Easier Said Than Done...

“It’s been a long time, shouldn’t have left you without a dope beat to step too…”  As you know I have a love for music, especially hip-hop, so when I am thinking a song will often pop into my head.  Here, I am thinking of how long it’s been since I’ve written something to the readers out there.  I admit work, life, and stuff happens but I shouldn’t have left you without a nice article to think about.

I would like to start off by simply just being honest!  One of the primary reasons I have not written anything is that in REALITY there is not that much going on in the investment world.  Maybe I should say it different, the markets have been steadily going UP and there hasn’t been much else.  If you remember, there have been a few moments in the last year or so where I wrote that the stock market indicators lead me to believe that stocks and the overall market were headed higher for the foreseeable future.  If I were a TV personality, I can say “We Predicted This Would Happen!” but the reality is it took months and months of reading, researching, and keeping my eyes and ears open to rationalize where things were logically headed.  The goal while investing is to navigate through ALL of the NOISE (family, friends, and TV people telling you how to invest) and for you to logically conclude about where things like are headed.  Once you get a good idea about that then you can determine what and how much to invest in.  I am here to simply share my thoughts on how I navigate through the noise so that I can share those with you and I can learn from the past by coming back and reading my own writings.  This is helpful in life, because you must navigate through the noise (when choosing a house, car, job, etc.) and really get down to making a sound decision.

Here I am always looking to make a sound investment and I’m going to present 1 topic to assist you on your investment journey:

Easier Said Than Done…

Same Companies....New Tricks (McDonald's, Best Buy, Groupon)

McDonald's Late Night Breakfast Cravings

Sometimes I feel like I could be a Fortune 500 CEO, especially when they take an idea right outta my head. Let's take the Golden Arches.  I've had this idea buzzing around in my head for years and they finally took the plunge.  McDonald's is bringing breakfast to a late night menu near you.  Sorry Denny's I think a few people make be making a quick stop at the drive thru.

Read All About It Link

Store-In-A-Store Continues With Best Buy

Best Buy continues the JC Penney concept of stores within a store.  I wonder if this is the concept for companies that have been left for dead.  Ouch...Microsoft has teamed up with Best Buy and there with be a Microsoft store within your local store.  This is such a fabulous concept Samsung has decided it will also place stores within Best Buy.  I guess they will likely win over me...because I love 1 STOP SHOPPING...but does that make this a department store??

Linky

I know I'm not here to make fun of them but rather tell you how stopping in at the drive thru can make you money.  If you think either of these will be a big hit check the stocks out.  Best Buy is finding more reasons for you to stay in the store and McDonald's want your after the bar pit stop to include something you would normally eat in the morning, anyways!

Groupon

Predictions of their demise were off. This company has stabilized since the departure of Andrew Mason, the former CEO. The stock price has rebounded and Groupon "might" be maturing. They are leaving deals open longer which was my biggest complaint (sort of) and a reason why I never signed up for Groupon. This means I can get the deal when I actually need the item and not just serving as impulse purchases.  And you just may start buying things like you do on Amazon at Groupon.  Some of you already know that Groupon sells actual goods and they have been competitive on a number of items and want to be your top destination for shopping. Stay tuned on how this plays out but its has certainly rebounded , albeit there wasn't much lower it could go.

Best Buy - The Price Is Now "Matched"

When was the last time you shopped at Best Buy?? If most people are like me it has been ages since you've physically been into their store. I used to appreciate the days when they were perceived as the low cost alternative against Circuit City and other high cost electronic box stores.  When Circuit City departed, I thought it was smooth sailing for these guys.  They were the place to turn for all my electronics and gadgets, until I started shopping online.  I still was somewhat loyal to Best Buy but this dried up because they had nothing for shoppers that valued nice products and moderate prices.  The 'Magnolia' line of products is great but EASILY way too pricey and the other lines of Best Buy branded products aren't appealing for a semi-techie guy like me that actually reads CNET reviews.  So unfortunately I exclusively started shopping online with Amazon, Newegg, and directly from electronic manufacturers (Lenovo, Dell, etc) that offered the best pricing for my products.  I even became a dreaded comparison shopper recently when I bought my entertainment system for my HD, surround sound, bass booming media room.  I went to Best Buy and was quoted thousands for a TV alone and then thousands for my surround sound system, and wiring.  I decided to by my TV online and applied the extra saving to more inches (I'm over 60 inches).  Then my receiver for my entertainment system was bought through an Amazon Gold Box deal.  My surround sound speakers came from Newegg (they even threw in free wiring) and boast enough beats to watch sports or pound out a building thumping boom from the 4th floor.

