Mote Stock Stuff

[Singularity]

It depends on how risky you want to get. I take plenty of risk with stock, but then again I don't invest with my life savings. I'm simply a casual investor with disposable income who isn't afraid to lose money.

I have some pretty good dividend-paying stock that I hold onto, because that's a nice thing to have in a bear market like this. With the stock prices so low, you can load up and have some nice payments coming your way every three or four months. For example, one stock in my portfolio is a company called Nam Tai Electronics (NTE). It's a company that makes electronics, obviously, but because of the global recession, it's been hammered. The stock currently sits att $4.00/share. However, the company is very, very cash rich with almost zero debt, and has more than enough liquidity to ride out this recession. It pays .88 a share, which is ridiculous. If you bought 100 shares at $4.00/share, you will have spent $400, and made $88 in dividend payments for 2009. Crazy!

But that's sort of a risky stock. There are plenty of dividend stocks whose prices are depressed, so you can get some awesome deals right now. General Electric (GE) and Pfizer (PFE) are a few that I own because they are so cheap, and they pay dividends, too, which is nice!

If you want something long term (at least a year) and you are willing to REALLY risk your money, invest in stem cell companies - specifically, those who are going to dabble in embryonic stem cells. Obama and company are about to lift the bans, so you will see companies increase in value as more and more discoveries and breakthroughs are made. I invested in a company called American Cell Technology Company (ACTC) back when it was at $0.01/share, and sold a lot of it when it reached $0.21/share. I took that money and invested in a few other stem cell research companies. Again, that is risky as hell, but big risk = big reward (or big loss).

If you really want some quick money, it seems like you are better off shorting the market rather than going long. Some experts think we are currently testing the bottom, but I think we'll probably break through and go lower. Either way, we'll be in this recession for a while yet, so i'm leaving my cash in dividend-payers for the most part, with some in stem cells.

So in a nutshell, here is me.

a) long term - dividend paying stocks from solid companies, buying them now while they are so low in price. I don't care if they lower the dividend, it will increase eventually once the markets turn around (GE and PFE, for example). I also have a few stem cell companies.

b) short term - dividend paying stocks from non-blue chips (like NTE). The stock value may not increase anytime soon, but when it does I can sell for a profit. In the meantime i'll rake in the dividend. I also short the market, but again, VERY risky.