Archive for the ‘stock trading’ Category

Are bulls back in the game – Dow Above 10,000 – July 2010

Sunday, July 11th, 2010

4 day week following July 4th proved to be a strong one after market gave in to bears for 10 trading sessions. Weak job market, continued European debt crisis seem to have done the trick during the trading sessions when everything looked bad. But last week seemed like bulls are back, they seem to have taken over the market. Death cross was observed by analysts and much bigger drop was predicted. However that does not seem right anymore.

Now that the second quarter is finished, a big focus is going to be on the earnings by various companies. Everyone is going to be watching these announcements. As we have seen from various reports such as Jobless claims etc, it does seem like recovery is slowing down. That is not necessarily a bad thing in my honest opinion. Expecting a steep recovery was like fool’s dream come true. Road to recovery is always bumpy and it takes a while for the jobs to get created. That is because of the uncertainty in the economy.

Bottom line is next few weeks are going to be very interesting given all the earnings. I am going to keep plenty of cash available to jump on the train on either side. But right now, I am sitting on the sidelines.

Great Investing Opportunity with OTC:MFLI

Saturday, April 24th, 2010

OTC:MFLI is currently trading at .0145 per share which is 20% down from where it was 30 days ago. If you look at the chart for MFLI, you will notice that their stock has been fluctuating between .013 and 0.018.

I would go ahead and buy at this price and put my stop loss limit at .0129 so that if it happens to go lower than .013, I know its going down for to stay there for sometime at least. If it crosses the .018 barrier, I would stay in for the ride to the world of wealth :)

My portfolio currently comprises of 100,000 shares of OTC:MFLI and I have already recovered my entire cost invested in them by playing with the rides :) So I am in it to try my luck, hehe!

ABIO, BCSI, BGOI, CABL, FNM, MAIL, MFLI, MGH, Tear, WG, CERS: My Portfolio After a Month

Sunday, April 4th, 2010

I currently have a total of close to 10,000$ invested in the market with following stocks in my portfolio. Following is what I think is the situation with the stock currently:

Safe Bets:

BCSI: Blue Coat Systems, Inc. sells a family of proxy appliances and related software and services. The Company’s products provides its end user customers with information about the applications and Web traffic running on their networks, including the ability to discover, classify, manage and control communications between users and applications across internal networks, the wide area network (WAN) and the Internet. Its products enable its end user customers to secure their Internet gateways and remote computer systems by providing protection from malicious code, or malware and objectionable content. On June 6, 2008, the Company acquired Packeteer, a provider of WAN traffic prioritization technologies. In January 2010, the Company announced that it has obtained majority interest in S7 Software Solutions Pvt. Ltd., an information technology research and development firm.

High Risk High Return Portfolio

ABIO: ARCA biopharma, Inc. (ARCA), formerly Nuvelo, Inc. is a biopharmaceutical company focused on developing genetically-targeted therapies for heart failure and other cardiovascular diseases. ARCA’s lead product candidate Gencaro (bucindolol hydrochloride), a beta-blocker and mild vasodilator is under review by the United States Food and Drug Administration (FDA), for chronic heart failure (HF). Gencaro is an oral tablet formulation, dosed twice daily. On January 27, 2009, Nuvelo, Inc. (Nuvelo) completed the merger with ARCA biopharma, Inc. (ABI). Pursuant to the Merger, Dawn Acquisition Sub, Inc. merged with and into ABI, with ABI continuing after the merger as the surviving company and a wholly owned subsidiary of Nuvelo. Pursuant to the Merger, ABI changed its name to ARCA biopharma Colorado, Inc. and Nuvelo changed its name to ARCA biopharma, Inc.

MFLI: Muscle Flex Inc., formerly CelebDirect, Inc., primarily focuses on direct response celebrity incubator. The Company operates in two divisions: Direct Response Marketing and Celebrity Placement / Franchise Opportunities. On September 27, 2007, the Company completed the acquisition of 100% shares of Wallace Marketing and Licensing Group Inc. In October 2007, the Company acquired TV Inc.

MGH: Minco Gold Corporation (Minco Gold) is an exploration stage company. The Company is engaged in the acquisition, exploration and development of gold properties. Minco Gold explores and evaluates mineral properties and projects in the People’s Republic of China (China). The Company focuses on building a portfolio of precious metal properties in China. It conducted exploration work on properties located in Sichuan, Xinjiang, Hebei, Hunan, Inner Mongolia, and Gansu provinces of China. During the year ended December 31, 2008, the Company received 100% interest in the Changkeng gold project. Its subsidiaries include Minco Silver, Minco China, Guangzhou MingZhong Mining Co., Ltd. and Inner Mongolia Huayu-Minco Mining Co., Ltd. During 2008, the Company divested its interest in Inner Mongolia Huayu-Minco Mining Co., Ltd.

Tear: OccuLogix, Inc. is an in-vitro diagnostic company. The Company is commercializing a tear testing platform, the TearLab Osmolarity System that enables eye care practitioners to test for highly sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. Its first product measures tear film osmolarity for the diagnosis of Dry Eye Disease (DED). The TearLab Osmolarity System enables the rapid measurement of tear osmolarity in the doctor’s office, a quantitative and highly specific biomarker that has been shown to correlate with DED. On October 6, 2008, the Company acquired the remaining minority interest in TearLab, Inc.

