All I could do was smile as I filled up my SUV this weekend. Somehow when I was purchasing this truck late last year I was a part of the majority of you all out there that was saying that prices can't keep rising forever. I am not a nostalgic person but I was smiling because I will be able to tell my kids one day that I filled up one tank of gas for $70. But then I will tell my kids that dad ain't no dummy and I might as well "make my pain my gain".
That's means that you think about buying what has been hurting you the most:
Gas - Anyone that is a buyer of gas is feeling like they ate a whole bunch of tomatoes recently. But remember don't just buy it because it has 'energy' it its name. Look back at my posts and I told you not to buy the refiners because they are also 'buyers of gas' so this makes them a lousy play. But I love the Oil Services sector and added it to my Stock Tracker to the right of the page.
Steel, Copper, Gold - Now you may not know it but these metals ain't cheap and there are plenty of plays in this area to make money off of. I love the pick that I added to the Stock Tracker, AK Steel but it buddy US Steel just got a major upgrade and I still love this sector. Copper feels much the same so look out for names like Freeport McMoran and when talking about gold take the easy route for searching for a name and buy an Exchange Traded Fund (ETF) that specializes in a little bit of bling!
Speculation - The other thing that people have been talking about is market speculation, or people profiting by trying to drive certain markets higher. To benefit start looking at the alternative energy plays that are risky but could be worth the payoff. Solar energies like Evergreen Solar, First Solar, MEMC Electronics, Canadian Solar and the list goes on. And even our friend wind is starting to look good as plays like Broadwind Energy may continue to get pushed up by speculators.
Shorts - Try not to think to much and short the stupid plays. Shorting a stock is making a bet that a stocks price will go down. UPS and FEDEX are easy plays to see why they are getting smashed. They transport good and the price of fuel is skyrocketing...SELL. And when people can't buy the toys they want retailers like Circuit City and Pier 1 Imports, the automakers Ford and GM, and airplane companies like United and Delta will continue to fall like bodies in the movie Terminator. Also I am going out on a small limb and say short AT&T. With the exclusive rights to the I-Phone, I was watching on tv where an analyst felt like the amounts they are paying to subsidize the I-Phone will hurt the stock in the short term.
Go with the flow, the trend is your friend, and make everyone's pain your gain...buy energy, natural gas, steel and we'll tell our kids later about where we were when we made money off $5 gas prices.
Monday, June 23, 2008
Thursday, June 19, 2008
Cali Love ~ June URB Update
I took a few days off to head over to the West Coast last week. I was living it up in the state of sun, taking care of business for my boy TP who just got married...if you don't know then check out webeclubbin.com for more on the right way to live and enjoy life.
I have been watching the market closely because it seems to be bouncing like a coaster at Six Flags Great America. The catch is the ride has been heading south more than it has been gliding up. I am here to report on what I've been paying attention to the most to keep you informed on new developments. I have to admit not much has surprised me, as most analysts are very negative on the US stock market. Some fools out there keep trying to catch the bottom of sectors such as the financial industry but who knows when they will learn. Let's see, Wachovia got smashed and cut their dividend, Bank of America is not doing much better, and regional banks like National City and others are feeling the pain and strain. I am watching oil closely as many people are taking a good game but little do they forget the fundamentals haven't changed and until someone (maybe Saudi Arabia) raises oil production little will be done in the short term!!!
June URB Updates
China Digital TV Holdings (NYSE: STV) is a BUY in my mind from a valuation standpoint. The background is set as China has opened it arms like the rest of the world to the digital revolution that is taking place. I am hoping the stock will be pushed by requirements from the Chinese government that major cities convert from analog to digital (sound familiar) by the end of this year!! Next think Olympics, my reasons may be simple but who in their right mind would want to watch the 2008 Olympics with just an analog signal...not me.
Zhone Technologies (NASDAQ: ZHNE) and heartburn might be one and the same. This stock I believe is dropping due to the fact that NASDAQ has notified the company that it will be delisted because of failing to meet listing requirements because the stock has been trading under $1 for over 30 days. Pay close attention to this stock as penny stocks can move very quickly to the downside. I would recommend cutting your losses as there are other battles to fight and even though this stock is in a great industry (technology) and growing sector (telecommunications) there will be other days.
