***Official*** 2011 Stock Market Thread

[chusteczka]

Holy cow! What brought OCZ up 15% today, 30% in the past few days? I just had an automatic trade get executed at $5.80 that I thought would never get filled, considering it was at $5.00 yesterday.

1,000 shares for a modest gain of $600. This makes me wish I had put more money into it but just yesterday I was calling myself stupid for having put money into it a week before it fell.

 

[kevman]

Go rmbs go!!!

 

[IHateMyJob2004]

FBN is pretty close to its all-time low. Although if you were just talking about yesterday's bounce, I agree, quite a few stocks did well. What is LEE? Is that a valid stock ticker?

RMBS has been up 40% in the past month. It did bad earlier this year due to the CAFC, but overall, even with the dot-com bust, it's still up 100% lifetime (spilt 4:1 in 2000). It went as high as $400+ when people thought RMBS was the dominant memory player with Intel's backing.

Ya, meant FBN on it's big up day. Liek you said, alot of things moved alot.

LEE is a bit tricky depending on site. At Google, you have to type in lee and wait for the autocomplete to appear and select Lee Enterprises. I think typing in NYSE:LEE would also work. Lee is a newspaper.

LEE: Debt load is a tad high but it should be able to remain FCF positive. The newspaper industry is not dieing. It's just learning to navigate the new waters. The past 5 years of everything being free on the internet is a failed model. it doesn't work. And yes, I read up on patch.com. Talk about a business unit of AOL that is hemoraging cash. They will have to move to paywalls eventually. They have no choice really. The thing is, Patch.com does not have a presence in print which 25 of the population requires due to no internet access. And they also do not have Sunday circulars whcih some people buy just for the coupons. I do think smaller papers do need to consolodate (merge) and offer bulk packages for multiple digital subscriptions. Patch.com should really jsut be aquiring the small local print papers and doing a better digitial pay for model. If they move to that model, I'd consider buying AOL stock. But they are a comapny that has proven to not be very good. I doubt top mangement will try to be innovative this time around.

I had Lee at about a $1.90 cost basis. When FBN dropped so much I flipped the position from LEE to FBN sicne the risk/reward profile made it make sense. I hope to dump FBN at a small gain and get back into LEE. Lee tends to ignroe the markets in its movements and stay flat. A rising tide should bring FBN up though.

 

[SunnyD]

On a side note... what kind of "value" does BRK.B have after Buffet passes on? I'm considering it as a sort of long term "kidvestment", a couple shares tucked away for each of my kids as sort of a present for the future. The more I think about it though, the more I wonder exactly how long-term-stable BRK.B would be without Buffet behind the scenes.

 

[IHateMyJob2004]

Buffett has publicly said that the people being considered as his repalcement are smarter than he is.

Remember that Berkshire is highly decentralized. The main office in Omaha has about 20 people working there. Each busieness unit runs on its own. All excess cash flows are basically given to Buffett for reinvestment.

Will there be a drop in share price when Buffet steps down or dies? I have no idea.

He said that if he does die, a replacement will be named within 24 hours. He discusses this matter with the board ever quarter. They know who the replacement is at all times and the change will be swift.

 

[Miramonti]

Buffett has publicly said that the people being considered as his repalcement are smarter than he is.

Remember that Berkshire is highly decentralized. The main office in Omaha has about 20 people working there. Each busieness unit runs on its own. All excess cash flows are basically given to Buffett for reinvestment.

Will there be a drop in share price when Buffet steps down or dies? I have no idea.

He said that if he does die, a replacement will be named within 24 hours. He discusses this matter with the board ever quarter. They know who the replacement is at all times and the change will be swift.

I don't know if his proclamation that potential successors are smarter carries much weight in people's minds, since having good judgment, wisdom, and the ability to sort out and weigh contrary opinions aren't measured by standard iq. He's probably 'genius' in this regard (even with his flops considered.) He also seems to have great instincts, which of course is golden in the investment industy. (atleast that's my take on him.)

 

[chusteczka]

On a side note... what kind of "value" does BRK.B have after Buffet passes on?

Buffett is a key player; similar to Steve Jobs with Apple, Peter Lynch with the Fidelity Magellan Fund, and Michael Jordan with the Chicago Bulls. How did (will) they do when their key player left?

