***Official*** 2012 Stock Market Thread

[Arachnotronic]

Top 5 holdings:

T
VZ
GE
VIG
SDY

I have more of an income oriented approach for my "top" holdings. That's just from my brokerage account, if I counted 401(k) I probably would have to swap one or 2 holdings out.

Michael

My dad's portfolio is similar in pursuing an income oriented approach. His holdings:

VZ
AEP
LLY
INTC

 

[Imp]

You dead RIMM, if you not dead already...

http://www.thestar.com/business/article/1158195--rim-gives-india-access-to-blackberry-messages?bn=1

 

[akshatp]

I have a question about a stock I own, figured this would be the best place for it.

I had X amount of shares of Medco, which got bought by Express Scripts last year, and the deal finally closed as of Monday morning. The deal for shareholders was that 1 MHS share would be converted to 0.81 ESRX share plus $28.80 cash.

Fine, I see the 28.80 cash for each share of Medco I had, and I see the appropriate amount of Express Scripts shares in my trading account.

Here is the problem: 1) ALL of the ESRX shares have a purchase date of 04/03/2012, making them all short-term holdings, regardless of when the MHS shares were bought.

And the bigger issue 2) ALL of the ESRX shares have a cost-basis of $0.00!!!! Does this mean if I sell it I would have to pay tax on the entire amount of the sale? That is hardly fair. I thought the purchase price should be the strike point when the transaction went through.

Am I missing something?

Anyone?

 

[snoopdoug1]

I have a question about a stock I own, figured this would be the best place for it.

I had X amount of shares of Medco, which got bought by Express Scripts last year, and the deal finally closed as of Monday morning. The deal for shareholders was that 1 MHS share would be converted to 0.81 ESRX share plus $28.80 cash.

Fine, I see the 28.80 cash for each share of Medco I had, and I see the appropriate amount of Express Scripts shares in my trading account.

Here is the problem: 1) ALL of the ESRX shares have a purchase date of 04/03/2012, making them all short-term holdings, regardless of when the MHS shares were bought.

And the bigger issue 2) ALL of the ESRX shares have a cost-basis of $0.00!!!! Does this mean if I sell it I would have to pay tax on the entire amount of the sale? That is hardly fair. I thought the purchase price should be the strike point when the transaction went through.

Am I missing something?

My opinion, your broker is messed up - give it some time and it might fix itself. I think they're long term, and your purchase price is correct.

 

[Arachnotronic]

Who's ready for tomorrow? *gulp*

 

[Kwatt]

Who's ready for tomorrow? *gulp*

Not I

If the Euro Zone does tank how bad will it be for the US? And will there be any safe plays?

I am 35 % cash so if there is a big correction I can avg. down a bit. If not I may keep it out until after the election here. Might miss some but will sleep better.




.

 

[Imp]

Who's ready for tomorrow? *gulp*

I'll be up by 1pm tomorrow with the day off... Hoping that most of the morning dump recovers by then.

 

[mshan]

Haven't been following the markets closely, but my impression is that U. S. stock market just got ahead of itself, and a complacent pause, consolidation / digestion of gains, or even modest correction right now would probably be quite healthy in the long run (http://seekingalpha.com/article/456421-equity-markets-are-betting-on-the-consumer and his most recent blog posting http://seekingalpha.com/article/477551-time-to-take-some-risk-off-the-table).

Remember last year how all talking heads on tv were saying how bad first quarter was going to be because Italy and Spain had something like $400 billion in debt to roll over? Well, I believe that time has passed and LTRO has done it's job (bought time so Italy in particular could refi at rates that don't put it into immediate insolvency; IIRC, France used to own about 40% of Italian bonds, so Italy going down would have infected the core of the Eurozone (the core being Germany and France); and I don't think Spain is Greece, in that I've read it actually has a functioning economy, it's just needs growth post massive housing bubble crash like say California (http://www.youtube.com/watch?v=xWrbAmtZuGc&list=FLtMe_Vxt06qJqLptTcclHZQ&index=24&feature=plpp_video); Portugal and Ireland sound like they could default like Greece without major risk of the whole financial system collapsing again, but the Troika appears to have made the terms of the Greek non-default default so unpalatable (http://londonbanker.blogspot.com/2012/02/greece-cutting-out-middle-man.html) that hopefully other countries don't choose the same path). I'd be more concerned now about outcome of French election, specifically would Francois Hollande, if actually elected, really try and reneogotiate the fiscal compact Germany reached with other EU members earlier? Also, all the strategists were talking about a turn at mid-year, but never mentioned a specific catalyst (now it seems like either the end or continuation of QE3 / Operation Twist is what their unspecified catalyst was, plus possibly some increased clarity on outcome of presidential election in November).

