Financial Markets : Sell-Off Continues !

No surprise, the sell-off yesterday continued with the Dow Jones ending significantly below the 13.000 mark for the fist time in months.

Asian markets were bloody last night : Tokyo lost more than 3% and Seoul more than 7%.

Investors are these days obsessed about the subprime troubles, and discount any other elements, including great earnings and bullish views from companies.

Well, frankly, I begin to spot many great investment opportunities, for the long term only of course ! Some companies with great fundamentals - bullet-proof business model, solid balance sheet with no or very little debt, growing free cash flows - are now up to 20% below their highs.

Another 10% drop and I will feel extremely hungry !

Update 4PM Thursday : I particularily like large FMCG companies such as PepsiCo, Coke, Procter & Gamble, etc, but also Berkshire Hathaway (though a diversified conglomerate it is heavily invested in such companies). They should outperform market in the present turmoil.

Update 10PM Thursday : despite the market sell-off over the last few days, Berkshire Hathaway is now close to its all time record !

Comments

[Edwin Khodabakchian]

Would you mind sharing some of the opportunities with your readership? Please? :-)

[Michel de Guilhermier]

Sure : Cisco reported great earnings and raised full year forecasts. Apple has a price target of $160 and today stands at $120. Coke, PepsiCo and other FMCG companies shouldn't be at all concerned by subprime troubles as unit prices are very low.

Some Internet companies have great long term prospects and solid models : Shutterfly, VistaPrint (down more than 30% from its highs), Ebay, Amazon, Google....

[Monsieur Glob]

Nexans, CGG Veritas, Enensys, BNP Paribas... en France.

Attendre encore un peu, le JPY remonte (debouclage du carry trade) et les premiers signes de ralentissement pointent le bout de leur nez.

Vous aurez encore 10% de rabais, tout c'est tres mal vendu cette saison. La meteo a ete effroyable... Patience...

[/O]

Spéculez, spéculez, il en restera toujours quelque chose ;).

Selon la théorie du Chameau, bien connue des économistes, nous ne sommes pas encore au bas de la bosse N°2.

Rappel > Fin de la bosse N°1 suite à la bulle internet.

/Olivier
"éleveur de tulipes au 17ème siècle"

[Olivier]

On vient d'apprendre que la crise des subprime va couter 150Mds $ au total de par le monde.

C'est beaucoup, mais pas de quoi vraiment justifier un effondrement de la bourse.

http://www.boursorama.com/infos/actualites/detail_actu_marches.phtml?&news=4513679

[Michel de Guilhermier]

En effet, il faut attendre que l'orage passe, les fondamentaux des sociétés ne seront pas vraiment affectés par cette crise.

Ceci dit, Wall Street démarre fortement dans le rouge maintenant, -100 points 1 minute après l'ouverture.

[sebastien(ny)]

nom de code pour s'eclater en ce moment en bourse US: CDS.
the happy few will understand.

[Michel de Guilhermier]

Comme prévu, PEP, KO, PG, BRKA se comportent très bien aujourd'hui.

[sharetipsinfo]

Indian stock market

Hi Everyone.

Your blog is nice and informative. We think your visitors will like this posting.

We all know that Indian stock market has become volatile now a days. One day its going up and another day its coming down. So we all should like to know
what is the reason for it. As in the last post we have mentioned that FII are the main reason, but now to there are few more factors adding to worries, they are:-

1. FII profit booking.

2. Political issue - Indo-US nuclear issue.

3. 25 Basis cut which was expected by US people of atleast 50 basis.

4. Low volumes due to holidays in coming week.

We suggest you to take bit long positions right now as market is volatile so don’t prefer intraday trading for few days.
All scripts are currently trading at low price hold them for 10-15 days so gain maximum.

Regards

SHARETIPSINFO Team

09899056796
09891655316
09891890425