This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dividend.com: Longing for State Street

Our tip yesterday was focused on the adage of "never short a free-falling stock." I have seen cases throughout the years where stocks get halted, then the company reaffirms that everything is OK. Or maybe there was an old or mistaken news story that somehow got published -- remember the UAL bankruptcy post that caused a big drop a few days ago. In any event, when the stock re-opens, the pain in these cases is immense for the short-seller.

We focus on long-term ideas, but we know investors like the short-term stuff just as well. Therefore, we want to keep investors informed of any potential opportunity to make dollars with the stocks we cover.

This Is Not What a Real Bottom Looks Like

We are witnessing a plethora of mega-bailouts of companies like American International Group (AIG - Get Report) and now even stock trading rule changes. This is not the solid foundation of a true bottom that we were hoping to see.

Don't get us wrong, we feel bad for people getting laid off as a result of this debacle. But it was the companies themselves that created the mess with their own style of doing business. The combination of greed and leverage is a recipe for disaster.

What makes a real bottom is when the top players see value at a certain price. Look at what happened with Constellation Energy (CEG) yesterday. Warren Buffett saw plenty of value left in company, and then pounced at the right price. You don't think Warren Buffett would have bought or invested in Lehman Brothers (LEH), Bear Stearns (BSC), or American International Group had there been value there?
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AIG $64.12 -0.64%
BK $43.40 -1.21%
FII $33.71 -1.06%
NTRS $76.49 -1.00%
STT $76.56 -0.76%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs