What stocks would you buy after SHTF?

[AgInvestor]

Hello,
If the silver mining stocks you are holding went through the roof in a relatively short period of time, would you cash out (at least partially) and buy some stocks that would presumably get hammered?

I think this will be my strategy, but I am unsure as to what I will transfer my money into....

I guess we will have to see, because you dont know how it will play out across all sectors....but I think oil, agriculture, and perhaps some big-name companies with a lot of cash that could survive the turmoil....all could be once-in-a-lifetime buys depending on what kind of lows they see.

Thoughts?

[podrag]

Of course it would depend on the price levels. I'd be looking to buy blue-chip stocks with a yield of 5-10%. I'd also be looking at high-quality corporate debt and sovereign debt.

I'd like to own McDonald's, Caterpillar, Coca-Cola, PepsiCo, Proctor and Gamble.

I'd like to be able to buy Pharma if they weren't so evil.

[AgInvestor]

Yeah I am thinking of some of the big name companies that you mentioned....I need to do more research though....

what is corporate debt and soverign debt?

[sliver]

If a company like GM needs some money to build a plant or expand they might sell bonds. You give them some money and they will pay you back some years later and pay you interest in the meantime. That is corporate debt.
Soverign debt is money that a government owes. Like U.S. treasury bonds.
They both have a date when they must be paid off. They both pay interest on a agreed upon schedule, usually once or twice yearly. Some reserve the right to pay off early. Some corporate debt you have the right to convert to stock instead of being paid back. If their stock goes up sharply before they pay you back you might prefer to convert it to stock. This is convertible bonds.
Sliver

[AgInvestor]

Thanks for the info....I dont think I will look to buy those, but good to know anyway

[faithnotwork]

Thanks for the info....I dont think I will look to buy those, but good to know anyway

I would buy stocks in hospital corporations that specialize in mental illness and rehabilitation. Or whoever makes Zoloft. I think that the govt will be ok with labeling as many as possible with mental illness, and of couse it will be based on whether or not you toe the line...

[chux03]

One of the first things to ask yourself BEFORE you lay your hard earned money down is how long till there's some kind of pay-back?? Now, of course nobody really knows that. There's so many factors. But my first goal is to get some of that ORIGINAL INVESTMENT back off the table, so to speak. And either let the rest ride or sell or whatever you're going to do.
But say you get a double in relatively short order on that hot gold stock you bought awhile back. Great!! Now while the price is high, scrape some of your original bucks off the table and reinvest that in something...else. And let that "free money" that's left do it's magic.
Personally, I've had two stocks that have done that over the years and I'm one for one there. On one I let all of it ride and the other I did some scraping to get back my original money. Share volatility can influence such decisions too.

Oh and what would I buy AFTER tshtf??
Answer: Whatever's left?? :(

The time for those kinds of investments is BEFORE that ever happens. Regardless....I would want to own GOLD and/or SILVER PRODUCING COMPANIES EXCLUSIVELY and NOTHING else till things settled down for awhile.... Remember how gold and silver preserve your wealth?? Well, a few shares of the right gold and or silver stocks will do the same thing for your stock portfolio. There's been several articles as of late about how Homestake Mining performed during the Great Depression. Perhaps you've seen mention of this?? In simple terms, yes, it did extremely well. Google it and find out more.
Jim Sinclair has it right!

Good luck!!

[AgInvestor]

I would buy stocks in hospital corporations that specialize in mental illness and rehabilitation. Or whoever makes Zoloft. I think that the govt will be ok with labeling as many as possible with mental illness, and of couse it will be based on whether or not you toe the line...

Thats an interesting idea....but I think it is a little risky....the company that makes "SPAM" (canned meat) for example, would probably be a more safer choice........still good idea though

[AgInvestor]

But my first goal is to get some of that ORIGINAL INVESTMENT back off the table, so to speak.
Good luck!!

Yeah thats true, when I consider how much to sell....I will consider it interms of my original investment



I would want to own GOLD and/or SILVER PRODUCING COMPANIES EXCLUSIVELY and NOTHING else till things settled down for awhile....
Good luck!!

