Opening Segment #3:
'Mad Mail'
Jim reads viewers email questions and provides answers below...
Monday, November 10, 2008
 
 

Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name

SWHC

2.91

Email question about:
Smith & Wesson Holding Corp. (SWHC)

Q:      I have visited a few local gun shops over the past two weeks and they have been packed full of people buying. The owners say fear of stricter restrictions under an Obama/ Democratic congress and the need for protection in this tough economy are driving sales through the roof. They claim they can't keep product in stock, and are having trouble re-supplying due to the high demand (this goes for ammo as well). Is there a trade to be made here?

Jim:    I am going to say definitively that there isn't. Smith & Wesson Holding Corp. (SWHC) was a stock I recommended when the show began. We caught a double. We left it. It got killed.
Olin Corp.  (OLN) has a Winchester business, but OLN's a chemical company. I simply will not give you an idea. There are things that happen that are not investable, and that trend is one of them.


 

See comments continued below...     

 

Market Results today:

Dow - 73

Nasdaq - 30

S&P 500:  - 11

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Monday, November 10, 2008
(Cont'd from above)...

Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name

OLN

17.62

Olin Corp.  (OLN)

See SWHC comments above for:
OLN


na

na

Email question about:
Buying ETFs instead of specific stocks to get dividend benefit

Q:      I understand the logic of investing in dividend-yielding stocks in the current environment; however, I don't understand why we as investors should try to pick individual stocks for good yields when we can spread the risk by purchasing a fund or ETF (exchange-traded fund) for dividend yields... Wouldn't that make more sense in terms of high return with a diversified risk?

Jim:   My friend, Scott Rothbard, who writes with me at RealMoney.com, part of the Street.com network, suggested a similar strategy this week. I, perhaps it's uberis, believe that I can pick the best dividend-yielding stocks, and don't like the ones I don't like in the basket, which is why I am against that ETF strategy.


THC

2.06

Email question about:
Tenet Healthcare (THC)

Q:      Jim, thanks for all your hard work and wisdom. You are educating, comical, and make learning how to work the stock market interesting. Can you give me some stocks in the energy and medical fields that will do well during Obama's presidency?

Jim:   Alright... I've got to tell you, as a spec. (speculation play), you want to do Tenet Healthcare (THC). It had a really bad quarter. It's a healthcare company. It's a hospital. When it comes to energy systems, I can tell you that you can buy the
Solar ETF (TAN)... the solar index, TAN. But energy, solar... not working out economically, so I'd be careful. This is not a presidency where I feel confident of recommending stocks on. Why? Because there are three months before this guy becomes president, and in the interim, there's nothing but hurt. Why play it now when you can play it then?


TAN

10.35

Claymore/MAC Solar ETF (TAN)

See THC comments above for:
TAN


[verbatim recap]

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