Since the last club update, most of us have experienced some significant financial changes. In light of this we have decided to suspend contributions to the club for the next four months while things sort themselves out.
This doesn't mean we'll be abandoning the blog--to the contrary we'll be trying to keep up daily posting and making it as worthwhile and interesting as ever. We'd really appreciate any comment you guys could leave, telling us what you like or don't like about the posts so we can tailor some of the content to what you're interested in!
Choosing to invoke hardship was something the club didn't take lightly, but thankfully the entire club agreed on the procedure. Also helping out was the fact that we spelled out hardship conditions and voting procedures in the General Partnership--just another example of how a well written GP can cover your club in a sticky situation.
Right now we're taking away the possibility of further capital investment, but we hope to use it as an opportunity to continue to work on bylaws, the blog, and further educate ourselves so that when we are ready, we can pull the trigger on the next big purchase.
Add to that a bit of good news, as GE went up 1.46 today, and we're feeling that we're on solid ground.
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4 comments:
In your updates, can you recap the club's portfolio? Current stocks, how they are doing, thoughts on them. Maybe in a similar fashion to Jubak's picks. And also give a top 5 stocks to watch, or that are next on the list for the club to purchase.
I've also noticed that there have not been any stock analyses lately. At this time, the talk is not about making sure you get stocks at low prices (as their previous prices could have been severly inflated and not an indicator of where the stock will go in the future) but about investing in good companies that will come out of the recession (or whatever you call it) stronger than they went in.
While all the banter about the economy and breaking news is important, there should be a consistent thread of posting a new stock analysis every week, or re-analyzing a company whose position has drastically changed since the last analysis. Plus, examples of stocks to avoid would also be a good learning tool.
The only stock currently owned by our club is GE. We bought it at $12.50/share and saw it fall as low as $5.73/share. Yesterday, it rallied to $8.87/share at close and in pre-market it is up to $9.16/share this morning. Hopefully we're starting to head back upward for a while.
Other stocks we've got our eye on include: MTW, AA, NKE, PBR, SLB, XOM, CHK, MRO, GLD, AUY, JNJ, MMM, and CAT. Out of that group we've done an in depth analysis on MTW, NKE, CAT and CHK. I personally own MTW right now, and have owned but sold my positions in CHK and CAT.
I'll try to follow up my post on market correction with some projected stock prices, and we'll all continue to work on getting more in depth analysis of particular stock. If you have any stocks that interest you, bring them up and we'll be happy to weigh in on them for you.
Albert, you are right, we should have some more stock analysis. One of the things we are thinking about is broading the content of the site to cover things more applicable to people, such as personal finance. Schlitz and Woodcreek have some pet analytically projects, that when completed, should be very helpful in the analysis of stocks. Unfortunately they aren't at the point yet were they can give concrete suggestions from it, although Woodcreek has alluded to his work several times.
Is there anything else you would like to see?
I'll be looking at either one stock or a cluster of stocks every Friday. We definitely need to recommit ourselves to more technical analysis.
The current event stuff is important too right now because we may never see times like these again in our lifetime and world economic dynamics definitely affect investment decisions. If you belive someone like Peter Schiff who's been accurately forecasting the current economy for the last five years, we may want to consider precious metals and hard assets more seriously. If we believe Biden at face value that Obama will "drop-kick" the economy out of recession, then we should be buying and analyzing a helluva lot more. Still some economists like Shiller and also Woodcreek's analysis suggest we're in for a fundamental shift in price mutliple averages which changes the game entirely.
I'd like to see unemployment numbers at least begin to turn around before buying more stocks seriously.
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