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Author: kahunacfa Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265904  
Subject: Re: Safe Bet? Date: 1/18/2013 9:45 PM
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Hello Everyone,

I am just now getting into the stock game and I'm wondering if anyone can help me out by giving suggestions on a safe stock to invest in, that has a great record in the past? I appreciate any good advice that can be offered.

Thank you for your time and assistance, it's greatly appreciated!

M. McKinney
- afMckinney2810 | Date: 1/18/2013 2:40:34 PM | Number: 260344

There are no absolutely "safe bet" stocks unless you buy a stock at less than the company's net cash per share. I have been able to do that a few times each Market cycle, In the late 1980s-1990 I was able, or rather my Firm was able to buy 550,000 shares of Zycad Corporation(ZCAD) at my bid 3/8. The company had Net Net of $1.25 per share. The shares were actually FREE. My Firm distributed parts of the block to Hedge Fund clients, as well as to some Deep Value investment institutional clients. The shares left over were bought by my IRA. In 1995, my IRA sold the shares for $15.50 on a buyout of the company. That was a 41.33 - bagger in about five or six years.

Retired at the end of 1995 as a Venture Capital Portfolio Manager -- My assistant replaced me.

Sometimes Sycamore Networks(SCMR) has sold for less than cash per share. Sycamore Networks is a fiber-optic network switching company.

However, as a more generalized Rule look to buy shares of stable Growth or Stable Demand companies in the Food, Beverage, Tobacco, and other industries.

I do not generally give individual investment advice to people I do not know very, very well. -- So take the above generalized suggestions of where to look in that context.

Kahuna, CFA
Investment Professional
1974 - Present
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