Friday, December 31, 2010
Within the stock market, however, some people are very active.
This might be true, anyway, but I'm referring to one specific thing.
I never have any proof, but it seems to me that the price of many stocks are mildly to strongly affected by taxes.
I see four (4) main things playing this time of year.
Thursday, December 30, 2010
Personally, I've never liked the idea of killing anything, including bugs. (Currently, I'm not a vegetarian, which makes me a HUGE hypocrite, but that is a topic for another area.) So I decided to save this bug.
When we're in trouble, most of us wish we could just get a little break. Might I even use the word, "help?"
Many people expect help, and these people are not the target of my post, but most of us wish that we could have some help, and, of course, we'd take advantage of it if we got it. Right?
Wednesday, December 29, 2010
I am not saying that gold will not go up. Then again, I am not saying that gold will not go down, either.
In fact, I am making absolutely NO predictions about the future price of gold.
Why do some people place more value in gold than money, specifically the US Dollar?
Tuesday, December 28, 2010
30 years from now, will Wal-Mart still rule the bargain retail industry? McDonald's the fast food industry?
I say that only one (1) of them will: McDonald's. The answer lays in the corporate layout of their management..and the way they grow.
Monday, December 27, 2010
Retail for general home contactors and do-it-yourself home repairs
Recent Range: $21/share – $40/share (Current Price: 35.09, as of close of 12/23/10)
Price/Sales (P/S) = 0.85 (0.80, Industry)
Price/Book (P/B) = 3.01 (2.56)
Gross Margin = 34.2% (33.8%)
Pre-Tax Margin = 7.0% (6.7%)
Debt/Equity Ratio = 0.51 (0.42)
Current Ratio = 1.3 (1.3)
Return on Equity = 15.9% (13.4%)
Return on Assets = 7.2% (6.6%)
Analysis: This company has widely recognizable name and has a great company concept. However, I am lukewarm on the stock.
Sunday, December 26, 2010
This is an age-old question, but it requires more than a simply Yes/No answer, I think, because it depends.
Saturday, December 25, 2010
Friday, December 24, 2010
Of course, nobody knows exactly when to sell, but here are a few guidelines that I use:
Thursday, December 23, 2010
Here is a video of a cute cartoon (about 9 minutes long) that explains the basic concept and flow from a beginning business to one that is large enough to issue stock as a publicly held company.
This video uses an example of an oil drum producing company that started as a small but really good company.
Wednesday, December 22, 2010
Internet Search Engine: uses Chinese Characters
Recent Range: $15/share – $110/share (Current Price: 101.25, as of close of 12/21/10)
Price/Sales (P/S) = 34.92 (10.24, Industry)
Price/Book (P/B) = 32.55 (7.89)
Gross Margin = 70.7% (64.6%)
Pre-Tax Margin = 48.2% (34.3%)
Debt/Equity Ratio = 0.00 (0.04)
Current Ratio = 3.6 (4.3)
Return on Equity = 48.5% (23.0%)
Return on Assets = 37.9% (18.0%)
Analysis: This company is definitely in a hot industry within a hot geographic region (China). It also appears to manage its money really well. I really like the company, but I am afraid of the stock.
Tuesday, December 21, 2010
When your stocks go down, do you panic? More importantly, should you?
Monday, December 20, 2010
That might seem a little outlandish.
Sunday, December 19, 2010
Maker of household product WD-40 lubricant. Also, they make specialty chemicals to help with maintenance, cleaning, and household tasks.
Recent Range: $24/share – $41/share (Current Price: 41.08, as of close of 12/17/10)
Price/Sales (P/S) = 7.89 (5.55, Industry)
Price/Book (P/B) = 3.49 (2.85)
Gross Margin = 51.4% (29.5%)
Pre-Tax Margin = 16.7% (-17.5%)
Debt/Equity Ratio = 0.11 (0.93)
Current Ratio = 2.5% (2.2%)
Return on Equity = 19.5% (14.7%)
Return on Assets = 13.1% (8.1%)
Analysis: This company appears to be in excellent health; however, the stock does not seem like an obvious bargain, even though this seems to be somewhat of a hot stock right now.
