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1

<p>So I'm looking to invest for the first time in my life. I plan to invest in Lehman Brothers, Sony, King Pharmaceuticals, Toll Brothers, Motorola, Fuel Cell Energy, and Freddie Mac.</p>

<p>I am looking for any input regarding these picks.</p>

<p>Also, one more question. Say that Korean Development Bank does indeed purchase Lehman Brothers, and I purchased stock of Lehman. Do I still get to keep and sell my shares as if everything is normal. What happens if this buyout occurs?</p>

<p>Thank you.</p>

2

<p>That seems like it will be quite a volatile portfolio. How much are you working with?</p>

<p>As for Lehman, it would depend on the terms of the merger. Could be something like you get shares of Korean Dev. Bank. Who knows.</p>

3

<p>invest everythin in apple, its gon' be big.</p>

4

<p>If I were you, I would sell Lehman if an announcement is made. There are a lot of potential snags that could prevent the transaction from going through (lots of regulatory hurdles). Right after the deal is announced, you'll get a nice pop, and that would be the time to sell.</p>

<p>And why Freddy? They can't sustain the dividend. Why not buy something like BAC if you want a financial play, which is paying an 8% dividend?</p>

5

<p>I wouldn't put money in Motorola. They are doomed in the cell phone area, as they refuse to conform to today's mobile phone standards.</p>

6

<p>i know, im waiting (more like hoping) a deal is announced.</p>

<p>freddy because im in for the long haul. waiting for the economy to pick up.</p>

<p>motorola because im taking a gamble. like all technology, it takes time to develop new ideas and enforce them. maybe eventually, motorola will take a hint and try to catch up with att verizon and its stocks will rise.</p>

7

<p>NPA's at virtually every bank were up in the second quarter, over the first. Not sure we've seen the worst of it yet. </p>

<p>That said, if you're just hoping and waiting, then perhaps you should buy mutual funds instead of individual stocks. If you're just hoping for something when you invest, then you'd be just as well off going to Vegas and putting it all on black (you'd have more fun in the process too).</p>

8

<p>Why Freddie? Bail out plans will probably wipe out shareholder value, and right now the price is higher because people are thinking Freddie will be a safe bet until the end of the year. Without an explicit guarantee, the company is bankrupt; with an explicit guarantee, your shares will probably be worthless.</p>

9

<p>Well, BAC is up 6% today and Freddie dropped 21% after hours on news today.</p>

<p>Something tells me you should stick to a market index instead...</p>

10

<p>And now Freddie has been taken over by the Government and is down 80% today....</p>

11

<p>And that's why that was not a good play :-)</p>

12

<p>Rofl. ten chars.</p>

13

<p>lol @ OP thinking motorola competes with ATT and verizon</p>

14

<p>Lehman-financials. Bad area to invest right now.
Toll Brothers-real estate. Ditto.
Freddie Mac-it's so badly run, the government, of all entities, seized it.
Sony, King, Motorola-good contenders.</p>

<p>Apple is a great stock, with macs going up in market share in the personal computers market, but at $165, it's a bit expensive, n'est-ce pas? At $100, it's a great stock to buy. I'm not sure if it'll be as great a value as it was two years ago. When you buy shares, you should be buying at least 10 shares at a time and holding at least the same amount.</p>

15

<p>I don't if this is the best strategy for you since your just starting, but short Lehman - I did that yesterday and its gone down $4.</p>

16

<p>I would be careful with being heavy short Lehman right now. If they get bought out, its possible the valuation and deal price could be mid-singles per share. Just something to be aware of, particularly since a deal is probably coming soonish</p>

17

<p>I think I am gonna get out now, they might get an offer sometime over the weekend and I don't wanna lose anything.</p>

18

<p>Good call, sounds like you made a nice profit already anyway.</p>