Sunday, September 03, 2006

Results....and the Coveted Stock Picks for the week....

Our first pick, Ford started the week at 8 dollars, ending at 8.27, with a high of 8.43. That is a 4% return for the week, 5% if sold at weeks high. Look for Ford to continue its upward trend as iit remains one of our top picks for both long term and short term investing.

My personal favorite, MIG ended the week at 10.31, a solid 80 cents up from the weeks start at 9.50. At its high it was above 10.50, more then a dollar above the weeks start. Thats a 9% gain for the week, with a solid 11% if sold at weeks high. This stock remains among our favorites, and look for it to continue its upward movement.

ACGY ended the week at 18 dollars even virtually unchanged from the weeks end. It was disapponting given the positive fundamentals and foundations that this company poses. I will no longer endorse this stock, however it does indicate to be a strong long term company.

Our picks for the week...

GNBT, CSHD, and DPTR......Watch for these stocks to outperform its sector, and make you LOTS OF MONEY!!!!

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Thursday, August 31, 2006

Big companies = a bank

If you wanna make money in the stock market, short term...dont play with the big boys. They are about the same as a bank, yeah their dividends might yield a little higher percentage in the long term....but you dont wanna be investing like a 50 year old in your first few years of investing. The key is to always think like a kid......the bigger the risk the bigger the reward, is what it ultimately comes down to. Think about it, where is the risk in microsoft and IBM? they could have a steller quarter and their stock would only fluctuate a measely 5 percent...whereas if you played cshd this week, you woulda made a easily 30-40% return. Think small, and play smart....thats the name of the game.

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Wednesday, August 30, 2006

another stock for thought....

FFIV....or F5 Networks is, in my humble opinion....a very smart buy. The relative price change and its consistency is very high, and the price-to-sales multiple is significantly higher then the average, which are good signs. Lastly, several analysts have recently increaased their estimates for the earnings this upcoming quarter.....This stock will be interesting to watch, and is a good money maker.

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Tuesday, August 29, 2006

Where is all the money hidden in the stock market....

Arguably the OTC, or over the counter market is the hidden gold mine in terms of trading. OTC's are stocks that not traded on the NYSE, AMEX, DOW but through a dealer network on a centralized exchange. Some of the more common OTC's are pinksheets, or .pk, and OTC's, or .ob. These stocks are very susceptible to speculation, and these swings can make you a lot of money....if you play them right.

Right now, a big portion of my portfolio is CSHD, formally FHAL. This company was at .08 cents not a few months ago, and has reached as high as 1.62. I have made a killing on the swings of this stock....but the truth of the matter is this stock has a lot of potential. Upon the release of the 8-k not a few days ago, the assets that have been pronounced have been phoenomenal. It is a smart play....and whether you play the swings or hold it long, you will make money. CEO Rufus will hopefully deliver a promised reset price of above 50 dollars.

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Monday, August 28, 2006

Investing is not like sex

When you invest in a company, your investing in that company's product, future product, or innovative practice that will be a potential blockbuster in its specific market. So as the title of this post reiterates, investing is not like sex. Your not looking for a quick run-up or a short spike where you can rake in fast money, rather your looking to find a solid company that will prove in the interim future that it has the goods/services to master its marketplace. For example one company that I feel will be successful in the future is Generex Biotechnology (Symbol: GNBT). Generex has patented an innovative drug-delivery system that focuses on transmitting drugs through the buccal cavity in the mouth. There target market is the diabetes market, as they are in clinical trials for their number one product the rapidmist device. This device transmits insulin through the buccal cavity in the mouth, right into the diabetic's bloodstream, thereby discarding the use of insulin needles. Wouldn't you rather take a few puffs in the mouth rather than injecting yourself with a needle? Maybe you drug or heroine addicts would rather do that, but I know that I wouldn't. So it's that simple. If a company has a better product that improves the lives of its consumers, such as Generex, then invest in that company for a long period of time, and watch your money grow.

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Sunday, August 27, 2006

Our stock picks for the week....

First off....Ford. After a slow dip in the beginning of the week, Ford showed a strong upward trend to close the week. If you ask me, America's number 2 automaker for less then 10 dollars a a bargain. They are implementing new strategy to overcome their recent set backs....Watch for Ford to continue climbing this week.