Burlington Northern Sante Fe is a stock that has been mentioned plenty of times here and I would also recommend taking a little profit here because future earnings estimate forecasts are starting to come down and remember we were watching the executives of the companies sell massive amounts of stock. Interesting timing since the company just reported that floods and fuel costs are starting to hamper their business.
National City Corporation (NCC) will remain a volatile stock for the short term but it appears to be holding up well especially around the BUY levels we identified as close to book value. I still have some concern because banks are coming out every day and scaring us with more and more write downs. But they have beefed up their cash levels and have a host of analysts rating them as a buy.
Notes: I have purchased STV in my stock tracker and personal portfolio. I am closely monitoring ZHNE, BNI for sells, and NCC for purchase. Bulls and Bears make money...pigs and fools holding on to losses for pride get slaughtered!!
I have been watching the market closely because it seems to be bouncing like a coaster at Six Flags Great America. The catch is the ride has been heading south more than it has been gliding up. I am here to report on what I've been paying attention to the most to keep you informed on new developments. I have to admit not much has surprised me, as most analysts are very negative on the US stock market. Some fools out there keep trying to catch the bottom of sectors such as the financial industry but who knows when they will learn. Let's see, Wachovia got smashed and cut their dividend, Bank of America is not doing much better, and regional banks like National City and others are feeling the pain and strain. I am watching oil closely as many people are taking a good game but little do they forget the fundamentals haven't changed and until someone (maybe Saudi Arabia) raises oil production little will be done in the short term!!!
June URB Updates
China Digital TV Holdings (NYSE: STV) is a BUY in my mind from a valuation standpoint. The background is set as China has opened it arms like the rest of the world to the digital revolution that is taking place. I am hoping the stock will be pushed by requirements from the Chinese government that major cities convert from analog to digital (sound familiar) by the end of this year!! Next think Olympics, my reasons may be simple but who in their right mind would want to watch the 2008 Olympics with just an analog signal...not me.
Zhone Technologies (NASDAQ: ZHNE) and heartburn might be one and the same. This stock I believe is dropping due to the fact that NASDAQ has notified the company that it will be delisted because of failing to meet listing requirements because the stock has been trading under $1 for over 30 days. Pay close attention to this stock as penny stocks can move very quickly to the downside. I would recommend cutting your losses as there are other battles to fight and even though this stock is in a great industry (technology) and growing sector (telecommunications) there will be other days.
Burlington Northern Sante Fe is a stock that has been mentioned plenty of times here and I would also recommend taking a little profit here because future earnings estimate forecasts are starting to come down and remember we were watching the executives of the companies sell massive amounts of stock. Interesting timing since the company just reported that floods and fuel costs are starting to hamper their business.
National City Corporation (NCC) will remain a volatile stock for the short term but it appears to be holding up well especially around the BUY levels we identified as close to book value. I still have some concern because banks are coming out every day and scaring us with more and more write downs. But they have beefed up their cash levels and have a host of analysts rating them as a buy.
Notes: I have purchased STV in my stock tracker and personal portfolio. I am closely monitoring ZHNE, BNI for sells, and NCC for purchase. Bulls and Bears make money...pigs and fools holding on to losses for pride get slaughtered!!
Monday, June 09, 2008
Kenya IPO / National City / The New Gold??
Kenya IPO - Safaricom
Back in March, I wrote about Safaricom the telecom giant of Kenya. This recommendation highlights a great way where communicating with your friends leads to great stock recommendations. After understanding the risks involved, I noted that this would be a great play in the international markets especially because the local US environment isn't exactly overflowing with gigantic returns. I was pleased to read today the Safaricom's Initial Public Offering rose roughly 50% today. The one difficulty the average investor may have run into is that because it was an international IPO there weren't as many ways to participate in this offering outside of having some type of link to Morgan Stanley an advisor to Safaricom. Check out our earlier discussion here: http://urbanomics.blogspot.com/2008/03/march-edition-urb-in-60-seconds.html
NATIONAL CITY - IS IT TIME TO BUY???
