User 283977

Cramer's Lightning Round - Disney's Mouse Might Roar (2/3/09)

OK, lets say DIS is at a bottom… so what? It provides less than a 2% dividend. In this kind of a market the only reason to buy would be anticipated increases in its stock price. Its currently below its support level of around $21 a vicinity where its been since November. There was a lot more then normal volume in this stock today, and the stock dropped by 7.9% to $19. So a larger proportion of that volume was selling.

Where does he expect the stock to go, and by when? There is ZERO evidence of a upward trend in this stock, and Cramer says that the single worst and most common investing mistake is adopting a "buy and hold" strategy:

seekingalpha.com/artic...

That coupled with his recommendation of buy, zero evidence of an upward trend and Disney missing their numbers along with a large volume of sales the day after his recommendation…

If the stock showed evidence of breaking out of its support level, ok, but buy now because its at a low… If it just goes mostly sideways, you end up having your investment capital tied up with a 1.7% dividend zombie stock.

Atlas Energy: Following the Money

Hey, your right Munny... I forgot it was an MLP... Thanks!

Atlas Energy: Following the Money

Yes, when I dumped CHK because of the mercurial activities of their CEO, I looked for a substitute Marcellus Shale play. I picked Atlas Energy (ATN) because of their partnership program financing. I was also intrigued with their press releases about their successful completion of seven two-stage vertical facs in the Marcellus shale, and the associated high levels of production associated with that technique. They announced all their future vertical Marcellus wells would use multi-stage vertical facs.

The only thing that is a bit worrisome about the stock is its current dividend yield of 16.6%. Its clearly an accidental dividend yield at its current price of $14.69. My guess is if the stock price stays where its at for a bit, they are going to reduce the dividend to its normal historical range of 7% (.35 per quarter at $20 per share). I would not interpert the drop in the dividend yield particularly negatively. Oil and gas are down, and 7% is a great dividend.

My intention is to be long on ATN, although, given today's markets, being long on anything is a somewhat relative term.