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View Full Version : NFBT: K-Mart stock?


The Rick
02-01-2002, 11:59 AM
I'm young (24) and don't really have any experience in the stock market, yet I've always had an interest. Lately, I've developed an even bigger interest through reading books and simply learning about finance and money in general.

Sidenote: If you ever get a chance to read anything by Robert Kiyosaki, I'd strongly recommend it, especially if you have an interest in money.

Anyway, I'm considering dabbling a little in the stock market. I set up an account with E*Trade today. My question is, does anyone have any opinions on K-Mart's stock? I know it's a pretty big risk, but does anyone see any potential?

Essentially, I'm just looking for opinions on K-Mart's stock or even opinions on the stock market and investing in general.

KCWolfman
02-01-2002, 12:03 PM
I know it's a pretty big risk, but does anyone see any potential? Many companies have filed Chapter 11 in the past and thrived afterwards.

The question is can KMart put a product or a display of products up that can compete with WalMart? If not, can they change enough to supply a different need for the consumer? Finally, how much will they downscale to finally turn a profit? Too much and the stock won't be worth a crap, not enough and the company will go under.

Finally, it is cheap right now. It would be worth a few shares for a trial investment. No big lose if they crap out and what a story you have for other investors if they turn it big.

Joe Seahawk
02-01-2002, 12:07 PM
There was an investment broker on a local channel here the other day that said K_Mart is a good value stock right now..He also said R.J. Reynolds is a good safe value stock right now...FWIW..

BIG_DADDY
02-01-2002, 12:08 PM
No freakin way I would buy K-mart.

1. Historically horrific management.
2. Huge debt.
3. Losing the battle to Walmart and Target and I don't believe they have the capability to compete in this area.

Do yourself a favor and stay away from that stock. Trust me.

Infidel Goat
02-01-2002, 12:13 PM
What's your reason for entering the market?

Fun?

High risk/high reward (read: gambling)?

Long term investment so that you can retire with a good nest egg?

If it's just a small amount for fun or the gambling fix, then K Mart might be okay for you. I tend to think that they will be the next Venture, though, and that Wal Mart and Target are going to chop off their collective head eventually.

If you are looking for an easy long term investment strategy, I would encourage regular deposits in a diversified index fund (like the S&P 500 or the Wilshire 5000).

The one book I'd recommend is John Bogle's (Vanguard founder) "Common Sense on Mutual Funds."

Both the S&P 500 and the Wilshire 5000 haven't done well in the last two years, but long term they are an effective and safe way to get a good return on your money.

--Infidel Goat

dollar1
02-01-2002, 12:18 PM
Can you say Payless Cashways?

Hoover
02-01-2002, 12:23 PM
I have moneyy in McLoed USA. Its a communications company that filed for Chapter 11 yesterday, I bought it for nothing and if it goes up great, if not no big deal.

The Rick
02-01-2002, 12:24 PM
One thing I've read is that one key to investing is to have a strategic plan and follow it. Another thing is "getting something for nothing".

Taking those two things to heart, my *very* optimistic plan would to be buy some shares. Let's say $1000 worth for example. If the value doubled (which it nearly has since I first began thinking of this), I would sell half my shares recovering my initial investment, and now I have $1000 worth of shares that I "got for nothing".

Following up on my strategic plan, I would determine the conditions with which I would cash out all of my shares. The condition might be if it reached a certain value.

Joe Seahawk
02-01-2002, 12:25 PM
jds uniphase is cheap....:rolleyes: :rolleyes: unfortunately!

ck_IN
02-01-2002, 12:28 PM
I'd tend to agree with Goat (uh goat, you're not in England alongside a certain set of traintracks are you? ;) )

At your age I wouldn't dabble too much in stocks. First I'd set up investments in a large cap growth, mid cap value, and small cap growth mutual fund. Establish an IRA and max it every year you can. At your income bracket it may even be tax deductible unless you go for a Roth (much better long term anyway)

As far as stocks go, I'd first look into DRIPS and direct buy plans. Some companies sell stock directly to consumers, bypassing the broker fees. These are usually blue chip companies with proven records. They may not be sexy but they give yo ua good foundation.