Currently I have mostly gold miners....but during if a "depression" were to come, I would like to transfer some of t into some companies that will have more growth when the economy recovers

I would love it if OIL were dirt cheap when gold hits its highs.....

[chux03]

"I would love it if OIL were dirt cheap when gold hits its highs....."

I'd be lying if I said I hadn't been thinking of the same thing. :) I look at my energy "dream portfolio" and I see bargains galore right now ALL based on that $40+ barrel of crude. But could I be so....lucky as to see a high in PM's and have enough time to....escape with vast sums of FRN's and make a QUICK conversion into some kind of oil stock and continue the....kill??? I'm lucky but I seriously doubt I'm THAT lucky nor do I expect that the God of high finance would somehow bless me or smile on me with a scenario like we've been talking about here.

BUT LET'S CONTINUE THE.....FANTASY and tell everyone which oil stock you'd pile into just after making that "dream killing" in gold stocks. Or even RIGHT NOW. Which "OIL STOCK" (say up to 3) would you buy RIGHT NOW??

Me? I like:

OIH (Oil Service Holdrs Trust)
COP (Conoco-Phillips)
PBR (Petroleo Brasileiro)

[AgInvestor]

That list pretty much reflects my thoughts too....

I have heard good things about COP and PBR so they would be on my list....and then I would sure things up by adding an etf, for the broad sector play

LOL I also pray that we are so lucky as to have this situation pan out.....then after we get oil dirt cheap....we wait for that to blossum....and then trade it all for a big plot of LAND

[chux03]

YES!!! I'd also like to be a farmer as I think the future looks extremely bright for anyone who produces food. Of course healthy, organic food is good for you, everyone knows that. I think it'll also be good for your bank account/bottom line, however you want to say it. And while it is a wee bit early to see how all of this is going to play out, I'm thinking there'll be opportunities in agriculture that will be able to be had for an unknown (today) number of ounces of either gold and or silver. Paper money? I'm pretty well prepared in a number of ways but I have friends and family too who aren't. And while I hope for their sake there is no financial calamity, I'm not willing to follow in their footsteps either as I'm almost as sure that there's going to be....trouble. Having even a small micro-farm that could take care of you and your family (or even some of those nay-sayers who'll now live with you during the crisis) and even though you probably won't get rich, you (like me) I bet are pretty used to eating 3 times a day and during some of these future expected "food delays", I'd kind of like to keep that eating routine....going!! :D So thinking about it like that, what's that small micro-farm going to be worth wtshtf???
That IS a ....noble dream! :)
Wish us luck!!

P.S. an investable agricultural stock that's worth a hoot that should....appreciate?? I like MOO, DBA, POT, BG and there's others but that should keep you busy for awhile, checking those out.

[chux03]

Hey, even Jim Sinclair says there are advantages to owning some "good gold stocks" in his latest email that I JUST received. Here's the paragraph:

"Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required."

What that means is that by buying these type of shares, you're getting your wealth OUT of the US dollar. This is what some other notable economists, like Peter Schiff, are also recommending. Good gold stocks can do the same thing for your portfolio as owning physical gold does for protecting your other wealth. More diversification and that's always GOOD!!

[mick silver]

i well be selling you all stock after t s h t f , just come to my farm with your silver an gold an we can trade for some food , what money well you have after tshtf let me know so i can get some now

[AgInvestor]

Hey, even Jim Sinclair says there are advantages to owning some "good gold stocks" in his latest email that I JUST received. Here's the paragraph:

"Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required."

What that means is that by buying these type of shares, you're getting your wealth OUT of the US dollar. This is what some other notable economists, like Peter Schiff, are also recommending. Good gold stocks can do the same thing for your portfolio as owning physical gold does for protecting your other wealth. More diversification and that's always GOOD!!


That sounds good....

But dont virtually all gold miners have their mines in foregin countries? I guess it would be a good idea to find out what their holdings/assets are in? (ie. not US dollars!)