But, there may be redemption!! Best Buy just announced that they will price match competitors INCLUDING their online prices. This price effect starts NOW and is good through Nov. 17. They will revisit this matching program for the BLACK FRIDAY seasonal dates: Nov. 27 - Dec. 24. I follow the company as a possible investment but Main Street should take advantage of this unique opportunity to go back to the old school way of touching and buying your product in a store. You can walk away feeling pretty good because you came in with the BEST PRICE and they will match it without much hassle. I like physically inspecting my items and this is music to my ears.

New Tech Titans, Double Dips, & Don't Label Me...

New Tech Titans

The technology field is definitely active as social networking, gaming, movies, and music continue to seamlessly weave themselves into our daily lives. It's time to refresh your memory on the new tech titans on the block.  First off, Facebook leads the charge with their recent announcement of new features: (1) group chat, (2) new designs, & (3) video chat. Many people can't wait for the day this stock IPO's or goes public.  Next is Google, who is offering Google+ a competing social network site and chomping at the bit for more targeted advertising.  And then there is the simplicity of Netflix.  Netflix is now streaming throughout many homes on a regular basis and they are betting that you will stick around even as they raise prices.  Sorry to break the news but Netflix prices are going up for everyone...will you pay up?

Other hot technology firms are Linked In, Pandora, Zynga, Square, and others which are changing the way we interact, watch movies, and listen to music. Then we have Groupon which could be potentially be valued ar roughly $20 Billion dollars when they IPO, or become a public company.  The question often asked is “Do You Remember The Technology Bubble?” and is it happening all over again. I do believe that some of these firms are legit, but I think a few won't be as popular as they are today. Stay tuned for further posts as I tackle which technology stocks will survive the digital renaissance.

Double Dip??

The economy may be suffering from a really bad hangover that was worse than we originally thought.  Financial stocks, housing stocks, and high levels of consumer debt make you wonder if we've learned anything at all from the 2008 crisis.  I just don't have the feeling that we are out of the woods yet and I've been cautious for quite awhile.  I don't think I am alone anymore as there have been rumbling about more stimulus...is there Quantitative Easing on the horizon, well the Fed might think so.  Can you say QE3

Urbanomics ~ Portfolio Plays

It has been a busy summer for me. As you can see from my updates I have been consumed with trying to buy a home. Lately, I have increased my number of posts and this could probably means one thing. CLARITY
I won't admit that it is a perfectly clear picture as to what may be coming down the road but I would say that I have a better feel as to how things may continue to play out.

My personal belief is that this rally is a bear market rally. I will admit that it is a rally nonetheless and you can't try to go against the trend. See a post that I wrote away back about sticking with the trend: Bad Banks Will Rally. So here are a quick summary of my points:

- The goverment's combination of TARP, stimulus, and incentives (Cash for Clunkers, Homebuyer Tax Credit) have been the right recipe to bring the economy from lifelining.
- Unemployment continues to be the thorn in the side of an economic recovery. As a person that is near to the streets, this and foreclosures are the most important issues.
- The economic data is starting to trend up and when you've hit the bottom there is only one direction to go. We've seen gas, homebuilders, banks, credit card delinquencies, and even unemployment start to tick up


After considering these points, I believe that things are getting better but very SLOWLY. I understand that unemployment is a lagging indicator but I think things are different this time. High umemployement, which I believe will continue to rise...is a problem to a primarily service driven economy. This will be a drain on most American businesses ranging from restaurants, homebuilders, banks, etc. I believe businesses have benefited immensely and are recovering but I think the everyday person is struggling to adjust to the NEW NORMAL. The new normal for businesses mean that cost cutting efforts will continue for long while and hiring will not come back as new revenues will be hard to come by. I think that this is an "incentive" driven rally and a pullback is soon to come because nothing has really changed. Money has been pumped to save starving business but not many industries have really been punished for their actions which got us here. This is the fundamental back drop of moral hazard...no one has learned their lesson. If you need proof, then just look act the actions of the big banks once they got out from underneath TARP. I believe the waste and excesses have not been rung out of the system and the average person on main street is left holding the bag. That bag results in job losses, delinquencies, debt, possibly higher taxes, and UNCERTAINTY. I now bring my lunch and limit my Patron shots due to this uncertaintly. So here is my portfolio which reflects an uncertain world that appears to be getting a little bit clearer:

