Today the market went on sale. You can tell when you look at any stock and its red. One interesting stock is Maxim (MXIM), currently at $21. I've talked about it before. From what morningstar says the company just submitted its financials for review. When that goes through expect the stock to take a jump. I'm expecting the company to raise its dividend another 20% and announce a major buy back. The company has over a billion in cash and no debt.
Another stock that looks interesting is Bank of America (BAC), currently at $29. The dividend yield is over 8.5%! Sure banks have all sorts of problems with sub prime, but that will blow over at some point. The long term earnings potential of the company is STRONGER now before the crisis (with the country wide acquisition).
Banks are very hard to value, so there is risk. However, this is a case where the long term potential of the company is strong and you get paid an amazing dividend while you wait. Better yet buy and never look at the price again. Just sit back and enjoy the dividend.
Last on my plate is Ebay, currently at $27. The company's US operations are in trouble. They are losing market share. However, I think that should be expected. Amazon's model is just better. At amazon you spend time reading reviews of the products. At ebay you spend time reading reviews of the seller. That's a big problem. However, low cost auctions will have their place. Also, in the rest of the world which isn't as developed ebay is growing rapidly. On top of that its paypal division is impressive. The most shocking thing is that value mutual funds are jumping aboard. The top institutional holder is dodge & cox! Ebay has gone value. Doesn't make a lot of cents to me, but I'm sure there are a lot of cents to be made.
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