Continue reading Some oil stocks for your portofolio from Kiplinger

Some oil stocks for your portofolio from Kiplinger originally appeared on BloggingStocks on Mon, 16 Jun 2008 15:45:00 EST. Please see our terms for use of feeds.

Continue reading SmartMoney suggestions to avoid the pitfalls of falling oil prices

SmartMoney suggestions to avoid the pitfalls of falling oil prices originally appeared on BloggingStocks on Fri, 13 Jun 2008 15:51:00 EST. Please see our terms for use of feeds.

Recoup your losses from your employer originally appeared on BloggingStocks on Thu, 21 Feb 2008 08:50:00 EST. Please see our terms for use of feeds.

Fishing for returns... and coming up empty originally appeared on BloggingStocks on Thu, 17 Jan 2008 18:59:00 EST. Please see our terms for use of feeds.

Continue reading Investing in 2008: Where's the smart money going?

Investing in 2008: Where's the smart money going? originally appeared on BloggingStocks on Tue, 01 Jan 2008 16:10:00 EST. Please see our terms for use of feeds.

You currently don't have to ask too many Americans about economic conditions in order to get the impression that at least here at home a majority of people sense that economic upheaval is quite underway. The word recession is becoming a bit too commonplace for my taste and I have come across more than a couple references to "the coming pandemic." I myself wouldn't go so far as to predict widespread economic collapse, but I have called the current economic environment a "realignment" and I hold with that assessment.

In light of our volatile economic times I thought it might be a good thing to do a quick piece about risk assessment. I have suggested that now is the time to cut risk to the bone; I still hold to that. The theory is that the greater risk you take the more you should be rewarded for taking that risk. My position is that currently our high risk economic environment will not, except in a few scattered cases, provide adequate return for the risks involved. In my opinion the risk curve is temporarily broken and I suggest holding the bulk of your money away from high risk play.

Continue reading Deciding how much risk to take under current conditions

Deciding how much risk to take under current conditions originally appeared on BloggingStocks on Sun, 16 Sep 2007 17:40:00 EST. Please see our terms for use of feeds.

Volatility Index S&P 500 Options-VIX up 6.30 to 36.97; 10-day average is 26.78

E-Trade (NASDAQ: ETFC) put volume & volatility at Panic levels on sell-off. ETFC is recently down $3.28 to $10.60. SBSH said on 8/12 "Disclosure in 10-Q short on substance from our viewpoint. Mgmt provided minimal new information on the composition of its $28 billion mortgage portfolio."
ETFC call option volume of 37,882 contracts compares to put volume of 87,399 contracts. ETFC September option implied volatility of 210 is above its 26-week average of 37 according to Track Data, suggesting large price fluctuations.

Countrywide Financial - (NYSE: CFC) put volume & volatility Spike; indicating Crisis. CFC, a home mortgage lender, is recently down $4.18 to $17.13. CFC announced "it has supplemented its funding liquidity position by drawing on an $11.5 billion credit facility." Moody's Investors Services downgraded CFC rating to Baa3. CFC call option volume of 204,765 contracts compares to put volume of 412,286 contracts. CFC September option implied volatility of 210 is above its 26-week average of 56 according to Track Data, indicating larger price fluctuations.

Continue reading Options update: Options indicate Elevated risk

Options update: Options indicate Elevated risk originally appeared on BloggingStocks on Thu, 16 Aug 2007 16:45:00 EST. Please see our terms for use of feeds.

I encountered a fascinating article at Forbes.com. Writer Tara Weiss brings to light the fact that when accepting a new job, recruits should realize that they have a right and even a responsibility to take some initiative in negotiating their pay package. Think of it this way: After all the long hours of processing applications, reviewing resumes, and conducting interviews, if you are the individual who receives the offer for employment, that indicates you have a lot going for you. Don't be undersold. It's not an issue of pride. It's responsible economics plain and simple.

With the hope that you'll read Ms. Weiss's article, I'll take the proposition one step further. I submit to you that once you have become established in a job, don't let a job classification or title restrict you from asking for more. If you're not bound by the terms of a labor agreement through a union or other labor contract, then the sky's the limit, and I'm saying that you should go for it. Every employment situation offers opportunities for advancement and for income increase also. If you don't believe me, let me prove it to you.

The company I work for is historically tight-fisted when it comes to employee compensation. It's not that we don't generate enough profit to justify pay raises, but as a subsidiary of a larger entity that provides the lion's share of our workload, accounting is "manipulated" to push the profit up to the parent company. This is simple to prove when given the fact that, in a responsible business sense, any company that shows the minimal profit we do would be immediately shut down and those capital assets would be put to work elsewhere. This makes it tough for a guy like me to get ahead. I, however, applied a strategy that has performed for me all of my working years, and which is encompassed in the following ideal:

I don't work for my employer, I work for me. It's all about my own bottom line.

