Comments on: Picking Some Stocks to Survive the Market

By: PlanMaestro

PlanMaestro — Wed, 22 Oct 2008 21:16:43 +0000

Too many cyclicals for my taste, prefer to get some indications of commodities prices bottoming before buying those.

Liked the P&C Insurance and Tech recommendations (bought AAPL and ADBE, no debt, cash positions, and strong cash flows, waiting for Cisco to fall before buying)

By: David Merkel

David Merkel — Wed, 22 Oct 2008 17:29:59 +0000

Sorry, it was a typo – I meant CVX, Chevron. As for PM and MO, I don’t do tobacco stocks for ethical reasons.

Michael, that can work… I don’t do much with options, though.

By: Michael Comeau

Michael Comeau — Tue, 21 Oct 2008 19:12:35 +0000

Good set of rules overall. However, I am finding that covered calls (and shorting out of the money puts in some cases) on quality companies are working decently in this market environment. Implied volatility readings are through the roof and given how difficult it is for any one stock to sustain a rally, it is worth capping upside potential in exchange for a lower cost basis.

By: Chris

Chris — Mon, 20 Oct 2008 20:22:34 +0000

I suspect David meant CVH, the health insurer.

By: Maggie Knowles

Maggie Knowles — Mon, 20 Oct 2008 00:55:16 +0000

I’ve ben talking about stock survivability lately. What does that mean?

Low levels of short-term debt. Few major debt maturities coming in the next three years.
Low levels of total debt relative to tangible capital.
~~~~~~~~~~~~~~~~~~ this is comforting, we’re headed in the right direction, this is the way out!

By: IF

IF — Sun, 19 Oct 2008 17:47:05 +0000

Do you mind explaining CHV (“blank check company”)?

By: david c

david c — Sun, 19 Oct 2008 08:02:12 +0000

I would add PM and MO to your list.