Stock Tutorial & New Simulator Adds

What you will now find is a quick tutorial on how to use Urbanomics added here to the blog. First let’s start off with reading every post that you find here. I know a bit of a shameless plug but reading the posts will give you a little background on the current state of the markets, my stock selections, and more importantly when to make the purchase.

I believe in finding a strategy that works for you and then identifying perfect points of entry to invest in the stocks you’ve selected. While some investors have a top down approach, I don’t attempt to invest in stocks by building an ideal portfolio of diversified investments (that’s what mutual funds and exchange traded funds are for). Active stock selection, a bottom-up approach, allows me to capitalize on the moments where I believe the market has gotten it wrong and the odds are in my favor. This strategy is similar to poker where I then use my chips to make large purchases in a stock that gives me a highly probable opportunity of obtaining the returns…worth my risk.

Example of how it works:

1. Market Research
http://urbanomics.blogspot.com/2008/04/i-dont-believe-underlying-economics.html
http://urbanomics.blogspot.com/2008/04/perfect-storm.html
http://urbanomics.blogspot.com/2008/05/hype.html

2. Stock Selection
http://urbanomics.blogspot.com/2008/05/this-just-in.html
http://urbanomics.blogspot.com/2008/04/touch-my.html
http://urbanomics.blogspot.com/2008/03/picks-based-on-recent-posts.html

3. Stock Simulator
Many of the recommendations that I make will be added to the simulator for research and results tracking. For instance, the post “This Just In” I loved 4 stocks, and our strategy must be working well because a recent update finds these stocks taking off since MAY!!!:

Patriot Coal (PCX) – Since our May 1st posting, this stock has risen from 66 to the low 90s. Damn Gina, can’t believe how on the head we hit this one.
Avid Technology (AVID) – Nice gain from 20.44 to a little over 22 and some change
Owens Corning (OC) – Another nice gain from 20 to 27
Amylin (AMLN) – Solid gains from 28 to 32
Use this link to see for yourself when we selected these stocks that fit our strategy:
http://urbanomics.blogspot.com/2008/05/this-just-in.html

Not all these picks get added to the simulator timely because I actually have a job for a living but also because I patiently wait for the most optimal discounted prices to begin accumulating shares. Here is a list of stocks being added to the simulator:

Added:
New York Times (NYT)
Move Inc (MOVE)

Honorable Mention:
Jeffries Group (JEF) – Getting closer to levels of accumulation
Amylin (AMLN) – I love the action in this stock and think that is has sooooo much upside!

Touch My...

Now I would love to finish the title of this post with a song I can't get out of my head..."Touch My Body" by Mariah Carey. What's crazy is people will say she's too old for me but whats wrong with a mature older woman thats seems to get better with old age. And to make matters worse the remix ain't half bad either!

But I know you're thinking, this is way too much information (TMI) and what does this have to do with stocks. Well...nothing so how about I let you into my mind and let's elaborate a little bit more on some of the stocks that are lighting up my radar. I call this the "Touch My Stocks" portfolio, even though they will never replace my Mariah. And what better to start my list off with then a truly gentlemen stock, Rick's Cabaret. As always I emphasize, only buying stocks at great price points that give you the opportunity to jump in a favorable discount. Its tough to wait for these levels but we must be patient.

Touch My Stocks Portfolio:

Ricks Cabaret (RICK)
Superman Price: 14.80
Accumulate from anywhere below 16.90

New York Times (NYT)
Price: 18.68
Accumulate from anywhere below 19.87
Note: Eager to see that private equity firms have pushed and obtained 3 seats on the NYT Board of Directors and may look to push strategic alternatives; also NYT is a proud family owned members and they may want to sell before the private equity firms begin to call the shots...do I hear another media firm sale to Rupert Murdoch

Move Inc (MOVE)
Accumulate from anywhere below 3.05

Asset Acceptance Capital (AACC)
Accumulate from anywhere below 10.89

Coinstar (CSTR)
Accumulate from anywhere below 29.04
Thinking about pulling out my cape and supermaning the stock @ (28.50)

H&R Block (HRB)
Accumulate from anywhere below 19.26

Jeffries Group (JEF)
Superman: 14.82
Accumulate from anywhere below 17.59

Tough Times

I don't believe the underlying economics have changed right now for the US. Need more proof check out the personal testimonials of American's across the country. These are everyday people and they are sharing how the recession, inflation, credit crunch, and housing bubble are affecting them. See this story from CNN.COM:

http://money.cnn.com/galleries/2008/news/0803/gallery.real_stories/index.html

So with these realities right in front of us. I still REPEAT that I like same industries that I have been discussing for the last few months.

Commodites - Examples are steel, oil, gas
Technology
International & Multinationals
Popular Product Companies - Research in Motion (blackberry), Netflix, Apple

URB RADAR:
Check out a few of the companies that have come up during my screens:

Ricks Cabaret (NASDAQ:RICK)
New York Times (NYSE:NYT)
Phillip Morris International (NYSE:PMI)