Time to buy Whirlpool!

[AFWarrior83]

I just read some unfortunate news about Whirlpool shutting down its factory in Ft. Smith. Whirlpool stocks also dropped 14%, and is trading at $51.80 per share. I'm about to drop some cash on this stock, because it will rebound.

52 week: 47.35 Low - 92.28 High

Whirlpool shut another plant down back in '09 and has done fine, I think the stocks just reacted to the news. What does everyone else think?

[SouthSide Johnny]

As a 35 year employee of Whirlpool Ft. Smith, I will always buy and sell WP stock it's a great investment for making money as the stock always over the course of 12-18 months it bottoms out and then goes up 2 years ago it went from a bottom of $18 a share to around $117 topped out.

The stock is still rated a "buy" their stock fell recently not because of the closure of Ft. Smith but because they failed to meet their expected Quarterly Earnings per Share actual $2.35 verses expected $2.68 and they lowed their expected earnings for next quarter to $1.90 and the general state of the appliance industry as a whole, ie. still lagging sales over capacity of the industry as a whole verses demand and sky rocking costs of essential materials like plastics and steal with transportation costs. Add to that the $91.8 million plea fine for compressor price fixing.
http://www.appliancemagazine.com/news.php?article=1434414

As the largest appliance maker in the world Whirlpool is very committed to reducing costs, increasing profit and returning dividend to the share holders.

I'm saddened by the closure of Ft. Smith but I've expected this since they opened Ramos and global reorganization plan in 2003 and 2 plants would be closed (Evansville and Ft. Smith) the 2 refrigeration plants with only Amana Iowa (french door bottom mounts) and Ottawa Ohio (freezers) being built in America and trust me their days are numbered also, all other products are made in the USA.

We where at one time the 2nd. largest private employer in the state with 5000 employees and the "only" company in the state to go 11 million work hours with out a lost time accident
http://www.state.ar.us/labor/pdf/safetynews_fall04.pdf

[AFWarrior83]

As a 35 year employee of Whirlpool Ft. Smith, I will always buy and sell WP stock it's a great investment for making money as the stock always over the course of 12-18 months it bottoms out and then goes up 2 years ago it went from a bottom of $18 a share to around $117 topped out.

The stock is still rated a "buy" their stock fell recently not because of the closure of Ft. Smith but because they failed to meet their expected Quarterly Earnings per Share actual $2.35 verses expected $2.68 and they lowed their expected earnings for next quarter to $1.90 and the general state of the appliance industry as a whole, ie. still lagging sales over capacity of the industry as a whole verses demand and sky rocking costs of essential materials like plastics and steal with transportation costs. Add to that the $91.8 million plea fine for compressor price fixing.
http://www.appliancemagazine.com/news.php?article=1434414

As the largest appliance maker in the world Whirlpool is very committed to reducing costs, increasing profit and returning dividend to the share holders.

I'm saddened by the closure of Ft. Smith but I've expected this since they opened Ramos and global reorganization plan in 2003 and 2 plants would be closed (Evansville and Ft. Smith) the 2 refrigeration plants with only Amana Iowa (french door bottom mounts) and Ottawa Ohio (freezers) being built in America and trust me their days are numbered also, all other products are made in the USA.

We where at one time the 2nd. largest private employer in the state with 5000 employees and the "only" company in the state to go 11 million work hours with out a lost time accident
http://www.state.ar.us/labor/pdf/safetynews_fall04.pdf

I worked for Graphics Packaging prior to joining the USAF, and I know the company provided us with a BBQ and collared shirts for reaching over 1 million hrs worked w/out a lost time accident. 11 million is really impressive! I'm saddened by them closing the factory down as well, but they've slowly been moving the plant to Mexico, so it shouldn't come as that big of a surprise. I also seen the OK foods was bought by a corporation based in Mexico. Crazy times indeed...

[SouthSide Johnny]

I worked for Graphics Packaging prior to joining the USAF, and I know the company provided us with a BBQ and collared shirts for reaching over 1 million hrs worked w/out a lost time accident. 11 million is really impressive! I'm saddened by them closing the factory down as well, but they've slowly been moving the plant to Mexico, so it shouldn't come as that big of a surprise. I also seen the OK foods was bought by a corporation based in Mexico. Crazy times indeed...

Truly a global economy and world now, my father was career Air Force he retired in 1972  Malmstrom AFB, Montana at the end of the SAC era, I have great memories of the Air Force life and really hated to see it end along with SAC.

[OldPoop]

I hope you double your money.

But it scares me for a long term investment.  The economy is only going to get worse, world wide, for the next few years.   I'm not sure how many new appliances will be bought.  College grads moving back home will not be buying like they would have in the past, and people may hang on to their old stuff rather than upgrade until they feel safer. 

[AFWarrior83]

Truly a global economy and world now, my father was career Air Force he retired in 1972  Malmstrom AFB, Montana at the end of the SAC era, I have great memories of the Air Force life and really hated to see it end along with SAC.

I work for AMC, so I am familiar with some aspects of SAC.

[AFWarrior83]

I hope you double your money.

But it scares me for a long term investment.  The economy is only going to get worse, world wide, for the next few years.   I'm not sure how many new appliances will be bought.  College grads moving back home will not be buying like they would have in the past, and people may hang on to their old stuff rather than upgrade until they feel safer. 

Thank you. I think Whirlpool is a safe buy because it's the largest company in their respective industry. It's like buying Wal-Mart in my opinion, too big to fail. Although the economy is in a long-term struggle, the world will always needs washers, dryers, refrigerators, etc.

