10 Cheap Stocks Under $10 Written By: Michelle Haimoff 2008-04-29 16:16:14
I collaborated with David Neubert to come up with a list of the best stocks under $10, but the first thing he said was, “Most stocks under $10 are ones that have problems.” All of the stocks on his list are speculative. “Just buying stocks with low prices is not a very smart strategy. There is no disadvantage to buying one share of Google for $520 as opposed to 100 shares of stock with a price of $5.20.” It turns out most online brokers charge the same commission regardless of number of shares.
After begging you to open an IRA if you qualify, here is another place one could put that tax deferred cash. I'm picking up some TIPS (Treasury Inflation-Protected Securities) in next week's auction for my IRA.
BernankeTestimony at Congress and Inflation Written By: David Neubert 2007-03-28 11:42:07 I am short U.S. Bonds. I'm short both the ten year futures and the long bond futures. Last week's announcement by the Fed FOMC dropping the hawkish language about inflation made me nervous about my position but I wanted to wait until I heard Ben Bernanke's testimony this week to decide if I would decrease the size of my short.
Betting on a Higher S&P 500 for December Written By: David Neubert 2007-12-05 16:06:07 I bought some S&P 500 futures betting on a higher U.S. stock market for December. We have lower interest rates, a cheap dollar and U.S. companies at the cheapest forward price earnings ration in years. What's not to like? Do I have a stop on my position? You bet! I don't want to take a pullback of more than 1% on this market.
My hedge? I bought some puts on the Emerging Markets Index ETF (EEM - $159.44). My thought process is that only a global meltdown could hurt my position. The U.S. is poised to outpeform in December.
Disclosure: While I am long 160 strike puts on EEM, I am also short some 100 strike puts.
Extra Disclaimer: Futures and options are highly leveraged instruments. Do no use them unless you can afford to lose your entire initial investment and then some extra on top of that. Do not play with matches around gasoline either.
