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catoismymotor (40.16)

I am a bull with claws! Or is it a bear with horns? Oh, bother.

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July 30, 2009 – Comments (0) | RELATED TICKERS: SLW , C

I have decided to take a bipolar approach to my next two stock purchases. Yesterday I stated I was going to hold off from investing in August and possibly September. I have since change my mind. No, this is not the bipolar approach I mentioned previously. I am inclined to increase my position in SLW and try something new with C. “You’re bug nuts!” I can hear you saying. Well, maybe. My rationale is this; SLW is extremely undervalued. It is easily worth at least three times what it currently sells for. And should silver prices spike then it is game on! It could increase up to $100 a share. I doubt I would stay on the silver train for that long but it is fun to think about. So to me it is a perfect value and growth combo. And as we know precious metals are a historic inflation hedge during rough times, hence the bear decision. Now with C I admit that it is a gamble because of the need of government bail outs and such. Based on past performance and the talent that remains on hand I believe it has a bright future. I can imagine it as a ten bagger in ten years. Others Fools  that are pro C say it will take less time but I am not that optimistic. With a possible second wave of foreclosures, bankruptcies and credit card defaults we have some additional miles of rough road to cover before the economy and C start to improve for real. So for me to put money into C there is a certain amount of blind faith that supports my bullish decision.

 

In conclusion, my fellow Fools, SLW is my “Oh, God! Only precious metals can save us!” play if the economy takes another punch to the bread basket. And C is my “It can’t say awful forever. Why not take a chance with a few bucks. The upside potential is great.” play. I figure I can’t really lose anything by playing it this way with SLW and C. They may go up at the same time or one will before the other. If C tanks I am sure SLW will make up for my loss  and then some given time. 

Thanks for your time.  

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