Any truth to this type of stock buying?

[abolish the weak]

Well, first off I'm greek to the stock market. I never really had anybody sit down and help me with investing or explain much about it. I have a 457(like a 401k) with work, I only put like $30 a paycheck in there because I cant afford to do much more than that. But lately I've been trying to research other things and maybe start my own portfolio outside of that. I occasionally watch Mad Money with Jim Kramer. I was doing cardio and watching this tonight, he was talking about if you were to buy shares of Pepsi stock tomm. you would automatically make .43/share within a few days. I guess since tomm is the last day to buy into 1st quarter dividends you could buy a bunch of Pepsi stock tomm and then trade it in a few days and make .43/share, sort of like fool proof. If I invest my tax return into this I'll make $800 by Friday.

 

[leegee38]

The stock price will normally change to reflect when the dividend is paid. It doesn't work quite like Cramer described. He is a funny and bombastic guy, but his long term track record is actually pretty bad.

 

[Nssca]

Invest your money in foreign stock and Gold..stay way from the US Dollar soon it will be worthless.

 

[Steve123]

Don't listen to Kramer. That dividend thing is theoretical bullshite and I promise you it does not work like that in real life. That guy is a tool.

Maximize your workplace savings plan because of the tax benefit and hopefully the company match. Despite what people are saying right now, your workplace saving program (qualified plans only - non qualified plans are different) is about the safest place in terms of the custody of assets. A company can not use those assets under any circumstances. Just make sure you're diviersified and invested according to your goals. IN your 457 plan, I beleive most of your investments are in annuity contracts anyway which provides even more stability (at least until the insurance companies start going under).

Steve

 

[maldorf]

How about municipal bonds? Some out there yielding about 8% now.

 

[xxxChrisxxx]

Don't listen to anything Cramer says. At best it's entertainment, at worst, it's a weak attempt at manipulation.

Open an account with ThinkorSwim, LEARN how options work, and manage an IRA yourself. Buying or selling stock without using insurance (options) is for suckers (Cramer's audience). It's not easy, but nothing worth doing is easy.

 

[gogotren]

How about municipal bonds? Some out there yielding about 8% now.

where is that? The problem with muni`s is the spread is insane if you ever want to sell them. Muni`s also yield a little less because they are triple tax free in state.

I`m doing more non-traded REIT`s that are buying commercial properties now. AIG just sold there building on wall st. for 100 per sq ft... they paid $300 sq/ft 2 yrs ago. Still the same awesome property, great location, rates have not dropped much so cap rate is very good... but a distressed seller.

 

[Pekkerwood]

The market takes that into account prior to Kramer telling you "the secret". Its already priced in. That does not mean that this isn't a good strategy. Learning to read annual reports and balance sheets to spot what you feel are undervalued assets. Ex: Maybe a chain of banks business is not great and the stock is $2.00 a share. But they own prime commercial corners in great cities that even in a "fire" sale would bring $4 a share to the company, etc.

 

[brisk walk]

i cannot speak about pepsi......but i can say that tdameritrade is going up every day.......i purchased the stock 2 months ago @ $13.75 and now it is up over $17.00.......i guess the time was just right......that and a little bit of being in the right place at the right time!!!

 

[keenstyle1]

All those fundamentals are flawed. You have to be on the same side as the institutions, therefore technical trading is the best option.







Commodity Broker

**broken link removed**

 

[brother_iron]

The stock price will normally change to reflect when the dividend is paid. It doesn't work quite like Cramer described. He is a funny and bombastic guy, but his long term track record is actually pretty bad.

Cramer guys an idiot. Go check out unconventional Success by David Swensen, more in regards to extreme diversification and off shore equities/stocks. I've made a consistent 22% profit over the past 3 years even with the market collapse.

 

[morepain]

until you maximize your tax deferred accounts there is no reason in the world to start a taxable account...assuming of course that you have flexibility in your investment options in your tax deferred plan.

 

[Stang]

The stock price will normally change to reflect when the dividend is paid. It doesn't work quite like Cramer described. He is a funny and bombastic guy, but his long term track record is actually pretty bad.

True dat!

 

[Acadian]

Napoleon Hill offered great advice way back in 1937 when he said that whenever you want to learn and/or take on a new endeavor, to look at how someone who has already traveled successfully down the road you wish to travel did it, and learn from their expertise as well as from their errors. (paraphrasing)

When I decided a few years ago that I wanted to learn how to invest in the stock market, I studied the career of Warren Buffett, the most successful investor that the world has ever seen. He learned from Benjamin Graham, a professor of his at Columbia business school during the first half of the 20th century, that the share price of a company is not always in line with the value of that company. Sometimes, for various reasons, share prices are inflated or they may be depressed.

What Buffet mastered is the ability to calculate the intrinsic value of a company, and also to identify businesses that he describes as "wonderful". He then would compile a watchlist of these wonderful businesses, and buy when their share prices would be depressed, usually at a price that was 50% or less than its intrinsic value. He essentially mastered "buying a dollar worth of value for 50 cents". When the share price inevitable corrected itself in line with its value, he at least doubled his money, took the profits, and reinvested them into another wonderful business that was "on sale".

I am a big advocate of this form of value investing, now coined by Phil Town as "Rule #1" investing. I ran several research studies testing its effectiveness before I actually invested one live dollar. It is true; disciplined Rule #1 value investors average a compounded rate of return of over 15%. It does work.