Dear Diary,
CROX, my major position over the past many months, just took a $148 million hit on earnings this quarter. Net Quick Assets was listed at $0.41 per share before the earnings announcement, so I'll be buying more if the stock drops from its current $1.04 a share price to get my average purchase price down below the current $8.31 a share to something closer to the Net Quick Asset figure.
Johnson & Johnson (JNJ) is getting into buying range, with a p/e ratio of 12 now and a widening Net Profit Margin. All the "Holy Grail" situations I'm following just refuse to drop to a p/e ratio of 10, so I can buy them. This leaves me several buys into Net Quick Assets, as the vast majority of the stocks I follow have narrowing Net Profit Margins right now.
I read an economist who studies bear markets, and he believes the bottom of this one we're in is about 6,500 on the DOW Jones Industrial Average and should last another 15 months. I don't guess bottoms of markets, but bottoms of stock prices are supposed to be something in proximity to Net Quick Assets. What I own that doesn't go belly up should provide 300% to 1000% gains over the next few years and should make up for any losses.
Gene
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2005, In Front of IRS Building, Washington, D.C.
Diary of a Business Investor
Gene Chapman
2005, In Front of IRS Building, Washington, D.C.
About Me
- Gene Chapman, Author
- P. O. Box 295545, Lewisville, Texas 75029
- MahatmaGandhiGlobalLibrary.blogspot.com or LibertarianGlobalLibrary.blogspot.com gkchapman2012@hotmail.com "Creating World Peace One Word at a Time" And for those who wish, you are invited to participate in funding all aspects of and in the building of a physical library building within walking distance of both the White House and the U. S. Capitol Building in Washington, D. C., as a voice of nonviolence and a safe harbor for Gandhian intellectuals in this epicenter of political violence on earth.
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