Next, Meadowbrook Insurance, one of my personal favorites. If you look at the 3 month chart, it says it all. Its a strong chart, and solid fundamentals. May not shoot up that much more but we feel it will hit within the 10.50-11 dollar range this week so if you play this stock right there is a lot of money to be made.

Lastly, Acergy. A solid company with strong fundamentals, and great potential. Earnings growth in the past year has accelerated moderately compared to earnings growth in the past three years. The most recent quarterly earnings report was much higher than analysts’ consensus forecast. Look for Acergy to do well in both the long run, and this coming week.

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Saturday, August 26, 2006

Before we disclose our coveted stock picks of the week, I wanna discuss how interpretations on a stock graph are made.....

While looking at a stock graph there are several characteristics, which serve as indicators to help your predictions of where the stock is going....

First...MACD or the moving average convergence/divergence....It shows the difference between a fast and slow exponential moving average (EMA) of closing prices. MACD is a trend following indicator, and is designed to identify trend changes. It's generally not recommended for use in ranging market conditions. Three types of trading signals are generated,
* MACD line crossing the signal line
* MACD line crossing zero
* Divergence between price and MACD levels
When using the signal line corssing, you buy when the MACD crosses above this line, or sell when below. These occur very frequently, however, so other tests may need to be applied.
When the MACD line is up through zero, the stock may be seen as bullish. On the contrary, when the MACD is down below zero, it may be seen as bearish.
Positive divergence between MACD and price arises when price makes a new selloff low, but the MACD doesn't make a new low, ie. it remains above where it fell to on that previous price low. This is interpreted as bullish, suggesting the downtrend may be nearly over. Negative divergence is the same thing when rising, ie. price makes a new rally high, but MACD doesn't rise as high as it did before; this is interpreted as bearish.

Next...OBV or On Balance Volume....this indicates the cumulative total volume. Compared to a previous day's close, volume that is higher will yield a positive OBV and volume that is lower will yield a negative OBV.

Then...RSI or Relative Strength Index.... compares the days that a stock finishes up and when it finishes down. When using momentum trading the RSI indicator is extremele useful. In reading a RSI graph, a stock around the 70 level is considered overbought, and investors tend to sell. However, when there is a bull market some believe that this number should be raised to 80 to indicate an overbought stock. Contrary, when the RSI is around 30, the stock is considered to be oversold, and most use this as an indicator to buy. In a bearish market, this number is reducd to 20.

Lastly...DMI or Directional Movement Indicator....used to calculate and plot the directional indicators. There are three lines associated with the DMI index, the +DI, -DI, and the ADX. Ideally, a DMI is most profitable when dealing with a highly volatile stock as to make money from its daily swings. When the +DI crosses above the -DI and the ADX is turning from a convex, concave position indicates a bullish stock. Conversely when the -DI crosses above the +DI and the ADX is turning from either a convex or concave position indicates a bearish stock.

Hope this helps a bit...and look out for our stock picks tomorrow.

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Since it's the weekend...let's talk about mortgages

Let's beef up some of your business knowledge:

Mortgages can be tricky, espicially with all of the deviations in mortgages based on interest rates. First of all what is a mortgage? A mortgage is a promised amount of money or payments that a borrower has to pay at certain intervals for a purchase of real estate property. People use mortgages to pay off their purchases over a long period of time so that they don't have to pay the entire lump sum up front. Now FHA mortgages are mortgages that are insured in whole or partly by the Federal Housing Authority. Let's not forget the adjustable-rate mortgages. These mortgages have a fixed interest-rate and a fixed initial payment, whereby each subsequent payment, the borrower pays interest based on the fixed-rate. This rate is fixed for a certain period of time and then may rise at fixed intervals. This rate is most favorable in times where the market interest rate is very volatile in the short-term. The fixed-rate mortgages (not the adjustable ones) are fixed for the ENTIRE time of the loan. Also there are balloon loans where a borrower pays based on a lower interest rate for a period of time and at the end of the period u pay a lump sum or refinance the loan. There are other types of mortages, ones that reflect the market interest rate, others that reflect other variables as well. Espicially in this day and age people are coming up with different ways (and also effective ways) to create lucrative loaning opportunities (and borrowing as well). Ok maybe we'll have another lesson later on in the week, but we'll continue updating the status on the market, and our take on whats happening.

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