Monday, August 22, 2011

Picking fruit from our trees UPDATED 22 Aug

22 Aug - So DANG appears to have been targeted by short sellers. Got hammered today and I didn't notice it was on the Reg SHO/Threshold list until today (been there for a while). For those of us who can wait it out, we should see a nice pop, eventually.

20 Aug - Adding a combo play Dangdang (NYSE: DANG) at $7.90 and Renren (NYSE: RENN) at $7. This position will hold one spot in the portfolio, so it's a split. This is our speculative play and gets ups good exposure to the Chinese consumer and both companies increased revenues by over 50%. Some of the negative news around these names doesn't bother me as I heard the same stuff about Baidu and Ctrip and Sina.

14 Aug - Adding Frontier Communications (NYSE: FTR) at $6.95 and that fat 10.8% yield.

So Cisco (NASDAQ: CSCO) had a good quarter so in to the bag it goes. At this price, why wait. We're adding it tomorrow, say we pick it up at $14.50 given where it'll probably trade. We're also adding Petrobras (NYSE: PBR) to the portfolio at $26.50. This is the oil company of the future and this is a dynamite price.

Remember, we're going to pick 10 names and spend equal amounts on each. So far we have NVTL, CSCO, PBR, FTR, and DANG/RENN. We'll summarize them when the list is complete.

Read more...

Saturday, August 20, 2011

Interesting opportunity

I was snooping around and see that you can actually buy the 2013 5 strike call on FTR for about 2 bucks. The stock is trading at about 7 right now, so for those of you with a stomach for huge moves in your portfolio, like 20-30% swings a day, looks like easy money.

Let me break it down this way. The stock goes up 50 cents, the call goes up at least 50 cents which is a 25% move. With that fat divi, no one is going to stay short long, as you have to pay the dividend when you're short. That removes one of the biggest risks to buying calls, that some hedge fund decides to go short and stay short.

If the stock gets under 6.50, it's an easy play, as my money says the stock goes back to 9 long before 2013 which would be at least a double in the 2013 call struck at 5. Remember, options aren't for most people, but for those of us who trade options, I like it.

Read more...

Wednesday, August 10, 2011

Picking fruit from our trees UPDATED 20 Aug

20 Aug - Adding a combo play Dangdang (NYSE: DANG) at $7.90 and Renren (NYSE: RENN) at $7. This position will hold one spot in the portfolio, so it's a split. This is our speculative play and gets ups good exposure to the Chinese consumer and both companies increased revenues by over 50%. Some of the negative news around these names doesn't bother me as I heard the same stuff about Baidu and Ctrip and Sina.

14 Aug - Adding Frontier Communications (NYSE: FTR) at $6.95 and that fat 10.8% yield.

So Cisco (NASDAQ: CSCO) had a good quarter so in to the bag it goes. At this price, why wait. We're adding it tomorrow, say we pick it up at $14.50 given where it'll probably trade. We're also adding Petrobras (NYSE: PBR) to the portfolio at $26.50. This is the oil company of the future and this is a dynamite price.

Remember, we're going to pick 10 names and spend equal amounts on each. So far we have NVTL, CSCO, PBR, FTR, and DANG/RENN. We'll summarize them when the list is complete.

Read more...

Monday, August 8, 2011

What a day

It's nice being a spectator on days like this. I could hardly take my eyes of the tv and Internet. Too bad I had to work! The tricky part about making real money in the stock market, is how do you keep your money when everyone else is loosing theirs, so you can buy cheap at times like this.

Well we've been waiting. We've nibbled around the edges, but took no big bites.

So in getting prepped for our new portfolio, we had to add one name now because it's so cheap, Novatel (NASDAQ: NVTL). We've talked about plenty and it's going in at about $3.50. We're teeing up Cisco (NASDAQ: CSCO), but will wait until Wednesday when they report. There's another energy name that is more than likely to go in, but we'll wait a few days on that one.

When we've got all the names we'll compile them and lay it out like last time. This go around things are different, as things are at different levels. Unlike March 2009 when everything was 75% off on the same week.

By the way, market routs like this usually take a few weeks to sort out, so it may take 2 if not 3 weeks to get all 10 names at our price.

Remember, this model portfolio is different from our core holdings. Our core holdings, BMY, INTC, GE, VZ/FTR, PBR are stocks we plan to hold until death do us in. I know some of those were in the last model portfolio, but they were so cheap!

Stay tuned. You may be surprised by some of our picks. I've created a new label/category to the left that lets you find posts related to the portfolio called modelP.

Read more...

Friday, August 5, 2011

The horror show that was Novatel

Yes, we talked about this stock and we bought some and guess what readers, we bought some more today. Here's the skinny, close to record quarterly revenues which are up over 50% year over year, book value of over $5 per share, mobile broadband and mobile wifi/mifi taking off, and their machine to machine business is just starting to kick in.

At the end of the day, this drop is trader driven and with a market cap of $100 million, this looks ripe for an acquisition. We don't bet on acquisitions, but instead on value and this is easily a $10 stock. Remember, we invest, we don't trade, although we might use that language from time to time, which means we can wait this out.

By March, we expect to be much, much higher.

Don't buy on margin and don't buy expecting to ring up the register in a week.

Read more...

These are the days, we've been waiting on

Finally, this market is creating some buying opportunities. I haven't forgotten about publishing the new portfolio, but given recent events, the prudent thing to do is sit back and watch the show for just a while before picking up those bargains.

Can't wait until Monday. The mayhem level should be off the chart after the S&P downgrade.

Read more...

The Vix

About This Blog

Where we rant and rave about the market and of course give our opinions on stocks we love or hate. We're not advisors and urge you to conduct your own due diligence.

Total Pageviews

  © Free Blogger Templates Spain by Ourblogtemplates.com 2008

Back to TOP