Jin and Juice Investments

Who knew investing could be so much fun =D

Waiting In the Wings

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As you might have heard by now, GM is preparing itself for bankruptcy:

General Motors seen filing for bankruptcy Monday.

Depending on the type of investor you are, this could mean sell, sell, sell, then head for the hills, or it could mean big opportunity. No doubt that GM is one of the largest companies in the world, and to see it crash means there will be a major impact on the stock market. Most likely, it seems like the stock market could take a huge dip. If you have noticed over the past several years, whenever a new report comes out to tell us how many billions of (taxpayer) dollars GM has bumbled away this time, the stock market always seems to take a plunge. This time, I’ve decided to be ready for it, and this is how I plan to do it:

Firstly, I think it would be a good idea to have some money freed up so I can grab those stocks that are dragged down with the plunge. Stocks that are still strong with companies that will probably be around for a long time, but are suffering along with the rest of the economy for the time being. One example I found recently was Office Max (OMX). Although Office Max is facing some strong competition, especially from Staples (SPLS), Office Max seems to be making the right decisions to cut costs and stay in the market: 

 Staples quarterly profit beats Street by penny

From my research, the management at Office Max seems to know what they’re doing, and they’re taking aggressive measures to make sure they can keep up with Staples. It is a little bit of a gamble, but knowing that the economy is most likely going to rebound within the next year, there is going to be a lot more hiring by companies, which means a boost in demand for office supplies.

Although OMX is selling right now at $8, I’m expecting it to take a dive on Monday, and the price can be even more enticing. This is a a type of company that has a strong potential to turn itself around and that can be bought right now at a pretty good bargain. Keep your eyes and ears open! I think we’ll have some deals to look out for!

– The Sluggy One

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Written by jinandjuice2009

May 30, 2009 at 2:47 PM

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