If you want something sexier, take a peek at techs and industrial suppliers. I tend to favour gorilla companies. (A company that dominates their sector while still being inovative, e.g., Oracle & Cisco)

I'd personally steer clear of Kmart. They simply can't compete with WalMart on price or image. If they downgrade further they'll be bumping heads with Dollar General and Costco. They may live but that's a tough neighborhood.

BIG_DADDY
02-01-2002, 12:31 PM
I really hate to be a jackazz here but investing in K-mart is gambling pure and simple. You have a better chance of making money by putting it on red. This is my business and I highly suggest you NOT invest in this manner Look at this stock historically combined with the 3 reasons I gave you already should be more than enough to keep you from doing this.

dollar1
02-01-2002, 01:14 PM
I too am in the business. Independant stock broker. Was with Jones, now on my own.

BIG_DADDY
02-01-2002, 01:17 PM
Asset manager. I have my own business, 4 partners. Minimum account 500k. We also specialize in risk management strategies for Sr. executives with very large concentrated equity positions. www.clearpathcapital.com

Chief Henry
02-01-2002, 02:11 PM
I would stay clear of K-Mart. Big Daddy has posted the reasons.

Our CHIEFS have a better chance of winning next seasons
superbowl than profits coming out of K-Mart:eek:

BubbaZ
02-01-2002, 04:23 PM
Drive by a KMart, then drive by the Walmart. Then I think you will have your answer.

Rain Man
02-01-2002, 06:13 PM
Did JDS Uniphase kill you too, Joe? I dollar-cost-averaged that stock down from 88 to 17 before I gave up and decided it wasn't going to bounce back up. It's at about 7 now, and is my personal Waterloo.

gh4chiefs
02-01-2002, 07:42 PM
rickm20,

I think the answer to your question depends upon your tolerance for risk and setting an amount that your willing to lose and not be upset about. It's fairly cheap and you can get several shares for not too much dough. I think there's money to be made there because the stock is so low and I believe they'll come out of it. Frankly I wish I had some money I was willing to risk but I just don't have the extra $ right now.

In the end you have to decide how much your willing to risk and not be devastated it goes belly up.

This is one of those stocks you take a gamble on for a short term gain, not one that you're going to build a long term portfolio around.

Just my $0.02.

redsurfer11
02-01-2002, 07:58 PM
K-Mart stock will continue to drop,should hit its bottom in about 30 days.That would be the time to buy.

Joe Seahawk
02-01-2002, 08:29 PM
Kevin..I think I paid over 100 bucks for it in sep,99 :mad:

It's too depressing for me to see what it's trading at today..

Rain Man
02-01-2002, 08:46 PM
Ouch, Joe. I think I'd give up all of my remaining stock for ten minutes alone in a room with a baseball bat and the "analysts" who were recommending the stock back then. I can understand missing on a stock recommendation, and I understand the human frailties in the system, but I fail to see how any analyst who's doing an unbiased analysis can put a "strong buy" on a stock that is later found to be overvalued by 1,500%. It's not like there were accounting irregularities or anything...sheesh.

As for K-Mart, I think I'd take a pass. There'll be a dead cat bounce once it hits bottom, but it'll be short and not too sweet. I'm 1-1 betting on bankrupt companies, but it's not worth the risk. Why not bet on a company that's solid and growing? I'm a fan of Salton (SFP), Nokia (NOK), and Good Times Restaurants (GTIM - micromicrostock) right now.

Notice - I own stock in the companies that I'm touting. (Gotta comply with the FTC...)

Mosbonian
02-01-2002, 08:54 PM
Like Big Daddy said they are a big risk....the best time to have bought would have been just after they bottomed out after the filing..it has been rising since then, but it can't last too much longer.

K-Mart has a great many underperforming stores and will take a long hard look at how many are needed to be closed. The announcement on how many will not come for a few weeks, and speculation could drive the stock price back down.

Something that has really bothered the investing community is the lack of word as to how the second-tier suppliers are not wading in readily. The big boys are back in, mostly out of necessity and some security backing, but no one can afford to hop back in without considering the ramification if K-mart doesn't put together a good emergence strategy.