Stocks based on my view of the ecomony:

TIP - Treasury Inflation Protection EFT; inflation will be coming and this is where the smart money is parking some of their stash
DUG - Ultrashort Oil; if you read above, when the economy improves so does the price of Oil. But high oil is not good for this struggling economy
GE - General Electric; an industry stallworth that should rebound, especially since GE Finance won't be the undoing of this company
BBY - Best Buy; this is where I like to shop and now that Circuit City became a casuality of this economy its more pie for Best Buy (hey that rhymes)
GLD - A Gold ETF; this is an inflation protection move.

Stocks based on my screening:

EPD - Enterprise Partners; this is a natural gas pipeline company that has an outstanding dividend and it prime position it commodities move higher
IBKR - Interactive Brokers; asset managers and investment banks that are still around are benefit from the volatility and new business
GLW - Corning; this maker of LCD displays will stand to benefit as flat screens continue tobe the 'it' thing to buy. I can't wait to get my 52 inch bad boy

Been Busy...

Some would say being right on the money. Well lets look back at over four months ago, when we told you to re-allocate your portfolios because the worst ain't here yet. And what have we seen is that are call is right on. The Dow has continued to plummet to the level I thought we wouldn't hit for awhile. and that is roughly around Dow 8000. This is a compelling moment because months ago I said that I would recommend that we all start inching back into the market, but at this point the news continues to be bad. Just searching articles on the internet you may come across these themes: Banks Need the rest of the TARP Bailout - Citigroup is selling their brokerage unit! - Bank of America is showing signs of cracking Retailers are not looking good. - Even Walmart sales are declining - Circuit City can't find a buyer and is liquidating all their stores!! Unemployment rates continue to rise - GE Capital is set to shed 11000 jobs Downgrades send stocks to their 52week/all-time/all world lows There is no strategy when the headlines read like this. The only thing is to stay the course with the consistent message that we've had before. I repeat I am and have recommended that you are completely out of the stock market and fully allocated to Treasurys and cash assets. This is especially true for your 401K portfolio because it primary purpose is capital preservation...not appreciation. A portion of your portfolio needs to be exposed to the market and I recommend that you have your own trading account where you can DO IT YOURSELF (DIY)...I don't need Bernie Madoff or any other scandalous investors out there losing my money...when I can do that on my own. It this portfolio you should be shorting more that buying things. Find attractive price points (see previous posts on price points) for both buys and shorts:

SHORTS:
- SSG: ETF that shorts the Semiconductor Sector
- KBE: EFT that shorts the Retail Banking Sector
- Also short the retail, and credit sensitive sectors
BUYS: - BBY: Best Buy is primed for increased earnings now that Circuit City is going BANKRUPT
- V: VISA is down towards their Initial Public Offering (IPO) again after being downgraded

I'll be back to update this post later

Playoffs...

"Playoffs...Don't talk to me about playoffs" is the infamous line in the Coor's commercial by coach Jim Mora. And even though its early in the year you have to treat your portfolio like its the playoffs. Its game time this weekend for the National Football League (NFL) and only the best of the best are around to fight for the title. And this is the approach that must be taken with your portfolio...only the best of the best will be accepted. The current market conditions: the value of the dollar, the credit crunch, the housing bubble, higher unemployment, deteriorating earnings, high gas, and the threat of inflation are just a few of the strengths working against you...kinda like the opponents defense in a playoff game. So the past week has seen me actively paying attention to the market. I gave you Bear Stearns (NYSE: BSC) just a few days ago as a momentum play as James Cayne stepped away from the company. That was a tough day for stocks you could have gotten in BSC anywhere from $71-$77 dollars. At all of these levels you would still be showing a profit at this point. I am not a huge fan of owning any financial companies at these levels.

