Saturday, October 9, 2010

Money in Milk

1 of my professors in grad school this term loves talking about stocks.  He even usually incorporates stock trading into our lessons (Financial Reporting).  Today, he gave an interesting stock tip which would be shunned upon by short term traders due to its illiquidity.  AMC.

As a finance professor who often consults for companies, analyzing balance sheets and cash flows, it is expected that fundamental analysis is his basis on trading stocks.  He showed to us the company's balance sheet, pointing out recurring profits and ZERO debt.  As he says, a company without debt, never goes bankrupt.  Another good reason to buy this stock is due to accumulation of foreign broker namely,"Doyts".

AMC has a life on its own, whether on a bull or a bear market.  Of course, to take advantage of the bull market, this wouldn't be your top pick.  But, most portfolio managers would include stocks such as this to provide support even during bearish times.

Another stock fundamentalists love is DGTL, although for now, it is still currently on a stalemate due to the buying and selling of the foreign brokers.  He pointed out that he also plans to accumulate slowly on this stock.

Other favorites of his include AT, URC and BPI.

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