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 !
Would you mind sharing some of the opportunities with your readership? Please? :-)
Posted by: Edwin Khodabakchian | August 16, 2007 at 08:30 AM
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....
Posted by: Michel de Guilhermier | August 16, 2007 at 09:41 AM
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...
Posted by: Monsieur Glob | August 16, 2007 at 10:34 AM
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"
Posted by: /O | August 16, 2007 at 01:28 PM
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
Posted by: Olivier | August 16, 2007 at 03:19 PM
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.
Posted by: Michel de Guilhermier | August 16, 2007 at 03:32 PM
nom de code pour s'eclater en ce moment en bourse US: CDS.
the happy few will understand.
Posted by: sebastien(ny) | August 16, 2007 at 04:00 PM
Comme prévu, PEP, KO, PG, BRKA se comportent très bien aujourd'hui.
Posted by: Michel de Guilhermier | August 16, 2007 at 05:55 PM
Indian stock market
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