Saturday, December 18, 2010
Most of the interview discussion surrounds his purchase and subsequent selling of Petro China.
However, here are the takeaways from what he does:
Friday, December 17, 2010
Trying to find good sources of great material, I unearthed one the other day.
I've made it one of my "Links" on the side panel, but it is SO GOOD that I needed to mention it specifically.
It is called Stockerblog, and the website is http://stockerblog.blogspot.com.
Thursday, December 16, 2010
Obviously, if you don't have any income, you're not going to GET any money.
However, I'm saying that it actually COSTS you money.
Wednesday, December 15, 2010
I will explain this by starting from the other direction and comparing "shorting a stock" to it.
Tuesday, December 14, 2010
Product Conglomerate, mostly with consumer goods
Recent Range: $47/share – $73/share (Current Price: 65.56, as of close of 12/14/10)
Price/Sales (P/S) = 2.26 (2.06, Industry)
Price/Book (P/B) = 2.87 (5.06)
Gross Margin = 51.8% (52.0%)
Pre-Tax Margin = 19.1% (16.9%)
Debt/Equity Ratio = 0.52 (0.71)
Current Ratio = 0.7 (1.0)
Return on Equity = 17.0% (28.9%)
Return on Assets = 8.1% (9.9%)
Analysis: This company is well-run and in excellent financial health. This stock is SAFE but unexciting.
Monday, December 13, 2010
Most of you know--by now--that everyone already has this tax break extended, except for people making $250K/year or more.
The people AGAINST it want the "rich" to help buoy the economy since they, theoretically, HAVE the money to be able to afford to contribute. (This is NOT always true, by the way.)
Sunday, December 12, 2010
It looks like you can't trust ALL of my "down" calls.
A little over 6 months ago, someone asked for me to check into Linn Energy (LINE) stock.
Here is the analysis I gave at THAT time: http://theinvestoradvocate.blogspot.com/2010/05/quick-analysis-linn-energy-linn.html.
I mentioned, at that time, that I didn't know enough about the industry; however, based upon the numbers that I saw, I would not suggest taking that risk.
How many people develop ways to “beat” the stock market? Honestly, you never will beat it. You just hope that you’re on the right side of the fight and pick the winner (or loser) correctly.
A lot of people try to offer different ideas, and some seem to make a lot of sense. (Some do not; at least, not to me.)
One thing that many investors check is the Price per Earnings (P/E) figure. In fact, this is one of the most popular ratios (comparisons) used when evaluating a stock.
Is it the best?
Thursday, June 3, 2010
BAC: Bank of America
Recent Range: $6/share – $53/share (Current Price: 15.89, as of close of 6/3/10)
Price/Sales (P/S) = 1.34 (1.60, Industry)
Price/Book (P/B) = 0.73 (0.81)
Gross Margin = Not Available
Pre-Tax Margin = 2.9% (1.7%)
Debt/Equity Ratio = 3.98 (3.53)
Current Ratio = Not Available
Return on Equity = -1.3% (-0.8%)
Return on Assets = 0.2% (0.2%)
Analysis: This company is unexciting, but this industry makes me still have to guess that this is a good long-term buy.
Tuesday, June 1, 2010
We all hear that we should get rid of debt. Cut up all of your credit cards. Pay cash for everything. If you can't afford it, don't buy it.
Honestly, these are good statements--usually.
Once in a while, you hear about the exception that it's okay to borrow to buy a house. This might be a true statement, but the reasons people often use to support THIS suggestion is laughable, if it weren't for the fact that so many people believed it.
Friday, May 28, 2010
I picked a stock based upon its Beta value, which indicates the volatility of the stock price. The higher the Beta value, the more the stock price fluctuates.
I tried this, because I tried to extend my test with the Slow Stochastic technical indicator, telling me when to buy and sell. The more volatile the stock price, I figured that it would provide me with more opportunities to buy and sell--and MAKE A PROFIT.
Note: The Slow Stochastic indicates when a stock is theoretically overbought (time to sell) or oversold (time to buy).
Wednesday, May 26, 2010
If you're a trader, probably. I'm not a trader--usually.