My formal recommendation is to SELL Bear Stearns. However, informally if you got into Bear Stears near the 52 week low, I would licking my lips and thinking about keeping holding at those levels.

The next thing I recommend at this point is to closely watch analyst revisions and warnings of certain industries and companies. For instance, if you don't understand that the credit crunch is the real deal at this point and that ALL retailers are being affects EXCEPT for your discount and low cost retailers than you are napping on the market and deserve to be invested in index and mutual funds.

My next move this past week was to part with any RETAILERS that I own with a gain. The only retailer that I owned was BEST BUY (NYSE: BBY). BBY was sold for a small profit but this is an retail darling that I would keep a close eye on. As this stock continues to reach low levels and nears its 52 week low I would take our old price point and build in a 5-10% margin of safety. Our old price was 43.95 (need to verify that) and then I would think about buying in. I personally will lean towards a 5% margin because I think people with still shop at BBY for CDs, electronics, video games, and all discount priced electronics.

My formal recommendation, SELL BEST BUY (NYSE: BBY); look for points of reentry later

Lastly SELL gains with limited upside or in industries that will continue to lag the market. The following stocks are formal SELL recommendations:

Maximus (NYSE: MMS) - limited upside here after large institutional investors sold their stakes in the company...I walk when the big money walks!!!

Online Resources (NASDAQ: ORCC) - Sold after it soared to $12 and showed resistance at those levels (this was a nice gain in two months of over 20%)

Supertel (NYSE: SPPR) - I have owned this for at least a couple of years now. It was originally Humprhey Hospitality. Limited upside at this point (nice gain of over 60% in over 2 years)

Remember only go into the playoffs with the best players for your team. Now some of the best players can be guys that have performed in the clutch for you in the past. I say this because I am a believer of this philosopy. Need proof, check out Buffett's additional purchases of Burlington Northern Santa Fe's stocks at levels where he originally purchased the stock. My only wish is that I would have sold this stock (which we bought around $77) when it hit $86 and now we would be in position to buy again. So sell non-performers and hold cash for the Michael Jordan's, Magic Johnson's, and Larry Bird versions of stocks. My FORMAL BUY RECOMMENDATIONS will be a good number of stocks because the market is getting crushed here and I think plenty of stocks will surface with attractive values:

Burlington Northern Santa Fe (BNI) - Buffett's back and so am I love at our old levels of $77

Best Buy (BBY) - This sector (retailers) is getting crushed so wait for proof that the bad times are over and catch this stock, further build in a margin of safety so you can sleep easy at night; consider buy with a safety @ 40, give a hard look @ 42

Maximus (MMS) - This is an attractive stock with mostly buy and strong buy ratings by analysts. The biggest long shot of my buy group; buy at my old post rec price of $29 & 30 dollars.

Online Resources (ORCC) - We loved this stock when the CEO promised he would put up his own money to buy shares of this stock. And we bought around $8.9 dollars a share. Anything under screams BUY

Radisys (RSYS) - Guess who's back! This stock was a 50% gainer for us last year, when we dollar cost averaged our purchase prices on this stock at levels between $10.60-13. We sold when it hit @17 and smiled all the way to the bank. Well it hit my STOCK SCREEN AGAIN, and I will be adding Radisys back to my portfolio. The recent 10 - 15 low is $12.25 and that is where I will set my buy target. This stock closed at 12.19, and with this stock back to my old buy recommendation levels, I am RE-Recommending this stock. I truly don't believe it will test its 52 week low of $10.50 and we have the help of an earnings release in early February that could propel this stock forward.

Zhone Technologies (ZHNE) - I am going to recommend Zhone Technologies and believe that dollar cost buying down at these levels will have positive upside. This has buy a roller coaster ride and hopefully after the short sellers have to recover there will be huge swings to the upside for this stock.

The Proof is in the Pudding

Now if anything else was inside my pudding I would be afraid, very afraid. Its almost sounds like something Bill Cosby would have mentioned in one of his Jello Pudding Pops commercials. This annoying phrase was hammered into my head when I first started my career. And I think this catch phrase is used when people want to emphasize focusing on just the facts (i.e., you can’t confuse chocolate pudding with vanilla). So in the last three months the proof is in the our recent investment decisions.

