I suggest you learn form this forum instead of bashing someone who post’s regularly and is successful. FDJake’s ford option shouldn’t be an argument, which makes me wonder why anyone would make a big deal out of it. did you buy the stock at full value price not the option or something ??? I read his 1st thread when he was buying the option and it was very interesting. He obviously has done his homework on the company and has explained many reasons why its a sound investment. You should read and learn. if you don’t like ford stock then just notice the way someone looks at a stock for future value, even if you dont agree on ford you can still apply it to another stock your interested in. You can learn a lot for people on forums about stocks.
We are all here for a reason to learn. Theirs seasoned vets here in different fields of RE investing. they explain different ways and ideas to be successful. Even the newbies can shed some knowledge or ideas that someone on here will find very useful.
read and learn don’t waste your time and other’s time arguing about someone else’s stock investment. i didn’t see you or anyone else bashing him when those options were double what he paid 2 or 3 weeks after he posted on here. He’s still in the money right now with those options even after the stock has gone down quiet a bit the last month.
Ok. You don’t learn by passively reading every single thing and not challenging the information or the ideas. I think investing in ford is a gamble and is not a sure thing, unlike FDjake. This is purely a speculative gamble and thats all I had to say. Nobody knows the future. Thats why I kept on asking him what is he getting now, not what he gets in the future. The stock has a lot of debt. Read this article if you want to learn a little something about contrarian investing…
This guy is one of the most successful investors. ever. I dont get why we cant challenge “the king’s” “investments”.
You just posted an article about a guy who’s favorite stock pick is a wheel maker who’s biggest customer is FORD and GM!!! :banghead :banghead :banghead :banghead
I wonder HOW this genius of a stock picker thinks this wheel maker will be able to sell more wheels???
Maybe…just maybe…their biggest CUSTOMERS are on the verge of a COME BACK!!! Or…stay with me here…he’s BUYING a company that is in an industry that is OUT OF FAVOR at the moment. Now how could an out of favor wheel maker sell more wheels to FORD and GM???
Think my boy…THINK??? Wait…I think I’ve got it!!!
FORD and GM at some point in the future will SELL MORE CARS!!!
That’s called CONTRARIAN INVESTING Junior!!! Dave Dreman wrote 2 GREAT books about it. I would STRONGLY recommend you GET THEM.
4444 - is not that we can’t chalenge other people’s investment. I agree with you that we learn more if we ask questions and/or chalenge other people’s thinking when we don’t agree or we don’t understand. However the point here is the way you do it. If the other person is getting agitated and feeling that you are atacking him/her, what is the point in continuing the argument?
Do you really think you will get the other person to change his/her mind when he/she is feeling attacked?
It takes a lot of maturity and confidence to walk away from a dispute that will not benefit you.
they are two different companies, sir. Look at the debt of each company. Haha wow. I am done arguing with him. I don’t care where the stock goes…I am not going to even be watching. All I know is there is a lot of business risk not just risk of the stock going down with Ford.
Their earnings have be falling for 5 YEARS!! In LOCK STEP with Ford and GM. They get 3/4’s of their revenue from Ford and GM. I’m not arguing this guy’s pick, what I’m TELLING you is he’s CLEARLY BUYING a comeback in GM and FORD. This isn’t rocket science. If Superior stops a 5 year continuous fall in earnings it will be for ONE REASON…
Their 2 biggest customers are SELLING MORE CARS!!!
Last I checked wheels WERE NOT optional equipment.
Instead of acting your age, why not show some insight. Did it ever occur to you WHY so many people here have come to my defense on this issue??? It’s because the advice I have posted here has MEANT something to them, or It HELPED them, or they LEARNED something from it. YOU, on the other hand, have contributed NOTHING as far as experience (because you have NONE), insight, investment knowledge, or Real Estate strategy.
The PROOF is in your last comment. “I’m not even going to be watching.” Now THAT’S a BRILLANT STRATEGY!!! Great way to learn how to invest.
Even if I’m wrong, which I could very well be, you could still LEARN something from the experience. Saying your not going to watch is like taking your crayons home because the other kids don’t want to draw what YOU want.
I’ll let the others here decide who they’ll take advice from. My gut feeling is …IT WON’T BE FROM YOU!!!
Instead of continuing to make a fool of yourself, why not just STOP!!!
I’m not your enemy here kid… You were a little snotty and I don’t tolerate that from people who haven’t paid their dues. My suggestion to you is to keep reading posts on this forum, learn about investing the way that old man does it. He buys want other DON’T want. WATCH Ford. Do yourself a big favor on this one. This is a classic cyclical stock play. You are 100% correct…It is a HUGELY speculative investment. But…in my experience putting MY MONEY on the line… These types of stocks, purchased at the right time in the cycle, can provide MIND BOGGLING returns. Will Ford do it. I PERSONALLY think they will. Is it a lock??? NO way!!! But if experience is worth anything…my 1992 investment in Chrysler funded my first commercial property!! That’s REAL kid, and THAT’s what matters. If my math is correct…you were around 2 years old at the time!!!
Here is some analysis for you about superior industries.
Here is the most important quote (in my opinion): " I focus on assets. If you don’t have a lot of debt, it’s worth something."
Now rap your peanut-sized brain around this idea: stocks are lititle portions businesses. A business is composed of Assets minus liabilities. OKAY?
Ready here is why he is buying superior industries at the prise back then of $16.43.