If you're an investor, you should be more concerned with your company and industry and the price that YOU paid to own part of it, but you should NOT be too overly concerned.
Tuesday, May 25, 2010
European struggles are making people scared. The Dow is below 10000. Get out your checkbook, stockholders!
There are a lot of people panicking about the whole European debt situation. There is plenty of reason to pay attention to what is happening there, but it should only affect us--not decimate us.
Monday, May 24, 2010
My second rule of investing is...Buy it ON SALE! (Get a good price on it.)
Since learning how to manage money, I've learned that it's not important HOW MUCH money you make, it's HOW MUCH YOU KEEP.
This has been invaluable, as this has allowed me to accumulate more money than many of my former coworkers who earned more than me. However, it's not the whole story.
The whole saying should read...
Friday, May 21, 2010
Like anything else, you need to practice before you stop being rotten. You definitely have no chance of being the best if you never practice, even if you're a natural.
Thursday, May 20, 2010
Isn't that awesome?
If you've been following my blog, you'll realize that I'm NOT being sarcastic about this.
Wednesday, May 19, 2010
Ummm...DUH! What did we expect?
Tuesday, May 18, 2010
As recently as this week, I've heard that all of us in the United States should move to China. Their economy is doing really well. It's growing. They basically own a good part of the US, anyway.
I've heard plenty, and plenty of it is true. There really are a lot of good things happening in China.
However, we might want to take a closer look.
Monday, May 17, 2010
Oh my gosh! What do we do now?
A lot of people start panicking. These people are the same people that only saw good things coming when the market was going upward. Now that the market is sliding, many of these same people can only see doom.
These people are REACTING--NOT PLANNING.
Are they wrong? They might be right, but I suggest taking a couple of steps. (Panicking is NOT one of them!)
Wednesday, May 12, 2010
The indicator said that it went up, but the price was below $100/share.
Eventually, I figured what happened.
ESI: ITT Educational Services
For Profit Education Company
Recent Range: $45/share – $125/share (Current Price: 103.16, as of close of 5/11/10)
Price/Sales (P/S) = 2.52 (3.40, Industry)
Price/Book (P/B) = 22.91 (7.83)
Gross Margin = 65.9% (56.9%)
Pre-Tax Margin = 37.8% (16.5%)
Debt/Equity Ratio = 0.96 (0.16)
Current Ratio = 1.3 (1.7)
Return on Equity = 192.3% (47.8%)
Return on Assets = 50.2% (20.0%)
Analysis: I get the feeling that this stock will rise, but I don’t feel comfortable recommending it.
Tuesday, May 11, 2010
MGA: Magna International
Recent Range: $25/share – $95/share (Current Price: 71.92, as of close of 5/11/10)
Price/Sales (P/S) = 0.42 (0.84, Industry)
Price/Book (P/B) = 1.06 (1.86)
Gross Margin = 11.2% (14.2%)
Pre-Tax Margin = 0.0% (1.0%)
Debt/Equity Ratio = 0.02 (0.66)
Current Ratio = 1.5 (1.6)
Return on Equity = -1.0% (1.6%)
Return on Assets = -0.6% (0.9%)
Monday, May 10, 2010
Careful! Even if the numbers look good, there is a HUGE downside to these.
You might be able to make a ton of profit on the stock price that you buy and sell. (This is not true for all of these right now, but there are a couple that look REALLY good right now.)
So what's the problem? Shouldn't I buy as much of these as I can?
No, I don't think so.
Europe is all fixed. They are going to bail out Greece after all.
Wait a minute!
Friday, May 7, 2010
I get that the entire market is sliding. There are concerns about Greece's economy and the riots associated with the country's forced cutbacks to address that.
Ford (F) posted over $2 BILLION dollars of profit. They increased their year-to-year sales this past month over 30%. They have a fuel-efficient car that's ready for today's market. They haven't lost their Mustang. They still have their leader, who has shown great direction for the company and seems to be an expert at getting his own people to follow him in that direction.
So why has the stock dropped ridiculously during the past few days?
