In Da Club - My 50c Watch | ViacomCBS Paramount

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
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Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self-taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

ViacomCBS (Now Paramount)

Yeah buddy, you can find me in the club bottle full of bub. haha let me stop before I get hype.

Go shorty it's your birthday because my In Da Club picks are stocks that I consider in VALUE territory. They got beat down, like they stole something and now for me I think it's a bargain. You say Fiddy performing at the Superbowl and representing for the culture. Here is my VALUE pick:

ViacomCBS - I've owned it before and still like it. They have 4 of the hottest shows (Yellowstone being one) as they finally have their streaming service taking off. I'm busy managing clients but I shall return with more feedback. Price matters and I think they are on sale after they got beat down after their latest earning report (think this is a quarterly health check for corporations). 

I bought in this range about 2 years ago and rode it up into the 70s and sold in my retirement account. I was NOT so lucky in my personal account. I believe I still own this. For me, when stocks get this low, I turn on DRIP. Haha not that swag that you're thinking about DRIP is Dividend Reinvestment Programs which allow you to take your dividends (think quarterly stimulus checks from companies) and have my broker automatically buy more. If the stock doesn't offer dividends...then you hit that Juvie or for my non Hip Hop heads Juvenile and back that thing up and buy the stock or more stock.

I'm out handling my cyber clients. Be well.

#value   #backthatstockup  #ViacomCBS   #Paramount   #InDaClub  #50cWatch

Why I Won't Sell(out)

I won't sell out because I keep it real, you know what I'm saying. I mean that's my job here at Urbanomics, to keep it real and uncut. And the problem is this tag gets thrown on a lot of people all the time. Take your favorite hip hop artist and you get a real quick example of what I mean. Let's look at 50 Cent, the hardest rapper, forget rapper...man alive. He took nine bullets and lived to rap about it through his music. Who can forget the debut album, "Get Rich or Die Tryin'", which exploded on the scene in 2003 laced with gangsta rhymes, tight beats and catchy hooks. I won't test his gangsta, with tracks titled:

~Many Men (the hook goes "wish death upon me")
~ What Up Gangsta
~ Don't Push Me


And everyone will remember "In Da Club" and "Wanksta" as memorable hits that put 50 on the radar. My how quickly times have changed. Now I won't call my man 50 Cent a sellout but many have questioned the general since the release of that first album. Maybe it was the tracks that he later dropped such as "Candy Shop" or "Amusement Park" or is it just human nature to take shots at the guy on top by calling them a sellout and wishing for his demise from the thrown.


So what does all this have to do with stocks? Well many people sell or sell(out) on stocks because their stocks made it big...kinda like 50 Cent did. As documented in my last post, I highlighted Clayton Williams Energy Inc. It is one of the high flyers of the year but it wasn't always that way. This company first came up on my radar way back in 2006. Yep, it was January 2006 when I made my second wave of investments in the oil industry. A year two before that you may remember major purchases like PetroChina that we made before the great Warren Buffet
revealed his acquisition of a large number of their shares also. A small oil and gas exploration company called Clayton Williams made a splash on my stock screener. With small victories in my portfolio, I was looking for more small and mid cap stocks to purchase with the opportunity for huge upside. Run a chart of this stock since the beginning of 2006 and you will quickly learn that this stock was trading down since the beginning of 2008. But as Warren Buffet has always mentioned if you believe that you have obtained a stock at a discounted price then hold onto that investment until its true intrinsic value has been reached. Well it caused me great pains to watch my investment drop to levels of roughly 30% declines at some points, but you have to think long term! The economics behind oil and gas were pointing in the right direction and all it took was good management to pull this company up off the ground. Today CWEI has taken out new 52 week highs once again and this wouldn't have been hard to see. Going into its earning CWEI sold some of its oil fields which is guaranteed to present a nice upside to short term earnings going into its quarterly earnings meeting. After this meeting the market loved what it heard and pushed CWEI up 7% more on the day. On the year CWEI has run up over 100% and I am still not looking to sell anytime soon. I ain't no sell(out) just because CWEI is hot. If the fundamentals look good I am sticking with my stock and keeping it real. Take 50 Cent for example even though people have taken shots at him, his second album sold over 1Million copies in JUST 4 days.

Knowing when to sell is a tough thing so we will look at some times when we have gotten it right and also some thoughts from the big dogs that do this for a living.

Holla

Do you have hops? - Price Hops

I am sitting back, watching a basketball game and I would never ask Kobe Bryant this question..."Hey man you got hops?" Because he and anyone within 100 feet would probably come running up to me, smack me, and then ask why the hell I would ask a dumb question like that. Of course Kobe has hops, he can jump out of the gym!

