In my last article I told you how I made 40% profit in the mast months while nearly everyone lost money and a lot of companies went bankrupt and some more will go bankrupt soon. This last article and my profit was based on pessimistic point of views, but we gonna switch over to the optimists right now!
Right, you read it: We need to become optimists in this current environment!
I can understand people who ask now "Why the hell? Everything is going down! Nothing will be as it was anymore! We will all die! The capitalism is at its end!"
I am sorry to disappoint everyone but: This is f**** not the case!
Sorry for the rude expression, but sometimes you need to make a point. And my point in the current situation is pretty easy. Buy, buy and buy. Well, be selective of course and don't through cash out the window. Let me tell you what I just did:
- Increased my stake in AMD by 300%.
- Increased my stake in Deutsche Telekom AG by 100% (was my biggest stake before already).
- Bought stake in Deutsche Bank AG.
First of all, I like high-dividend companies and the Deutsche Telekom AG is one of those. Besides the fact that it market leader in Germany for broadband Internet connections and landline telephones (and many other countries) it also owns the worldwide operating T-Mobile brand for operating mobile telecommunication services all around the world. T-Mobile is market leader in Germany as well and it is the 4th biggest mobile network carrier in the US but one of the most technology pushing one (see the Google Android powered G1 phone and the many exclusive BlackBerry releases over there). With a current dividend of around 7% is quite a deal. Moreover, the company is kind of backed up by the German government.
Secondly I like stocks with a lot of potential in its price. This counts for Deutsche Telekom AG as well as for AMD. Well, more for AMD as the stock price dropped a lot over the past years. This was partly caused by AMD's takeover of ATI (a major graphic card maker) as well as structural and market influences. AMD's core business is developing, manufacturing and selling processors for computers which makes it the only real rival of Intel (market leader in processors for computers). While the price is extremely low at the moment and the company was in serious troubles over the past months I think "They will never go down!". AMD will come back to its highs from some years ago which were around $40. Therefor, I bought them.
Moreover, Deutsche Bank AG is one of the few bank I really trust. Blame me if it turns out I was wrong but right now I see some chances here and I went into it. Given my German background (respectively passport) it is quite obvious that I am bit German orientated at the moment but that does not mean I don't look further over the sea.
What else can you buy at the moment? This is one of my first direct stock recommendations I do here and believe me; I don't do this often so take a serious look at it:
- General Motors
It is still a good company and the price is so low it needs to be bought!
- AIG
Saved by the US government / FED this is a real opportunity in the US financial market. - Deutsche Lufthansa AG
This strong company flies you around the world and comes with stable earnings and profits. It is a bargain right now as they don't really suffer from the financial crisis but the falling oil prices give airlines more potential for growing profits.
1 comment:
I have to disagree with your assessment of GM. The stock is not cheap by any standard when you assess their abundant competitive disadvantages.
Yes they are addressing them, but much too late for my liking. Management continuously drops the ball in this court and you're not even getting a dividend for your invested capital at this time.
Capital comes at a premium right now and without a dividend why would any investor lend that to a company in the hopes of some future return?
I do like your investments in ADT & ADB
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