For questions like these, always turn to the insiders for guidance. Insiders sell their stock for a variety of reasons, but they buy for only one – they think the stock is over valued.

So far none of the insiders have been buying. And neither should you.

Just a quick question. I’ve been eyeing some of those sub-prime lenders. There is likely to be a shake out, but some of them are so beaten down, that they might be good buys at this point. This is assuming of course that you can get ones whose business is still sound.

Best,

James