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Tuesday, August 28, 2007

The Procter & Gamble Company


The Procter & Gamble Company




P&G a solid safe haven ....if this credit stuff with the banks continues
to stay in the news P&G will keep moving up..$68-70.++
The volume has gone from 5 million up to 15-20 million over the past 4
months . This means the big boys are moving to the safe haven
stocks like P&G. All the activity will drive the price up over the next few
months...
This is a good place to jump in.now..and take a ride up the elevator.
However, once things settle down next year, you can expect the
price to float back down toward these current levels ....
People will start leaving for better growth stocks.
When the selling starts there will be fewer and
fewer buyers for a while because the buyers who are left take
advantage of this and offer to buy at lower price....
To answer Jonsey and Roberts question of huge drops in price..
Back in 2000 we had a major tech bubble ..Big HEDGE funds and brokerage
houses were borrowing money to buy more tech stock.
They were using stock of companies like the P&G's
as collateral .....so ...when the $150 Palm Pilot stock dropped to
$5......the banks called the loans in and forced the big boys to
sell the perfectly good P&G type stocks to cover the loss of equity.
This is an immediate sale at any price they can get..RIGHT NOW!..
.So a perfectly good stock like P&G is sold off at
half price to cover a BAD Debt....kinda like every one in the
neighborhood flushing the toilets all at the same time. The sewer
backs up for a while.
Although it is a little unnerving, the good ones recover very quickly 3-6 Months.
This is what just happened over the past two weeks in the mortgage credit industry..
Give the market time to drain the swamp and thing will be back to normal in a few months....but if
you got cash this is the time to buy.There are an abundance of solid
companies you can pic up cheap...cheap ..cheap....questions?
Neboxian

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