I made a killing in poker latey need a stock to invest in!

[onlinechamp]

I am looking for a stock I know how to invest I have a broker already just need opinions!! I like risky stocks with high return potential!!

[AceHigh]

I like Navistar Financial, NFI, Prepaid Legal Services, PPD, and Toll Brothers, TOL at this time. I don't think they are very risky, but I think they will provide very good returns.

[onlinechamp]

Thanks!

[Fishy]

You can find some good high yields were you can pick your return:) can refer you to low cost brokerage, you can have a fix interest rate and not touch the money for a long time, do a few high yields:) the A class bonds could be a little pricy right now because of the low interest rate.

Like to be more adventurous??:) I'll pick some Chinese shares for you to look at if you want? The profit margins of the companies are high and the stocks are cheap with the economy growing at 7.4%, you can buy a whole PLC with your BR:)

Maybe even short some bonds since interest is so low right now:)

Keep some cash to play with:)

[Wildbill]

Most of the bargains are gone in corporate bonds as the bandwagon really rushed into them. Another downside is that if the economy doesn't tank, and I don't expect it to do any worse than continue ahead in mediocre fashion, a lot of these bonds will be bought back or called because yields have fallen so much. Think of it like mortgage backed stuff, where you worry the yield falls too much and leads to refinancing. Further interest rates really have nowhere to go but up within a 3-year time frame so any interest product is going to become more sensitive to that. The only way I think you can play corporates right now is a two-way move shorting the treasuries and going long corporate. There are a lot of players doing that now because if you make that move then you don't mind refinancing as much because it lowers the risk of the bonds relative to the risk-free rate.

[Fishy]

[Wildbill]

Not necessarily, remember you are going short on one and long on another. The direction of rates shouldn't be the factor that determines the bet, its the spread that matters. These types of plays are what most Wall Street bond guys talk about when they make their moves. Rarely do these guys just go out and buy a side or a bond and stick with it. They always pick one side they like and one they don't and then bet the hedge hoping their call is right. Remember if you are a bond guy on Wall Street you can't really go bearish on your money maker and call bonds a bad bet, because tomorrow you can't go out and say "hey people, put your money into stocks because bonds are going to suck". Just doesn't work that way. Bet the spread and its direction, not the trend in rates.

This isn't something you can do with small money, but this guy claims to be into some serious money so any futures broker would be happy to help him out as these are generally plays on the futures market or with the broker acting as the dealer himself.

[scalf]

/forums/images/icons/wink.gif ok onlinechamp...here's a gamble...lol

pe = 79.5 price/sales = 16.63

they make no product themselves...license short term memory technology to all but 3 major chip manufacturers....

RMBS...rambus...

involved in major litigation with micron (idaho based, ifx, and hynix...

spends as much money on lawyers to protect their intellectual proprty as r+d now..lol

ugly ftc trial
(or adminstraytive hearing) brought on by congressman butch otter of idaho..to protect micron...case has only political/bargaining power for micron..

buy long term call options (leaps)...

ZIXAF.X 3.40 last week and going up
allow you to buy 100 sh at 30/sh untill jan 05...

buy options..long term..if lawsuits go rmbs way...60-100 dollar stock...if not back to poker table...gl

disclosure..i own a shitload of rabus stock/derivatives...gl..very risky /forums/images/icons/smirk.gif /forums/images/icons/club.gif

[Fishy]

If you short treasuries and the rate goes up you have to pay more interest. And long corps then the price of the bond will generally fall as interest rise.

What made you want to short treasuries and long corps in the first place?? Can you give your reasoning??

[onlinechamp]

I heard rambus is like throwing money away not sure If I like throwing it away. Any chances of rambus winning this case?

[Wildbill]

If you make this bet you are interest rate neutral, in general terms. You really aren't concerned about rates unless they make a drastic move down, which would only follow some economic shock. That would boost treasuries strongly in the accompanying rush to safety, otherwise if the rates move moderately in either direction I think that both would move in tandem, just the degree they move could be different. Therein is where the bet lays, what moves more positively.

Its a short-term move, my calculation is that the spread is likely to close more no matter what the rate movement simply because I think people are going to come to the conclusion that the economy is improving at least somewhat. I think the big spreads that were seen last year and have been narrowing had been caused by global tensions and the expectation of a poor economy for a long period of time. I think there still is a lot of that out there, but I think the conditions are getting much better and just the acceptance of that will make the spread narrow more. Also if the rates start to go up some I think the corporates will do a little better because it will cut off the records level of issuance, especially in light of the potential for dividends rising. Corporates will lower their issuance while the ever increasing federal debt means that treasury stuff can only soar in supply. Combination of demand/supply curves in both mean that corporates have little risk of rising faster than treasuries, which are at such unsustainable levels anyways, while corporates look a little underpriced, but not like they were about 9 months ago.

[Fishy]

The higher risks makes them more sensitive to interest rate moves, more volatile. So if the rate goes up and up when things get better, you are more likely to see the corps plummet more when dudes shift into shares.
You need a ratio of 70/30 at least on the treasury/corp spread to make it more interest rate neutral.

Yeah, the spread should close when there are less uncertainties but can you beat the time it takes?? You need it to close in faster than the futures premium go up.

[adios]

"Like to be more adventurous??:) I'll pick some Chinese shares for you to look at if you want? The profit margins of the companies are high and the stocks are cheap with the economy growing at 7.4%, you can buy a whole PLC with your BR:)"

I'm game, please feel free to post some names.

[scalf]

/forums/images/icons/laugh.gif yeah how about some chinese dice rolls...really...pleeeze...just 3 stocks with short description...gl..tia /forums/images/icons/spade.gif /forums/images/icons/cool.gif

[scalf]

/forums/images/icons/tongue.gif well, you could short rmbs or seel call optios...(not recommended).......or buy put opyions(as i do when i feel it is temporarily overbought....

i am not upset you disagree with my analysis..(lol, so does everyone else on this board)...but whatever "risky" stock you look at..there are gonna be potential major negatives (i.e. someone is gonna tell you you are throwing your money away...that's what makes it a risky stock...but there is no doubt in my mind that rmbs will eventually( of course, as keynes said.."in the long term, we are all dead"..lol) win all lawsuits and receive huge royalties...that's why i have taken a huge position....i am not a pump and dumper....)i am not a crook.r. nixon)..lol

other risky stocks i like...and have at least doubled since i first mentioned them on this board...yea go back and check..lol...scln.(hepatirus, immune-enhancing drud in phASE 3 TRIALS)....cpn, cnp, mir(all out of favour energy companies...gl

maybe you really want bonds..not really "risky stocks"...gl /forums/images/icons/shocked.gif

[Fishy]

"In the long run, we are all dead"

He was doing an analysis on his favorite game roulette......Russian roulette.

[onlinechamp]

Fishy is funny!!!!!!!!!!