Continue reading The Paycheck Challenge: Get what you're worth

The Paycheck Challenge: Get what you're worth originally appeared on BloggingStocks on Sat, 12 May 2007 08:40:00 EST. Please see our terms for use of feeds.

I like millionaires, I always have and I always will. A report by TNS research has revealed that American millionaire households have increased in number over the last four consecutive years to an astonishing 9.3 million, give or take a few. That's an awful lot of millionaires if you ask me. What does the climbing head count among the well-to-do mean to Joe Average? Well, if you can get beyond the jealousy and resentment long enough to see the forest through the trees, you'll find that it means a lot to us.

Millionaires tend to move a lot of money, which is the life blood of our economy. They buy large homes and furnish them with expensive decor. They own nice cars, often several, give them the best of care, and house them in well-lit, heated garages. Millionaires buy into businesses in pursuit of growing their fortunes. They invest in speculative business ventures and back inventors with good (and not so good) ideas. Millionaires hire people to assist in the routine and mundane tasks in life. Cleaning the pool, cutting the lawn and shopping for groceries are a few of the tasks that can be delegated by throwing a few dollars at them. Millionaires can throw those dollars around and they tend to do just that. "There's more where that came from," chuckle, chuckle, snort. Of course some of the wealthy tend to be very tight-fisted but they're generally easy to pick out. They live lonely lives in snobbish repose, worried that the world shall snatch an extra dollar from them.

If you want to find out where the millionaires are, this CNN Money report is a fine place to get started. It lists the top ten counties where millionaires reside. Note that it's a bit California-heavy. Some other states with counties that boast the highest number of millionaires across the country include Illinois, Arizona, Texas, New York and Florida. The list goes on and reveals the fact that more Americans have become dollar-savvy. But what does this mean, bottom line, for our country? In some ways it depends on your perspective. Some folks will tell you that it's an indication that the wealth gap has widened. I laugh at that assertion and claim instead that it means our horizons of opportunity have broadened. I also believe that it's a culmination effect of our maturing 1960's baby boom. There are an awful lot of people out there who have striven long and hard to prove that the American Dream has been more than an unsubstantiated stance on manifest destiny. Today's millionaires are the result of prolonged and intense focus on the principles of true success. This stuff doesn't just happen by itself.

So, please don't be tempted to give into feelings of unfairness. Don't waste your time wondering, "Why them and not me?" Some times it's a simple flip of the cards that determines the outcomes of success, but most often, it's the result of blood-and-guts determination. Let the climbing number of millionaires serve as inspiration to you. Realize that financial security is still well within your grasp. Then, learn their ways, associate with them when you can and truly believe that success knows no boundaries of background, gender, race or class. Roll up your sleeves, pull down your cap and get yourself to the business of leaving self pity for the next guy. You have no time to feel sorry for yourself when you're busy staking out your spot on next years millionaire list.

Oh, and about that money you spend on lottery tickets... a passbook account gives better returns by far.

Nine Million Millionaires... and counting. originally appeared on BloggingStocks on Tue, 01 May 2007 12:17:00 EST. Please see our terms for use of feeds.

The TradeKing blog posted a nice review by Dominic Basulto of the May 2007 cover story of Kiplinger's Personal Finance. that pointed out some old tried and true investment strategies that are still the best way to build financial wealth over time.

While these strategies are nothing new, they should be reaffirmed from time to time.

Kiplinger's suggests that you consider the following when looking to consistently build your investment value over time:

1.) Get involved in a sector which has been underperforming for a considerable period of time and is showing strong signs of picking up. Consider Warren Buffett's railroads play. Could he be on to something?

2.) Keep a look out for "breakout technologies". I suggest keeping a close watch on solar and artificial intelligence plays as well as RFID. Basulto suggests telecom and biotech.

3.) Higher risk generally provides higher returns. Do ya think? Play the volatility game. This requires nerves of steel and a lightening hand but if you're good, the returns can be immense. It's like betting on the horse that's straining at the gate and sweating before the run. Either that pony will run uncontested or it'll spin circles in the first length. Volatility plays best if you're a heavy duty behind the scenes researcher.

4.) Look for fundamentally strong companies which have floundered under poor management and then wait for a management change. I have watched several people successfully work this angle.

The Kiplinger article seeks to provide insight into the strategies for compounding your money over various time frames. The information provided is valuable and time tested but Kiplinger's makes clear that they suggest a longer time table shall provide you with greater investment security.

Kiplinger's suggests time tested strategies for building wealth originally appeared on BloggingStocks on Thu, 12 Apr 2007 17:30:00 EST. Please see our terms for use of feeds.

The Volatility Index for S&P 500 Options (VIX) is down 0.52 to 14.44.