CNBC website is indicating Chinese inflation came in unexpectedly high, so downdraft tomorrow at open might reflect realization that China may not have as much room to ease as it would have liked. Good video clip of Cyclical vs. Structural Inflation in China from earlier this year here: http://video.cnbc.com/gallery/?video=3000069706

But ultimately we still have the coordinated central bank "put", potential for Fed QE3 / renewing of Operation Twist, and outside possibility that Obama strikes Grand Bargain on U. S. debt if things get really bad in summer if stock market / economy really tank and possibility of him not winning close election in fall becomes a real possibility. This whole video clip (please note this video clip is from Dec. 9, 2011) is worth watching, but former UBS investment banker Ken Moelis's comments about possibility of Obama Grand Bargain this summer start around 4:20 mark: http://video.cnbc.com/gallery/?video=3000060748

More than likely (what is likely probability of tail risk event, last fall/winter vs now?: http://seekingalpha.com/article/321174-global-healing-2012-vs-2009#comments_header) it might be best to take a step back, try and look at the big picture, and tell yourself This is not Lehman 2008, This is not Greece fall 2011... (and if all countries around the world really need to pay the Piper now (Dow 7000 scenario?), we all probably shouldn't be worried about stocks, bonds, cash, or physical gold, and instead be loading up on lots of canned goods, guns, ammo, a bomb shelter, and a source of clean water) and join a local militia as your tribe while you watch Western civilization implode around you







edit: anyone with CNBC Asia in their cable tv lineup can see how Asian markets have already opened. I think Europe won't open till something like 2 AM EST (?)

 

[Michael]

Why do you need to watch TV to see what the markets are doing?

http://www.cnbc.com/id/19832390/

Michael (who lives in Shanghai now)

 

[Arachnotronic]

Pre-market, my stuff's moving as I expected. Luckily I've had the weekend to really come to terms with it

 

[akshatp]

Who is ready for the drop?

 

[Arachnotronic]

the utilities aren't getting hit too badly, but that's because they saw their drop on thursday. My tech stuff is getting murdere, as expected

 

[zimu]

I think I'm just going to block any stock market related websites for a few weeks - this is quite depressing!

 

[rcpratt]

I think I'm going to wait a bit to jump in.

 

[Kwatt]

CNBC put up a article about 10:15 "Stocks TUMBLE 1%" 1% is not a "tumble" to me.
10% maybe but 1% is a inhale!

So far my worst is just over 2% and that is SIRI which is all over the place all the time.

Got to scare people into clicking on that link I guess...



.

 

[JTsyo]

I think I'm just going to block any stock market related websites for a few weeks - this is quite depressing!

Yea, I thought with the drops last week, we might see a bounce this week. I had put most of my cash into a S&P index fund. Now I have to just wait I guess.

 

[Arachnotronic]

Wish I had more cash. Some *really* beautiful buying opportunities today. Like, I don't care what's happening to my current holdings -- they're good stocks. I just want to buy more! AAARGH.

 

[Arachnotronic]

Jesus, INTC is a champ. No matter what BS happens, it fights hard to get to $28.

 

[zimu]

funnily enough RIMM is up while everything else is bleeding $$

 

[Arachnotronic]

funnily enough RIMM is up while everything else is bleeding $$

So is BVSN. Both are crap companies whose stocks are just being played.

 

[IHateMyJob2004]

CNBC put up a article about 10:15 "Stocks TUMBLE 1%" 1% is not a "tumble" to me.
10% maybe but 1% is a inhale!

So far my worst is just over 2% and that is SIRI which is all over the place all the time.

Got to scare people into clicking on that link I guess...



.

10 years ago, anything over a 0.5% swing was strange. People are just used to the wild swings of the past few years.

So, if you look at the past 4 years, it is not a tumble. If you look at the past 20, it is. It's a matter of perspective.

 

[IHateMyJob2004]

So is BVSN. Both are crap companies whose stocks are just being played.

RIMMs balance sheet is better than JNJs. Matters what your defintiion of crap is.

Anyways, RIMM is retardely low in terms of share price. There was a rumnor odf a apatent sale today but it is probably without merit. Rumor is due to the MSFT deal that occured today.

 

[Imp]

10 years ago, anything over a 0.5% swing was strange. People are just used to the wild swings of the past few years.

So, if you look at the past 4 years, it is not a tumble. If you look at the past 20, it is. It's a matter of perspective.

It's sad, but I've become completely accustomed to 200 point (Dow) swings on a daily basis thanks to last Fall. Anything less than 100 points is a joke now.

Now to throw a little more money in....

 

[Arachnotronic]

Day's over! Woo! Major indices only down 1%...not painful at all.

 

[woodman1999]

I have a question about a stock I own, figured this would be the best place for it.

I had X amount of shares of Medco, which got bought by Express Scripts last year, and the deal finally closed as of Monday morning. The deal for shareholders was that 1 MHS share would be converted to 0.81 ESRX share plus $28.80 cash.

Fine, I see the 28.80 cash for each share of Medco I had, and I see the appropriate amount of Express Scripts shares in my trading account.

Here is the problem: 1) ALL of the ESRX shares have a purchase date of 04/03/2012, making them all short-term holdings, regardless of when the MHS shares were bought.

And the bigger issue 2) ALL of the ESRX shares have a cost-basis of $0.00!!!! Does this mean if I sell it I would have to pay tax on the entire amount of the sale? That is hardly fair. I thought the purchase price should be the strike point when the transaction went through.

Am I missing something?

I took part in the same deal using my Schwab 401k. Got my cash payment and the cost basis reflects my Medco original cost. As far as short vs. long-term holdings, Schwab is listing my acquired date still as 7/21/11.

As mentioned, sounds like your broker is screwed up.