National City (NYSE: NCC) dropped over 83 percent in the previous 12 months. Time after time we have continued to comment about the weakness in the financial sector. Need more proof, check out Lehman Brothers, Washington Mutual and National City as examples of banks under fire and almost under water. I got a call the other day from a friend who said is it time to buy, so I began my research of this company and turned up some positive information. I was surprised and comforted by the recent upgrades by Deutsche Bank AG and KBW. However, I also stumbled along an article about the fact that NCC is under a Memorandum of Understanding or MOU with a regulatory banking agency. From my experience of auditing banks, an MOU is not a good look. As a matter of fact is down right ugly and means that the regulators are not very happy with your financial standing as a bank that is federally insured by the government. I also read that NCC book value price, if all the assets were sold, would roughly place the share price at $4.70. However my only problem is that some analysts may be placing value on some assets that no longer have value. So I am recommending at this point that if you truly want to own this stock, take the book value and discount this price to the point that you can sleep easy at night. I am not in a hurry to catch a bottom for financial stocks, so stay tuned to see if I change my mind.
THE NEW GOLD
The new gold will be solar or wind energy. I've got some views on both of these areas so check back with me soon.
Back in March, I wrote about Safaricom the telecom giant of Kenya. This recommendation highlights a great way where communicating with your friends leads to great stock recommendations. After understanding the risks involved, I noted that this would be a great play in the international markets especially because the local US environment isn't exactly overflowing with gigantic returns. I was pleased to read today the Safaricom's Initial Public Offering rose roughly 50% today. The one difficulty the average investor may have run into is that because it was an international IPO there weren't as many ways to participate in this offering outside of having some type of link to Morgan Stanley an advisor to Safaricom. Check out our earlier discussion here: http://urbanomics.blogspot.com/2008/03/march-edition-urb-in-60-seconds.html
NATIONAL CITY - IS IT TIME TO BUY???
National City (NYSE: NCC) dropped over 83 percent in the previous 12 months. Time after time we have continued to comment about the weakness in the financial sector. Need more proof, check out Lehman Brothers, Washington Mutual and National City as examples of banks under fire and almost under water. I got a call the other day from a friend who said is it time to buy, so I began my research of this company and turned up some positive information. I was surprised and comforted by the recent upgrades by Deutsche Bank AG and KBW. However, I also stumbled along an article about the fact that NCC is under a Memorandum of Understanding or MOU with a regulatory banking agency. From my experience of auditing banks, an MOU is not a good look. As a matter of fact is down right ugly and means that the regulators are not very happy with your financial standing as a bank that is federally insured by the government. I also read that NCC book value price, if all the assets were sold, would roughly place the share price at $4.70. However my only problem is that some analysts may be placing value on some assets that no longer have value. So I am recommending at this point that if you truly want to own this stock, take the book value and discount this price to the point that you can sleep easy at night. I am not in a hurry to catch a bottom for financial stocks, so stay tuned to see if I change my mind.
THE NEW GOLD
The new gold will be solar or wind energy. I've got some views on both of these areas so check back with me soon.
Saturday, May 31, 2008
The Price is Right
As always I am looking for information to identify when our investments have reached their true valuation. This is very key because too often as investors we struggle with selling a good stock too soon or holding on to a bad one too long. It reminds you of the contestants on The Price is Right because no one can seem to guess correctly. So you know I keep my ears to the streets and this is the information I found on Clayton Williams (CWEI) and Burlington Northern (BNI).
First up is an analysis of CWEI, courtesy of ZACKS INVESTMENT RESEARCH:
We are maintaining our Buy recommendation on small-cap company Clayton Williams Energy, Inc. ( CWEI ), but raising our estimates and price objective on account of an updated price deck. The stock's recent strength of the stock makes it evident that the market is taking another look at it after staying from the Clayton story given management's appetite for wildcat exploration with less than stellar results and a highly levered balance sheet. The current surge in oil prices no doubt serves as a very important backdrop.
We believe that Clayton's proved developed reserve base is not getting the value it deserves in the market. The company is devoting more resources to oil drilling in the Permian Basin and Austin Chalk, which is expected to bring a substantial amount of oil production online in 2008 and 2009. We are raising our earnings view to $7.48 from $5.90 per share for 2008 and to $9.46 from $6.38 per share for 2009.
