re: Stock Watch Thread

If the ppb doesn't increase there will be another sell off before the tide turns.

Great Northern Iron Ore

GNI

Morningstar

Is this a steal right now?

I wrote the following on December 7th:

quote:

---

Absurd dividends are not a good indicator. GNI for an example has a yield of 45% because the stock is tanking...and fast! Also, its average volume is 35k per day!!! Don't mess with anything that seldom gets traded!

---

Instead of asking if this is a steal, you should find out why this company tanked in January of 2014 and has yet to recover. It dropped 66% in a month.

I wouldn't touch anything like GNI, but it's ultimately your call to make.

Their blockbuster drug was kicked off of express scripts preferred list in favor of a cheaper, less effective alternative.

Paying a huge settlement and CEO is resigning. Article said company is "embattled".



Just because something is cheap doesn't mean it's a good buy

This is all you need to know about GNI. You'd get the $2.50 dividend, but that's ALL you'd get.

quote:

---

Great Northern Iron Ore (NYSE: GNI) is one of the most misunderstood stocks in America. Buyers are currently paying $67 per share for GNI, misled by stories, probably written by robots, that vaunt its 15% dividend yield. But the very word "yield" is misleading when it comes to a company like GNI. When used to describe a bond, "yield" implies that the buyer can expect not just regular interest payments, but usually a return of principal as well. When used to describe a stock, "yield" implies that they buyer can expect not just regular dividends, but some chance of price appreciation as well.

In GNI's case there is no chance of appreciation or return of principal. GNI is a royalty trust that, according to its own website, will terminate, worthless, on April 5, 2015. As the stock last went ex-dividend on December 27, 2013, there are now only 5 quarterly dividends remaining, plus a final distribution to be paid just before termination.

---

-SA

Rule of thumb...if you've never heard of it it's probably not a good investment. If something looks fishy (20% dividend yield) it's probably even more fishy than it looks.

quote:

---

Such bullshite. It's down almost 14% today

---

Abbvie's drug regiment is only approved for type 1 and while that is 70% of the lucrative US market. Their label requires ribavirin when we used for Type1a which makes up 70% of the genotype 1 market. Ribavirin has some nasty side effects, so most of those would probably pressure for the Harvoni option.

Express scripts supposedly covers 25% of the insured market. So Gild still has plenty of opportunity to dominate the HCV treatment market.

TL;DR I think it was oversold. The real fear is if it starts a price war.

I want it to keep dropping...their pipeline is solid and I would like to start a position in GILD

quote:

---

I bought XOM instead of COP at $87, could've bought COP at $61, probably not a terrible decision though

---

getting xom instead of cop is like dating the playmate of the month instead of pmoy. your a winner either way.

Bump for blood.

Ford $14.82
DOW 44.27
BP 36.10 (yikes)
COP 65.90
RDSB 65.52
XOM 90.54
CVX 108.71

ETA: WTI Crude $50.69