Thursday, July 07, 2005

A few articles

I decided to use part of today to catch up on some articles as well as read news reports about the London bombings.

Jubak from MSN wrote a decent article on five opportunities to buy on dips. I do try to keep my eye out for events that will send a sector down by big percentages. In many of these situations the leading companies of the particular industry are oversold by scared investors.

This article is about some of the big tech companies and what they plan to do with all their cash. Some of these companies definitely have a ton of cash, and it will be interesting to see in what ways they use this cash in the future. Can they find investments/projects greater than their opportunity cost to add value to the company? Will they acquire smaller firms to add growth-by-acquisition (and hope this strategy works out)? Or will they choose to return the cash to shareholders in the forms of dividends and buybacks?

Enhanced index funds? This firm is going to try to have ETF's that beat the index return by overweighting towards certain stocks/sectors. Also, the expense ratios are higher than normal ETF's. An odd idea considering people go towards ETF's to basically match the index and pay small fees. ..

Tomorrow is my first interview for a junior position on a credit derivatives team. It's basically a job where I will help in any way possible (operational, finance, etc), and I think it will be a great entry level position. I'm going to spend some time tonight reviewing my limited credit derivative knowledge even though I don't think they will ask anything about this topic.
I will write about the interview in tomorrow's post.