Thursday, May 6, 2010
KIM: Kimco Realty Corp
Real Estate Investment Trust (REIT) that invests primarily in shopping centers anchored by grocery store chains and discount stores located a short distance outside metropolitan areas
Recent Range: $9/share – $45/share (Current Price: 15.30, as of close of 5/5/10)
Price/Sales (P/S) = 7.89 (5.55, Industry)
Price/Book (P/B) = 1.28 (3.19)
Gross Margin = 69.9% (68.6%)
Pre-Tax Margin = -4.4% (3.8%)
Debt/Equity Ratio = 0.91 (2.51)
Current Ratio = Not Available
Return on Equity = -1.3% (-2.2%)
Return on Assets = 0.0% (0.8%)
Analysis: There are more things about this stock to like than dislike. The Price/Book is higher than I like, but it is a lot smaller than its competitors.
Wednesday, May 5, 2010
CECO: Career Education Corp
For Profit Education Company
Recent Range: $13/share – $35/share (Current Price: 29.47, as of close of 5/4/10)
Price/Sales (P/S) = 1.34 (3.49, Industry)
Price/Book (P/B) = 2.74 (8.06)
Gross Margin = 65.3% (56.8%)
Pre-Tax Margin = 12.2% (15.3%)
Debt/Equity Ratio = 0.00 (0.22)
Current Ratio = 1.4 (1.9)
Return on Equity = 15.6% (47.2%)
Return on Assets = 9.8% (19.9%)
Analysis: Confused…There are a lot of mixed messages here.
Tuesday, May 4, 2010
There is one change really worth noting:
The market is tanking, reportedly because people are panicking over Europe's financial situation and commercial real estate concerns.
Don't get me wrong! I like seeing lower prices. (I'd like seeing them even more if I had money sitting on the sidelines to buy all of these things on sale.)
It just doesn't seem to make sense to me.
I realize that the stock market has been creating its own sort of overpriced bubble for a while. Several stocks went from being way too under-priced to costing more than they're worth seemingly overnight. (It's really been over the course of the past year-plus.)
It's just that things I am reading TODAY, just....
Monday, May 3, 2010
LINE: Linn Energy
Oil and Natural Gas Company, located in the Southern portion of the US
Recent Range: $14/share – $37/share (Current Price: 27.10, as of close of 4/30/10)
Price/Sales (P/S) = 12.34 (7.33, Industry)
Price/Book (P/B) = 1.37 (2.43)
Gross Margin = 51.1% (64.1%)
Pre-Tax Margin = -109.8% (-40.2%)
Debt/Equity Ratio = 0.65 (0.49)
Current Ratio = 2.0 (1.4)
Return on Equity = -11.4% (1.5%)
Return on Assets = -6.5% (2.4%)
Analysis: Not great…
Friday, April 30, 2010
The stock jumped from under $30/share to $40/share from January 2010 to April 2010.
Then yesterday, the good news hit, and the stock closed at $50/share, and pre-market indicators already push it higher, yet.
Thursday, April 29, 2010
Many of you have, but for those who are not familiar with this company, it is sort of the Google (GOOG) of China. Baidu provides Internet searches using Chinese characters, which removes the need to know English--pretty big if you live in China and don't know English.
I heard there are a couple of people who live in China--say 1 billion or so. So there isn't any market, is there? Nah!
I'm learning about Baidu, still, but the Google-like connection gives it some intrigue.
You know what else makes it intriguing? Today, it jumped from $620/share or so to OVER $700. In fact, earlier this morning, it reached as high as $718/share.
What caused THAT?
Wednesday, April 28, 2010
This might be a great decision for the country; it might be horrible. I'm not looking to analyze this right now.
I'm scratching my head over the stock market's reaction to this announcement. It seems to forget that just yesterday, the entire market tanked, because it was concerned about the Goldman Sachs fraud deal and Greece almost certainly defaulting on its loans (with several European countries heading on the same path).
So the Feds keeping the interest rate low is more than enough to erase concerns about everything yesterday?
Why is the market moving upward? Are we really that much better today than we were yesterday? (Were we really that bad yesterday?)
Tuesday, April 27, 2010
What would you say?
