August 24, 2015 low at $10.44 would get tested particularly with earnings coming out in about 10 days....it's like touching a hot stove, the kid just has to find out for himself kind of thing. Then again its already at a 5.3% yield here at $11.23. Perhaps legging in is prudent.
Ehh, to high for me. Tomorrow is x day so it will open .15 below today's close. Might wait and get lucky. my favorite shipper SSW is dropping, might go in there instead.
i have been told by a old folk that when the dividend yield for a company is over 3.5%, in most cases, it is too good to be true in most case. The market does not believe that the company will maintain the dividend payments in the near future, hence no buyer coming in.
Old folk? When I started investing in 1984 the rule was simple. Switch out of stocks to money market funds when the money market rates rise above 12%. What are money market rates now? Like 0.12% ? I saw an add recently for a 30-month CD that pays 1.56% If you wanted to retire with a $50k withdraw per year, you would need 50k/0.0156 = $3.2 million of capital if you intended to finance retirement on CDs. At 3.5% dividends you'd still need $1.4 million. It's a joke, and no wonder that most everybody has to be into stocks during these times....for appreciation not dividends. My point is that when a dividend rate is too good to be true is probably dynamic and of course it depends a lot on the company I suppose. Jerry M would probably have some good insights on this topic.
haha..no offense there. To be honest the low interest rate in the last 10 years really has changed how people see the financial market. I remember when I was still in college all the textbook cases were using 6 to 10% as the interest rate for calculations. Remember you were told that you can save enough to retire by saving 5000 dollars per year in a saving account? Hell I don't even know if that's possible for this generation.
So, it printed a LOD of 11.08, a penny above the 11.07 swing point. I dunno, it just looks heavy, like an avalanche about to let loose. Maybe I'll just put in a Good-til-canceled buy above that 10..44 mark; at about 10.50 or so. If it hits down there the buying will probably come in fast and furious. Or maybe there's a ton of stop-losses a dime under 10.44, hmmm, I'm splitting hairs.
Back in the day, Ford used to be adored just as much as Tesla is today. Why can't we go back to this? Imagine if everyone tried to speculate whether Ford could meet shipment target of 50,000 of these a year. Next Ford commercial better be Bigfoot smashing a line of Teslas, or this company is dead to me.
0.3 miles per gallon. If you don't have gas, Bigfoot will eat your kids (0:44 in video). The world's slowest, meanest doughnuts (1:13). With tires this big, you're basically in space orbit already (2:21). No one ever clapped when a Tesla drove by (3:14).
Watching this video on repeat (and listening to Motorhead). Whoever uploaded this video should make the next Super Bowl commercial.
Too close to the creek for me to deal with, F could hit resistance hard at 11.80 only to retest lows, I just don't see a good way to manage the risk to reward.
http://thecrux.com/remember-the-housing-bubble-of-2008-meet-the-car-loan-bubble-of-2017/ Auto loans: The next debt bubble to pop? Share on Facebook Share on Twitter From Shaun Bradley at ANTIMEDIA: After nearly a decade of being able to borrow money for next to nothing, interest rates are finally beginning to creep higher. Even the relatively small increases seen so far have caused problems in the previously booming automobile industry. The size of the auto loan market has ballooned to a historic 1.1 trillion dollars, and subprime lending has once again become the norm. Teaser offers that allow people to get cars with zero money down and 84-month financing have fueled a wave of irresponsible spending. Americans’ tendency to associate success with having nice things has driven many people who can’t afford to buy a house to get the next best thing — a brand new car. Credit: Wolf Street The data released so far in 2017, however, has started to raise questions about how much longer these spending habits can last. There has been a significant drop in new car sales and a sharp increase in the delinquency rates of subprime borrowers. Inventories across the country have started to build up, and if things don’t turn around soon, the excess cars sitting on lots will eventually force prices lower. According to analysts at Morgan Stanley, price declines will also impact the used car market, and some predictions are calling for up to a 50% decline by 2021. Millions of borrowers who bought cars on credit could see the value of their vehicles plummet yet still have to pay off their full loan amount. It’s similar to 2008 when the mortgage market collapsed and plunged home prices across the country dramatically lower. Property values fell so much that people suddenly owed more on their homes than they were worth. Those homeowners then had to make the decision of whether to wait it out and keep paying their inflated mortgage rates or cut their losses and sell. Cars, on the other hand, have never been an investment, and this kind of situation in the auto industry would likely trigger an avalanche of private sales as people try to get out from under their debts. ................Use above link for rest of article
I believe I'll wait and see, at least until it gets into the $10 area. Signs of Weakness (SOWs) out of trading ranges are reliable predictors of lower prices ahead. Weekly:
I realize it's - coulda-woulda-shoulda, but I came close to jumping in the last day before the x date to collect the dividend. Honestly didn't expect it to recover so quickly, I thought it might fall to the 10's but it didn't happen. Yet.
This is indeed a tremendous risk out there often overlooked by regulators. To be honest, the most attractive line in a car advertisement nowadays is the "0% 84 months financing". However, many consumers don't realize that their purchase lose 1/5 or even 1/4 of its value as soon as it hits the road.
I'm old enough to remember when CD's were paying 13% and up. My father was showing me calculations and I was "Wow, that is SO EASY!! (To make money)!" Yeah, those days
I got in about 11.24. Unfortunately, it's not many shares as the account I wanted to use had unsettled funds.