-They currently have approximately 27,000,000 shares outstanding
-The NCAV (Current assets MINUS total liablities) of 367,767,000 - 183,525,000=$184,242,000/27,000,000=$6.8
So you are buying the stock for essentially $16.43 - $6.8 which is approximately $9.63. So you are getting a stock that will not get screwed over by debt (the reasons why most landlords fail) and now you are insulated. THIS IS NOT EVEN INCLUDED THE PROPERTY, PLANT AND EQUIPMENT.
So now they have property plant and equipment (296,753,000)/27,000,000= Thats 11 dollars a share worth of property, plant and equipment!
Lets say this company goes bankrupt because Ford and GM go out of business. Then they can sell all the assets and pay off the liabilities and the shareholders still wouldn’t lose much.
So Edward Schloss has no business risk whatsoever and has the stock has the potential to go up based on GM and Ford’s performance…not to mention they can tap other markets pretty easily. So which investment sounds better…??? This is what value investing is about. He has a win-win situation right now when he bought; you do not have that luxury.
[quote author=4444 link=topic=37140.msg177797#msg177797 date=1214328747]
Here is some analysis for you about superior industries.
Here is the most important quote (in my opinion): " I focus on assets. If you don’t have a lot of debt, it’s worth something."
Now rap your peanut-sized brain around this idea: stocks are lititle portions businesses. A business is composed of Assets minus liabilities. OKAY?
Ready here is why he is buying superior industries at the prise back then of $16.43.
-They currently have approximately 27,000,000 shares outstanding
-The NCAV (Current assets MINUS total liablities) of 367,767,000 - 183,525,000=$184,242,000/27,000,000=$6.8
So you are buying the stock for essentially $16.43 - $6.8 which is approximately $9.63. So you are getting a stock that will not get screwed over by debt (the reasons why most landlords fail) and now you are insulated. THIS IS NOT EVEN INCLUDED THE PROPERTY, PLANT AND EQUIPMENT.
So now they have property plant and equipment (296,753,000)/27,000,000= Thats 11 dollars a share worth of property, plant and equipment!
Lets say this company goes bankrupt because Ford and GM go out of business. Then they can sell all the assets and pay off the liabilities and the shareholders still wouldn’t lose much.
So Edward Schloss has no business risk whatsoever and has the stock has the potential to go up based on GM and Ford’s performance…not to mention they can tap other markets pretty easily. So which investment sounds better…??? This is what value investing is about. He has a win-win situation right now when he bought; you do not have that luxury.
Also you get the 320 basis points worth of dividends a year. Look at the ratio of equity to market cap for superior versus Ford. You wouldn’t get shit back if they fail… Ford does not pay any dividends. I am so sorry I havent contributed to this forum. I meann what is it my goal to make the owner more wealthy through the get rich quick ads that are posted all over the place?
Spend a little more time reading junior. If a business goes bankrupt, BOND HOLDERS are insulated, NOT COMMON SHARE HOLDERS!!!
Common share holders are at the BOTTOM, usually they get NOTHING!!!
I guess with all your EXPERIENCE investing you missed that one.
4444
I think you need to keep in mind that if Ford goes to zero and fdjake loses his 20k to him it’s only 20k…Its not the end of the world…I understand where you are coming from and I can see the frustration and I don’t mean this sarcastically but it’s not alot of money to some people…It may be a HUGE risk to you but to others it may simply be a bad day…All forms of investing are speculative,whether it be real estate,stocks,business etc…Everything has a degree of risk and when you understand the risk vs reward and the individual is comfortable with ,thats really all that matters…I personally don’t follow automakers like fdjake,but imvho it seems like he has done his research and if it tanks I’m sure he won’t be even remotely close to broke…He is a professional and understands that he is using risk capital for this venture…It also helps that Kekorian has doubled down on his position in Ford also…After all fdjake is simply following size money being thrown at Ford…Will it work out?..I have no clue,but what I’m sure of is that fdjake understands the risk…I just think you need to grasp that and this petty argument will be done…You may be young but I can see you are trying and thats impressive but drop the bs name calling and learn and watch…Someday 20k may be nothing to you as well and you can tirelessly argue with another youngblood over why you made such and such investment…Best of luck …
Haha i respect that NYC but remember that the name calling has been mutual. You called me a $2 dollar dreamer haha. Whatever. All i wanted to know was how he felt now that the stock price is at 5 dollars and change when he was talking about how his 20 something thousand dollar initial investment was going to be 600 something thousand dollars by 2010. I wondered if he was still interested in Ford when he said fuel prices were increasing and businesses were going out of business. I just found it interesting that I was “stomping on his balls”. I don’t care about the outcome really because if he does in fact make money on this in my view it was based on luck and speculation. Everyone has their own strategy and whatever works for them is great. I just think that people need to challenge ideas on here or there is no point. Just because I look at the downside doesn’t mean i am a $2 dollar dreamer haha. Good discussion either way IMO.
haha what are you trying to say. I asked him if he was thinking about selling his options for the common? What else are you trying to say…Either way his investment is down the tubes. Check out the price of his stock and look at how much debt Ford has. UGH i am done talking in this thread you guys can think whatever you want. All i know is he invested based on qualitative factors of FORD that don’t even exist, with the use of no numbers and he is going to pretend like this was an investment where he was going to easily make 600,000 dollars even though that is not the case.
At this point it seems as if you are looking for a fight. Please continue the discussion off-line or drop it completely. There was a point to this thread before your snide comment to fdjake.