Investing Blog

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Archive for February, 2008



Northrop Group gets a $40 Billion package

Friday, February 29th, 2008

The Federal Government certainly threw Northrop Group a bone today in the form of a $40 Billion contract to produce refueling tankers. The stock was up 6% in after-hours trading but the company still looks like a great buy. Continue Reading »



AMD on multiyear lows

Thursday, February 28th, 2008

A quick look at a chart of AMD and you might just think its a print of someone’s heart monitor. From pennies to $20 to $2 to $48 back to $5 then to $40 and now $7. You might say that this stock runs in cycles. Continue Reading »



Wall Street likes Buybacks

Tuesday, February 26th, 2008

IBMs announcement of a stock buyback plan really lifted wall street today. But why do buybacks rock the street as much as they do, and why do investors love to see it happen? Continue Reading »



Visa IPO should be worrysome

Tuesday, February 26th, 2008

The credit card company Visa will IPO sometime around March 20th to raise around $19 Billion. While this would be a good chance for the company to raise more capital, it looks like a selloff rather than an attempt to raise money. Continue Reading »



Federal Homeowner Preservation Corporation

Sunday, February 24th, 2008

That’s the new buzzword on the street. Bank of America which is hurting greatly from the subprime credit crunch, has proposed an offer to Congress, asking for the creation of the Federal Homeowner Preservation Corporation. Continue Reading »



Short interest

Sunday, February 24th, 2008

Very few people put enough emphasis on short interest and its effect on your investments. Short interest is simply the amount of shares that are sold short for a particular corporation. Ford has a short interest of 209,000,000 shares, meaning that 209Million shares are held short right now. Continue Reading »



Baby boomers cause another worry

Saturday, February 23rd, 2008

As the baby boomer generation starts hitting retirement age not only are they going to put a drain on social programs, the new worry is that they might drain wall street. Continue Reading »



Sin stocks

Friday, February 22nd, 2008

Casino stocks have been beating hard by fear of recession but it might just be time to get in heavy. Sin stocks are companies that benefit from gambling, smoking, drinking or whatever else might be on society’s black list. I’m starting to like the prospects of one sin stock in particular, Boyd Gaming. Continue Reading »



Deep in the money options

Thursday, February 21st, 2008

Leverage is one of the best tools of profit. Leverage is what fed the real estate boom and continues to feed the popularity in forex trading. Unfortunately for equities investors, leveraging your stock purchases means borrowing from your broker. These margin accounts can be hard to get and require a significant account size which puts a large disadvantage on the small investor. For investors familiar with options, obtaining leverage is easier, cheaper and requires a much smaller investment. Continue Reading »



Gold correction on the horizon

Thursday, February 21st, 2008

While gold prices continue to make record highs on fears of inflation and high oil prices, the buying may be a bit exaggerated. As we saw in 2006 when oil prices were fueled by speculation when the price went from the $70s to $50 by May 2007, the gold market may be lead by speculation more than anything. Continue Reading »



No logic to today’s drop

Tuesday, February 19th, 2008

You would never think that the markets would drop due to worries of inflation, which is one of the biggest reasons we have advances and bubbles on the markets. Today the market suffered a quick loss after worries that inflation might pose a risk to the markets. Continue Reading »



Sony looks ready to explode

Sunday, February 17th, 2008

After news that Toshiba would be conceding the format war to Sony, an investment in Sony looks overdue. For the last year, Toshiba and Sony have been battling it out to see which format, HD DVD or BluRay would win over the public and the new high definition format war. Toshiba is ready to give up, cut its losses on HDDVD and toss the win to Sony, which will now have 100% control over the next generation high definition format. Continue Reading »



Trade with the mind, not the heart

Friday, February 15th, 2008

If there is one thing that can crush a trader, it is his heart. Emotions are the number one reason why traders fail and the rock solid institutions collect more and more money. Continue Reading »



Trailing stop orders

Wednesday, February 13th, 2008

Trailing stops are my favorite investing tool. The trailing stop allows an investor to sell a stock after a drop of X points, set by the investor. The trailing stop is a great way to lock in profits and avoid runaway sell offs. Trailing stops are very common in forex and futures trading and have recently made their way into popular equity platforms. Continue Reading »



Bond rating

Monday, February 11th, 2008

Just like personal credit scores, the bond markets have their own credit system that decides a corporations credit rating or score. Bond ratings range from D all the way to AAA, the top of credit score. Continue Reading »



Defining recession

Sunday, February 10th, 2008

Recession is the hated word on Wall Street. Its thrown around by the media and the Federal Reserve but why is this word so important? It might just be important because we make it important. Continue Reading »



What’s not to love about DRIPs?

Saturday, February 9th, 2008

We love DRIPs. Otherwise known as Dividend ReInvestment Plans, DRIPs are nothing more than an investment program where the dividends from stock ownership are automatically thrust into purchasing more shares of the corporation. Over the last 50 years, Altria, formerly Phillip Morris has operated the most successful Dividend Reinvestment Program. Continue Reading »



Microsoft bids for Yahoo

Friday, February 8th, 2008

The bid for Yahoo was interesting to say the least. Software giant Microsoft and owner of MSN putting in a bid for Yahoo shows the concern over the internet marketing business currently controlled by Google. Continue Reading »



Tata Motors Could Be The Next Toyota

Wednesday, February 6th, 2008

I’m loving this company as an investment in emerging markets. Tata Motors recently signed an agreement with Boeing to provide parts for the 787 Dreamliner and plans the release of a $2,500 car aimed at Indian drivers. Continue Reading »



How hedge funds have changed the markets

Tuesday, February 5th, 2008

Nothing has changed the way markets work as much as hedge funds. While these funds are relatively new on the scene, they attract big dollars with the promise of hefty, unregulated returns. So far all we’ve seen is increased volatility. Continue Reading »



Stock splits

Sunday, February 3rd, 2008

As an investor, we love stock splits, it eliminates the high dollar value of stocks and makes it look like we own more. (When in reality, you still have the same percentage of ownership) But the best part of stock splits might be that the fact that Wall Street goes crazy after a big company stock split. Continue Reading »



The oil effect

Friday, February 1st, 2008

Oil is the most in-demand commodity today. Each and every day, 82 million barrels of oil is pumped and virtually all of it finds a buyer on the same day. About 80million barrels is normal crude oil, traded on the markets at the current prices. The other 2 million is a mix of heavy Saudi Crudes that have very few uses in industry. Continue Reading »



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