Both the market and politics are staying the expected course for now. In politics, its more of the same as businesses roll out information on how much the new healthcare reform legislation is going to cost them as Democrats continue to trumpet their win and capitalize upon it. Can't blame them there, you have to seize momentum when it's available (back to that in a minute). So, they should celebrate making our debt even greater. As for Republicans, well, they made the news over the last two days as well -- spending $2K on a bondage/strip club outing, or something like that. When are Republicans going to stop trying to portray themselves as "moral" right on some "holier than thou" mission when we all know its total bunk? Again, I would ask anyone who might stumble across this blog to explore the Libertarian Party at http://www.lp.org/. It's simply time to stop having to choose between the lesser of two evils at election time, and it should be painfully obvious to all that there is no difference in the two parties except spin. We all need a viable third party candidate now, one who is fiscally responsible and values individual liberty!
As for the stock market, we continue to churn and bounce as expected while we take a breather from a great run-up over the last 6-8 weeks. It's been well earned. We did have a good bullish day yesterday, which caught a lot of bears off guard based on what I was seeing posted on StockTwits (http://www.stocktwits.com/). In my own portfolio, I sold China GengSheng (CHGS) after it feel 14% today based upon meeting analysts' expectations for the latest quarter. That doesn't bode well for the stock. Meanwhile, Health Grades (HGRD) and Omnova Solutions (OMN) continue to stretch their gains, so I increased my positions today in both companies. Like I said above in the first paragraph, you must seize upon momentum when you have it. After all, the demand for both stocks will eventually slow and it will be time to move on. But it looks like that isn't just yet. Take a look at the last 90 days for both stocks, and you will see what I mean. Good trading!
Tuesday, March 30, 2010
Sunday, March 28, 2010
Saturday, March 27, 2010
Thursday, March 25, 2010
Crazy Times in Every Way
Crazy politics and a crazy market - what a day! In politics, rhetoric and hype are now being replaced by threats and vandalism directed at various politicians from both parties over the new healthcare law and how votes were cast. In one way, this isn't necessarily a bad thing, although the media would have us believe otherwise. Don't get me wrong, I am not advocating people's violent actions, but I very much appreciate the fact that people are getting passionate about our country and its leadership (or lack thereof). This is a great thing, because in my lifetime I have witnessed little more than pure apathy regarding the wonderful freedoms we enjoy in this country. So, I don't see it as a bad thing. Besides, our country was founded on such principles and old habits die hard. By the way, I think most folks today are very arrogant in the assumption that our founding fathers weren't as intelligent as we are today or were somehow less civilized. Sorry, but I personally think most modern-day Americans couldn't hold a candle to most of them and certainly wouldn't have the backbone or conviction to die for their beliefs and freedom. Period.
Sadly, the markets weren't any better today. The day started off with the bulls firmly in control based on some speculation that the EU and IMF would bail out Greece and a big earnings surprise from Best Buy. That evaporated in the late afternoon as concerns about sovereign debt in Greece and other European countries crept back to the surface with several media reports. Oh well.
Personally, I managed to lock in a nice 23% gain on a September $75.00 Netflix long call (option). Just one -- remember that I am not rich! :) Every little bit counts though and compounding works well as long as you keep making smart trades and growing the account. That's my plan anyway...
One of my stocks, Omnova Solutions, Inc, traded on the on the NYSE under the symbol OMN, reported better than expected earnings after the closing bell yesterday. Its always a good thing when you have invested in a good company and are rewarded nicely for it. OMN shot up over 12% in morning trading and settled in at the closing bell up 10% for the day. Not to bad, and this stock currently trades at just over $8/share. Oh, the company provides polymers, chemicals and surfaces for both commercial and residential applications in America, Asia, and Europe. If this upside move holds, it wouldn't be a bad time to take a look at OMN for your own portfolio. Good trading!
Tuesday, March 23, 2010
Healthcare Legislation, Liberty, and Stock -- What a Combination!
What a great day in the market as we close in on the last 15 minutes of trading! I closed out my long call on Las Vegas Sands (LVS) today for a 39% gain over two days, so all is well. I think LVS has further run this year, by the way, and will keep watching it. I hope none of my friends were caught in short positions today - tough place to be.