Monday, April 26, 2010
TGT: Target Corp
Recent Range: $30/share – $65/share (Current Price: 57.94, as of close of 4/23/10)
Price/Sales (P/S) = 0.68 (0.54, Industry)
Price/Book (P/B) = 2.72 (2.85)
Gross Margin = 30.3% (25.3%)
Pre-Tax Margin = 5.9% (5.3%)
Debt/Equity Ratio = 1.10 (0.61)
Current Ratio = 1.6 (1.1)
Return on Equity = 17.1% (19.4%)
Return on Assets = 5.6% (8.1%)
Return on Capital = 7.4% (12.3%)
Analysis: Obviously, Target is a very well known company.
However, as a stock, Target is in an ultra-competitive big box retail industry, which does not have a lot of upside for its stock holders.
Recent Range: $45/share – $60/share (Current Price: 54.53, as of close of 4/23/10)
Price/Sales (P/S) = 0.50 (0.54, Industry)
Price/Book (P/B) = 2.90 (2.85)
Gross Margin = 24.8% (25.3%)
Pre-Tax Margin = 5.4% (5.3%)
Debt/Equity Ratio = 0.58 (0.61)
Current Ratio = 0.9 (1.1)
Return on Equity = 21.2% (19.4%)
Return on Assets = 8.9% (8.1%)
Return on Capital = 13.7% (12.3%)
Analysis: Obviously, Wal-Mart is a very well run company, but...
Friday, April 23, 2010
For people who do not know what covered call options are, I'll explain them quickly here.
Thursday, April 22, 2010
I have three (3) main rules of investing:
- Only invest in things that you know.
- Only invest in them when the price is good.
- Trust yourself, and invest what you can in it.
Wednesday, April 21, 2010
RNN: Rexahn Pharmaceuticals Corp
Recent Range: $1.25/share - $3.50/share (Current Price: 2.50, as of close of 4/20/10)
Price/Sales (P/S) = 2782.05 (1002.08, Industry)
Price/Book (P/B) = 25.22 (6.16)
Gross Margin = Not Available
Pre-Tax Margin = -8,516.6% (-4,752.1%)
Debt/Equity Ratio = 0.00 (0.36)
Current Ratio = 9.9 (6.0)
Return on Equity = -118.2% (-8.1%)
Return on Assets = -90.6% (-20.9%)
Analysis: This is not one of those “sure bets,” unless you mean a sure bet to lose.
Huntington Bank (HBAN) announced their 2010 1Q Earnings today, and they were expected to have a small loss. Instead, they announced a PROFIT.
Tuesday, April 20, 2010
RPC: Radient Pharmaceuticals Corp
Recent Range: $0.25/share - $2.00/share (Current Price: 1.21, as of close of 4/20/10)
Price/Sales (P/S) = 1.17 (35.14, Industry)
Price/Book (P/B) = 0.98 (4.60)
Gross Margin = 46.4% (59.8%)
Pre-Tax Margin = -47.6% (-446.4%)
Debt/Equity Ratio = 0.08 (0.30)
Current Ratio = 0.1 (3.0)
Return on Equity = -34.0% (18.4%)
Return on Assets = -32.8% (8.6%)
Analysis: Based on the numbers, this is not something that I would recommend.
Monday, April 19, 2010
NNN: National Retail Properties
Recent Range: $14/share – $25/share (Current Price: 23.63, as of close of 4/19/10)
Price/Sales (P/S) = 8.38 (4.37, Industry)
Price/Book (P/B) = 1.31 (2.36)
Gross Margin = 94.2% (54.1%)
Pre-Tax Margin = 24.2% (8.3%)
Debt/Equity Ratio = 0.63 (1.48)
Current Ratio = Not Listed
Return on Equity = 3.3% (6.9%)
Return on Assets = 2.2% (3.1%)
Return on Capital = 2.2% (3.3%)
Analysis: OK. Seems to be a good quality company.
Friday, April 16, 2010
Thursday, April 15, 2010
However, I think I know someone badder than them.
No, I'm not talking about Google. They might qualify, but I don't know how to measure that right now.
I'm talking about Warren Buffett.
Wednesday, April 14, 2010
All sorts of people have all sorts of advice how to make money. Some of it is good, and some of it is bad.
How do you sort out the difference?
