Tuesday, August 30, 2005

"Loser" vs. "Growth"

Two companies in the same business with similarly terrible stock prices--Design Within Reach and Pier One Imports. One stock is a dog, the other might have growth potential. The Wershovenist Pig has the answers.

Bonus: Why ATI's misfortune could be your gain.

Double Bonus: Just a thought, but as the real estate bubble bursts, won't some of that money flow back into the stock market, making this a good time to look seriously at stocks?

(More on that housing bubble later.)

1 comment:

epinionated2005@gmail.com said...

JVL, it is not when the bubble bursts but in the immediate run up to the bubble bursting. That is the absolute best time to get back into the stock market or enhance your positions within the market. And theoretically, while perpetual growth in the market will always be checked by periods of correction or stagnation (the last four years or so), now is a brilliant time to do just what the werhovenist pig is doing, contemplating what moves would be good moves and then making those moves when he can.

My two cents on the housing bubble. It will pop. As will the oil bubble. Much of what we are paying at the pump is now being fueled by rampant specualtion. How's that for price gouging? Shrewd investors will divest of the real estate holdings and their commodities holdings gradually and convert that liquidity to undervalued stocks, like DSW and make a fortune when the market begins its next ascent.