Bigbull, why MOS compared to others in the same industry? Why MOS in general?
post #121 of 131
11/25/08 at 3:33am
As I see 'the' epic debacle unfold itself across the globe, I've found, analyzed and bought 7 names that I thought were worth owning on another big dip. Today I got that opportunity and wasted no time in buying some of these names. All of these 7 companies have market value but due to the recent calamity, the price-value relevance has been eroded. I think these names will have the necessary growth and unit interdependence to do well in the upcoming economic soft patch.
I just bought all 7 stocks this morning. I like the prices for which I got them for. Am i calling the bottom?. No. But I know these companies will re-adjust sooner or later to their fair values. If the laws of economic hold true, I should do fine in the MR and LR.
DRYS- $9.30(1st entry), $5.60(2nd entry and final entry)- $6.55(effective entry).
MOS at $31(average)
AAPL at $91.50(average)
MCD at $55(average)
ACI at $15.80(average)
GOOG at $304.50(1st entry), $284.50(2nd entry)- $294.50(effective entry).
I will not specify the reason why I got into each stock. If questions arise on ay of these stocks, I'll be glad to answer.
I am going ot keep it as simple as possible:
The coming Option ARM implosion and the proceeding recasts of most vintage loans that mature(cannot be rolled over) in 2010 .
Once banks are forced to recognize these losses on their books(the depreciation of the house value because of higher defaults), you will get a complete collpase of the housing market), pailing in comparison to what we have seen now.
The issue is not modifying the loan(fake money that was somehow created out of thin air from the fractional reserve system), it is the value of that loan that in some cases will lose 4/5'f of its value, bringing real expectations to market levels.