Friday, July 29, 2005

International Stocks

Here is a list of some international stocks worth looking at. I am not recommending a buy. I don't own any of them but would consider adding one or two to my portfolio. My only true ADR is America Movil (AMX), which has had a nice run. You can always go with an ETF or a mutual fund for more diversification.

Petro Brazil (PBR) - Oil company with 4% div

China Mobile (CHL) - China wireless carrier

ICICI Bank (IBN) - Second largest bank in India
Tata Motors (TTM) - Automaker with 2% div (relatively undiscovered)

Cemex (CX) - Cement market is booming

Thursday, July 28, 2005

Options Update

Here is how my options trading has gone so far. I am only approved to buy calls with my broker.

QCOM Jan 35 Call Bought $3.30 Sold $5.60 (40% Gain)
MOT Aug 20 Call Bought $0.75 Worth $1.35 (Own)
GSL Sep 45 Call Bought $0.40 Worth $0.75 (Own)
INTC Aug 30 Call Bought $0.40 Worth $0.05 (Own)

Whole Foods Beats Estimates

Whole Foods (WFMI) beat estimates by $0.03 and is trading up 10% or about $13 in the AH. Profit is up 31% YOY. They expect sales to increase 15-20% this year.

Stock Pick Update: The Nasdaq Company (NDAQ)

The Nasdaq Company (NDAQ), one of my stock picks and a stock that I own reported a tripling in profit. The stock is up 8% in the after ahours as the Nasdaq Company beat estimates by $0.04. This is a multi-year growth story.

Tuesday, July 26, 2005

Halliburton In Bull Mode

Halliburton, which is one of my two recommended energy stock picks for 2005 and 2006 has been on a terror of late. The numbers keep going up, so I will raise my target price to $60. I think they can earn $2.88 a share in 2006 and trade at 21 times earnings. Halliburton is still cheaper than Slumberger on a forward PE basis. Both are expected to grow earnings at about the same rate.

Thursday, July 21, 2005

Stock Pick Update: Cerner Beats & Raises

My short squeeze pick Cerner (CERN) again beat estimates. Cerner's Q2 profit was up 39% YOY. Cerner earned $0.51 vs. the $0.49 mean estimate. Guidance for Q3 is $0.54-$0.55, which is in-line with expectations. Revenue was up 22% at $277.8 million beating estimates of $268.4 million. They also increased new business booking by 18% year over year. Cerner raised FY guidance to $2.13-$2.16 from $2.10-$2.14.
Target Price: 40 X $2.16 = $86.40

I am long Cerner.

QCOM Jan 35 Call

I closed out my Jan 35 Qualcom call today for a nice 58% profit. I am still long the stock. If I owned more than one call I would have sold half of my position.

Wednesday, July 20, 2005

Stock Pick Update: Cerner Earnings 7/21

One of my better stock picks reports tomorrow. Cerner (CERN) will report after the bell. Look for earnings of $0.49 with $268 million in revenue. The $0.49 mean estimate is 29% higher YOY. If Cerner has a blowout quarter, I wouldn't be surprised if it hits $75, especially if 42% of the float is short. Cerner has beat estimates by a penny for the last five quarters (as far back as I can tell).

Note: I am long Cerner.

Ebay Has Blowout Quarter

Profits were up 53% YOY. Ebay earned $0.22 before accounting charges, $0.21 after charges. The mean estimate for Ebay was $0.18. The stock is up about 14% ($5) in the after hours. I wish I would have bought some call options. I am looking at some option plays for next week's earnings reports.

Qualcomm Beats Estimates

Qualcomm beat Wall Street estimates with earnings of $0.33 in Q3 compared to the $0.25 estimate. Pro-forma earnings were $0.28 vs. $0.25 estimate. Qualcomm raised FY guidance to $1.13-$1.15 from $1.10-$1.14. The stock traded up 4.00% in the after hours. Keep it on your radar tomarrow along with Broadcom (BRCM), Juniper (JNPR), and F5 (FFIV).

This is good news for the call I bought before the bell.

