Saturday, March 6, 2010

A Dud!

When I was a kid I played with fire crackers quite regularly around the 4th of July. It was always exciting to hear the pop of the fire cracker or the explosion of a cherry bomb. I hated it when I lit a dud. A fire cracker that looked like the real thing but never went off for one reason or another. Sometimes they were damp. Other times they were just defective.

Duds in the stock market are also a bane. There are some of those stocks that look like the real thing. They are reputable companies, they have good analyst ratings, but they never really take off. They just more or less stay the same. It's about like having a CD only with more risk.

Pfizer is one of those companies. Lot's of good analyst ratings. But about the time you think the stock should move up, they buy another company and the stock goes down, or they get hit with another law suit and the stock goes down. Or they have to pull a drug off the market. Yadda, yadda, yadda. For this reason I do not like drug companies for stocks or options. Pfizer is one big dud! (PFE) So, also in General Electric. What the heck were they doing in the banking industry anyway! I've never made money on either of these.

These two stocks are about the same as kissing your sister, Dude!

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