Here is a summary of some of the decisions that we’ve made recently:

Positions with positive returns:

Best Buy (NYSE: BBY) – Up roughly 18% in 3 months
Burlington Northern Sante Fe (NYSE: BNI) Up roughly 12% in 3 months
Medcath (NYSE: MDTH) – Up roughly 7% in less than 1 month
Online Resources (Nasdaq: ORCC) Up roughly 13% about 1 month
Zhone Technologies (Nasdaq: ZHNE) Up roughly 11% in less than 1 month

Positions with a flatline or negative return:

Adaptec (Nasdaq: ADPT) – Down less than 1% in around 3 months; since early recommendations I am down 4% in more than 6 months

Rite Aid (NYSE: RAD) I will give a few scenarios for this stock b/c you would have likely experienced one of these situations (See my social picks tracker to the right to verify these percentages)
- If you’ve been along for the ride since the beginning of my RAD recommendations and sold your entire position based upon my November 21st posting (http://urbanomics.blogspot.com/2007/11/drink-and-my-2-step.html) you are down roughly 16%
- If you’ve been along for the ride since the beginning of my RAD recommendations and reduced your RAD position based upon my November 21st posting (http://urbanomics.blogspot.com/2007/11/drink-and-my-2-step.html), the portion you still own is down roughly 7%
- If you got lucky and only started following RAD since my October 26th posting (http://urbanomics.blogspot.com/2007/10/it-must-be-butter.html), you are actually up roughly 2%

Here is my note on RAD, so that I continue my ways of completely disclosing the truth. Some people may feel that it is unfair to list multiple outcomes of how things would have turned out if you actually owned RAD’s stock, but I have to do this because everyone’s decisions to BUY, SELL, or DOLLAR COST AVERAGE DOWN may not be consistent with when I post for my readers to take those actions. If you would consistently followed my postings you would have bought RAD at least twice:
- Initial BUY on October 6th and a Dollar Cost Average Down BUY on October 26th

To further complicate things I gave 2 recommendations on my November 21 to ‘Outright Sell” all your position or “Reduce Sell” some of your position in RAD. How you pay attention to my recommendations based upon your situation would have given you one of the three outcomes listed aboved.

My Actions: I chose to sell outright ALL my positions of RAD on November 21st for a 16% loss. This was because I had made the mistake of having to large of a position in the stock and it was negatively affecting my portfolio. I felt that I could better use that capital on my next 2 picks (MDTH & ZHNE) and I was right. If I didn’t have two new picks that I could have earned a better return on, I would have just reduced my position and I would experiencing the middle outcome of only a 7% decline so far. Notice that’s why I did not sell my RAD positions in my tracker portfolio (Socialpicks) located on the right side of my blog, because I still believe in the stock and its ability to still give readers a strong return.

Soon to come here @ URBANOMICS
I will outline how to trade based on my postings in case this has ever been a concern of yours. (This could be the case because Jim Cramer wrote a book for his viewers on how to trade based on his shows)
Finally I will highlight this year’s performance and the good, bad, and downright horrible decisions we made this year.

Black Friday Shopping

Isn't it funny that someone somewhere marketed the day after Thanksgiving as Black Friday. It has become the day where no one gets any sleep and we all get up and spend money selfishly. Kinda the opposite thinking for the day day before...THANKSGIVING! How many people are out there buying things to give them away to the less fortunate. Not many is what I'm guessing, but hey what do I know. But come to think of it a new GPS navigation system has been on my list for awhile and its funny that I am bullish of this industry as I think this will continue to be the trend.

I guess I am feeling like a little bit of a scrooge today because with a little bit of a rebound today in the market (its up roughly 1%) that my portfolio isn't moving in line with the market today. I even have Best Buy in my portfolio so what gives. So on a day like this when I should be shopping, I will give you my random thoughts of stock recommendations and things I've heard as I've kept my ears to the street:

E-trade (ETFC) - The rumors are this stock may be up for SALE, what the #$%$#. How is this possible, those pesky mortgages are likely the reason. Its up roughly 20% today on news that it could sell itself to TD AMERITRADE (AMTD) OR CHARLES SCHWAB (SCHW)

The retailers are making a move today, Target (T), Walmart (WMT), Kohls (KSS), Best Buy (BBY), Circuit City (C), and others are moving higher.