With prices locked in place, Clayton's revenue streams and cash flows should be consistent and more attractive to investors. Energy markets are also likely to remain extremely volatile. The company has effectively mitigated its exposure to price swings. These factors should help Clayton's price appreciate in the near term. Our revised price target of $96 is the result of a multi-faceted valuation approach anchored by our after-tax NAV estimate.
Next is a report of BNI from the Associated Press:
NEW YORK (AP) -- The chairman, president and chief executive of railroad operator Burlington Northern Santa Fe Corp. sold 23,919 shares of common stock, according to a Securities and Exchange Commission filing Tuesday.
In a Form 4 filed with the SEC, Matthew K. Rose reported he sold the shares Thursday for $108 to $108.49 apiece.
My take on this information is that CWEI will continue to rise because of many of these things that Zacks identified in their analysis. Their report was written on Tuesday May 27 and look what the stock price did on Friday, an 11% spike to over $94. To see how far we've come on this stock read the most recent posts on CWEI. And my view of BNI is that I will closely monitor it because of the number of executives that are selling shares in the company. It concerns me but I will maintain my current position until who knows...when Buffet sells.
Urbanomics ~ A site where the average person can learn to invest, manage their finances, ask stock and retirement questions in a format that easy to understand.
First up is an analysis of CWEI, courtesy of ZACKS INVESTMENT RESEARCH:
We are maintaining our Buy recommendation on small-cap company Clayton Williams Energy, Inc. ( CWEI ), but raising our estimates and price objective on account of an updated price deck. The stock's recent strength of the stock makes it evident that the market is taking another look at it after staying from the Clayton story given management's appetite for wildcat exploration with less than stellar results and a highly levered balance sheet. The current surge in oil prices no doubt serves as a very important backdrop.
We believe that Clayton's proved developed reserve base is not getting the value it deserves in the market. The company is devoting more resources to oil drilling in the Permian Basin and Austin Chalk, which is expected to bring a substantial amount of oil production online in 2008 and 2009. We are raising our earnings view to $7.48 from $5.90 per share for 2008 and to $9.46 from $6.38 per share for 2009.
With prices locked in place, Clayton's revenue streams and cash flows should be consistent and more attractive to investors. Energy markets are also likely to remain extremely volatile. The company has effectively mitigated its exposure to price swings. These factors should help Clayton's price appreciate in the near term. Our revised price target of $96 is the result of a multi-faceted valuation approach anchored by our after-tax NAV estimate.
Next is a report of BNI from the Associated Press:
NEW YORK (AP) -- The chairman, president and chief executive of railroad operator Burlington Northern Santa Fe Corp. sold 23,919 shares of common stock, according to a Securities and Exchange Commission filing Tuesday.
In a Form 4 filed with the SEC, Matthew K. Rose reported he sold the shares Thursday for $108 to $108.49 apiece.
My take on this information is that CWEI will continue to rise because of many of these things that Zacks identified in their analysis. Their report was written on Tuesday May 27 and look what the stock price did on Friday, an 11% spike to over $94. To see how far we've come on this stock read the most recent posts on CWEI. And my view of BNI is that I will closely monitor it because of the number of executives that are selling shares in the company. It concerns me but I will maintain my current position until who knows...when Buffet sells.
Urbanomics ~ A site where the average person can learn to invest, manage their finances, ask stock and retirement questions in a format that easy to understand.
Thursday, May 22, 2008
Hot Topics - Oil, Housing, & the Economy
A common question people have these days is how is someone expected to maintain or get ahead when prices keep going up everywhere you look. Well, I will admit I don't have an answer for each and every person but when times get tough you have to get a real understanding of how much money you are making and even more importantly where is ALL YOUR MONEY GOING. I am in the trenches with you and we have to work even harder to win the war against debt, bill collectors, and crazy spending habits.
To win the battle we have to have a great strategy and understand what we are up against. If you are living in the same world that I am, we are fighting higher oil prices, declining home values, and a slumping economy. Here is a quick summary of our opponents:
People are losing jobs: The financial capital of the world, New York City, estimates job losses to the financial industry which also represents their highest-paid workers and a huge source of tax dollars. They are estimating the losses are very similar to the 2001 time period another time when the economy felt the impacts of a recession.