I presently work for a company preparing to emerge from Chapter 11 ,(I was hired to help with the emergence in the Credit Department) and I can say with conviction that it is not easy. Cutbacks, layoffs, and cost-cutting measures are always painful. K-mart better be wearing it's big boy pants when decision-making time comes.

mark
************
***********

Mosbonian
02-01-2002, 08:56 PM
Do you think Nokia will weather the slump in the Electronics industry?

mark
**********

Joe Seahawk
02-01-2002, 09:00 PM
Nokia and Nextel have both sucked for me too! I hope they bounce back..


Home Depot has been good..

Rain Man
02-01-2002, 09:05 PM
First off, as Les Nessman would say, "I know nothing about this, but here's my opinion."

I like Nokia first and foremost because they're the clear industry leader in innovation, in my opinion. Unless Microsoft decides to steal your operating system, you're always well-positioned if everyone else is playing catchup. Second, their stock is down fifty percent from it's peak, which isn't as bad as many other tech sectors but is still a beating for a company that's sound and actively looking to cannibalize market share. Third, I think that cell phones are the answer to catch third world countries up on communications who missed the massive cost investments of the land line era. Wireless communications has a potential worldwide market that's greater than almost any other electronic product, if the prices can keep coming down. Fourth, I like Finland.

I'm a bigger fan of Salton and Good Times right now, though. Good Times is so tiny that it's still quite risky, but they've got products that are excellent, and Peter Lynch says that's the first rule for investing. I'm still waiting for the price to drop down to 2 before I buy more, but I might get impatient.

Rain Man
02-01-2002, 09:09 PM
Nokia's a case where my dollar-cost averaging has been working. I've bought it all the way down from 55 to 23, but have been lucky in that I've been both buying and selling. I've managed to time my selling in the upward blips well enough (okay, luckily enough) that I've managed to almost break even during a 50 percent slide and build up a pretty good sized stake.

Rain Man
02-01-2002, 09:11 PM
What stocks do you guys like right now? I've got some cash burning a hole in my IRA.

Well, actually, it's the JDS Uniphase that's been burning (oh, the humanity!), but the cash is ready to invest.

KCWolfman
09-28-2004, 12:57 AM
No freakin way I would buy K-mart.

1. Historically horrific management.
2. Huge debt.
3. Losing the battle to Walmart and Target and I don't believe they have the capability to compete in this area.

Do yourself a favor and stay away from that stock. Trust me.
BD - My stock I purchased around 15.00 in 2002 closed at 85.5 today.

I wished I had the courage to buy it earlier and buy more than 200 shares. That was approximately $14,500 in profit after trade costs.

KCWolfman
09-28-2004, 01:01 AM
There was an investment broker on a local channel here the other day that said K_Mart is a good value stock right now..He also said R.J. Reynolds is a good safe value stock right now...FWIW..
He was right on both.

KMart - from 15.00 to 85.00
RJ Reynolds - from 47.00 to 78.00

KCWolfman
09-28-2004, 01:03 AM
I have moneyy in McLoed USA. Its a communications company that filed for Chapter 11 yesterday, I bought it for nothing and if it goes up great, if not no big deal.
Can't find them on the Exchange

KCWolfman
09-28-2004, 01:04 AM
I would stay clear of K-Mart. Big Daddy has posted the reasons.

Our CHIEFS have a better chance of winning next seasons
superbowl than profits coming out of K-Mart:eek:
Waaa waaa waaaaaaa.

This post alone qualifies to put this thread in the Classic format

KCWolfman
09-28-2004, 01:05 AM
Did JDS Uniphase kill you too, Joe? I dollar-cost-averaged that stock down from 88 to 17 before I gave up and decided it wasn't going to bounce back up. It's at about 7 now, and is my personal Waterloo.
2.5 years later, trading at 3.28.

KCWolfman
09-28-2004, 01:08 AM
Nokia and Nextel have both sucked for me too! I hope they bounce back..


Home Depot has been good..
Nokia - was at 12.28 now at 13.58. Not good for 2.5 years
Nextel - was at 7.0 now at 22.93. Good return

Home Depot - was at 50.00 now at 38.31, but bouncing back from 13.00 in Jan 03. I wish I had bought it then.

KCWolfman
09-28-2004, 01:09 AM
First off, as Les Nessman would say, "I know nothing about this, but here's my opinion."