Tuesday, April 13, 2010
Even the highly acclaimed regional banks seem to be taking a pretty good hit today, and they've been everyone's darling for the past several weeks. I'm not sure that will change for the long term, as many of them are still available for a cheap price.
However, there is one stock that is bucking today's downward trend. From the title, you probably guessed it: Google (GOOG), and this is a company where you cannot buy even one share for $500. Depending upon the commission rate, you might not be able to buy it for a cool $600, either. That's just ONE share, and it continues to be in demand.
What makes Google so attractive?
Monday, April 12, 2010
Even though, there are a lot of good things in place, it's still missing some things that will take time to develop. Namely, we still need to get banks comfortable enough to gives lines of credit to businesses that will create jobs. We're going in this direction, but things haven't been in place long enough to this "new money" to filter its way through the economy, yet.
So I said to look out for the neighborhood bear.
Since that day, the stock market has gone mostly....UP. That's right! Up.
We just broke 11,000 today, and it seems like there isn't any bear in sight. Everyone and their brother (including me) figures that we are long overdue for a market dip. It hasn't happened, and it's not clear that it will.
Be careful of bubbles forming.
Friday, April 9, 2010
The last 2-3 months have been really kind to these stocks, like Huntington Bancshares (HBAN) and Fifth Third Bank (FITB). Other bank stocks seem to be following the same pattern, too, but I don't follow those so closely.
I'm glad they are, even though I sold my shares a while ago. This might reflect that people are gaining some confidence in this part of our economy again. We'll check again a few months from now.
If anyone reading this has any insight, feel invited to comment.
My instincts would have been to buy a bunch at $1.47/share or so that I bought earlier (and later sold) and hold onto it for a while. Ultimately, this might be okay, but I would have missed on a TON of quick profit chunking opportunities.
I'm wondering whether certain stocks attract certain people who follow certain technical indicators. It sure seems like some stocks price patterns perfectly follow the MACD. Others follow the Slow Stochastic. Even if I'm right about this, I don't know how to identify it in advance. Therefore, I haven't figured a way to really profit from it.
Perhaps, it's a good idea to see a pattern established. Then ride the train. I don't have enough experience to know how risky this approach is, though.
I'm still doing the Buy & Hold thing on this one, and it's pretty boring right now.
Buy Price: $0.29/share
Current Price: $0.19/share
The financial numbers were released recently, and they looked pretty good. I wonder whether I'm missing something here.
I admit that there seems to be a limited amount of profit on environmentally friendly food packaging material, but we DO eat a lot of food on this planet. I imagine that someone would have to sell a whole lot to make a modest amount of profit, though.
I'll keep you posted.
Thursday, April 1, 2010
I'm not using the Slow Stochastic technical indicator. I'm using that ol' buy and hold method now.
I have to admit, it's certainly not as fun to just sit there and hold onto something. Trading is really pretty fun.
However, with this one, I'm learning that it's probably the right thing to do.
Wednesday, March 31, 2010
Enova (ENA) might be a good money-making stock.
I don't know whether it is a good company. I suspect that they are speculative and have their hopes pinned on something that only might take hold.
So why do I think that it might be a good one?
Tuesday, March 30, 2010
The market seems like it is beginning to slip. The news is beginning to get really gloomy.
Actually, people are NOW just starting to realize that Wall Street was trying to create another bubble. Bubbles are really great--until they POP! That happens when people start realizing that things just cost too much without any real reason.
DVN: Devon Energy Corp
Recent Range: $50/share – $75/share (Current Price: 64.57, as of close of 3/29/10)
Price/Sales (P/S) = 3.52 (6.84, Industry)
Price/Book (P/B) = 1.81 (2.32)
Gross Margin = 79.2% (63.2%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.49)
Current Ratio = 0.8 (1.5)
Return on Equity = -16.9% (2.0%)
Return on Assets = -8.9% (1.8%)
Return on Capital = -10.1% (2.5%)
Analysis: DON’T BUY.
