The Week in Preview – Misery Loves these Companies

An excerpt from my weekly AOL Money/Finance column:

The earnings party of last week was full of fun and frolic. For the most part, if you followed my list of recommendations, you would have had you very own “Fiesta de Finance.” (See Week in Preview May 5)

The earnings season is still in full swing and should prove to give a great deal of action with the stocks that will be reporting. But these companies will have to fight through a few new economic barriers. With oil pushing past historic levels and questions beginning to surface concerning the ability of the investor to continue to support a market that has so many headwinds, the mood is likely to shift moving forward. It is time for discipline, short and simple. Now, more than ever investors need a plan. If you need help developing your strategy, you may want to check out my book, The Disciplined Investor.

In last the last installment of The Week in Preview, I was looking for party opportunities in honor of Cinco de Mayo. This week, Misery is the theme. That is the only word that comes to mind with oil at a level that you would have never expected, a massive and unrelenting credit and housing crisis and a banking system that is defunct.

Monday – May 12

We start the week with a report from IndyMac Bank (NYSE:IMB). This bank is smack in the middle of the housing problem. They are primarily a lending company that facilitates loans for single-family homes. They are also involved in the origination and trading of mortgages. How does that sound to you as an investment? Shares have slid from $23 in October 2007 to an unbelievable level of $3.50 recently. Ouch… If you are a shareholder still holding on with hope and a prayer for something…anything, keep on dreaming. The good news is that the stock is sporting a yield of 29%. But, if you think that yield is going to be maintained, tI have a bridge for sale. Estimates are for a loss of $1.92 per share for the quarter.

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