Irrationally mad decision making to obtain the American Dream.

Posts tagged “low peg stocks

market continues to fall – I need to be practicing my put options

Another -500pt drop today for the DJIA. A -15% drop for SWN down to $26 again! These market swings are ridiculous. I’d hate to own stock right now OR trade options. It has been very unpredictable so the phrase “missed money is better then lossed money” is sounding better and better right now while staying out of the market, watching, studying, and practicing my techniques.

Put options are the definite play here still. October 2008 is still crashing. RIMM even at $48. One stock I did read about that really struck me as a great turnaround stock once the market changes its mood is AKS – AK Steel Q3 earnings call. Low profits, but still “solid balance sheets” with a PEG of .16!!!! And still very profitable with new material price increases even with steel prices coming down at the minute. It lowered its forecasts, BUT forecasts for the stock and cashflow are still “solid” and bringing in real cash (hundreds of millions). The stock ended today at only $12 with a high this year of $90. I will be watching in closely with QQQQ’s for likely long long term call option positions after the President is elected.

Advertisements

whiped out! – starting off with $1000 again – i got a poised Apple!

Well…Here I am starting at $1000 again. The only stock that didn’t go down on me was my spicy pickle franchising stock. It’s down -$200, but nothing compared to my Nov MSFT and AAPL out of the money options. I was totally whiped out and I mean clean. Oh well. It is just money right? I definitely should of been watching the Nas and Djia which I didn’t realize were trending down until my older sister told me why she thought the market was going down. It came to me so unexpected, but I guess I should of expected the exception happening. I’ve been heavily deep into watching technology industry charts that this sudden crash just got me. I’ve already taken $1000 to $10,000 many times so I’m pretty confident I can do it again with the market falling so hard playing some Puts and then waiting for it to stop and play call options on AAPL and RIMM all the way back up to their 52 week high’s. Apple (AAPL currently at $156!) is still a great company with everything going for it. New awesome sleek products going into international markets and selling many iPhones its new product everyone wants. Oh, and did I say christmas and iPods? I have good reason for it to go back up in price after tech has been sold off but it will be a little while before that happens. I find analyst are suddenly bearish on Google (GOOG @ $642!). Why? This stock is major growth power and low peg of 1.30. If GOOG drops to the $600’s which it probably will with a PEG near 1.00 that stock will become a major buying opportunity. It is just too bad options cost so dang much. I probably could only afford way out of the money for $1000. I’m still rooting on Apple.

So because of this disaster. I’ve lost my total account basically around $26,000 within 1 week when stocks started to fall after dumb Cisco’s report (CSCO). I definitely should of just took out my winnings and paid off some crap or bought another house. I guess I keep learning the hard way. It isn’t easy being so risky sometimes. I will not be able to buy off my note for $35,000.

A person just gave me another offer of $105,000 for my single family home so I’m going to take it. That will give me a $35,000 profit after owning it/renting it out for almost 3 years. So this will go as my down payment through a 1031 tax exchange for the bigger mobile home park for $190,000. I ending mortgage was around $58,000 so after all the costs I should have at least I hope $40,000 applied to the commercial mortgage. I could also of refinanced my current mortgage, kept the incoming rent of $725/month, and took out an equity loan of around $50,000 for the down payment on another 20-30 year note. This was also an option, but I figured if I only have to worry about 1 payment at a time this is better even though my currenter is pretty good about making all her payments. So now I will have to mobile home park mortgages. My first park in Savannah is getting there. We are finally getting some better renters and hopefully I will get it fully rented earning around $2000/month which is my goal. As for the second park my goal is to keep the gross at around $4500. After all bills I want to be earning at least a net profit of $24,000 year. So no matter what I’ll have a decent income even if I have not made consistant money in the stock market. I think my goal now is to just pay off my real estate so the cashflow will get higher.

As for the stock market. Well I’m all in with $1000 as soon as I find the right play.