ECA: EnCana Corp
Recent Range: $24/share – $35/share (Current Price: 30.34, as of close of 3/29/10)
Price/Sales (P/S) = 2.00 (1.14, Industry)
Price/Book (P/B) = 1.22 (1.77)
Gross Margin = 17.5% (11.7%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.25)
Current Ratio = 1.4 (1.1)
Return on Equity = 9.3% (13.1%)
Return on Assets = 4.5% (6.4%)
Return on Capital = 5.0% (8.7%)
Analysis: OK—NOT GREAT.
SWN: Southwestern Energy Co
Recent Range: $31/share – $52/share (Current Price: 40.73, as of close of 3/29/10)
Price/Sales (P/S) = 6.08 (6.84, Industry)
Price/Book (P/B) = 5.59 (2.32)
Gross Margin = 69.4% (63.2%)
Pre-Tax Margin = -2.4% (-39.0%)
Debt/Equity Ratio = 0.44 (0.49)
Current Ratio = 1.1 (1.5)
Return on Equity = -1.5% (2.0%)
Return on Assets = -0.8% (1.8%)
Return on Capital = -0.9% (2.5%)
Recent Range: $19/share – $28/share (Current Price: 19.97, as of close of 3/29/10)
Price/Sales (P/S) = 5.43 (6.84, Industry)
Price/Book (P/B) = 1.77 (2.32)
Gross Margin = 57.9% (63.2%)
Pre-Tax Margin = -164.3% (-39.0%)
Debt/Equity Ratio = 0.79 (0.49)
Current Ratio = 0.6 (1.5)
Return on Equity = -30.5% (2.0%)
Return on Assets = -15.1% (1.8%)
Return on Capital = -16.9% (2.5%)
Analysis: DO NOT BUY!!! SELL IF YOU HAVE IT.
Friday, March 26, 2010
I stopped playing by the rules for this test.
I was trying to use the Slow Stochastic technical indicator to determine my "buy" and "sell" signals for Biopack Environmental (BPAC). Today, I got the "sell" signal.
Here are the stats:
I don't get it.
Toyota (TM) keeps getting bad news. Their accelerator petal sticks (not always but often enough to make the news circuit). They replace the defective parts...with parts that are still defective. They seem to "hide" information.
Yet their stock keeps rising.
Thursday, March 25, 2010
The technical indicators keep telling me to buy, buy, buy. The MACD told me not to buy, but most of the others seem to point toward the "buy" signal.
Biopack Environmental (BPAC)
Original Buy Price: $0.29/share
Today's Price (Early AM): $0.20/share.
Let's hope this thing changes for the better, but I'm not so hopeful. I've been wanting to cut my losses for a while, but I'm trying to remain patient throughout this experiment. So far, I'm really being tested.
Wednesday, March 24, 2010
My test using technical indicators continues with Biopack Environmental (BPAC).
I bought this at $0.29/share.
Today, it sits at $0.25/share.
My common sense told me to sell at $0.27 or $0.26/share, but the technical indicators keep saying "buy" instead of "sell."
My next test will not be a OTC stock. It's not always easy to get up to the minute quotes. So I'm never very secure that I am getting the read on the technical indicators at the time I need them.
We'll see what happens. If this doesn't work, it will just be a test gone wrong--not my major investment portfolio. There is time, still, since it has gone as low as $0.08/share during the past year.
I'll continue to post the play-by-play on this one as it unfolds.
Monday, March 22, 2010
Wall Street is celebrating. Times will be great now!
Doesn't the Senate have to vote on this? Oh, I know. That's a sure thing!
Wait a minute! Why is this a sure thing? Didn't the Senate stall the bill last time it passed the House? Weren't they celebrating last time the House passed the bill?
Friday, March 19, 2010
However, I think there is a tremendous downside to the market running upward.
Wednesday, March 17, 2010
Yesterday, I bought it at $0.29/share. Today it dropped to $0.28/share. Now it's rebounded to $0.30/share.
Since I'm testing things using the Technical Screener (Slow Stochastics), I'm not selling it, yet. However, it IS killing me.
I don't know how soon I will enter another OTC stock. It doesn't seem to have enough trading volume to afford the buying/selling flexibility that I want. You cannot put in a limit; so you have to keep checking the prices 6,000 times per day. I like gathering data, but NOT THAT MUCH!!!