I like Nokia first and foremost because they're the clear industry leader in innovation, in my opinion. Unless Microsoft decides to steal your operating system, you're always well-positioned if everyone else is playing catchup. Second, their stock is down fifty percent from it's peak, which isn't as bad as many other tech sectors but is still a beating for a company that's sound and actively looking to cannibalize market share. Third, I think that cell phones are the answer to catch third world countries up on communications who missed the massive cost investments of the land line era. Wireless communications has a potential worldwide market that's greater than almost any other electronic product, if the prices can keep coming down. Fourth, I like Finland.

I'm a bigger fan of Salton and Good Times right now, though. Good Times is so tiny that it's still quite risky, but they've got products that are excellent, and Peter Lynch says that's the first rule for investing. I'm still waiting for the price to drop down to 2 before I buy more, but I might get impatient.
Salton was at 21 is at 6.31 - Loss

Ari Chi3fs
09-28-2004, 01:52 AM
7 posts in a row Russ? Cant you consolidate a bit or are you trying to keep up with ENDelt, or just spam?

Hey BigDaddy... what stocks would you highly recommend at this stage of the game?

Rain Man
09-28-2004, 05:59 AM
Salton was at 21 is at 6.31 - Loss

Yeah, tell me about it. They put out a "Surprise! We can't pay back our loans" announcement about six months ago or so. It's a good thing that the big investors were able to get out of it before it collapsed and before any news was released that would cause a collapse. Fortunately, I had cleared out some of my holdings in it before it happened, but it was still a loser for me.

Same with Nokia, though - I had cleared out some of it, but not all. I'm hopeful that it'll come back.

And just so that everyone doesn't think I'm a complete stock idiot, I've had much better luck with my newer stocks. I'll offer an update here at some point.

I'm becoming a believer that a "buy and hold" strategy isn't valid any more. As much as "they" want the small investor to believe it, I've had more bad experiences than good with "buy and hold" stocks than with just constantly turning them over.

KCWolfman
09-28-2004, 09:07 AM
Yeah, tell me about it. They put out a "Surprise! We can't pay back our loans" announcement about six months ago or so. It's a good thing that the big investors were able to get out of it before it collapsed and before any news was released that would cause a collapse. Fortunately, I had cleared out some of my holdings in it before it happened, but it was still a loser for me.

Same with Nokia, though - I had cleared out some of it, but not all. I'm hopeful that it'll come back.

And just so that everyone doesn't think I'm a complete stock idiot, I've had much better luck with my newer stocks. I'll offer an update here at some point.

I'm becoming a believer that a "buy and hold" strategy isn't valid any more. As much as "they" want the small investor to believe it, I've had more bad experiences than good with "buy and hold" stocks than with just constantly turning them over.
Depends on how long you want to hold. I am a firm believer for 10+ years in the theory for Blue Chips and for the long shots like the K-Mart I got a couple of years back. I will also hold onto IBC for at least 3 years and probably more like 5. For Techs and MOR stocks, you are right, there is no safety in long term investments.

Mr. Laz
09-28-2004, 02:09 PM
No freakin way I would buy K-mart.

1. Historically horrific management.
2. Huge debt.
3. Losing the battle to Walmart and Target and I don't believe they have the capability to compete in this area.

Do yourself a favor and stay away from that stock. Trust me.


agreed...

they have also shown a complete disregard for their stock holders


they used their bankruptcy to "cancel" all their stock that was currently held by people leaving them to take a total loss.

a week later they reopen the stock giving insider first look



basically screwing over everyone who had invested in their company for years.



legal ... but complete bullsh1t



kmart can go fvck themselves

KCWolfman
09-28-2004, 02:14 PM
agreed...

they have also shown a complete disregard for their stock holders


they used their bankruptcy to "cancel" all their stock that was currently held by people leaving them to take a total loss.

a week later they reopen the stock giving insider first look



basically screwing over everyone who had invested in their company for years.



legal ... but complete bullsh1t



kmart can go fvck themselves

They can fvck anyone they want at the money I made. Those that held onto the stock when it went in the toilet made more of a profit than I did.

Those that refused to listen to the board members and took the advise of others only screwed themselves. It wasn't KMarts fault they made a bad decision. And thank goodness they did, as I would have not gotten it as cheap if they hadn't/