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#1 (permalink) |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
Internets: 406
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I went long Time Warner Telecom (TWTC), I think they are a good take over target.
I also think there is some value in Equinix (EQIX) Anyone here have some good picks, maybe your finance professors think they have a scoop? |
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#4 (permalink) |
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Just completed this portfolio 2 days ago for an investments class. Dont put much faith in it, it's mostly CAPM mumo-jumbo with too much emphasis put on past performance, but it could be interesting to follow how it does:
Bud 28.6% GPS (9.9%) PG 34.6% BBY 28.3% MCD (12.5%) ORCL 6.5% VMC 39.2% F (23.9%) BA 1.1% LUV 6.8% DIS (24.3%) BP 23.6% SPLS 1.9% In parenthasies represents short positions, the weights should equal 1 if I typed it all correctly. Theoretically this portfolio should provide 2.5% expected monthly return with a St. Dev. of 5.2% monthly. [ October 20, 2005, 09:35 PM: Message edited by: DJ FC ] |
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#6 (permalink) |
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8 years monthly returns adjusted for splits, dividends, etc
We predict future performance on betas and alphas, like I said, the project used CAPM... if you are familiar with that. This portfolio is what's known as an "optimal portfolio," it provides the highest Sharpe Ratio (Reward to Risk) of any other combination of these stocks. |
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#7 (permalink) |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
Internets: 406
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Capital Asset Pricing Model?
Strictly Beta's and Alpha's? no EPS measures or Historical Earnings Surprises? Why 8 yrs? Just curious. Most analysts model with a minuimum of 10 yrs, but try to go back 30 yrs to back test. Not that I know how ot run the models or anything. sounds like a fun class. |
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#9 (permalink) |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
Internets: 406
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everyoneon the street is Bearish on Bud. They are near their 52 wek low and the median price target is only $43.00 This may be over weighted in your portfolio.
BUD options look to be heavy on the lower price range. |
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#10 (permalink) |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
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GPS is struggling, I think that is a good short. Consensus is $21.00, but I don't know why, every analyst has downwardly revised EPS estimates.
PG....nice staple. Closed at $55.17 today, but if you look purely at the charts, it looks poised to open higher. $62.50 is the median target price. |
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#15 (permalink) | |
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1 thing leads to another.
Join Date: Feb 2002
Posts: 2,012
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___________________
3:o) horned creatures...wat wat ___________________ |
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#16 (permalink) | |
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Quote:
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#17 (permalink) | |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
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Quote:
Keep an eye on TWTC, FCN, EQIX | |
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#19 (permalink) |
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Senior Member
Join Date: Aug 2005
Location: Atlanta, GA
Posts: 316
Internets: 10
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I've been looking at Walmart. They've gone down recently because they got hit fairly hard by Katrina but the earning per share are pretty low. Sales have been increasing just not at the same rate as in the past. This is a company that will be around for a while and now seems like a pretty good time to buy at a decent price.
Asking for stock recommendations/picks without talking about the investment style is pretty worthless though. Are you looking to hold for a few months and sell? Day trading, etc. Or for long term growth potential? |
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“This year will go down in history. For the first time, a civilized nation has full gun registration! Our streets will be safer, our police more efficient, and the world will follow our lead into the future!”
-- Adolf Hitler 1935 |
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#20 (permalink) | |
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Quote:
One strategy (which my project was based upon) is to form the portfolio with the highest risk/reward ratio... no matter how much risk there is. This portfolio can then be diluted with a risk-free investment so that the entire portfolio can match the risk profile of the invester. Don't want to take on much risk? Try 80% risk free assets and only 20% of the risky portfolio. | |
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#22 (permalink) |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
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Your last 4 days return. Of course this doens't neccesarily represent a true 4 day return because I based all prices off of Tuesdays open and today's close
Bud 28.6% down .3% GPS (9.9%) up 1.4% PG 34.6% down .7% BBY 28.3% up 3% MCD (12.5%) up .4% ORCL 6.5% down .9% VMC 39.2% down 2.3% F (23.9%) down 3.6% BA 1.1% down 1.4% LUV 6.8% up 2.4% DIS (24.3%) down 1.5% BP 23.6% down 1.23% SPLS 1.9% up 2.5% Staples, Bed bath & Beyond and Southwest are your best 4 day longs...Disney and Ford were good shorts |
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#23 (permalink) | |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
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Quote:
Not necessarily. One strategy (which my project was based upon) is to form the portfolio with the highest risk/reward ratio... no matter how much risk there is. This portfolio can then be diluted with a risk-free investment so that the entire portfolio can match the risk profile of the invester. Don't want to take on much risk? Try 80% risk free assets and only 20% of the risky portfolio.</font>[/quote] Doesn't work that way in the real world. Too many factors to consider, plus you are still telling a rookie to make opredictions with his money by trying to pick good long or short positions randomly. | |
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#24 (permalink) | |
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Senior Member
Join Date: Jul 2005
Location: NY
Posts: 540
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Quote:
For me, I typically don't ook to hold for the ling term with most of my equities. I will buy an indexed fund for LT holdings. Otherwise, I try to pick value and buy on a dip if I can and then sell when I think the stock has hit a peak. For my long term equity holdings, I buy for yield. I re-invest the dividends and therefore my # of shares will grow. I always hope the stock will appreciate, but I don't worry about short term losses. | |
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