Do you know how to get there...

Is a common question you get nowadays when travelling somewhere. The answer has now been simplified to a VERB that references a webpage. It usually goes something like this: Well I'll MAPQUEST it, or don't forget to GOOGLE it, or hey I'll look it up on Yahoo Maps. And for the sophisticated crowd they will be happy to let you know that they are looking up directions on their Global Positioning System (GPS) device. You have seen the increase in commercials telling us to use "Tom Tom" or a "Garmin" GPS device to get you to where you need without much thought on your part. And when you go to Google, Mapquest and Yahoo have you ever noticed the little company in the corner of the map with the trademark. It usually says NAVTEQ, which is the provider of digital mapping technology.

So I am bringing up the obvious because when I read a book awhile ago by legendary investor named, Peter Lynch, one of the themes I took away was INVEST IN WHAT YOU KNOW. And what I know is there is definitely a buzz around GPS devices and digital maps. So I remind all Urbanomics readers...when something is in front on your face, don't overlook the obvious. A friend of mine just bought a portable Garmin device that can be used inside and outside of the car. And the other night as we headed to a new club, my brother used the computer to get directions to the location. Lastly, I am in the search for a new car and for the first time ever I included in my search the cars with navigation technology.

So what companies are leading the way say in digital maps and GPS technology. Check these companies out:

GARMIN (GRMN) - maker of GPS devices
NAVTEQ (NVT) - digital mapping
TRIMBLE (TRMB) - maker of GPS devices
SIRF TECH (SIRF) - maker of semiconductor chips that are used in GPS devices

So if I am an average person and I realize the growth of this industry its pretty easy to guess that so have the guys on Wall Street. Need proof, just look at the stock prices of these companies. I think GRMN alone is up over 60% this year alone. So why am I telling you to talk a look at this group, because just like other technologies that were in the stages of taking off, like the IPOD, mapping technology will become a household function used everyday in cars, on the computer, and through portable devices. These stocks are richly valued so wait for an opportunity to buy them, especially going into the holiday season. One thing that I also have learned is that its difficult to price a fast growing stock like the ones listed above...they could keep going up and up.

Urb Radar ~ September

For the past couple of weeks these stocks have been on my radar:

MNCP Motient Corp; now known as TSTR TerreStar

ASTI Ascent Solar Technologies, Inc.

CECO Career Education Corp

GGP General Growth Properties Inc

USBE US Bioenergy Corp

USG USG Corp

CPY CPI Corp

AITP - American Italian Pasta

I will update these as soon as I can.

How do I get my Urb on!

Now I am going to go out on a limb and say the whole world is catching up to my personal movement. If you need a constant reminder, add the Urbanomics RSS Feed to you webpage or email inbox. It's a gameplan that slowly being rolled out and I hope you are taking advantage of it as we learn together. Even Yung Joc is jumping on the bandwagon with his new album titled "Hustlenomics". Hmmm...sound familar, Hustlenomics and Urbanomics. Now if that's not some inspirational stuff then I don't know what is. Like I said the movement is deep and there will be different versions of my plan. Joc's Hustlenomics is taking what he is passionate about, the rap game, and hustling his way to the top to achieve financial empowerment (maybe other things but I doubt it). Urbanomics is a different variation and the focus is empowering ourselves to make our lives better. It's somewhat of a hustle that focuses on spiritual, financial, emotional, and physical strength.

After reading my blog posts, its pretty easy to tell which area is my strong suit. Now I am no Jim Cramer, Suze Orman, Warren Buffet, or even Yung Joc but I get my hustle on by keeping up with the world around me, especially the financial markets. And the focus on Urbanomics is not to dumb it down but to make it easy for the average person to follow whats going in a way that we all can understand. A little bit of hip hop, urban flair to the old world of Wall Street.

For example if your favorite musical artist was a stock who would you be buying, holding, or selling based on how well they have been performing. My buys list would be:
Akon, Kanye West, T-Pain, Chris Brown, & Lil Wayne. I would be holding 50 Cent, Jay Z, & Nas. And personally I would be selling Britney Spears, Whitney Houston, Bobby Brown, and the Shop Boyz (Party Like a Rockstar).

Tip Cup - Thanks Roger

Now if you were rolling with Lil Jon, Bishop Magic Don Juan and Snoop Dogg...you might confuse their cup with my glass. While I wouldn't mind having a diamond encrusted Pimp Cup, I decided to stick with my personal Tip Cup. Now I know I get made fun of every now and then b/c if someone needing money catches me coming out of a bar/club, its about as good as gold that they are getting some money. But this time I would like to send a special shot out to another individual who donated to the Tip Cup. It wasn't my personal jar but a jar that always needs to be kept full. This gracious donor was the legendary Roger Staubach who sponsored his charity flag football event selected Big Brothers Big Sisters as his designated charity for this event. It was a professional event with a number of corporate sponsors who paid to meet, greet and eat with the Hall of Famer. An awesome event where a number of great objects, like signed photos of current NFL players, footballs, box seats all were silently auctioned off for a great cause. A special thanks to Roger and all of the people that made this night possible. Ohhh by the way I caught a touchdown pass from at Soldier Field that night. Yeah I still got it!!!

