A MESSAGE OF CHANGE
NEW YEAR, NEW PRESIDENT, NEW HOPE?
The crisp winter landscape came alive Tuesday as record crowds lined the chilly yet sun-drenched streets in our nation's Capital, waiting to get a glimpse of our 44th President. This reporter reckons that she hasn't seen such a frenzied, no-holds-barred celebratory display since Honest Abe took the Oath of Office.
A day of pomp and circumstance was followed by an evening of fancy balls, baubles and bling. (Your most well-connected reporter was, of course, invited to the ball, but politely and sacrificially bowed out when she realized that another guest -- not nearly as famous, she might note -- had the audacity to buy the same gown!). Though the message of change resonated through the crowd with the intensity of the Liberty Bell herself, the stock market remained unimpressed, putting a damper on the day's celebration with a close below the 8,000 mark.
Alas, the stock market is not easily persuaded and finds change -- even if it be perceived as for the better -- to be disconcerting. That said, this reporter is reminded that while the short-term traders may find themselves in a state of panic, their long-term, fundamental cohorts are busy bargain hunting. Indeed, as the sun rose following a night of celebration in ballrooms scattered across the District of Columbia and bleary-eyed party-goers made their way home, fundamental investors awakened, wide-eyed and bushy-tailed…and on the hunt for great companies at rock-bottom prices.
On to today's headlines...
IS THE TIME RIGHT TO "STRYKE" A DEAL?
STOCKCENTRAL MEMBERS CONTEMPLATE:
IS THE SELL-OFF A BUY SIGNAL FOR LONG-TERM INVESTORS?
"Stryker has been on my watch list for a while, but always seemed too expensive to buy," StockCentral member Pat Landers notes in the Stryker Community Forum. "The price has certainly gotten pushed down recently. Have you been able to find any news causing the selling, or do you feel the stock has gone down with the entire market?"
Stock Guru and ICLUB Prez Doug Gerlach, known from sea to shining sea for his keen insight and sage ways, highlighted Stryker in a stock study presentation during his Nov. 25, 2008 Webinar. He notes, "With regards to the price decline, take a look at this chart of Stryker's stock prices since the beginning of 2008 compared to the S&P 500 (from Google Finance). You can see a pretty close correlation."
"Otherwise, I see in the news the retirement of the CFO (which had been planned internally for a year and is being replaced from within) on November 10; a couple of FDA warnings about quality in the past year, which the company is addressing by reducing its supply chain significantly and raising the bar on suppliers who work with them (and which could increase costs); and concerns about the economy and 'elective' surgery (though I'm not sure if knee replacement is really seen as elective as the population ages). Add it all up and the risk in investing in SYK doesn't seem too enormous at these prices."
Stryker shareholder and StockCentral member Jack Hills shares Doug's sentiments. "I own it," he says. "I might say that (in 2009), with a little luck, (Stryker will) resume 'normal' growth. But I have to project this 'normal' growth from the current earnings, even though I expect a drop for a year or so."
But, as is oft quoted, haste makes waste. Before you chime in with a yay or a nay on Stryker, be sure that you are not a few sandwiches short of a picnic. Check the Community Forum for Doug's Stock Study on the company. And check back for a replay of the Nov. 25 Webinar, which will soon be posted in its entirety on Doug's blog as well as on the ICLUB.com web site Learning section.
FRESH AIR, FRESH PERSPECTIVES
SALT LAKE CITY IS THE PLACE TO BE AUG 7 - 9
Help is on the way for StockCentral Members, like Jack Hills, who notes, "It is almost impossible to do any forecasts from where we are, with any issue." Jack need only look as far as, well, Salt Lake City, Utah, actually, where a great meeting of the minds is destined to take place Aug. 7 - 9. There, weary investors perplexed by unprecedented economic times will find themselves rejuvenated by fresh perspectives and fresh air alike. Stroll alongside the bubbling brook of City Creek Canyon, embark on the more challenging hike of Grandeur Peak and return ready to take in all that the world-renowned InvestEd 2009 conference has to offer:
- Learn how other long-term investors succeed even when institutional investors control so much of the market.
- Avoid investing in that next company headed for a meltdown by learning to read a cash flow statement, a document that provides a useful window into the financial condition of a company.
- Speak with investor relations representatives from a variety of well-known companies, and attend their corporate presentations to learn about the company's business model, growth, and future prospects.
- Immerse yourself in intensive education in stock research techniques and the corresponding judgments made during stock study analysis.
- Refine your stock analysis and portfolio management skills through a wide-ranging curriculum, from Newbie to Advanced.
- Take advantage of hands-on activities in the Computer Lab, test drive software, learn about current useful Internet sites, and obtain one-on-one help from skilled tutors, software developers, and instructors.
- Participate in the Leadership Training program at no extra cost and glean presentation tips, general computer and software pointers, and teaching techniques.
- Visit with fellow investors and meet cyber-friends in person.
That, your intrepid reporter dares note, is just a smattering of the opportunities that will abound in Salt Lake City. As she so fortuitously noted earlier in this edition, haste does indeed make waste. Dilly-too long and you will miss out on both the special early-bird price and the exclusive $10 discount for StockCentral members.
Online registration is now available, so reserve your spot today. For more information, visit http://www.investor-education2009.org/. The InvestEd 2009 session schedule is being finalized and you can expect many new and innovative sessions to address your investing concerns. Review the InvestEd 2008 Session Schedule http://www.investor-education2008.org/session-schedule.shtml for a preview of what's to come.
TODAY'S ENTIRELY RELEVANT QUOTATION
"The way for a young man to rise is to improve himself in every way he can, never suspecting that anybody wishes to hinder him."
-ABRAHAM LINCOLN