WG: Willbros Group, Inc. (Willbros) is a provider of energy services to global end markets serving the oil and gas, refinery, petrochemical and power industries. Within the global energy market, the Company is engaged in designing, constructing, upgrading and repairing midstream infrastructure, such as pipelines, compressor stations and related facilities for onshore and coastal locations, as well as downstream facilities, such as refineries. Willbros also provides specialty turnaround services, tank services, heater services, construction services, safety services and fabricate specialty items for hydrocarbon processing units. The Company operates in two segments: Upstream Oil & Gas and Downstream Oil & Gas. On July 9, 2009, the Company acquired the engineering business of Wink Companies, LLC (Wink).

CERS: Cerus Corporation, is a biomedical products company focused on commercializing the INTERCEPT Blood System to enhance blood safety. The INTERCEPT system is designed to inactivate blood-borne pathogens in donated blood components intended for transfusion. The Company markets the INTERCEPT system for both platelets and plasma in Europe and the Middle East. Cerus is also pursuing regulatory approvals in the United States and other countries. The INTERCEPT red blood cell system is in clinical development.

CABL: China Cablecom Holdings, Ltd. (China Cablecom) operates through its wholly-owned subsidiary China Cablecom Ltd., is a joint-venture provider of cable television services in the People Republic of China (PRC), operating in partnership with a local state-owned enterprise (SOE) authorized by the PRC government to control the distribution of cable television (TV) services. China Cablecom operates in Binzhou, Shandong Province and Hubei Province. Its subsidiaries include China Cablecom Ltd., China Cable Merger Co., Ltd. and Jaguar Acquisition Corporation.

MAIL: IncrediMail Ltd. (IncrediMail) is an Internet content and media company. The Company designs and markets an integrated suite of customized and entertaining email software products for the consumer or home user markets. The Company generates revenues primarily from two sources: advertising, primarily through search generated revenues and other services, and software products and solutions. It also generates revenue by licensing its IncrediMail Premium, e-mail software, The Gold Gallery, its content database and JunkFilter Plus, its anti-spam solution. In addition, the Company generate revenues from advertising in its e-mail client, the content database and on its Website, as well as a collaboration arrangement with a Websites operator who uses its Incredi brand name and to whom it refer users, IncrediGames.com, an online computer games site. During the year ended December 31, 2008, the Company has sold more than 1.7 million products and content license worldwide to its registered users.

Very Risky Investments BUT Huge Potential

BGOI: Bonanza Oil and Gas, Inc. (Bonanza) is an independent energy company that is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. The Company’s production activities are located in the United States. The Company’s crude oil and natural gas properties consist of working interests owned by it in various oil and gas wells and leases located in Texas. As of December 31, 2008, the Company had an interest in five gross oil wells.

FNM: Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage related assets are purchased and sold. The Company’s activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. It also acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments that increase the supply of affordable housing. The Company is organized in three business segments: Single-Family Credit Guaranty, Housing and Community Development (HCD), and Capital Markets.

How emotions can effect investing decisions?

Sunday, April 4th, 2010

I recently had some conversations with people who are regular investors. We talked about various investment strategies and how various people trade. One thing that always intrigued me what makes a non-sofiscated investor put his hard earned money into the market? Teachers, call center employees who really earn in the range of 20k-30k in entire year, how do they decide to put 5k in the stock market? I have been asking around and one might be surprised by the fact that people mostly invest in brands which they are familiar with :) No kidding. So if you own a GM car, there is a very good chance that they will invest in GM stock :) We all know where GM ended up.

What drives people to invest in a particular company

So what drives these people to take such an action. May I dare to say “pure emotions”? Yes my friends, emotions drive most of the non-seasoned investors. My colleague who sits next to me at work, she said she invested in Walmart because “she knows that Walmart is a good company and that it will never go under”. Now who would have ever thought, ok let me re-word, would an emotionally driven middle man have ever thought that Lehman Brothers would collapse like that in a matter of hours!

People invest in brands they recognized

Now get this, Walmart in the entire last 12 months has gone up by 3.14%! If you are 20-something, do you really want 3.41% return on your investment from stock market. You can get that kind of return by opening a savings account with Citi or another bank. That is exactly what I am talking about when I say people invest out of their emotions not because of their logic oriented research.

There are several articles that you can find that talk about investing behaviors and various patterns. One of such article I found on Emotional Investing a Recipe for Disaster

When do people buy and sell stocks?

This is one thing which no one has a perfect answer to. I mean, how can you really tell when to sell or buy. But at the same time, experts who spend lot of time researching and playing their cards carefully can tell you that if stocks start to rise, do not just go out and sell immediately. Otherwise what is the point. You want to be part of the rally that will make your returns in double digits.

At the same time, do not panic if your portfolio suddenly starts to drop its value. Rather spend some time in evaluating how much money can you really afford to lose. That will determine your risk taking threshold and then set your STOP orders accordingly to limit your losses.

Put your emotions at check when you invest

Thats the bottom line, check your emotions when you are about to trade. Essentially check your fear to lose money and conquer your desire to become millionaire overnight. Calculate your risk taking ability and appropriate profit level for exit. If you fail to any of these, you are not meant for investments. Just go and sign for mutual funds or just put your money into savings account.