Option Purchase (QCOM)

I bought (1) Qualcomm (QCOM) January 35 call before the bell at $3.30. I decided to go in the money with an extended time period for less risk. Qcom is trading up in the after hours.

Homebuilders Continue Surge

The homebuilders continue to trade higher. I recommended Lennar (LEN) on 6/16/05. If you bought on 6/16 you would have a nice 8.0% gain. I still like Lennar up until $70-75. Homebuilder DR Horton (DHI) reports tomorrow, which should prove as another catalyst for the sector. My only concern for these stocks is they have been going up in light volume, which can be a bearish indicator of a "top." With the volume aside, these stocks are driven by earnings and backlog orders. And Lennar has both, as do most of the other homebuilders.

Motorola Blackberry Killer Coming Soon

Many on the internet have speculated that Motorola will unveil a Blackberry Killer in the coming months. The new phone only weighs 4 oz and is thin like the Razor cell phone. This is all just speculation. I have chosen to speculate by purchasing some MOT calls.
I should note that Roberto at NasdaqTrader lead me to find the picture. Here is a link to the article released on


Tuesday, July 19, 2005

My First Experience With Options (MOTHD.X)

I was allowed to trade options for the first time today. I have been doing some reading and made a small investment by purchasing (2) August 20 calls for Motorola at a $0.75 premium (MOTHD.X). I don't recommend following my options trades since I am quite inexperienced in the field. I think I am a little late to the game with Motorola, but that's okay. I am curious to see how things work out tomorrow and the following week. Especially since Motorola reported a blowout quarter and they will be releasing a Blackberry Killer at their analyst meeting next week. I still think people are too bullish on tech. But I hope I'm wrong.

Intel & Yahoo Disappoint

Intel (INTC) and Yahoo (YHOO) both traded lower in the after hours. Intel beat estimates by a penny but fell short of their gross margin guidance sending the stock lower by 4.48% or $1.28. Yahoo's revenue fell short of Wall Street expectations by $8 million. Although Yahoo still met earnings estimates of $0.13 a share. Yahoo got hammered trading down about 10% to $34.00.

Amgen Has Blowout Quarter

Amgen (AMGN) beat estimates by .16 cents after the bell. The stock traded up 8.5% in the after hours. Biotech stocks continue their hot run. Look for more great action in the biotech's tomorrow, especially Genentech (DNA).

Monday, July 18, 2005

Earnings To Watch on 7/19/05

There are some big earnings reports to watch throughout the week. Here are some of the notables for Tuesday.

Tuesday 7/19/05
Amgen ($0.72)
Ford ($0.33)
Intel ($0.32)
J&J ($0.91)
Juniper Networks ($0.17)
Kraft Foods ($0.47)
Lucent ($0.04)
Merrill Lynch ($1.08)
Motorola ($0.25)
Mylan Laboratories ($0.20)
Novellus ($0.21)
Peabody Energy ($0.71)
PNC ($1.05)
Stryker ($0.44)
The Cheesecake Factory ($0.29)
Wachovia ($1.05)
Wells Fargo ($1.13)
XTO Energy ($0.61)
Yahoo ($0.13)

Banks Down On Citigroup Miss

Citigroup missed expectations earning .97 cents a share compared to the street's $1.02 expectation. Citigroup blamed the miss on the interest rate squeeze. On the other hand, Bank of America beat by five cents, but is trading lower on the Citigroup miss.

Wednesday, July 13, 2005

S&P Near 4 Year High

The S&P 500 edged one point closer to a four year high. Keep an eye on the S&P 500 which becomes volatile around these levels.
S&P 5001,223.29+1.08(+0.09%)
10-Yr Bond4.163% +0.02

Tuesday, July 12, 2005

Pepsi Beats Estimates

Pepsi (NYSE: PEP) beat estimates of $0.67/share by three cents. Pepsi is up 2.08% today from yesterday's close. To read more about the quarter click here.