It will not be the same without Buffett but it has been stated (in magazine articles) that he is selecting companies for long term stability. I expect he has a stake in the stability after he moves on since that is how he will be remembered and since his family's future most likely relies on the stability of his current work.

Of course, if someone like HP's Carly Fiorina was to take over, I would pull out immediately.

 

[Imp]

Job numbers tomorrow, DOW is rallying nicely.

Come on shitty job numbers? Not like anyone needs to hope for that to happen. Wonder when "concerns about Europe" will crash the market again.

 

[snoopdoug1]

Hmm - RMBS taking a hit this morning. The only news I saw was this - certainly not good news!

http://www.reuters.com/article/2011/10/06/us-nvidia-rambus-idUSTRE7956QQ20111006

 

[SunnyD]

Hmm - RMBS taking a hit this morning. The only news I saw was this - certainly not good news!

http://www.reuters.com/article/2011/10/06/us-nvidia-rambus-idUSTRE7956QQ20111006

Different case.

 

[chihlidog]

Different case.

I wondered why the stock was taking a hit, this must be it. Sucks.

 

[SunnyD]

I wondered why the stock was taking a hit, this must be it. Sucks.

The entire market is down - this slightly compounded the effect.

Again, this is a completely different case (against NVIDIA), and it's an appeals case at that. To be honest, this is "good news" for those waiting on the other case, as it's pushing prices down and, well, you can stock up if you so desire.

 

[IHateMyJob2004]

Buffett is a key player; similar to Steve Jobs with Apple, Peter Lynch with the Fidelity Magellan Fund, and Michael Jordan with the Chicago Bulls. How did (will) they do when their key player left?

It will not be the same without Buffett but it has been stated (in magazine articles) that he is selecting companies for long term stability. I expect he has a stake in the stability after he moves on since that is how he will be remembered and since his family's future most likely relies on the stability of his current work.

Of course, if someone like HP's Carly Fiorina was to take over, I would pull out immediately.

Actually, that's not really true.

Buffett is not an investor like most think. He runs a busienss. He runs a decentralized busieness. He does not have much say in the day to day operations of Geico, Burlington northern or any other unit. That is nothing like the others in the analogy. Buffett is more like the GM that built the Bulls team that had Jordan. Steve Jobs, for example, decided on wher ethe company went and what products it made.

Buffetts self admitted gift is assett allocation. His heir needs to have a similar gift and in his own words, the people sleected thus far will probably do it better.

 

[Imp]

Sweet, "flat" day on the market. Crashy crashy next week, and back to lows of last week.

 

[fleshconsumed]

I keep watching the Sprint drama... It was down to 2.27 just a couple of days ago, then rallied back up, way way up. Today it hit a high of 3.37 in the early morning hours before crashing down to 2.60'ish... Better than any reality tv show! :thumbsup:

 

[richardycc]

hmmm sell my EK now for beer money after commissions or hold on to them over the weekend and hope there is no bad news like Bankruptcy news. decisions ,decisions...

 

[FelixDeCat]

Looks like Azurik's puts in RMBS are going to come in handy.

 

[richardycc]

Looks like Azurik's puts in RMBS are going to come in handy.

what happened? thought the court wasn't in session today.

 

[FelixDeCat]

what happened? thought the court wasn't in session today.

I read an article about a jury wanting more info on the RMBS document shredding scandal. It turns out it was related to Nvidia, not the other case. :biggrin:

 

[manlymatt83]

Thinking of selling my RMBS calls. Who knows at this point when the jury will reach a decision.

 

[Imp]

Damn, need just 2-3% gain to check out of my oil position relatively unscathed. Hoping for it to slide afterwards.

 

[chihlidog]

Thinking of selling my RMBS calls. Who knows at this point when the jury will reach a decision.

Nobody knows. Could be 5 minutes from now - why sell?

 

[manlymatt83]

Nobody knows. Could be 5 minutes from now - why sell?

They are slowly draining on price

 

[chihlidog]

Seriously considering AMD stock. It's going to tank temporarily but I do think it will recover. Thoughts?

EDIT: Wow. It's going UP. Alllrighty then......

 

[Pliablemoose]

Go go Apple...

Earnings on the 18th...