FedEx Stock: Buy Some More?
10-15-2008, 04:22 PM
#31
Thx Age 65
Joined APC: Jul 2005
Position: MD11CAP
Posts: 1,041
At this point in time anything the big (former) investment banks put out I would classify as WORTHLESS. These are the geniuses that developed the derivatives and leveraging that allowed a 4% default rate to turn into the credit crises that we have today.
10-15-2008, 07:15 PM
#32
Slainge Var'
Joined APC: Oct 2006
Position: Zeppelin Tail Gunner
Posts: 1,530
I had a brown shirt chuck his smoldering butt into my yard today, is that the kind of thing that's been happening?
10-16-2008, 06:45 AM
#33
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,419
Vagabond,
if you haven't purchased FedEx yet....this is what I would do in your shoes. I would sell all of my FedEx, put the money aside, then repurchase it in 31 days.
I think that FedEx is a good stock to own for the long term. The price for any stock is simply the price people are willing to pay for it, by that I mean that a stock price is not as tied to supply/demand considerations in the same way commodities are. And right now, almost everyone wants out of the stock market. So, that is driving the stock prices of some very good companies lower than the intrinsic value of the company.
So, since you seem to think FedEx is a good company that you want in your portfolio. Selling it will allow you to take a Capital Gains loss that you can use to reduce any future gains to minimize your taxes. You have to wait 31 days to buy it back or the IRS will disallow it under the Wash Rule. But, once the 31 days are done, you can get back into a stock you like at a lower share price.
The stock is going to be jumping up/down for the near future, but I don't think the overall market is going to recover for some time. So, 31 days from now I'd be surprised if the stock has recovered to the 95$ price it had just a few weeks ago.
But, could be wrong
if you haven't purchased FedEx yet....this is what I would do in your shoes. I would sell all of my FedEx, put the money aside, then repurchase it in 31 days.
I think that FedEx is a good stock to own for the long term. The price for any stock is simply the price people are willing to pay for it, by that I mean that a stock price is not as tied to supply/demand considerations in the same way commodities are. And right now, almost everyone wants out of the stock market. So, that is driving the stock prices of some very good companies lower than the intrinsic value of the company.
So, since you seem to think FedEx is a good company that you want in your portfolio. Selling it will allow you to take a Capital Gains loss that you can use to reduce any future gains to minimize your taxes. You have to wait 31 days to buy it back or the IRS will disallow it under the Wash Rule. But, once the 31 days are done, you can get back into a stock you like at a lower share price.
The stock is going to be jumping up/down for the near future, but I don't think the overall market is going to recover for some time. So, 31 days from now I'd be surprised if the stock has recovered to the 95$ price it had just a few weeks ago.
But, could be wrong
10-16-2008, 08:34 AM
#34
Administrator
Thread Starter
Joined APC: May 2006
Position: C-172
Posts: 8,024
kronan, you forgot to put a period at the end of your sentence! 
Thanks for the advice. It is now about 9:35 am Seattle time (still don't know nothing about zulu time) and FedEx is trading at $62.15. Looks like it's going lower. I would sell what I have, but we already sold some other stuff this year and have a huge tax loss to report. It's more than $3000 and we'll have to carry over the excess loss to next year.
I agree that we are in very precarious times. I was in a meeting yesterday with CEOs of financial institutions and many reported that customers leave the institution with a brown paper bag full of money. They obviously subscribe to the Mattress Theory. No telling when we will dig ourselves out of this recession, but I am sure that our way of thinking about money and saving and spending will be fundamentally changed.
Thanks for the advice. It is now about 9:35 am Seattle time (still don't know nothing about zulu time) and FedEx is trading at $62.15. Looks like it's going lower. I would sell what I have, but we already sold some other stuff this year and have a huge tax loss to report. It's more than $3000 and we'll have to carry over the excess loss to next year.
I agree that we are in very precarious times. I was in a meeting yesterday with CEOs of financial institutions and many reported that customers leave the institution with a brown paper bag full of money. They obviously subscribe to the Mattress Theory. No telling when we will dig ourselves out of this recession, but I am sure that our way of thinking about money and saving and spending will be fundamentally changed.
10-17-2008, 02:31 PM
#35
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,419
I was trying to mumble, sorry Mom, I'll do better.
But, I think I just finished off my carryover losses from 2001. Trick is you have to remember them in 2010 for taxyear 2009. Or, you can just use the same tax software (or accountant) you used in previous years which should solve that problem.
But, I think I just finished off my carryover losses from 2001. Trick is you have to remember them in 2010 for taxyear 2009. Or, you can just use the same tax software (or accountant) you used in previous years which should solve that problem.
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