People ain't paying loans back: The Federal Reserve reported that more people are delinquent across all industry except agriculture (probably because they are making big bucks on high food prices). Some people have stopped paying their credit card bills and those numbers ironically are roughly around the same mark to the 2001 recession. They are watching closely to see if we reach levels that were similar to 1991, another period of economic recession.
Mortgages and the housing industry is a mess: Not only did buyers take on houses they could not afford but how many people do you know that bought huge places way out in some random suburb. These were incorrect bets because most jobs are not located in these remote suburbs and long commutes are very expensive and its harder to sell your home when times get tough...all bad miscalculations that have caused home prices to decline.
People are not pimpin their rides: Car industry experts are predicting people won't be buying as many new cars and threw a chance of a rebound in 2008 out the window. Need proof take this weeks forecast by Ford (F), then yesterday's comments by General Motors (GM). Both said car sales will be horrible and imagine that, GM's stock is trading a levels that haven't been seen in 26 YEARS!! So if you are buying a car, enjoy but do you really want that Range Rover now and all the gas it guzzles.
The Repo man is tired: When people were buying houses they had to keep up with their neighbors and also buy boats. As houses dropped people stopped those boat rides which take gasoline and diesel and cost hundreds and thousands to fuel. And when you can't sell because no one want to buy then you stock paying...and people have stopped paying on boats, cars, bikes and any other thing that you buy with a loan and that means that banks are calling on the REPO MAN.
POSSIBLE PLAYS
On to my recommendations after understanding your Hot Topics. The repossession industry is finally a sexy business because banks want their stuff back. Oddly enough a company came up on my screening this month (which makes sense) and we have a few stock picks for you:
Credit Acceptance Corporation (NASDAQ: CACC)
Asset Acceptance Corporation (NASDAQ: AACC) - Search Urbanomics for the recent recommendations about this stock. And notice how it has been scorching hot since then. I am waiting for any pullbacks and loading up on the REPO MAN
Urbanomics ~ A site where the average person can learn to invest, manage their finances, ask stock and retirement questions in a format that easy to understand.
To win the battle we have to have a great strategy and understand what we are up against. If you are living in the same world that I am, we are fighting higher oil prices, declining home values, and a slumping economy. Here is a quick summary of our opponents:
People are losing jobs: The financial capital of the world, New York City, estimates job losses to the financial industry which also represents their highest-paid workers and a huge source of tax dollars. They are estimating the losses are very similar to the 2001 time period another time when the economy felt the impacts of a recession.
People ain't paying loans back: The Federal Reserve reported that more people are delinquent across all industry except agriculture (probably because they are making big bucks on high food prices). Some people have stopped paying their credit card bills and those numbers ironically are roughly around the same mark to the 2001 recession. They are watching closely to see if we reach levels that were similar to 1991, another period of economic recession.
Mortgages and the housing industry is a mess: Not only did buyers take on houses they could not afford but how many people do you know that bought huge places way out in some random suburb. These were incorrect bets because most jobs are not located in these remote suburbs and long commutes are very expensive and its harder to sell your home when times get tough...all bad miscalculations that have caused home prices to decline.
People are not pimpin their rides: Car industry experts are predicting people won't be buying as many new cars and threw a chance of a rebound in 2008 out the window. Need proof take this weeks forecast by Ford (F), then yesterday's comments by General Motors (GM). Both said car sales will be horrible and imagine that, GM's stock is trading a levels that haven't been seen in 26 YEARS!! So if you are buying a car, enjoy but do you really want that Range Rover now and all the gas it guzzles.
The Repo man is tired: When people were buying houses they had to keep up with their neighbors and also buy boats. As houses dropped people stopped those boat rides which take gasoline and diesel and cost hundreds and thousands to fuel. And when you can't sell because no one want to buy then you stock paying...and people have stopped paying on boats, cars, bikes and any other thing that you buy with a loan and that means that banks are calling on the REPO MAN.
