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Opening Segment #3: |
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'Mad Mail' |
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Jim reads
viewers
email
questions
and provides
answers
below...
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Monday,
November 10, 2008 |
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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SWHC |
2.91 |
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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.
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See comments continued below...
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Monday,
November 10, 2008
(Cont'd from
above)...
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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OLN |
17.62 |
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Olin Corp.
(OLN)
See SWHC comments above
for:
OLN
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na |
na |
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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.
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THC |
2.06 |
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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?
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TAN |
10.35 |
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Claymore/MAC Solar ETF
(TAN)
See THC comments above
for:
TAN
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[verbatim recap]
Read Jim's next Segment
here
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