Maytag... Buying stocks for the first time.

[Dirk Gently]

This stock has been tanking lately so I figure it would be a good place to learn a quick lesson in putting all my eggs in one basket. What do you educated people think about Maytag right now?

Also, what is the best way for me (a canadian) to purchase about $2000 worth of stock like this using money in my neteller account? I really have no clue how any of this works... Do I just deposit it onto an online trading site like I would a poker site and then withdraw from the trading site when I want to sell? If it were only that easy...

[adios]

[ QUOTE ]
This stock has been tanking lately so I figure it would be a good place to learn a quick lesson in putting all my eggs in one basket. What do you educated people think about Maytag right now?

[/ QUOTE ]

I wrote an essay that I posted on this forum in evaluating the risk and expected returns when putting all your eggs in one basket. I realize when you say your putting all your eggs in one basket it's not a lot of eggs though [img]/images/graemlins/smile.gif[/img]. Generally speaking you'd be better off using some leverage and buying something like SPY than betting it all on Maytag IMO although I wouldn't necessarily recommend either.

[ QUOTE ]
Also, what is the best way for me (a canadian) to purchase about $2000 worth of stock like this using money in my neteller account? I really have no clue how any of this works... Do I just deposit it onto an online trading site like I would a poker site and then withdraw from the trading site when I want to sell? If it were only that easy...

[/ QUOTE ]

Never tried it through NetTeller but just contact someone and find out.

[Dirk Gently]

I just want to use money from my neteller account to buy the stocks... How do you get money to the online trading companies when you want to buy a stock?

[Dirk Gently]

Odds are I'll be making a few trades a month once I get into it... Something cheap, quick and easy. I just graduated from school and have a decent job that's supporting me so I've decided to gamble all my poker winnings in stocks since I really have no use for it right now.

[adios]

I'd pick a few brokers and call 'em, tell them what you want to do, and take it from there. I realize you're only taking a few grand and gaining experience which I think is a good thing FWIW.

[James Boston]

At a glance, Maytag doesn't look good at all. Their price may be going down, which is usually a good time to buy. However, they seem to be LOSING money...as opposed to a price decline that is the result of market undervaluation.

[meow_meow]

Maytag....where to begin?

Down about 75% from it's all-time high, seems cheap right?
Just cut their dividend in half - A more ominous sign of a company on it's last legs I can hardly imagine.
Whopping debt.
Negative book value.

On the plus side they are generating some cash flow, and are projecting a profit for the full year. I'd wait and see how that pans out before touching this with a ten foot pole.

[Dirk Gently]

Just an update, thanks partly to all your advice I look for a new stock to purchase... Bought 75 shares of CQB today at 27.49. Comments?

[AceHigh]

[ QUOTE ]
This stock has been tanking lately so I figure it would be a good place to learn a quick lesson in putting all my eggs in one basket. What do you educated people think about Maytag right now?

[/ QUOTE ]

First lesson is don't try and catch a falling knife. Would you buy Enron or Worldcom when it was tanking?

If you want to learn something and have a decent chance of making some money, I recommend you buy 10 shares of Google (GOOG/200+ per share). But wait a little, market is on a high now, it might drop down below 10200, that would be a good time to buy GOOG.

[James Boston]

I wouldn't have bought it, but it's not as bad as Maytag.