Money Map Report editor Horacio Marquez says Apple Inc. (Nasdaq: AAPL) is a bargain at today’s prices. The company continues to grow and diversify, and will keep gaining market share for its products. However, a consumption slowdown and tough competition means caution is essential when building up a position.
Taipan daily editor Justice Litle responds to some of his readers’ investment queries below. Is this the perfect time to get into the market, or is the market still a no-go zone?
Daily Reckoning editor Bill Bonner says everything is going according to plan. An unsustainable credit-fuelled boom popped. And businesses, consumers and financial markets are left reeling. Bill says US stocks could fall much further before stabilising at a ‘normal’ level. Meanwhile, reckless money printing by the Fed will eventually take down the dollar, and light a fire a fire under gold prices.
Many investors are turning to high dividend stocks to provide a steady income during this bear market. But Paul Moore says you have to be selective to make this strategy work. Companies that are short of cash could be forced to cut dividend payments. That’s why cash flow is the most important figure on the balance sheet for value investors.
John Pugsley says there are some great opportunities coming out of this chaotic market. Wild, irrational swings are distracting from the simple rules of value investing. John has three simple criteria for finding the best long-term profit opportunities out there today.
Tom Bulford says clean technology could become the “next big sector”. A growing awareness of environmental problems means huge investment in the industry over the coming years. And that means plenty of exciting start-up opportunities…
The bears are back out for Halloween. US futures are down sharply this morning, as edgy investors anticipate more weak economic data. October 2008 has been the worst month for stock markets in decades. But Lynn Carpenter says the reasons for the next bull market are already in place….
The recession is underway. The US economy shrank by 0.3% y-o-y in the third quarter. Adam Lass says politicians need to accept the truth and allow the economy to correct itself. Only then will stock markets genuinely recover. When they do, some investors will make a fortune. But to survive until then, Adam says it is essential to buy put options on weak companies.
Tuesday’s mega-rally will have many investors itching to get back into the stock market. But Eric Roseman says chasing a short-term bounce could be a big mistake. Similar up-crashes during the Great Depression were followed by prolonged downturns. But Eric says this could be a good time to “nibble” at some quality blue chips or non-Treasury bonds.
T-3 Energy Services (NASDAQ:TTES) provides essential safety equipment for oil and gas rigs. Though drilling activity has been affected by the fall in commodity prices, Chris Mayer says the stock has been massively oversold. Today it is trading at $19, down from a high of $84 last year. Given its healthy cash flow and strong international growth outlook, Chris says a move back to $60 is on the cards.