value investor journal

Discussion in 'Journals' started by indo, Sep 22, 2003.

  1. indo


    i'll start a journal of my holdings and than see if i make more than you technical analysis experts.

    method : simple

    companies with market values above 1 billion

    companies that pay dividends (generally)

    companies that are cheap

    i'll swing trade and prove to you that swing trading is more profitable than day trading.

    My current holdings:

    conagra foods CAG -- 200 @ 21.80
    Verizon VZ -- 100 @ 34.80
    johnson n john. JNJ -- 100 @ 50.15
  2. vz warns.
  3. This is going well.....

    If you want value stocks, stick to companies under 250m in market cap. That is where I always go, and that is where the value is. You never see companies over 1b that trade for under 5X earnings that are also growing more than 20% a year.
  4. indo great idea and I think you will have a good chance to beat a lot of 1 ES scalpers.

    how long do you want to hold a position?

    how do you define cheap?

    good trades
  5. indo


    VZ has warned but the selling is not dramatic, its only down 3.7% and will likely recover a bit more by the end of day. Its a keeper and the lack of huge selling shows most of the weak hands are already out.

    Im a bit bearish on the market thus i have 50% in cash which i will be using as the market gives more opportunities.

    To the individual who said the real cheap stocks are under $250m , i totally agree but those stocks rarely ever give dividends. Dividends allow an investor to be wrong for a longer period of time.

    I will usually hold on to these stocks anywhere from a week to a year. If a stock hits my strike price i'll do away with it. However if a stock clearly shows a true break down fundamentally than it will be done away with. Nonetheless the stocks pay good dividend yields which will keep me happy until the stock itself turns.

    i'll update this thread on a weekly basis
  6. Dividends mean little. I look mainly for price appreciation and not dividends.

    However, small companies with nice dividends that I own are DLA/IBA.

    OTOH: Look at the price appreciation that you can get when you are right without a stupid 5% dividend. My basis on PTSX is 2.4 on about 1% of the company. I'd rather take a move like that than a stupid dividend.
  7. indo


    a company which has a great reputation for executing in the past and still has great prospects in the future yet trades close to its historically low multiple is CHEAP to me.

    example, Johnson and johnson
  8. ctrader


    I have been short VZ for a week now, chart looks like shit.
  9. indo



    my methodology to win the race is to always be steady and sound. Much like that race between the tortoise and the rabbit:D

    Im not here to scalp 2% a day but rather make a low double-digit return annually.
  10. never buy a stock based on dividends. you want to have other reasons for buying the stock. you will never make money on stock dividends unless the stock appreciates. dividends are the company giving you back your own money and lowering the price of a stock by the same amount so its a wash unless the stock grows.
    i do like the idea of a longer term hold thread so good luck and keep it going.
    #10     Sep 23, 2003