Last week Cramer said not to sell Legg Mason then the stock crashed on bad news. Now Cramer said to sell on any strength. That must mean we should load up. He said to sell Mastercard and then it shot up 20 dollars. Then he said to sell NYX, that went up 20 dollars too. I could go on, but without looking at Legg Mason any further. I will say that its a buy right now. Mark this post, bookmark it. Lets review if my ant-Cramer thesis proves correct in 3 months time.
A few weeks ago, he said oil stocks were a sell. That means they are a buy. A few months ago, he said to buy Chevron as oil stocks were strong. I guess that should have meant "sell".
I agree. Legg Mason is an absolute buy right now. It's a well run company, and they'll get their ship righted soon enough (they had some equity outflows). I love buying great companies right after they've been mercilessly hammered.
Thats the best way I have found to make money in the stock market. You have to love male psychology. The minute a bad news report comes out that means we have to dump the stock viciously and immediately disregard all of the good news that the company has reported the last 2 or so years. Come on guys. This is an international company with 850 billion dollars in assets and its been around for over 100 years. Is there any reason why we should be dumping it like an AskJeeves? The company is not the problem, its those guys that invest in the company thats the problem. They want to burn the stock certificates in the streets the moment one bad press release is placed on the web. Sooner or later people will figure out that the fundamentals are good with this company.
you are making two suppositions. the first one is that you have the ability to predict that a co. will be great in the future. the second one is that you understand the concept of "mercilessly hammered". to reach fair value by some measures it would need to drop 75 per cent more. "mercilessly hammered" not evenly mercilessly close.
I know. I think the best way to go about things is when you see Jim Cramer, just shut the television off. In looking back, Jim did get the Dicks prediction correct. That is after the stock had the great fall. It was a great buy when it had its great fall. Look at the chart for yourself...
Remember, that your not talking about some tech startup. Its Legg Mason and has been around since 1899. Survived multiple wars, recessions, stock market crashes, depression, etc. Im not sure about dropping 75% more.
What is your methodology in determining FMV at $22? I've seen analysts ranges from $87 to $98 based on their current numbers...
Im going to tell you guys how to play Legg Mason or any other company that is uniquely similiar. Take 10 grand and buy some shares. Next, take physical delivery and then throw it in a safe deposit box. Ok. Then come back in 5-10 years and grab the certificate. This company isnt a short term trade and the drop was a matter of volatility. Legg Mason isnt a homebuilder or oil company with a cyclical product. It doesnt deserve to be traded at its current P/E. So I have told you how to make money off of Legg Mason, now its time to do it.