BOOM is Booming

Dynamic Materials (Nasdaq: BOOM) continues to trade higher. I don't own it but I mentioned it before as a short squeeze pick. It is trading at over $46.00, about $6.50 above where I recommended a buy. Also, Cerner (Nasdaq: CERN) another short squeeze pick, continues to make new 52 week highs everyday.

Monday, July 11, 2005

Notable Earnings Reports This Week

Ameritrade (Before the bell E$0.18)
Pepsi (E$0.67)

Abbott Labs (E$0.57)
Advanced Micro Devices (E-$0.06)
Apple (E$0.31)
Harley-Davidson (E$0.79)
Wolverine World Wide (Before the bell E$0.21)
Yum! Brands (After Close E$0.57)

Genzyme (Before the bell E$0.53)
Marriott International (Before the bell E$0.77)
Novartis (Before the bell E$0.67)
Southwest Airlines (Before the bell E$0.18)
UnitedHealth Group (Before the bell E$0.60)

GE (E$0.44)
W.W. Grainger (Before the bell E$0.82)

Genentech (DNA) Trading Higher

Genentech is trading higher ($1.26) in the after hours after beating estimates by a penny. Sales of Genentech's cancer drug Avastin surged 85% year over year and were up 21% from the last quarter. Avastin helps fight lung cancer, breast cancer, colon cancer, and many other types of cancer. Sales of Avastin are expected to double for 2005 and 2006.

Source: Reuters

I like Genentech except for the the ridiculously high P/E compared to Amgen. If anything should go wrong with Genentech then the stock could fall just as fast as it has run up. I can't take the pain of being in both Google and Genentech especially if they both run into some speedbumps. I still think they are both great companies.

New Search Feature

You can now search my blog archives with the google search box located on the top of every page. You can also search the internet via google.

Friday, July 08, 2005

Stock Market Climbs

All stock market indices finished the day in positive territory. 146,000 jobs were created in June and the unemployment rate fell to 5.0%, the lowest since September 2001. Oil also traded lower further pushing the stock market higher.
S&P 5001,211.86+13.99(+1.17%)
10-Yr Bond4.109% +0.08


Everyone is always looking to diversify and keep expenses at a minimum. One way to do that is by investing in ETFs also known as exchange traded funds. ETFs usually have an expense ratio of less than one percent and are generally lower than mutual funds. ETFs can be traded like stocks throughout the day but hold a basket of stocks. The (QQQQ) is the 100-Largest companies on the Nasdaq. Microsoft is its largest holding but it has many other popular companies. Another ETF that is worth a look is the iShares Emerging Markets (EEM). For more information on ETFs check out msn or contact your broker.

Thursday, July 07, 2005

Homebuilders Up

On a rough day like today the homebuilding stocks continue to show strength. I like investing in these huge land bank companies that also have tons of cash. As a side note, biotech company Amgen (AMGN) was upgraded today sending the stock up $2.41 as of 11:45 EST.

Stocks Dip On London Explosion

The attacks in London sent stocks trading lower in pre-market action. Trading continued in London despite the attacks. The Dow and Nasdaq have both climbed off their lows. Oil is also trading lower today.

Wednesday, July 06, 2005

Stocks Getting More Attractive

Investing in stocks always becomes more attractive as stocks go down. Even on a rough day like today, you have to stay positive and treat it like the stock market is throwing a sale.

Speculative Stocks to Watch

Here are some speculative stocks that I don't recommend buying but are worth a look at if you can find more information on them.

Amylin Pharmaceuticals (AMLN) - Got approval for diabetes drug - Byetta. Company should see accelerated revenue growth. Still not profitable.

Coffee Holding Company (JVA) - Sells coffee beans. Just had an IPO at $5. Stock has virtually doubled since. Still looks interesting on a pullback.

Lamperd Less Lethal (LLLI) - A Taser knock off company. Looks interesting, especially if you look at where Taser's stock came from.

Trump Entertainment (DJTE) - "Trump Casinos" just emerged from bankruptcy.