[chux03]

I think he means to stay out of American mining companies that are exclusively listed on the US exchange. As an American, I'd look north to the Canadian exchanges that host Canadian mining companies doing business in Lord know where, just anywhere except in the US.
That DOES bring up an interesting.....situation and question. www.royalgold.com . They are a GREAT company and their share price is a reflection of just how much they own and are worth. If I had to own one gold stock and one gold stock only, Royal Gold is the one I'd want. Anyway, I had a question about since they owned royalties from mines and companies located all over the world and on every continent except Antarctica, I emailed them a question about how they are paid for these various royalties. They emailed right back and said that for the majority of their royalties, they are paid in US dollars although she said that 1 of their royalties is in Australian dollars, one in Canadian dollars and that on some royalties, they also retain the option to be paid in gold.
Anyway, is this the kind of company that Jim Sinclair is warning us about (and because I own some shares)??

[AgInvestor]

I think he means to stay out of American mining companies that are exclusively listed on the US exchange. As an American, I'd look north to the Canadian exchanges that host Canadian mining companies doing business in Lord know where, just anywhere except in the US.
That DOES bring up an interesting.....situation and question. www.royalgold.com has been brought to subscribers attention from one of the pm newsletters I subscribe to. They are a GREAT company and their share price is a reflection of just how much they own and are worth. If I had to own one gold stock and one gold stock only, Royal Gold is the one I'd want. Anyway, I had a question about since they owned royalties from mines and companies located all over the world and on every continent except Antarctica, I emailed them a question about how they are paid for these various royalties. They emailed right back and said that for the majority of their royalties, they are paid in US dollars although she said that 1 of their royalties is in Australian dollars, one in Canadian dollars and that on some royalties, they also retain the option to be paid in gold.
Anyway, is this the kind of company that Jim Sinclair is warning us about??

I really dont know...too complicated for me

But here's my take (as a layman):

We are concered that the US dollar will collapse and lose all value. Therefore, I think it is more problematic if a mining company has a large portion of its assets as US cash. If the US dollar were to lose a lot of value, then this company as a whole, would also lose value.

As for companies that are essentially getting paid in USD....is that really such a big problem? I would say NO, and my reasoning is this:

1. If the USD loses value, wouln't they just get more US dollars for each of their royalties? As long as their price is constantly updated, I dont think its a problem.

2. would the reason they are getting royalites in USD, have something to do with the fact that (currently) USD is the world's currency, and all commodities are traded/priced in USD? If it collapses, then this system would stop, and it would probably be standard to trade gold, oil, etc internationally using yen or some other currency.


Anyway like I said, I am by no means an expert in this stuff. I am just trying to use basic logic to develop some guidelines. I see a big problem with companies/individuals/anyone who has a large savings in US dollars. However, if you have some other asset, be it gold/food/oil and are selling it for US dollars, then this is not too bad because that can be changed.

[chux03]

YES I am!!! My last two share purchases were for:

Silver Wheaton (SLW) With silver on the way up can this one be far behind?? Increased silver sales and debt reduction means much share holder value. I read in one the followers of SLW who thinks that this one will be OVER $100 per share at the end of this bull market. I bought in at $8 and I bought more at $5 and I'm buying more this week (soon as the wire transfer shows up at the brokerage account)

Minefinders (MFN) Since buying in on January 21 for $4.05 per share MFN is up 38%. And they will keep going up due to just starting production at their brand new gold mine at Dolores in Mexico and becoming a full fledged gold producer. With a resource estimated at over 3M ounces of gold and an active exploration program looking for more, MFN should be a long term keeper in this PM bull market. And it could even be an attractive take-over target as well.

[jtownes]

Aginvestor, there is a niche research website with info on canadian, TSX-listed resource companies (gold, silver, base metals, oil, gas, including trusts) it has over 600 gold compnies (http://www.stockresearchportal.com/landingPage.asp), 70 silver companies (http://www.stockresearchportal.com/landingPage.asp)I think, I would start their if your not familiar with foreign based companies.
Good Luck