Commonwealth bank call their new Capital Series Australia a new dimension in structured investments. They are having a laugh. Investors should avoid this product like the plague.

I’ve been buying Australian today, adding to a recent position and starting a new one. Cash flowed in from selling MMA.AX in buyback for $0.70 (NTA-tax benefit) and a trimming back of Telstra late last week.
Cash balance still high. Despite my initial suspicions to the MMContrarian buy back, it was nice to get a large cash inflow at this time. I’m still working on my historical analysis for the ASX200 and aim to complete that prior to hitting fully invested again.
On another note I just received a prospectus for Capital …

LEA idea from TMF Falling Knives.
A quick look made me want to dig deeper. Lear Corp is a massive business which operates in the out of favour automotive industry, providing seating, electrical and electronic products.
Key Statistics show:

Price closed at $1.67 Down 0.31 (15.66%) That’s down from a yearly high of $34.62 and prices over $40 in 2007
Book value $14.67
High debt of 2.34B with debt/equity of 2
Current ratio of 1.05 indicates company may struggle to pay back it’s short term liabilities. This may be the reason why LEA is …

Today I have been reading lots of comments on a market bottom. Each time I started to compose a reply to say it is a waste of time, but I couldn’t find the right words. I wasn’t going to bother linking to John Hussman’s weekly market comment anymore, but I was gobsmacked when I just read his comments this week. He had no problem finding the words I was after.
“With the S&P 500 down nearly 40% from last year’s highs, and now trading modestly above 10 times last year’s peak …

This post is mainly for people who have not yet invested, but if you’re an old hand and what to add any links or comments I love to hear from you too.
Common sense is alive and well. I have had family and friends express an interest in starting to invest so I a summary on how to get started was in order.

THINK: Anyone who thinks now is a good time to start investing is already ahead of the game. You’re a bargain hunter and naturally synched in with Buy Low, …

With TREES2 currently trading at around one third of face value and redeemable in less than one year it is going to be a fascinating and volatile month. The keys dates are early December.

Safety Insurance Group Inc. (SAFT) is trading at a price to book of 1. While business is declining, it is worth more than the zero you’re paying for it.

The loss is narrowing and Ranexa revenues continue to show strong growth. Simplistically, if Ranexa sales grow 15% sequentially, they should hit profitability around Q3 2009. They achieved 19% this quarter and over the last eight quarters have averaged 18% sequential growth in Ranexa sales. With the label expansion and European sales which received approval in August 15% sequential growth should be attainable.

https://www.cboe.org/publish/InfoCir/IC08-082.pdf
Monday, November 17, 2008 — 2011 LEAP options begin trading for March cycle shares. That’s the last cycle to start trading after the cycles were delayed this year. More info on LEAP cycles.
Thinking of selling covered call and put on 2011 Amgen giving profit in $35 plus range, with profit capped at $85, but $25 of that in the hand now. There is no free lunch. Use of these derivatives increases gearing in portfolio. Money received is for assumption of risk and limiting upside.
Synthetic long on GE, a March cycle, …

Homebuilders are selling below book and the US is in a recession. Is now the time to start buying? If we are anywhere near the bottom in housing then homebuilders are looking attractive.