Well that is not the only thing that has hops lately. For example, most of the things people buy on a daily basis have experienced a term I call "Price Hops". That means that the price has been skyrocketing, off the chain, through the roof, or flat out way too expensive. Take a few basic staples - cheese, milk, eggs, bread, and gas and you tell me that when you go shopping or driving that the you are pulling out more cash. I call it "Price Hops", but you might here the market call it INFLATION.

This definition was provided by Investorwords.com:

Inflation - The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could.
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Urbanomics Constant Reminder: Don’t dismiss the facts that are in front of you (trust yourself)

I came up with a term called "Price Hops" and its no wonder that the price of the things that you are buying on a regular basic are costing you more. Inflation is on the rise and market is taking notice by watching the Producer Price Index. And even if you take food and gas out of the measurement, the index would still rise.

Some of the factors affecting inflation:

The price of oil keeps rising - Upcoming inventory data and weather are big factors

The demand of steel, copper, wheat (commodities) is rising (Wheat is at an time high)

The prices of things America imports are up roughly 13% (highest levels since the 80s)


How to profit during a tough economic period (follow the industry buzz):

Buy Large Cap companies, especially Multinational Companies
Buy the Commodities that keep rising - precious metals, mining, wheat, oil
Buy the Equipment Maker of agriculture and oil refiners
Buy the stuff people buzz about even in tough times

I know you want names:
- AK Steel (NYSE: AKS) - great play on the rise in steel
- Celanese (NYSE: CE) - roughly 2/3 of sales come from outside of US
- Use Exchange Traded Funds (ETFs) - JJN, USO, GAZ (examples of funds for nickel, gas, oil, gold, steel)
- Buzz items - No matter how tough the economy is people can't do with those darn flat tv's, dvd's and entertainment programs; I picked up on Zacks.com momentum picks...and for two days in a row they recommended Liquid Crystal Display providers:
AU Optronics (AUO)
Corning (GLW)
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URB UPDATE: The beauty of DOLLAR COST AVERAGING pays off and Avid Technology (recent rise allowed me to recoup all of my loss and I sold my entire position to break even. (More to come on how we turned a bad stock into one that didn't hurt us)
Disclsoure: I sold AVID

All I need is a little bit...

Yeah this line was coined by my boy 50 Cent for awhile. And word on da street...wall street that is...was that Fiddy was on Cavuto, a financial show probably showing off his investment muscle. Now I haven't seen the clip of his on the show but can he have time to be making the returns that we are over here at Urbanomics. Maybe after his stake in Vitamin Water got bought out, but we bring the platinum picks and he brings the platinum hits.

Today I wanted to write about Emcore (NASDAQ:EMKR), if you have been patient with us...and btw you haven't had to wait long, we hit our target already. Yes boys and girls, EMKR was up around 8% on no news that I am aware of. This volatile stock, was a short term pick of mine and for anyone following I am selling EMKR here. This is a quick 10% gain and I will look to revisit my friend EMKR when it declines back to a price around $10. I would Superman this stock back at the $9.15 level and be a strong accumulator around 9.79.

Lastly I spoke to soon on Adaptec (NASDAQ:ADPT) by about a day or two. I was getting some weird stock chart readings on ADPT and it didn't jump like I had expected. But here is the good news, ADPT reported earnings and beat estimates by .05c. That led the stock higher and if you read into the earning release by the CEO, you will also notice what I call is a subtle hint at good things to come for us. Attached is the comments, provided by Market Wire:

"While our top line results were above the company's expectations, we continue to face difficult market conditions," explained S. "Sundi" Sundaresh, president and CEO of Adaptec. "Despite these challenges, the company has made significant progress during the quarter in several key areas: our restructuring plan announced last quarter is on track to fully realize the expected savings by the end of the fiscal year; our Data Protection and Storage Solutions groups have each released new products and the early indicators of customer reaction are positive; and we reached an agreement with Steel Partners, and together, I expect, we will pursue a course designed to maximize value for all of our stockholders."

Urbanomic readers, I know one thing and when companies align with Private Equity firms to MAXIMIZE VALUE...that usually means great things for stockholders because they lead to buyouts, stock buyback programs, splitting up the company, or anything that makes them money. Hope you jumped all aboard ADPT, b/c again you could have had ADPT at 3.40 today which is the price that I have REPEATEDLY said is a great level to continue to add shares.

Enjoy the quick hit gain with EMKR and lets watch ADPT open higher tomorrow.

Disclosures: I sold EMKR today