Also, I'm going well with SLW and ABX, but I wonder how high it will go before it drops... Thanks for the advice!!

[bao187]

as an appliance sales person, i see why the ft smith plant shut down. side by side sales are way down. french door sales are up and top mount sales are even, but side by sides have dropped like 15% from just last year. and i wish everyone would stop and do some research on whirlpool, they are not moving the company to mexico. they have simply relocated some of their production there, and its not as much as you think. only top mount, and the cheaper side by sides. the top of the line side by sides are going to iowa and ohio, and the trash compactors are going to iowa i believe. if i am not right correct me on any of this.

[OldPoop]

AF, I have never said SLW will not go back down.  I have said that it will break its previous record highs.   I sold enough shares after it had only gone up $3 or $4 to buy another 100  shares of Encana while it was way down, but I will hang on to most of my SLW until it approaches the mid $40 range, and hang onto some for even higher prices.  (I would like to start converting a good portion of my gold/silver stocks to the safety of bullion on the next blast upwards.)   SLW will go down again, a lot, and when it does I will buy more.  That could be tomorrow, or it could be anytime in the next few years.   Don't try to guess what will happen next because you will miss more than you hit.  Just respond to what happens.

Stewart Thomson thinks the stock market will explode way higher when the big funds realize the destruction of the dollar is speeding up, then down the road the stock market bubble will burst.  I don't know.  If he's right a lot of money could be made if your smart enough to get out in time.  I'm not sure I am.   So right now, personally, I'm afraid of any stock that depends on the economy and the dollar doing well for the stock to do well.  I do have a couple of oil stocks and gas stocks, which also usually go up and down with the economy, but those are my very long term holdings and I couldn't resist picking some up now at low prices.   IMO there is no question that oil and gas will survive any catastrophe, because until we have a plentiful cheap alternative, we will always need them.  So no matter how low they may go I will not panic and sell them for a loss because I'm certain they will be back, and most likely will eventually go way up.   Long term they are extremely safe.

In the Great Depression the banksters bought blue chip stocks from panicked and desperate investors for $.10 to $.20 on the dollar.  IMO that is the way to buy companies that you believe will survive the coming crash and depression.  If you buy now be prepared to accept lower stock prices for a while until the economy and the company (if it survives) comes back.  WalMart, McDonalds, and similar world dominators will survive, but their stock prices will drop for a few years.  When the stock market starts going down people tend to panic and sell.  In a big crash, like 1929, this fear feeds on itself, along with selling from the newly unemployed, until stock prices plummet to unbelievable levels.   I'm hoping gold/silver will maintain the value of my savings until the inevitable crash.  Then I will trade them for blue chip stocks, but not until they are at a fraction of today's value.  My theory is that you will be better off if you do what the banksters do, not what their victims do, if you want to build wealth.

The typical American has no clue as to what is happening because the government is basically lying to keep everyone in line and themselves in power for as long as possible.  Being good Americans they completely trust the snakes in Washington and believe their leaders would never purposefully mislead them.   Therefore anyone that does not go to the trouble to educate himself as to what is really going on, imo will make the wrong choices and lose everything.     

Just because we are Americans, and just because we have enjoyed a privileged life for a couple of generations in a row, doesn't mean that we are immune to really tough times.  I'm sure that most people back in 1929 thought that the good times would go on forever.   Throughout the history of the world people have had to live through tough periods of time.  Even Americans have had to do it several times.   Our turn is coming, and it is going to completely blindside the vast majority, just like it did in 1929.

[AFWarrior83]

I agree with you, and I hope we both get rich!

[SouthSide Johnny]

One correction ALL Side by Side and  top mount and bottom mounts are in Mexico or going when Ft Smith closes. Built in line from Ft Smith is going to Amana Iowa where the french door models are made trash is going to Ottawa Ohio, everthing else is still in America just a matter of time the Amana plant will close and all refrigeration will be made in ole Medico

as an appliance sales person, i see why the ft smith plant shut down. side by side sales are way down. french door sales are up and top mount sales are even, but side by sides have dropped like 15% from just last year. and i wish everyone would stop and do some research on whirlpool, they are not moving the company to mexico. they have simply relocated some of their production there, and its not as much as you think. only top mount, and the cheaper side by sides. the top of the line side by sides are going to iowa and ohio, and the trash compactors are going to iowa i believe. if i am not right correct me on any of this.

[SouthSide Johnny]

Refrigeration is all going to Mexico because it is a very labor intensive process and we still use a lot of chemicals to foam and refrigeration agents and paint, Mexico has no EPA so they can use chemicals in Mexico that they can't in the USA strickely a lower cost issue. the appliance industry is very competitive with very little profit and almost no brand loyalty now

[bao187]

Refrigeration is all going to Mexico because it is a very labor intensive process and we still use a lot of chemicals to foam and refrigeration agents and paint, Mexico has no EPA so they can use chemicals in Mexico that they can't in the USA strickely a lower cost issue. the appliance industry is very competitive with very little profit and almost no brand loyalty now

you got the brand loyalty thing right, i have so many customers come in and buy mixed kitchen packages now. samsung being the main brand now.

[AFWarrior83]

Whirlpool stocks are back up but so is the market in general.  Hopefully the market keeps gaining momentium.

[AFWarrior83]

I should have dumped everything I had into this stock back when I said it was time to buy. I could have been rich today! 😖

Next time the market crashes, which probably isn't far away, I'm going to be more bold.