Why fly to tech...

Because, I'm like a bird I wanna fly away. That was my best version of Nelly Furtado and it was darn good. I can't go pop so time to get back to the basics. You wonder why previously I said their has been flight. You usually here the statement: "There has been a flight to quality". And all of a sudden the industry that we all have been running away from since 2001 is now the one that we are flying back too now that the financial bubble begins to rear its ugly head.

As usual I try to do the one thing most stock pickers don't do. All the websites and TV shows recommend picks but they don't do one thing that would have been helpful for me when I first got started and that was to recommend great entry prices. There have been a few simple concepts that have made a huge difference in how my returns affect my portfolio. Over the years, I have come to realize that entry price, transaction fees, dollar cost averaging, dividends, and earnings releases/market news have been important in understanding the stocks I pick and how much I buy and how long I hold. I would like to say that I am on the cutting edge by actually recommending an entry price but there is probably someone else out there making a bold leap and doing the same. But even some of my favorites, Jim Cramer, Fast Money crew, and Jim Jubak recommend picks but not exactly the entry price. Jubak probably comes the closest by disclosing he will purchase the stock three days (I think its still three) after he has noted that he will be buying the stock. So here goes my take on good ole' technology:

Adaptec (ADPT) $3.40 – Every portfolio needs a little risk and here is mine. This beaten down warrior blasted through its 52wk low. I see momentum action here that will create a floor and push this stock higher. If this stock every dips back to my recommendation price Superman that stock. I got in at $3.54 and since then this stock has gone up $3.82. It has come back a little and due to the markets negative outlook. I would accumulate at $3.50s if it dips and ride the short term wave to a nice quick gain. Save a little in the tank as this will be a great long term play.
Risk – Medium - High
Time Horizon – Short Term

Advent Software (ADVS) $39.25 – Another area not hit by the credit woes is technology. This company reported earnings in August and sales of their software geared towards investment companies and non-profit organizations grew at a decent clip. With the adding of new customers and management’s willingness repurchase the firms shares when they are trading at a discount, this company will continue to be rewarded for growth and look for an exit point of $45 to $47. My quick update is this stock is volatile and a little patience will be rewarded if this stock gets down back to my recommendation price.
Risk – Moderate
Time Horizon – Moderate Term


Zhone Technologies (ZHNE) $1.10 – Many well known investors note they would probably be small cap traders if they could start all over again in today’s world. And I don’t disagree with them. Small cap gives you the opportunity to accumulate a large number of shares just as a private equity firm would accumulate a large number shares for their investment portfolio of today’s medium and large cap stocks. The practice is to load up on a good thing (most funds hold a majority shares in the top 10 companies) and ride the great returns. But the problem with small cap stocks is risk… or should I say the perceived risk that in one quick swoop your $1 stock can become worthless. The way I recommend playing small cap stocks is find your entry point and give yourself some margin of safety to buy the stock. For example, I have indicated a target price for ZHNE of $1.10, but this is the margin of safety price after I noticed momentum at the $1.15-1.17 range over a month ago. On Aug 16, the death day of the market I got my margin of safety price of $1.10 and rode ZHNE for a few days and sold at $1.20. Well more momentum action is occurring at $1.20. I would say this consistent action should reduce our margin of safety and I would re-recommend ZHNE here at a range of around $1.15 to 1.17.
Risk – High
Time Horizon – Short Term

Ohh and I almost forgot my favorite tech stock of the moment, Radisys.
RSYS - This stock has tested the limits of the faint of heart. Many people watched this stock dip below the 52 wk low and thats when a technique that we discussed above came in handy. Dollar cost averaging allowed us to continue to buy this stock as it fell. The price here would be around the mid 10.80s. The "Superman that stock" price would be where I got lucky and repurchased the stock at 10.50s. If this stock drops to 10.50 I repeat...bring out the 18 Wheeler and jump all aboard. Notice the recent news of RSYS acquiring technology platforms from Intel has fueled a nice rally today. It could have been picked up today at around $11 but the nice upside move is just what the doctor ordered. It was reported the new acquisition will be completed in a little over a month and add around $50 million to the bottom line. Music to the ears of us buyers here at this point in the stock. Look for the completion of the acquisition and if as earnings begin to be revised upwards by analysts covering the stock...get ready for takeoff.

I'm Out....PEACE

Reader Response ~ Coming Soon

I wanted to send a quick shot out to all of my peoples out there who are tuning in to the new revolution. We are taking our future into our own hands one stock at a time. I have had a number of people with recent interest in Urbanomics analyzing their stocks, possibly managing portfolios, or simply wanting to learn more about the market. I appreciate the love and I will keep pushing forward.

The following were taken from a few emails lately:

"Check out the uranium sector...its going bananas. There has been some major pull back lately look for a rebound. One stock I own is SXR - Uranium One , check it out and let me know what you think......"

"Dude, I love your site! Is it time to buy more BNI yet? You still see it shooting up more? Is Best Buy still hot to pick up?...."

I will be answering these questions very soon, so keep em coming!