Louisiana Pacific (NYSE: LPX) call volume Heavy, volatility Higher on renewed Chatter. LPX is recently up .28 to $20.77. LPX has been frequently mentioned as possibly returning cash to shareholders or as a candidate for private equity LBO bid. LPX had 2006 total revenue of $2.2 billion. LPX has a market cap of $2.1 billion with long term debt of $644 million. LPX call option volume of 6,927 contracts compares to put volume of 164 contracts. LPX April option implied volatility of 32 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.

Houston Wire & Cable (NASDAQ: HWCC) volatility Flat; call volume heavy on secondary offering. HWCC offers specialty wire & cable. HWCC is recently up .78 to $27.46. HWCC announced a secondary offering of 5.5 million shares to 6.5 million shares. The price of the offering was set at $25. HWCC has a market cap of $569 million with long term debt of $12 million. HWCC reported 2006 total revenue of $323 million. HWCC call option volume of 2,275 contracts compares to put volume of 23 contracts. HWCC May option implied volatility of 47 is near its 26-week average according to Track Data, suggesting non-directional price risks.

Option volume leaders today are: Beazer Homes (NYSE: BZH), Apple Inc. (NASDAQ: AAPL), Amgen (NASDAQ: AMGN) and United Therapeutics (NASDAQ: UTHR).

Option update - March 29, 2007 originally appeared on BloggingStocks on Thu, 29 Mar 2007 12:20:00 EST. Please see our terms for use of feeds.

I may have mentioned previously that for some odd reason I often have the very daunting privilege of entertaining some deeply intriguing questions. The query put to me today was issued in form similar to this:

If I could virtually guarantee you that by following my instructions on when to buy and sell stocks you would reap a profit at least 70% of the time, would you listen to my instructions and follow them? The only catch is you have to be the first one to take action based on my advice.

This question was brought up in reference to Jim Cramer and the tone of the question was not nice. It was implied that something less than honorable might be taking place behind the scenes. I stand in Jim Cramer's defense (as if it's even required).

Although at times he annoys me with his on screen antics, I have never had cause to believe that Jim Cramer's prognostications encompassed anything less than good, solid business analysis, thorough historical trending and conservative (although sometimes very wrong) performance projections. I have never known Mr.Cramer to lie about anything and he backs up every claim he makes with experience and facts.

Continue reading Is Jim Cramer the anointed king of pump and dump?

Is Jim Cramer the anointed king of pump and dump? originally appeared on BloggingStocks on Fri, 16 Mar 2007 16:47:00 EST. Please see our terms for use of feeds.

McCaw is back with Clearwire originally appeared on BloggingStocks on Thu, 08 Mar 2007 08:45:00 EST. Please see our terms for use of feeds.

Microsoft Corp's. (NASDAQ: MSFT) February option implied volatility collapsed to 19 after record Q2 revenue of $12.54 billion. Microsoft reported Q2 EPS of 26 cents versus consensus estimates of 23 cents. Q2 revenue rose 6%. Microsoft launches Vista, Office 2007 and exchange Server 2007 on 1/30. Goldman Sachs says "good second quarter and stronger growth ahead." Microsoft February option implied volatility of 17 is below its 26-week average of 22 according to Track Data, suggesting decreasing price risk.

General Motors' (NYSE: GM) implied volatility was low at 34 going into the financial delay on its restatement. General Motors will delay its Q4 and full year earnings report, which was expected to be released next week, to again restate financial results. Citigroup has a $24 price target on General Motors. General Motors' overall option implied volatility of 34 is below its 26-week average of 42, according to Track Data, suggesting decreasing price fluctuations.

Option volume leaders today were: Amgen (NASDAQ: AMGN), Apple Computer (NASDAQ: AAPL), Nokia (NYSE: NOK), Microsoft and eBay (NASDAQ: EBAY).

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Daily Option Update - January 26, 2007 originally appeared on BloggingStocks on Fri, 26 Jan 2007 17:10:00 EST. Please see our terms for use of feeds.

Reveo is a technology incubator which has proven that they are worth keeping an eye on. At least indirectly, Reveo competes with companies such as IBM (NYSE: IBM) and 3M (NYSE: MMM). To date Reveo holds over 300 patents in the fields of electrochemistry, optics, fuel cells, and advanced materials. This is the kind of company that invents and develops the technologies of which your future shall be built upon.

Reveo invites independent investment and has their portfolio available online. Their mission is to spin off companies based on technologies which Reveo has created and made viable. The growing list of Reveo subsidiaries includes cutting edge technology companies such as: VRex Inc., Chelix Technologies Corp., eVionyx Inc., Xellerion Inc., and PetaComm Inc. These are all companies which are busy punching wide openings into the future.

In addressing the need to provide a solid and focused business platform from which to accomplish their goals, Reveo created the Edison Technology Portfolio (ETP) Strategy. This strategy provides the frame work needed to launch Reveo's subsidiary companies with the ability to immediately exploit marketable technologies with a minimum of administrative tangle. In other words, Reveo spin off companies are able to hit the ground running.

