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Daily Archives: September 19, 2008

No Need to be the Smartest Guy in the Room

September 19, 2008
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As a young investor many years ago, I used to read and watch everything I could that related to the stock market, and even the financial markets in general.  I was a huge sponge, eager to sop up information and opinions, no matter how good, bad or biased it might be. Eventually, however, as I began investing on a more regular basis–i.e., I actually began working and had more money to invest–I took a step back and examined my habits.  Here I was, listening to pundits on TV and reading about opinions online, listening to people who were clearly...

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Quick Thoughts

September 19, 2008
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Wow.  A hectic week is becoming even more hectic this morning. The U.S. has followed the U.K.’s lead in banning short selling among financial stocks; the Fed is pumping more money into the system, and is accepting short-term Fannie/Freddie paper as collateral; the Feds are backing money market funds; and the market is going to open up more than 5%. I don’t have any sure-fire answers as to how this all plays out–we are truly in unprecedented territory.  In fact, the last three days in a row, the NYSE has seen more than 30% of all stocks traded there reach...

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Clarification on Bank of America

September 19, 2008
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First off, a quick clarification.  In Tuesday’s post “10 Observations About This Financial Storm,” I wrote, “Lastly on this topic, I think Bank of America (BAC) is going to be a monster when this storm passes.” By “monster,” I meant Bank of America (BAC) is poised to be a winner; I meant it in a positive, bullish way.  Its purchases of Countrywide and, more importantly, Merrill Lynch, could make it one of the bluest of blue-chips in the financial world once this storm passes. Just wanted to clear that up, as I know I led some of you to...

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More on Ingersoll-Rand

September 19, 2008
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Today instead of a Q&A with Roy, he’s going to elaborate on a stock that he touched on in yesterday’s post. Ingersoll-Rand (IR) is a global manufacturer of climate control equipment, energy efficiency systems and security locks and doors.  Products include Thermo-King walk-in coolers, Schlage locks, and Trane air conditioners.  The company has been divesting cyclical slow-growth segments, such as heavy machinery, and acquiring companies, such as Trane, that offer better growth potential.  Ingersoll is also expanding rapidly overseas to diversify away from its U.S. business (54% of sales). Management’s long-range plan to change Ingersoll from a cyclical company...

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