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The dogs of the current stock market....CNBC looked at a number of stocks that had been trading below their 200 day average line. The theory was taken from the ideas around investing in the Dogs of the Dow Industrial averages each year. RIG was one of the stocks on this short list. Everyone of the guest pundits said they would continue to avoid RIG. And their dislike was touchable. Now the good news..... when everyone hates a stock then it is a good indicator that most of the downside has been reached. Of course it could bounce along this bottom for a long time. One of the RIG's red flags is its debt load... and this is a serious concern which has the potential of sinking the company before the recovery in the oil patch happens. And the first thought is merger... but I would think the takeover bid would have to be low indeed to make economic sense. so it looks like this dog status is going to be around a while..... someday. .. SOMEDAY... it will be a savvy buy before it runs up.... because in good times this leveraged industry can quickly generate a great deal of free cash flow. But for now it must be a waiting game with a large chunk of patience . To ease the tedium I suggest seeking other stocks with a more favorable outlook .... and dividend yield. ***PinewoodsBear*** |
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Msg # | Subject | Author | Recs | Date Posted |
1163 | Re: The dogs of the current stock market.... | tjmcbntmkr | 0 | 7/28/2019 7:57:57 PM |
1170 | Re: The dogs of the current stock market.... | PinewoodsBear | 4 | 3/21/2022 10:18:05 AM |