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Where to Find the Cheapest, Safest Stocks

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Where to Find the Cheapest, Safest Stocks

Friday, 28 September 2007

By Graham Summers
Now is the time to buy blue chips. The volatility of the last three months has made trading a real challenge. Today, the S&P 500 is roughly at the same level as it was in the middle of May. However, between then and now, it's been a real roller coaster.
This is not a market for trading. This is a market for investing – for taking advantage of the market volatility to buy high-quality, profitable businesses on the cheap. And the bigger, the better.
That's because, typically, blue chips are more stable during market volatility. In fact, several members of the Dow Jones Industrial Average recently hit new highs: Proctor & Gamble, AT&T, and Coke. These three are getting expensive... but there are still plenty of cheap blue chips to choose from.

Large-cap insiders have taken note and are gobbling up stock. For the week ended September 10, large-cap insiders accounted for more than 70% of insider buying. The following week, they accounted for 66% of the total insider purchases.

And the Dow Jones Industrial Average is still trading for only 10 times cash flow: wonderfully low. Have a look at the Dow's 10 cheapest companies...
Many of these companies are in the holdings of the greatest investors on earth. Eddie Lampert owns Citigroup. Warren Buffett owns Home Depot and Wal-Mart. George Soros owns AIG, Home Depot, and ExxonMobil.

Short Selling Overview

If you sell a stock you don't own, you are selling short. (Yes, it's legal.) You are now short on the stock. A short seller sells a stock that he believes will fall in value.
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James Turk’s digital Gold Money holds their bullion

Russell McDougal The following feedback is in from regular IDE reader, Mika, regarding recent articles about gold by Lynn Carpenter and me:
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To some degree, these investors have to buy large companies. They manage massive amounts of money. However, they only put their money in undervalued, extremely profitable firms.

So, if you've been sitting on your cash since the market started going bipolar, now may be a great time to buy big. And these companies are an excellent place to start. Not only are they owned by some of the world's best investors, but they're cheap, too.

Good trading,

Graham
P.S. Take ExxonMobil, for example. Two months ago, readers of my Inside Strategist advisory made 236% gains in 15 days on this safe, cheap blue chip. Our secret? Click here for a special report.
Source : Growth Stock Wire

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Reviews (2)

1. Written by This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , on 30-09-2007 23:41
This is no market for actions. This is a market for investing – using for the market fleetingness from to buy profitable businesses of highly qualities on the cheap. And the more largely, the better. That is because typical Bluechips more stable are during market fleetingness. Actually several members of the Dow-Jones-industry shares index strike recently newly highly: Proctor & risk, AT&T, and Verkokt. These three it will give allay expensively... however redundance the chips of cheap Blue to select of.

2. Written by This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , on 30-09-2007 23:39
Therefore if you began on your cash since the market sat bipolar going, may be now a large time to buy largely. And these firms are an excellent place, to begin. Not only they are possessed through something of the world the best investor, but they are also cheap.