Yesterday I advised that because I had purchased more shares of Ebay that it would plunge today. I was wrong about that. Sorry.
Yesterday I theorized that people were overreacting to Ebay missing Wall Streets' expectations for its' earnings by 1 penny. I bought more shares because I thought the plunging price was cheaper than dirt for this stock. I advised anyone who wants to make money to buy it quick because it is going to correct itself once the emotional crowd turns off the Lifetime Network and pulls their head out. I was right about that and sooner than I expected. Look at the chart above. It has leaped back up again, giving me a nice profit in less than 24 hours time.
So, I still think it's cheap enough to be worth buying today, too. If you don't agree and you would like something else to consider take a look at Yahoo. Their earnings report came out right before Ebay's and they did great. But the Ebay Earnings Flush took all the internet stocks down with it, so Yahoo went down instead of up even though it is kicking ass and taking names. Today it is still being largely ignored. Buy it and sit on it for awhile. I don't think you'll regret it.
On another note, mostly just for my own benefit, I have been studying REITs for a long time, considering investing, but never making the leap. A prominent REIT manager has indicated his belief that REITs are currently peaking and priced a bit high, perhaps even due for a decline somewhat soon. If this is correct then I have hesitated way too long. I'll keep watching even so because I'm less familiar with REITs and need to get a feel for how this market moves. Real Estate is definitely a direction I intend to move into, but exactly when and through what avenue is still up in the air.
Alexanders Inc (ALX) is a great example of a REIT to watch. It has gone up nearly 100 points over the past 52 weeks, but it appears to be leveling at the moment. Each day it goes up approximately 1 point. This can't continue indefinitely. The question is, is this ride over or is it still worth getting in on for the long term? The Wall Street Journal has been excited about this particular REIT. But if it is leveling out then it may be in for a decline. I see no earnings so how far down it could go is anyone's guess. If it is a solid investment but likely to be cheaper soon then why not get it then? Either way, it requires an educated guess and I haven't made one yet.
Get in, Hold on, Shut up
I'm seeing a lot of articles indicating that almost everyone is conflicted about which way they think things are most likely to move this coming year. Some say this is the tail end of a bull market and a bear market of perhaps 1 to 1 1/2 years is imminent. Others say this year will be just like last year, with everyone fat and happy. They say oil will not drop below $40 per barrel all year long. They say increasing refinery capacity will drop oil steadily in price. They say gold will hit $700 per ounce. They say gold will drop to $400 per ounce. The say the dollar will continue to fall. They say it just went up unexpectedly. They say the steady rise of the small cap stocks is over. They said that last year and they were oh so very wrong. They say the housing market is overheated, but commercial real estate is still hot, thus ALX is climbing like King Kong on the Empire State Building. They say an increasing number of mutual fund managers are holding onto piles of cash, not investing in anything until they get a clearer reading on the market.
Are you confused yet? So am I. Glad to meet you.
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