I thought of a strategy about a year ago. When the govt was bailing out all of these banks with TARP money, i started to research these banks. I am fortunate enough to have a good amount of money to invest so I decided to take a chance. All you heard about was AIG for the longest time on how the govt was investing billions in this company to keep it a float (with TARP money). My research showed that AIG would be one of the slowest companies to pull out of the recession and pay back Tarp money which means that this company had a long way to go and was at rock bottom. I contacted my financial advisor and told him that i wanted to invest in AIG; he said that i was crazy because the bank was going to go down and this was really considered a penny stock value. I thought long and hard about it and came to this conclusion "the govt will not let AIG go under because they have so much invested and riding on this company." I was able to buy in at .99 cents a share and since then, the company did a reverse split to encourage trading on the company and I have made substantial amount of money in less than a year; it is not so much about gambling with the stock market but seeing the best returns on your investments.
I did research and had some inside knowledge on Global Industries as well (several friends work for this company. I did research and visited with several managers on this and they assured me of work coming down the pipeline in 6-8 months (this was about a year ago). I bought GLBL and $2.90/share and just checked it and it is $8.74/share (it has fluctuated quite a bit this late summer but gains are all that i am worried about).
Do your homework and research your companies and you can't go wrong. Read the quarterly reports on these companies and that will tell you a lot (that can usually be found on the corporate sites.)
|