Plus, I don't know that I can sell it at $0.30/share. The Ask (Buy) price is $0.31/share, but the Bid (Sell) price is listed at only $0.28/share.
I'll keep you posted.
Tuesday, March 16, 2010
I had an idea I wanted to test.
I looked at a list of stocks that were really volatile (Beta Value > 10.0). There were a few.
I picked one from the list where the Slow Stochastic Technical Indicator told me to BUY.
So I bought some at $0.29/share.
I bought AND sold it yesterday for a nice little profit. I won't be able to retire from it. In fact, it really wouldn't even pay a day's worth of wages, but it was a nice result from a first test.
However, yesterday, I also mentioned that I would not usually sell things at that level.
I admit that the stock dropped a little. However, it's returned to the price level that made me sell yesterday. The Technical charts do NOT tell me to buy this.
I will keep you posted, but for now, my common sense--not the charts--are tingling like crazy.
This morning's price is $1.65 as of when I started writing this post
Monday, March 15, 2010
I didn't expect results THIS quickly, but Enova (EVA) jumped up around $0.20/share today.
I checked the RSI and the Slow Stochastics, and they BOTH SAID SELL. So I did.
I bought these shares at $1.48/share and sold them at $1.65/share. That's a little over a 10% profit in less than two (2) business days.
I'm curious how much further it will climb. I usually wouldn't have sold it so quickly.
My guess: It will drop a little but not enough to trigger another "buy" signal. However, I think it will keep rising after that quick drop.
I'll keep you posted.
I like to fancy myself as purely a fundamental trader. However, if I'm honest with myself, I probably use fundamental ratios to get me started, and I tend to time the market for the actual buy and sell points. Luckily, I seem to have a knack for "timing" the market since identifying patterns comes so easily for me. Numbers make it that much easier for me.
Don't get me wrong. Using "play" money, I've made mistakes. (Luckily for me, I haven't made too many mistakes with real money so far.)
Last week, I had just a little bit of money in my broker's account. So I decided to buy a speculative stock, which I've been watching for nearly a year now. I decided to use the RSI and Slow Stochastic indicators. Both of them told me it was probably time to buy Enova (ENA) @ $1.48/share. My pattern watching told me that this might not be THE lowest price, but at the time I bought it I figured that its price was closer to its near-term bottom than its top.
I'll keep you posted on how I do with this. Even if I win, I didn't invest/gamble enough for it to change my life. The good news is that if I lose, my life will be unaffected, still.
I want to keep track of this so I can get some practice using technical indicators.
Sunday, March 14, 2010
I remember telling this person that I was looking to possibly buy TM--IF they dropped to the low 60's, if not fully drop into the 50's. During the past 1-1/2 years or so, they've been struggling with higher recall levels than usual. However, their PR has been taking HUGE hits since this whole accelerator sticking (made by supplier CTX), causing a lot of accidents.
Wednesday, March 10, 2010
Plenty has happened in my personal life, but that's not the point of this blog.
About a month ago, the Dow dipped below 9000. Today, it is over 10,500.
What is the difference between the economy today versus a month ago? Really?
Friday, February 5, 2010
Thursday, February 4, 2010
If you don’t think the people with whom you associate affect how much money you make, I’m going to suggest that you think again.
Wednesday, February 3, 2010
Most of you looking at my post already know about me, but for those of you who do not know me, let me tell you a little about myself.
I want to learn how to make money.
I don't want extravagant things, except an occasional trip. Even then, my tastes are pretty simple while my appreciation for the little things remain high. I really like removing stress from my life. I don't need big things; I just want a big cushion so that I never HAVE TO do anything just BECAUSE I need the money.
My goal is to learn how to make money in enough different ways to be able to teach the greatest number of people how to make money. I am happiest when I am helping people. Plus, I think that it could help reduce racial, ethnic, and sexual discrimination and other needless negative tensions between different groups of people. You might hate people who have my demographic, but how can you hate someone who helps you solve problems? Maybe you'll still hate me, but you won't hate what I've done for you.
Hopefully, throughout this blog, I will provide some ideas that you didn't know. If not, maybe I will reinforce what you already know.
Ask questions as often as you'd like. I cannot stress how much I welcome them.