Tuesday, July 05, 2005

Finding The Right Online Stock Broker

Finding an Online Stock Brokerage Firm

There are many online brokerages but don’t just pick the one with the cheapest commissions. You must read the fine print and see if the services offered are enough to make you happy. Also many advertise dirt cheap commissions requiring you to trade frequently to get a discount on the commission. Some brokerages charge extra for trading more than a 1,000 shares. Check the pricing. Everyone wants the best deal but if you don’t trade often and you trade over $1,000 per transaction then a $7 commission vs. a $10 or $5 commission should not make a difference in which brokerage firm you choose.I am with Ameritrade Izone ($5 Internet trades) but they don’t have telephone customer service or local offices. I only need the minimum bells and whistles. Some like a little extra.Below are just a few names to check out and research. Check message boards to see how satisfied people are with each firm.Also check out Consumer Search Which has links to articles reviewing brokerage firms:

Ameritrade ($10.99 Equity) ($10.99 + $0.75 Per Options Contract)
Ameritrade Izone ($5) ($8 + $1.75)
Brownco ($5 Market/$10 Limit) (10 Contract $20 Market/$25 Limit)Choicetrade ($5) (99 Cents: $2.97 min.) (Can “test drive” a demo account)Etrade ($14.99 for <5)
Firsttrade ($6.95) ($6.95+$1.25)
HarrisDirect ($19.95) ($25 + $1.75)
Schwab ($9.95-19.95) (9.95-19.95 + 0.95) **Read Pricing Terms
Scottrade ($7) ($7+1.25)
Sharebuilder ($4 Tuesday Trade***: $15.95 for Real Time Trades)
TD Waterhouse ($17.95) ($17.95+$1.75)

Short Squeeze Picks Updated

Here is how my short squeeze picks have fared since I mentioned them on 6/16/05. I own Cerner (CERN). I continue to like all the stocks below, especially the ones that are down since 6/16/05.

Cerner (CERN) Up 9.6% (42.7% Float Short in May: 42.3% Short in June)
Parlux Fragrences (PARL) Up 6.4% (54.3% Float Short in May: 47.3% Short in June)
Turbochef (OVEN) Down 3.1% (42.5% Float Short in May: 40.8% Short in June)
Dynamix Materials (BOOM) Down 5.2% (21.3% Float Short in May: 24.5% Short in June)
Forword Industries (FORD) Down 6.9% (24.2% Float Short in May: 29.8% Short in June)

Upgrades 7/5/05

Stocks Upgraded on 7/5/05 AMZN
Arden Realty ARI
Deere & Co DE
Digital Insight DGIN
Equity Res EQR
Ensco ESV
Liberty Prop LRY
Pixar Animation PIXR
Post Properties PPS
Reckson Assc Rlty RA
Rowan Cos RDC
Starbucks SBUX
Wal-Mart WMT

Downgrades 7/5/05

Stocks Downgraded on 7/5/05

Amegy Bancorp ABNK
Apt Inv & Mgt AIV
Alvarion ALVR
Corinthian Colleges COCO
CSG Systems CSGS
Gardner Denver GDI
Gamestop GME
MDC Holdings MDC
PrivateBancorp PVTB
Ryland Group RYL
State Auto Fin STFC

Sunday, July 03, 2005

New Addition: The Nasdaq Company (NDAQ)

My latest purchase was in the Nasdaq company (NDAQ). They make money when stocks list on their exchange. I think this is good speculative growth stock right now that could easily drop from $19 to $14 if the market turns sour. I am prepared to buy down in this stock if I have to. I have no target price for this stock because it trades at such a high multiple. This is a long term investment in stocks choosing to go public on the Nasdaq. Usually companies with exciting growth prospects list on the Nasdaq. For more information on the Nasdaq company you can visit in the investor relations section.

Best Performing Newsletters Recommend

In an article from some of the best performing newsletter's favorite stocks are Johnson & Johnson (JNJ), Merck (MRK), and Bank of America (BAC). I would look at buying JNJ if it fell back to $61. I think Bank of America is cheap right here at $45 with a 4% yield and forward PE of 10. I am still not convinced on Merck.
I don't own any of these stocks.