Posted: 8/6/2005 9:36:41 AM EDT
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Saw the "Mad Money" guy Jim Cramer going nuts over ATK (Alliant Techsystems Inc). He said to get in before it hits $80. They supply lots of defense stuff, including bullets. Lots to like here. So at this time it's at $75.25. I'm a beginning investor, not ready for individual stocks (mutual funds for me), but I plan to keep an eye on this one. Certainly sounds promising. Your thoughts? |
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Defense company stocks are best bought in a time of peace, when nobody wants them. Then sell them after the war time activity has peaked. I can't remember the original French quotation, but its translation is "buy on the cannons, sell on the trumpets". Having said that, I recognize the possibility that ATK might go much higher, but I think that there are better opportunities out there. |
| When someone on TV is telling you to buy, he is generally trying to sell. As a begining invester i believe its good to watch commentaries to help get a feel for how the markets move, and how investors react to "news" But take it slow, more people get poor quick then get rich quick. |
| He said that about SWB (smith and wesson) last week that they're a buy. The stock shot up on volume and price about 1 dollar in a day ($5-$6 dollars) and then has declined every since. Gets the old pump and dump going. I've owned SWB since It was at 3, it's around 5 now, but I'm going to hold until 8-9. I'm in it for the long run, not a day trader like this Cramer crack head is. |
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In general most investors like to use Cramer's comments as contrarian indicators, IOW do the opposite of whatever he says. He's notorious for telling people to buy something only to have the stock dump the next day. It's funny to watch him back peddle afterwards. Happens all the time. All those analysts are there to make money for themselves and their funds at the expense of the retail investor. Do your own homework. 
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