Reader Question:

Six Flags (Symbol: SIX) had been hammered in 2007. Has everyone jumped ship or is there more downside?

Financial Rebel Answer:

First, it’s foolish to look for a bottom. The bottom is $0. Instead, look for a stock that has bottomed and is recovering.

As to Six Flags, I’ve been following this stock for quite some time and I’ve made money with it. Back when “the accident” occurred, I knew it was time to get out. Since that point, the stock has been down.

It’s a play on the buzz of the future—clean tech—more specifically, solar power. But, how far away from viable solar power are we really? Probably further than you think.

First Solar (Symbol: FSLR) is a classic example of what Wall Street mojo can do. In late May 2007, First Solar started its amazing bull run to $120. But why?

The stock is traded on unbelievable buzz—and momentum works both ways. Recently, First Solar announced earnings of $0.58 cents per share, which shows incredible improvement over last year’s $0.05 cents per share loss. Or does it?

Subprime is threatening to take every stock in its path down. It’s August. The financial media outlets can’t figure out what the market will do tomorrow. Rumors and weather pattern changes are causing stocks to plummet and turn on a dime. That can mean only one thing. It’s a great time to trade.

Call me crazy, insane, out to lunch or perhaps brilliant, but I love this market. It’s better than finding out that you’re the next contestant on the Price is Right. Come on down.

Traders love volatility and this market is serving it up like a grocery store with an overstuffed freezer full of meat that’s about to go bad.

American Home Mortgage (Symbol: AHM) is waiving the proverbial white flag as shares freefell 90% on resumed trading—closing all the way down to $1.04.

The company announced that it’s looking into liquidating assets, as it can no longer fund mortgages.

Next stop, bankruptcy? That’s what Keefe, Bruyette & Woods analyst Bose George thinks.

When talking about the ability of American Home Mortgage to survive through this disaster, George said, “the chances are low.”

Is Revlon (Symbol: REV) now a trade? In my June 14, 2007 article, “Revlon Remains Flat,” I told you that Revlon would stumble by 10-20% over the summer. It’s happened.

Revlon was $1.36 when I wrote that article and today it closed at $1.04—about 25.5% down. It’s dropped about 10 cents per share over the past couple of trading days.

While the company isn’t worth going long in, it might be worth trading. I think this trade is especially appealing for those with limited capital.

Do you know where you stand each month? If you’re like many, you don’t. So many adults live paycheck to paycheck and never really sit down and figure out their income and expenses.

If I asked you how much money you spend, on average, each month, could you tell me? Could you tell me how much you spend on food each month?

Don’t feel bad if you answered no or just guessed. Most of us do this. And it’s one reason why many don’t get ahead in life.

You probably already know that a budget is way to manage your income and expenses. It’s a planning mechanism.

Today Ford reported second quarter earnings of 31 cents per share profit, which surprised almost everyone. The market was expecting a net loss. However, this profit blip on the financial map doesn’t mean Ford is out of the woods.

If you recall, I wrote an article about Ford back on June 20, 2007 where I stated that the stock would decline as the company was in trouble. Since that time, Ford’s stock, which was trading above $9, has fallen to the $8 level.

Ford’s surprise helped the stock as share prices rose 1.51% to close at $8.09 Thursday. It’s up another 1% in after-hours trading, but that’s to be expected. Ford holders were starved for anything resembling good news.

Don’t expect Ford to report annual profits anytime soon. Ford said they don’t expect to see an annual profit until 2009—and that might be just a tad optimistic.

The US Aerospace and Defense industry has been doing very well this year. With the war on terrorism raging on and not ending anytime soon, there are many great plays in this sector.

But what stocks should you own—Boeing, General Dynamics, Lockheed Martin, United Technologies? There’s an exchange traded fund that will allow you to own all these names and more.

The ETF is iShares Dow Jones US Aerospace & Defense (Symbol: ITA), which follows the Dow Jones US Aerospace & Defense Index. The aerospace side consists of companies that manufacture, assemble and distribute aircraft and aircraft parts. On the defense site, the companies produce components and equipment for the defense industry—military aircraft, radar equipment and weapons.

Here’s a breakdown of its top 10 holdings, which account for just over 60% of total assets.

As the adage goes: “fail to plan, plan to fail.” Most adults go through life by the seat of their pants. And that’s why many live paycheck to paycheck and will never experience life the way they want.

Whether you’re looking to plan your retirement, start a new business, buy a car, or take a vacation, planning is a must.

There are six steps to creating a plan.

It’s earnings season and that means one thing—pointless sell offs. This week we saw some good companies take hits. That’s good news for you.

One of the keys to making money in the stock market is to buy good companies on the dips.

Today, I’ll present you with three stocks I like for fast profits. I believe it’s possible to make returns of 5-10% or more in these stocks within the next quarter.