If being up to date with leading edge technologies and the opportunities presented therein is of interest to you, then you owe it to yourself to check this company out. With a successful stable of spin off companies already in hand, it stands to reason that Reveo isn't going to disappear any time soon. I see a wealth of opportunities here... do you?

Reveo keeps the big guys on their toes originally appeared on BloggingStocks on Tue, 02 Jan 2007 17:50:00 EST. Please see our terms for use of feeds.

The trading year hasn't even started yet and already there's talk of a new record for the S&P 500. Wachovia Chief Investment Strategist Rod Smith proclaimed to USA Today that "the bull market in stocks is alive and well, and a breakout above the S&P 500's old high is a real possibility this year." In fact, five out of 10 panelists interviewed by the paper predicted that the index would top this year's high. USA Today says there are plenty of reasons to be optimistic ranging from the cheap valuation of big-cap stocks to the interesting historical footnote that the last time that the stock market fell in the third year of a presidential term was 1939. Other newspapers including the New York Times and the Wall Street Journal also reported the bullish sentiment. What amazes me is the disconnect between Wall Street and Main Street. Investors continue to have this nagging feeling -- rightly so -- that the smart money isn't always so smart. A survey by the Association of Individual Investors shows that 36 percent of investors are "bearish" on stocks, according to USA Today. I am not sure whether the bulls or bears will prevail this year. But for now, people are expecting happy days. Markets in Europe and Asia surged today while the U.S. exchanges shut down today because of the death of former President Gerald R. Ford.

Dow 15000? Dow 16000? Bulls See Another Record Year originally appeared on BloggingStocks on Tue, 02 Jan 2007 14:18:00 EST. Please see our terms for use of feeds.

Stocks aren't the only way to invest some money to make some money. There's a very interesting way I found to invest small amounts of money to make some nice returns. Buying second hand goods for resale can be very lucrative. Here are just a couple examples.

As a (temporarily abstinent) eBay Inc. (NASDAQ: EBAY) user, I learned a dynamic approach to buying and selling that earned me a fair amount of cash. For instance, Buffy the Vampire Slayer collector cards can be purchased regularly on eBay at below market prices. A savvy business person can buy individual cards in pursuit of creating sets. Completed sets can then bring as much as 300% more than the cost of the individual cards. It's a game of patience, but it works.

Continue reading Investing in second-hand goods: Buy used, buy American

Investing in second-hand goods: Buy used, buy American originally appeared on BloggingStocks on Fri, 29 Dec 2006 10:20:00 EST. Please see our terms for use of feeds.

My colleague, Zac Bissonnette, wrote an excellent post. In his writing, Zac tells some real truths regarding the holding of dividend paying stocks. Being a fan of value stocks and the dividend checks they provide, I couldn't sit by quietly without expressing my opinion. You may file this under: "Oh no, here goes Gary again!"

Dividend paying stocks do have their downside, it's true. The double tax proposition is a tough pill to swallow, so why would anyone accept that? The best explanation I have is that it's a payoff against the reduced level of risk that you gain by buying into a company with a history of providing a balance sheet you can sleep on.

Yes, there's probably far more immediate return available when trading stocks in rapid style but that's a horse race at best and some people just don't have the nerve for that. It's also worth considering that many of the people who hold these value stocks, hold them to hold them ... quite literally. The shares are being saved for the growing kids and will then be available for those kids to sell.

Continue reading In support of the dividend proposition...

In support of the dividend proposition... originally appeared on BloggingStocks on Thu, 28 Dec 2006 13:55:00 EST. Please see our terms for use of feeds.

Continue reading Investing resolutions for a wealthy new year

Investing resolutions for a wealthy new year originally appeared on BloggingStocks on Wed, 27 Dec 2006 19:04:00 EST. Please see our terms for use of feeds.

My fellow blogger, Sheldon Liber left an invitation for explanations revealing the causes of what I shall term, "The great Google Inc. (NASDAQ: GOOG) hype of 2006". I am one of the people who have bought into that hype but it's a hype you can bank on. There seems to still be some confusion as to why Google is found by so many to be so attractive as an investment. Really friends, how do you place a benchmark or limit on such a forward operating company?

Remember as you read this that I'm not your run of the mill financial analyst. I'm not a financial analyst at all. I'm just a guy who has a special knack for getting some insight into what the consumer is probably thinking. So when I write about the magical way in which Google has swept onto the Internet with such great force, it's not about money to me. It's about quality, presentation and consumer confidence among other things.

Continue reading The Google hype, is it madness, marketing or money?

The Google hype, is it madness, marketing or money? originally appeared on BloggingStocks on Fri, 22 Dec 2006 12:32:00 EST. Please see our terms for use of feeds.