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Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:26 PM   #1
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Seems ISM is taking a bit of a beating this week...

...for those still on the fence, looks like another nice buying opportunity...
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:31 PM   #2
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Re: Seems ISM is taking a bit of a beating this week...

Another 15 or 20 cents and i will be scooping some up...
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:33 PM   #3
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Re: Seems ISM is taking a bit of a beating this week...

Seems odd to see it dropping considering the CPI was higher than expected and inflation fears are on the rise.

Just goes to show that people dont do whats expected of them all the time...
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:36 PM   #4
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by brewer12345
Another 15 or 20 cents and i will be scooping some up...
I've been watching the action on some of these low volume issues today. It's hilarious.

Why would anybody worry about a few bp's on the bid/ask spread? Is somebody really sitting there with a calculator saying "no way will I pay 21.32 -- I'm waiting for 21.20!"
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:48 PM   #5
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Re: Seems ISM is taking a bit of a beating this week...

Also, real rates on TIPS have been drifting down - so everything else equal, ISM and OSM should be trading up, not down. Do you suppose there are credit issues at SLM?
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:53 PM   #6
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by FIRE'd@51
Also, real rates on TIPS have been drifting down - so everything else equal, ISM and OSM should be trading up, not down. Do you suppose there are credit issues at SLM?
Not bloody likely.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:54 PM   #7
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by FIRE'd@51
Do you suppose there are credit issues at SLM?
The total world-wide volume for ISM today was 8200 shares. Less that $200K worth. That means that there is zero institutional interest and all of the trading is done among a few people on this forum. I wouldn't read too much into the price changes.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 02:56 PM   #8
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by brewer12345
Not bloody likely.
So, basically, it's stupid retail investors dumping the stock because the next 3-month's yield is under 5%.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 03:03 PM   #9
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by FIRE'd@51
So, basically, it's stupid retail investors dumping the stock because the next 3-month's yield is under 5%.
We haaaave a winnah!
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 03:08 PM   #10
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by brewer12345
We haaaave a winnah!
All the better for us. Actually, it looks like OSM is slightly more attractive at these prices. To have the same YTM, I calculate that OSM should trade about a dime higher than ISM. Do you guys concur?
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 03:20 PM   #11
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by FIRE'd@51
All the better for us. Actually, it looks like OSM is slightly more attractive at these prices. To have the same YTM, I calculate that OSM should trade about a dime higher than ISM. Do you guys concur?
More or less, on a current yield basis. Practically speaking, if the prices are close it is basically rounding error.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 03:51 PM   #12
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by wab
all of the trading is done among a few people on this forum.

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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 04:08 PM   #13
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Re: Seems ISM is taking a bit of a beating this week...

What exactly is ISM? I typed ISM into yahoo's ticker lookup but there wasn't a profile to see what it is.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 04:10 PM   #14
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by rjpatt
What exactly is ISM? I typed ISM into yahoo's ticker lookup but there wasn't a profile to see what it is.
ISM is the ticker symbol. You can find out all about it here:

http://quantumonline.com/
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 04:17 PM   #15
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Re: Seems ISM is taking a bit of a beating this week...

http://www.quantumonline.com/search....SM&sopt=symbol

and

http://www.sec.gov/Archives/edgar/da...563_2424b5.htm
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-23-2007, 11:49 PM   #16
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Re: Seems ISM is taking a bit of a beating this week...

OK... looks like they are trading at a discount... but only 2.05% spread... from what I see on TIPS, they are 2.375... am I missing something
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-24-2007, 12:02 AM   #17
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Re: Seems ISM is taking a bit of a beating this week...

Based on the recently published Jan 07 CPI index of 202.4, the April 15 through May 14 payout for ISM will be 4.12% at par.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-24-2007, 12:17 AM   #18
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by youbet
Based on the recently published Jan 07 CPI index of 202.4, the April 15 through May 14 payout for ISM will be 4.12% at par.
Which would put the YTM right around 6%. This isn't a high-yield play. Just a nice alternative to TIPS that also happens to be very competitive to safe nominal investments.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-24-2007, 09:24 AM   #19
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Re: Seems ISM is taking a bit of a beating this week...

Quote:
Originally Posted by Texas Proud
OK... looks like they are trading at a discount... but only 2.05% spread... from what I see on TIPS, they are 2.375... am I missing something
The 2.05% + CPI is paid based on the 'par' value of $25/share (which is what they will mature at). So, if you pay $21.xx/share, you'll get interest payments based on $25/share...which will be substantially higher than 2.05% + CPI. Plus, you get guaranteed capital gains (if held to maturity) of buying at $21 and having it redeemed 10 years from now @ $25.
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Re: Seems ISM is taking a bit of a beating this week...
Old 02-24-2007, 09:34 AM   #20
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Re: Seems ISM is taking a bit of a beating this week...

You're buying dollars for 84c and at normal levels of inflation you're getting paid like a very decent 5 year CD while you hold it. At higher levels of inflation, even better.

My entire cash position right now is divided between penfed 5 and 7 year 6.25% cd's and ISM.
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