Monday, July 30, 2007

It Could Get Ugly

The stock market just came off an all-time high, and late last week looked like it wanted to do a 10% correction. In a hurry. Investors are frightened. Various reasons have been cited by others--slowing economic growth (wrong), serious loan repayment problems among homeowners (crap), and a condition known on The Steet as "over-bought (maybe)." Over the weekend, various financial publications warned of a potential crash today.

Personally, I hope so. It will be a great buying opportunity, and one, I think, not only for longer-term investors. That is, if the market dives hard at the opening today, I think even hot tipsters and traders like me can jump in and make some loot. In the business, this is called "trying to catch a falling knife." I don't have to explain that one, do I? I mean you, the image is pretty clear in my opinion.

What will I buy, risking bloody hands? My latest hot tip, of course. Exelon Corp. (EXC) on the Big Board.

Exelon is a utility services holding company, delivering retail and wholesale electricity to customers in the Chicago and Philadelphia areas. A pretty stodgy stock for this hot tip player. I hate buying expensive stocks, and EXC sells for about $70 a share. But I have it on excellent authority (not the guy who gave me TGE) some big European outfits are looking to buy the company for in excess of $80 a share.

I'll check back in later today--say around 10 a.m. (EDT)--and tell you what I've done.

BTW--Where was I this weekend? Why no posts on Saturday or Sunday?

I'll never tell.

Update at 10:09 a.m.-- I bought us 50 shares of EXC at $69.12, total cost $3,464. Spent a bit more this trip, er tip, because it's a utility, not a penny stock. Also, like all gamblers, I'm trying to catch up for the previous loss.

4 comments:

Anonymous said...

I buy when I see the analysts on TV with weepy tears in their eyes. Right on. They're still sounding too upbeat to me.

- Detective Roger Stark

Austin Carr said...

Looks like you might be right, Rog. They were waiting for me to buy before they took the market down.

Bob said...

Hey Austin, does Compliance know you are giving out stock tips on the blog? Someone is going to blow a gasket over this.

Austin Carr said...

Well, that's the best part of being a fictional character, Bob. My firm and my Compliance Department are fictional, too, and the National Assn. of Securities Dealers says any fool who would take a hot tip from a made-up stockbroker deserves what they get.

At least that's the legal opinion of my fictional attorney, Randall Zimmer III.