Archive for March, 2008

This evening (3/16/08) it is being reported that JPMorgan will be purchasing the struggling investment bank for $2 a share. Yes, that is correct I did not forget a digit, the purchase price was $2 when this stock was trading in excess of $150 a share this time last year. Absolutely shocking to see by far one of the, if... »

It seems to me that all the fuss yesterday about the Fed's $200 billion dollar "loan" - I'm sure you've all heard about it so I'll skip the details - was completely uncalled for.  Since when does the Fed pumping more money into the economy not equal an increase in inflation?  Think about it - whenever the Fed does anything... »

In the WSJ today there was an interesting article regarding P/E ratios and using them to determine appropriate buying and selling opportunities. The article was on C1 and the author contended that although the S&P is trading at 13.2 times expected earnings, this number is likely to drop. I find myself hoping that the author is correct in his analysis... »

I decided to put together a list of the Dow Jones Industrial Average and see how our valuation formula values each component.  I've listed the result below.  I also ran the test for each component to determine if it would pass our list of guidelines for the defensive and enterprising investors and calculated how the current price compares to the... »

With the recent jobs report, it is clear that a recession is either extremely likely at some point in 2008 or it is already here.  There's no more denying it - only dealing with it.  And most people out there today are telling you to exit the stock market before you lose and put your money into bonds or commodities. It... »