Urbanomics Recommendation of the Day:

I have had this one on my BUY list but I can't remember if I have ever formally recommended it here. The stock is Electro Scientific Industries (ESIO) Buy Price @ $19.47

It Must Be Butter...

It must be butter, cause we’re on roll! Now I have to give credit to my boy, Stuart Scott from ESPN who popularized this phrase. Another pioneer who is doing big things, appreciates hip hop, and changed the way we view our television hosts. Now hopefully I can do that for you through this site and on the subject matter of financials (mainly stocks).


~Urbanomics Update ~

Yes sir how did you like the last post where we analyzed Advent Software (ADVS). Just two months ago I told you that this stock, which was already moving in a positive direction, had more room to go. And you know through my investment style all we needed was what I have called a catalyst (Use the search tool to see how many times I talked about catalysts) Now in my short time of watching the market, I’ve noticed that a number of stocks move quickly up or down after a catalyst has been communicated to the masses. That catalyst for ADVS was apparent to a few of us in a number of different ways. Once we found our entry point into this stock, we paid attention to the information that ADVS was giving us through its press releases. I know your thinking, now how hard was that!!! Sorry no magical equation, we just simply paid attention to the fact that ADVS was disclosing through press releases that business was cranking through the roof. In one of their releases ADVS told us that they have developed or enhanced a new product and tons of their clients were signing up to use. Now again, I’m not a genius but this sounds like a solid indicator that their earnings are going to move higher over time, which means the stock price should follow...this was confirmed early through our daily ritual of looking for information on our stocks (See Zacks Newsletter disclosure). So the stock didn’t just take off over night…it was creeping here and there giving us a number of times to buy in at great prices. Remember, ADVS was recommended by URBANOMICS @ 39.25 (click here for: ADVS Recommendation ) and has been up between 15-25% since that recommendation.

But a well known secret that I believe savvy investors take advantage of it was I call the Water Cooler Investor effect. This happens when everybody and their mother get the inside tip from a website, the news, or a friend that a stock is going to do well. When this happens, a catalyst has triggered your Water Cooler Investors to jump on board and we will see huge trading volumes in those stocks. This is what happened to ADVS...it reported earnings (catalyst) confirming exactly what they had told us in press releases for the past few months and when this was discussed in their Earnings Release Conference Call, major news outlets spread the news to our Water Cooler Investors. What was the result, hordes of investors flocked to ADVS and raised the stock up roughly 19% in one day. This was the Leading Percentage Gainer of the Day yesterday and made us all very happy. I will now recommend that you sell ADVS at these levels because while they will continue to grow, the effect of our catalyst will die down in the weeks and months to come.

The perfect scenario is that you own alot of the stock, sell enough to gain your original investment back and some profits, and they play with the house's money. ADVS will be a great stock for years to come but unless you own a substantial amount we can put these gains to better use. I often get the call you show you more proof that our strategy works here at Urbanomics, well do a quick review of some of our recommendations:

ADVS - a return of over 30% in the last three months
MSFT - up 9% today as a result of a catalyst; up 30 since first recommended
RSYS - up 9% today b/c of catalyst; up roughly 5 - 30% depending on when you bought it
BBY - a large value stock that is up 10%
BNI - a large value play that is up almost 10% since first recommended

We also highlight the stock that could do better:
Rite Aid (RAD) - recommended @ 4.45, I still believe in Rite Aid and believe this should be bought at 3.95 or lower to build up our shares in this stock.
Avid Technology (AVID) - This stock was up and could have been sold for a profit; recommended @ 32 and now at 28; I believe that AVID has a longer road to recovery but this stock should be repurchased at levels that approach its 52wk low of 25.55
Adaptec (ADPT) - This one could have been sold for a profit; check the press releases b/c private equity is tightening the reigns around this company in trying to win a board seat. Superman price is 3.23, but nibble at building positions whenever the stock drops below 3.40

