Thursday, February 21, 2008

Winning with the Losers

Remember that time during your prepubescent era when you lost a game and someone chided your pouting with the "everybody's a winner" line? Me neither. Nevertheless, you can win with the losers now when it matters because we're not talking Monopoly currency anymore. The losers are Crocs (Nasdaq:CROX), Huron (Nasdaq:HURN), and 3COM (Nasdaq:COMS). After a series of unfortunate events, the three have come to a rest at 27.44, 54.77, and 2.87, respectively. But a word of warning, don't hold your breath on the 3COM acquisition. Good night and good luck.

Wednesday, February 20, 2008

Stock Up On Stocks

As usual, I'm up at a seemingly feckless hour chasing my whims to no end. Since it's been some time since my last post, I'll drone on about investing until my laundry dries and the haphazard medley on my iTunes beats the living bejesus out of my insomnia by sheer decibel intensity.

First of all, why invest, huh? We can talk existentialism some time over tea and battle wits over social paradigms, contemplate shirking off such social constructs off like Alexander Supertramp, and even compete in creating run-ons. But let's face the facts; you could win the lottery or just as equally, statistically - yet less favorably - be struck by lightning, but chances are that neither will occur. Despite that we engorge ourselves with trans fats and compound the issue with heinously sedentary lifestyles, Big Pharma wants your money and is probably willing to drive over, trek through your refuse strewn floors to put you on a Lipitor IV for an exorbitant cost, consequently causing an increase in the average lifespan and inadvertently affecting overpopulation. Thus, not only will you live longer, but it's gonna cost you more. I'm not suggesting that you be a penny-pinching scrooge. I'm demanding it. I kid. I'm merely suggesting that you be fiscally responsible and prepared...and treat me to a meal or four. As for me, I want to retire by 30 and enter social enterprise full-time. Laugh all you want, but I've got plenty of time and I won't cry if it doesn't happen. If you want in (www.preceptinvestment.com), we've got over two dozen potential projects.

As for stocks, sure I took quite the beating from the subprime mortgage fallout, but my Delta Airline shares doubled and aggressive reinvestment yielded returns from 10% to over 40%. I'll keep my stock picks posted as often as possible. As for the coming week, a few stocks to watch are MetroPCS (NYSE:PCS), Huron Consulting (Nasdaq:HURN), Yingli Green (NYSE:YGE), and Onyx Pharmaceuticals (Nasdaq:ONXX). I've been hesitant about YGE, but Piper Jaffray's analyst has been pretty insistent on a target price over $60. Keep your eyes peeled and we'll see where they go. One of the most harped on lessons in investing is probably diversification. I primarily invest short-term, but in terms of stocks, shares should probably be diversified across a gamut of industries as well as for short and long-term investments. For the latter, we're most certainly in a buyer's market. Some companies have been hit so hard from the repercussions of the mortgage hullabaloo that they're still glancing along 52-week lows. So if you pick a large cap with your eyes closed and the company isn't teetering on the brink of bankruptcy, you're probably safe for the long run. If you're not comfortable with that, Apple (Nasdaq:AAPL) and Markel (NYSE:MKL) should guarantee profitable returns by the time your hair grays. If you're so old that you can't even buy green bananas, liquidate and blow your cash now.

Lastly, I am not responsible for any losses. The take home message here is that you should avoid lengthy blog posts when non-preshrunk cotton is tumble drying at high heat. Also, do your research on companies, on the market, on politics, and make sure you understand causality (i.e. fed lowers rate -> mortgage lenders gain, oil prices rise -> airlines lose, political instability -> ??).