Comments on: Buy High, Sell Low http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 20 Mar 2010 05:15:36 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Not Breaking News: Regulator Just as Dumb as Ordinary Investors! - CBS MoneyWatch.com http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-219051 Not Breaking News: Regulator Just as Dumb as Ordinary Investors! - CBS MoneyWatch.com Fri, 25 Sep 2009 13:15:18 +0000 http://www.ritholtz.com/blog/?p=38712#comment-219051 [...] (way to lock in those losses!) and missed the subsequent rally. In other words, FINRA employed the buy high, sell low strategy. This amateurish mistake on both the upside and downside not only cost money, but it has [...] [...] (way to lock in those losses!) and missed the subsequent rally. In other words, FINRA employed the buy high, sell low strategy. This amateurish mistake on both the upside and downside not only cost money, but it has [...]

]]> By: philipat http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217712 philipat Tue, 22 Sep 2009 01:51:45 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217712 In the case of the Banks, they should use the bought back stocks for stock options at the price acquired instead of bonuses. Then, there should be a requirement to exercise the option even if below water. In the case of the Banks, they should use the bought back stocks for stock options at the price acquired instead of bonuses. Then, there should be a requirement to exercise the option even if below water.

]]> By: Where to begin? « Tyro Trade Forum http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217675 Where to begin? « Tyro Trade Forum Mon, 21 Sep 2009 22:35:34 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217675 [...] Barry Ritholtz, The Big Picture [...] [...] Barry Ritholtz, The Big Picture [...]

]]> By: mdod http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217671 mdod Mon, 21 Sep 2009 21:46:35 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217671 Much easier to stop buybacks during a credit crunch than to cut a dividend...you can do the former without a bunch of headlines hitting... But there is a better explanation than "corporations are dumb." Share buybacks were occurring as new corporate debt was being issued. There was a fat discrepancy between corporate bond yields and earnings yields that began in 2004 which served as a huge incentive for corporations to begin to re-lever healthy balance sheets. It went away as capital markets froze during the crisis... If the public has sworn off stocks...you will probably see buybacks begin to shoot up again. At the end of the day, corporate balance sheets have to look similar to the asset allocation that the public demands, or else corporations will be paying a cost of capital that is too high for one form of capital (stock) and too little for another (bonds)... Much easier to stop buybacks during a credit crunch than to cut a dividend…you can do the former without a bunch of headlines hitting…

But there is a better explanation than “corporations are dumb.” Share buybacks were occurring as new corporate debt was being issued. There was a fat discrepancy between corporate bond yields and earnings yields that began in 2004 which served as a huge incentive for corporations to begin to re-lever healthy balance sheets. It went away as capital markets froze during the crisis…

If the public has sworn off stocks…you will probably see buybacks begin to shoot up again. At the end of the day, corporate balance sheets have to look similar to the asset allocation that the public demands, or else corporations will be paying a cost of capital that is too high for one form of capital (stock) and too little for another (bonds)…

]]> By: DeDude http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217658 DeDude Mon, 21 Sep 2009 20:32:55 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217658 onlooker; good point; they can no longer borrow money to purchase their own stocks to pump their "performance" bonuses. That gig is down for now. onlooker; good point; they can no longer borrow money to purchase their own stocks to pump their “performance” bonuses. That gig is down for now.

]]> By: Onlooker from Troy http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217628 Onlooker from Troy Mon, 21 Sep 2009 19:16:39 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217628 They're broke and the easy money is not so easy to be found now. And they've gotta preserve some of that cash for upper exec compensation, don't you know. They’re broke and the easy money is not so easy to be found now. And they’ve gotta preserve some of that cash for upper exec compensation, don’t you know.

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217626 Mark E Hoffer Mon, 21 Sep 2009 19:12:07 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217626 lb, interesting, I was going to make mention of "Currency Event"-Risk, vis-a-vis Equity Holdings, leading to DTC lockdowns/SIPC "Insurance" reimbursement freezes. but, you, already, figured out on those..sometimes those 'Black Swans' can look like Quetzalcoatlus- http://www.ucmp.berkeley.edu/diapsids/pterosauria.html lb,

interesting, I was going to make mention of “Currency Event”-Risk, vis-a-vis Equity Holdings, leading to DTC lockdowns/SIPC “Insurance” reimbursement freezes.

but, you, already, figured out on those..sometimes those ‘Black Swans’ can look like Quetzalcoatlus-
http://www.ucmp.berkeley.edu/diapsids/pterosauria.html

]]> By: leftback http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217614 leftback Mon, 21 Sep 2009 18:48:28 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217614 @MEH: Like all else in my life, COP is on a 10% trailing stop. All is illusion and impermanence. @MEH: Like all else in my life, COP is on a 10% trailing stop. All is illusion and impermanence.

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217608 Mark E Hoffer Mon, 21 Sep 2009 18:22:22 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217608 lb, I hear ya, though why COP, and their exposure to the Tar Sands folly, asopposed to CVX? http://finance.yahoo.com/q?s=CVX http://finance.yahoo.com/q?s=COP also, re: COP, how'd they pull this off: Net Income From Continuing Ops (16,998,000) 11,891,000 15,550,000 ('08/'07/'06) ? past that, re: CNG, see: http://finance.yahoo.com/q?s=CPST We should begin to understand that Centralized Electricity Production-- like Centralized Governments, and, their fellow travelers, Central Banks, suck..merely, Command and Control with a different Currency. lb,

I hear ya, though why COP, and their exposure to the Tar Sands folly, asopposed to CVX?
http://finance.yahoo.com/q?s=CVX
http://finance.yahoo.com/q?s=COP

also, re: COP, how’d they pull this off: Net Income From Continuing Ops (16,998,000) 11,891,000 15,550,000 (‘08/’07/’06)
?
past that, re: CNG, see: http://finance.yahoo.com/q?s=CPST

We should begin to understand that Centralized Electricity Production– like Centralized Governments, and, their fellow travelers, Central Banks, suck..merely, Command and Control with a different Currency.

]]> By: How the Common Man Sees It http://www.ritholtz.com/blog/2009/09/buy-high-sell-low/comment-page-1/#comment-217596 How the Common Man Sees It Mon, 21 Sep 2009 18:03:12 +0000 http://www.ritholtz.com/blog/?p=38712#comment-217596 <i>wow- 5% growth and cheap housing- what more could you ask for</i> how about the truth? wow- 5% growth and cheap housing-

what more could you ask for

how about the truth?

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