Space Age Pimpin' - Space Age Portfolio

Ok folks time to get your portfolio Space Age Pimpin', well into the next few decades. What does this mean? By following the Space Age Portfolio, readers here at Urbanomics will finally be able to buy stock they are looking to hold long term. As most of you know I am your favorite Urban Economist and that's why you see my boys Eightball and MJG here ->




They were early pioneers in the rap game and I am pioneering the stock investment game with a little bit of Urban flavor. Yeah, I know that my boy Jim Cramer and the guys at Fast Money are pretty cool but they got nothin' on me. My strategy is like my basketball game...very versatile. I generally look for undervalued stocks that will experience some type of near term catalyst that will catapult the stock into a great momentum trade and turnaround story. Want proof, follow my recommendations that have been posted: MMS, CLCT, MOBE, each purchased in the last 6 months with returns over 25%. Need more, I own 2 stocks that will like be bought out this year after merger talks are over: Sallie Mae (SLM) & Cytyc (CYTC). But on to what you want to hear. What about the stocks that will have your back for the long term.

Here goes, the goal of this portfolio will be to pick stocks across a diverse group of industries, that are best in class, and have the opportunity for both price appreciation and income potential. Let's start with my favorite industry so far, OIL. With this group I have to go with ConocoPhillips...yes I am

piggybacking their most recent upgrade by Bank of America and it does hurt that they just disclosed a stock buyback program of roughly 15billion.

ConocoPhillips (COP)


Next, I am going out to one of my long term income potential plays. You will benefit because real estate stock is a REIT and those dividend payments can help grow our portfolio. GGP also operates in two segments retail and master planned communities. So you get retail, land owner, and landlord all in on. Real estate has taken a little bit of a beating so jump on board, now.




General Growth Properties (GGP)




No long write up for this one, because I've already told you why to own it but add this retail player to your portfolio.


Best Buy (BBY)

Wrap up your portfolio with exposure to Utilities. Why?...Because it is too damn hot outside. Man and with this heat wave out there what is every one doing at home turning up the Air Conditioner. And when the A/C goes on, the utility man gets PAID. Ka-Ching. So load up with this exchange traded fund (ETF):



XLU

Your Best Bet is "Best Buy"

I read a pretty interesting article on one of my favorite retailers, Best Buy (BBY). Morningstar is an industry leading financial analysis firm and recently included BBY in an article called “The Market’s Got It Wrong On These 5 Stocks”. I want to bring BBY to the attention of all the Urbanomics followers out there.

People often ask me, “What’s Your Strategy?”. And often I can’t give them a polished and insightful Wall Street response. My strategy is quite simply to follow in the mantra of Rick Ross, “Hustlin’”. Everyday I am hustlin’…hustle smarter and in some cases harder. So I keep my ears to the Street…literally and look for themes that I often agree with. I don’t recreate the wheel, I pay homage to those who have come before me and use the tools they put in place to learn how to ball out of control. I will admit that the stocks I have normally gravitated towards are deeply undervalued stocks that will benefit from the momentum of the market to catapult them to the returns that I am looking for. I know, I know…I am new school too and too much yapping and not enough proof is what we all want. Let look at a few of my purchases in the last few years, which have been consistent with this theme:

I am including a link to the Morningstar article so that you can read one of their writer’s views on why the street has this stock wrong. I agree with most points raised in this article. Best Buy has some of the key things I look for when I follow Warren Buffet, Peter Lynch, and the Urbanomic strategy.

Buffet Likes Because: This is a best in class stock that is undervalued. The stock has been beaten down and thanks to a poor earnings release, hammered even more (I know, I’m getting excited). This creates a good entry point near the 52 week low and what I think is some margin of safety (I’d rather by BBY on the way down then when they are up).

Lynch Would Be Proud Because: You buy stocks that you know and are familiar their product or business. I practically know where everything is in a BBY store.

Urbanomics Is Hustlin’ Because: Buffet and Lynch like a number of things about this stock. Urbanomics also like the fact that this stock is beaten down (like they stole somethin’), best in class, and there is a catalyst. BBY is raising its dividend payout and implementing a share buyback. Finally, we get a chance to buy this stock ahead of the winter season. And we all know retailers, will be cashing in during the holidays and earnings will see a much brighter day.

Morningstar article:
http://news.morningstar.com/articlenet/article.aspx?id=197250&pgid=wwhome1a