IMB: How Low Can You Go?

Today IMB decided to drop like a rock. Down to $10.50 already and still going. I wish I had held off on buying the last 90 shares; I’d buy 100 at $10.50 and stand to make a good gain (I havd $500 cash left). It may still come up and only lose between 5% and 10% today.

IMB recently announced its dividends this quarter. It will pay 25 cent dividends per share on December 6, 2007 to all shares on the books before November 15, 2007. I was hoping for 50 cent dividends but with the stress they need to slow their negative cash flow and reorganize. I still have confidence in their ability to survive through the financial sector woes; actually I want to see the stock stay low through the dividend pay-out so I get more.

USB and BAC took a hit today too. Not nearly as much, of course, but enough to show stress on that whole sector. If BAC and USB do really well while IMB flops, be afraid, and maybe sell all your stock in IMB. In the same line, I really recommend getting some BAC and USB along with a good buy-in to the now extremely cheap IMB, because they all pay great dividends. BAC and USB of course each have higher stability than IMB, so how much you buy in relation to the others depends on the risks you want to take.

Edit: C dropped pretty far too. So USB and BAC, C, and then IMB in terms of negative growth today. Walk left to right in order of increasing risk, the way I see it.


~ by John Moser on November 7, 2007.

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