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Varchild2008 (84.37)

Have these 5 FALLEN ANGELS Bottomed?



January 15, 2009 – Comments (5) | RELATED TICKERS: IGT , MMC , BA


52-week Lows for battered corporations: 
NOTE:  I do not own any shares of these companys.... These are merely speculative companys with share prices in the absolute toilet compared to their 52-week highs.

             Bottom:    Current:
1) CAG)  $13.52      16.63          (Food Processing)     19 cents qtly dividend

2) BA)  $36.17         40.96          (Defense)          42 cents qtly dividend

3) IGT)  $7.03          12.45          (Game Technology)   14.5 cents qtly dividend

4) MMC)  $20.96     $21.31          (Insurance)    20 cents qtly dividend      

5) X)  $20.71           $32.29          (Steel)          30 cents qtly dividend

The THEME with these 5 stocks is that they all pay a nice dividend quarterly.
If you were psychic and you knew that all 5 companys have hit their bottom and the worst case scenario is their share prices trade sideways....  Then this is a no brainer Diversified Portfolio.

I could probably assemble several 5 stock dividend portfolios that seem to have life when a short while ago they didn't.  This is a great research opportunity for newbies to take a good look at the November DOW bottom at 7500 to seek out companys that seem to be recovering from their bottom.

Of these 5 companys which one do you think has the best chance to achieve a brand new low price?

5 Comments – Post Your Own

#1) On January 15, 2009 at 7:00 PM, guiron (39.21) wrote:

I think BA is in for more rough waters. Sure, it's the defense industry, but also commercial/passenger, which is suffering greatly and will continue to do so for as long as the economy is contracting. I think BA will test its bottom several more times as the airlines consolidate.

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#2) On January 15, 2009 at 9:00 PM, columbia1 wrote:

Weyerhaeuser (wy) also hit a new low today. I would not be writing Boeing off, they still have a backlog 8 years long, and airlines will continue to purchase more fuel efficient aircraft, Boeing low though was around $36, if it goes below $40 I'll buy more. I do believe it will test its lows again.

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#3) On January 15, 2009 at 9:12 PM, yankee2323 (< 20) wrote:

I also think BA is set to fall further for many more years. With Obama as president defence companies will not show any growth.

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#4) On January 16, 2009 at 10:00 AM, Varchild2008 (84.37) wrote:

(BA) is enjoying big time the rally today.. up over a dollar:-)

Makes me wish that I had bought some BA at $36.  *sigh*
The dividend payment of 42 cents quarterly, if it is sustained, will keep the stock going strong regardless of short term weakness.

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#5) On January 16, 2009 at 12:55 PM, UltraContrarian (30.75) wrote:

I think CAG, BA and IGT are about the right price, MMC still needs to get cheaper, and X is a good value.

MMC like a lot of insurance related companies probably has bad assets on their books that they need to write down.  Plus they had weak growth even before the current economy weakness.

When X and other commodities companies down 80-90% finally do hit bottom, we will see quite a few of them double within the month. The selloffs of well-established and respected commodity companies as a result of margin weakness is qualitatively different than selling off individual financial firms because they held bad assets and lied about it for as long as they could.  Even if the fundamentals of these industries don't change that quickly I think we will see some pretty intense bounces.

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