DISCLAIMER: THE FOLLOWING "Cashin' In Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cashin' In Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.
Stock Smarts
Former Tyco chief Dennis Kozlowski has become the poster boy for greed as lawyers try to prove he robbed Tyco of some $600 million to bankroll his lavish lifestyle.
But some say greed is good – it’s the juice that drives a healthy economy and the stock market.
Jonathan Hoenig of Capitalistpig Asset Management says greed is getting a bad reputation, and we should not confuse greed with theft, which is what Kozlowski stands accused of. He says greed is the engine that drives the economy because it stimulates Man’s desire to create and produce wealth. Jonathan says we should not shy away from the idea of greed; that greed should be celebrated as a vital economic stimulus.
Jonas Max Ferris of Maxfunds.com says Jonathan is confusing greed with ambition. He says greed is “taking what is not yours”. Jonathan says that’s theft, not greed!
Hilary Kramer of A&G Capital says Jonas is right.
Wayne Rogers of Wayne Rogers & Co agrees that Jonathan is confusing “greed” with “ambition”. He says Webster’s Dictionary defines greed as an “excessive and rapacious desire for money and possessions”. Jonathan says that definition does not disagree with his point that greed is a desire for money and that desire is a necessary ingredient to a healthy economy.
John “Bradshaw” Layfield, author of “Have More Money Now” says Jonathan’s premise for greed is correct, but it shouldn’t be confused with “passion” which is what he says drives a man like Bill Gates to create better computer software, or Tiger Woods to play better golf.
Be$t Bets: Get Greedy With These Stocks!
Our crew offered up the stocks that they just can’t get enough of.
• Bradshaw can't get enough...
FleetBoston Financial (FBF)
Friday's close (10-31-03): $40.39
Bradshaw says FleetBoston stock will benefit from the planned takeover by Bank of America (BAC). Jonathan says Bradshaw’s “sniffing” in the right area by picking a big money-center bank, but he says the premium has been taken out of this stock, and he’s not a buyer. Wayne thinks the regional banks are a better bet.
• Jonathan can't get enough...
Banco Santander Central Hispano S.A. (STD)
Friday's close (10-31-03): $9.53
Jonathan says this is an unknown name in a very hot sector (Latin American banks). Wayne says this is a good company, but he doesn’t’ agree that Latin American banks are as hot as Jonathan thinks they are right now. Bradshaw says there is too much instability in Latin American companies for him. He’d stick with an American bank like Citigroup (C)
• Wayne can't get enough of…
Pengrowth Energy (PGH)
Friday's close (10-31-03): $13.12
Wayne says this oil and gas royalty trust is a great company with a 14 percent yield. Jonathan says commodities are doing well, and are a good place to bet right now, but he’s playing the base metals more. Bradshaw says Pengrowth is a great bet.
Mutual Fund Face-Off: Dow: Higher or Lower by 2004?
Will it be Dow 10,000 by the end of 2004, or will stocks be heading lower?
• Bradshaw says Dow 10,000 by 2004! Buy:
Vanguard 500 Index (VFINX)
Friday's close (10-3103): $97.19
• Jonas says the Dow’s headed lower! Buy:
Schwab Hedged Equity (SWHEX)
Friday's close (10-31-03): $11.53
Money Mail
Hilary, Jonathan and Wayne answered some of your questions.
We took a quick look at the standing in the $10,000 “Cashin’ In Challenge”. To find out who’s ahead, check out: www.foxnews.com/challenge
Question: “What happened to make JetBlue (JLBU) drop over $11 in two days last week?
I sold it. Did I do the right thing?”
Wayne says smaller regional airlines like JetBlue and AirTran (AAI), which he owns, have all been knocked down over concerns that they will need to increase capacity in the future, which often slows profit growth, so the stocks are getting hurt. But, he says, right now these companies are experiencing record profits, and he would buy JetBlue on a dip. Jonathan says airlines are a good sector bet right now, but he prefers foreign companies like Ryanair (RYAAY) and LanChile (LFL). He owns both. Hilary says JetBlue took that steep one-week hit because it was chased out of Atlanta, Georgia by Delta (DAL) and AirTran.
Question: “I bought Amgen (AMGN) around $63 and saw it go to $68. Now it's below where I bought it. Please HELP - what should I do?”
Hilary says analysts’ targets for Amgen run anywhere from $80 to $100, so she would hold the stock, but not put new money in right now because it’s a little pricey. Jonathan says the fact that this is a losing trade makes him a bit nervous, so he recommends you put a stop in around $57, but he says biotech is a solid sector, and he wouldn’t sell at this point. Wayne agrees with Jonathan.
Question: “What do you think of Celgene Corp (CELG)?”
Jonathan says he doesn’t play biotech himself, but he wouldn’t bet against it right now. Hilary says the smart money is out of this stock and recommends you get out too.
Question: “I just started investing, and I recently bought Sirius Satellite (SIRI) Radio. What is your outlook for the next five months?”
Wayne likes the stock. He thinks there will be a lot of growth in the future. Hilary does not agree. She does not think there is room for growth in this area, and she doesn’t recommend the stock. Jonathan says the group looks good, but he prefers to play the sector with Panamsat (SPOT) and Asia Satellite Telecommunications (SAT), two stocks he owns.
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