POSSIBLE PLAYS
On to my recommendations after understanding your Hot Topics. The repossession industry is finally a sexy business because banks want their stuff back. Oddly enough a company came up on my screening this month (which makes sense) and we have a few stock picks for you:
Credit Acceptance Corporation (NASDAQ: CACC)
Asset Acceptance Corporation (NASDAQ: AACC) - Search Urbanomics for the recent recommendations about this stock. And notice how it has been scorching hot since then. I am waiting for any pullbacks and loading up on the REPO MAN
Urbanomics ~ A site where the average person can learn to invest, manage their finances, ask stock and retirement questions in a format that easy to understand.
Sunday, May 18, 2008
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!
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!
Friday, May 09, 2008
The Hype
The hype comes in all shapes and forms. For most of us avid Wall Street fans we may read or hear about it through our favorite shows, blogs, or newspapers. And the hype reminds you of the teams like the New England Patriots. A great team that was poised to win it all. Many people overlook the fact that there were a number of games that New England could have and should have lost during the regular season and post season before the let down loss in the Superbowl. A number a games would have told you not to believe the hype like the Indianapolis Colts or New York Giants regular season games that exposed the Patriots. Now lets take a similar view to the market right now. Yes, people are excited because the markets are moving up and the Dow even touched 13,000 recently. But how quickly we forget what brought us to this point. The market is still suffering from the stuff that that gave it upset stomach in the first place. The hype is people like Henry Paulson coming out recently and saying that the market turmoil or upset stomach could soon be over. That's like saying that you can give the markets Pepto and this will all be over. Sorry folks, that is not the case and unemployment is now at levels that mirror the last recession in 2001 and many economists believe that it will continue to deteriorate. The financial markets are still a mess...don't believe me, as Citigroup who is throwing up and selling businesses left and right. And I am sorry for the analogies but I want this point to sink in, the markets are don't with us yet.
I won't change my stance at this point and like most of the stocks that are on our radar or that we have recommended here at Urbanomics. Take Ricks Cabaret (NASDAQ: RICK) which is up rough 13% today, H&R Block (NYSE: HRB) which took out new 52 week highs, and Coinstar (NASDAQ: CSTR) which exploded after their earnings announcement as proof that we are picking timely market plays. Ricks Cabaret is a great small cap stock that probably continues to do well even during a recession catering to big wigs who spend big bucks at their "higher-end" (no pun intended) establishments. And H&R Block should probably be coming of a strong tax season as people are eager to file and qualify for the great tax rebate check that our government came up with to stimulate the economy. It will do one thing and that's stimulate bill paying and retail business. Lastly, Coinstar is doing well after a great earnings season and they are benefitting from increased sales in their DVD kiosk business through a big contract with Walmart. I hope you also love the sector specific plays and REALIZE that high commodity prices are here to stay for awhile. Clayton Williams (NASDAQ: CWEI), AK Steel (NYSE: AKS), the exchange traded fund OIH (AMEX:OIH), and others are all great plays and make you feel a little bit better when you buy gas at the pump or buy something made from steel.
Enjoy the weekend and holla back!
I won't change my stance at this point and like most of the stocks that are on our radar or that we have recommended here at Urbanomics. Take Ricks Cabaret (NASDAQ: RICK) which is up rough 13% today, H&R Block (NYSE: HRB) which took out new 52 week highs, and Coinstar (NASDAQ: CSTR) which exploded after their earnings announcement as proof that we are picking timely market plays. Ricks Cabaret is a great small cap stock that probably continues to do well even during a recession catering to big wigs who spend big bucks at their "higher-end" (no pun intended) establishments. And H&R Block should probably be coming of a strong tax season as people are eager to file and qualify for the great tax rebate check that our government came up with to stimulate the economy. It will do one thing and that's stimulate bill paying and retail business. Lastly, Coinstar is doing well after a great earnings season and they are benefitting from increased sales in their DVD kiosk business through a big contract with Walmart. I hope you also love the sector specific plays and REALIZE that high commodity prices are here to stay for awhile. Clayton Williams (NASDAQ: CWEI), AK Steel (NYSE: AKS), the exchange traded fund OIH (AMEX:OIH), and others are all great plays and make you feel a little bit better when you buy gas at the pump or buy something made from steel.
Enjoy the weekend and holla back!
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