President Obama signed the healthcare legislation into law today, and fourteen states including mine immediately filed lawsuits against the federal government as a result. I think this is really interesting and will try to watch it closely. The basic claim here centers upon states' rights and the legality of the federal government to mandate the purchase of a commercial market product simply by virtue of birth. I for one appreciate the states fighting the issue, as its a much larger problem than healthcare alone (and that is saying something!). And yes, this does differ from car insurance (privilege) and Medicare (tax), which are the common comparisons. I don't like the federal government intruding any more than absolutely necessary into my life.
In case you're wondering, I am a true Libertarian and encourage anyone who might read this to visit the Party's official web site at http://www.lp.org/ to get a clear idea about the Party's platform, explore various liberty-related links, and hopefully join! We need a viable third party now more than ever to avoid the "lesser of two evils", big government leadership choices we currently get every election cycle. Please also explore the Cato Institute for some great common sense, liberty-based analysis of current events.
Now for a related stock. I bought Health Grades, Inc., stock symbol HGRD, a while back, as it is the leading independent healthcare ratings organization (http://www.healthgrades.com/). That has paid off to the tune of a 25% gain. Of course, the last two days have been good for the stock due to the healthcare legislation. Obviously the business model is sound, but the companies fundamentals and the charts look great, too. I expect their business to grow this year and continue to pay off. A great thing is that this is a NASDAQ-listed stock currently trading for around $6/share, so it has a lot of upside. In fact, I think it is a bit undervalued. Take a look at HGRD and see what you think!
Good trading and good health!
President Obama signed the healthcare legislation into law today, and fourteen states including mine immediately filed lawsuits against the federal government as a result. I think this is really interesting and will try to watch it closely. The basic claim here centers upon states' rights and the legality of the federal government to mandate the purchase of a commercial market product simply by virtue of birth. I for one appreciate the states fighting the issue, as its a much larger problem than healthcare alone (and that is saying something!). And yes, this does differ from car insurance (privilege) and Medicare (tax), which are the common comparisons. I don't like the federal government intruding any more than absolutely necessary into my life.
In case you're wondering, I am a true Libertarian and encourage anyone who might read this to visit the Party's official web site at http://www.lp.org/ to get a clear idea about the Party's platform, explore various liberty-related links, and hopefully join! We need a viable third party now more than ever to avoid the "lesser of two evils", big government leadership choices we currently get every election cycle. Please also explore the Cato Institute for some great common sense, liberty-based analysis of current events.
Now for a related stock. I bought Health Grades, Inc., stock symbol HGRD, a while back, as it is the leading independent healthcare ratings organization (http://www.healthgrades.com/). That has paid off to the tune of a 25% gain. Of course, the last two days have been good for the stock due to the healthcare legislation. Obviously the business model is sound, but the companies fundamentals and the charts look great, too. I expect their business to grow this year and continue to pay off. A great thing is that this is a NASDAQ-listed stock currently trading for around $6/share, so it has a lot of upside. In fact, I think it is a bit undervalued. Take a look at HGRD and see what you think!
Good trading and good health!
Monday, March 22, 2010
Stock - Intuitive Surgical, Inc.
Given the high drama in the political realm over the weekend, I will avoid pontificating on such matters for at least today. Don't fret. I probably can't keep my mouth shut for long on the matter and certainly can't keep my opinion to myself!
Enough with that, on to a great growth stock with a great-looking chart: Intuitive Surgical, Inc., Nasdaq stock symbol ISRG. ISRG is a medical supply company that provides hospitals with the Da Vinci surgical robot. Just like GMCR from yesterday's entry, ISRG also has a great business model where the hospital purchases the surgical system and is then locked into purchasing the associated supplies from ISRG in a classic "razor and blade" scenario. ISRG isn't alone in the market but certainly seems to be the gold standard. My local hospital even advertises that it uses this advanced robotic surgical system!
ISRG is no doubt a pricey stock, but it's been very good to me over that past several months. Even better, technical analysis of ISRG charts over the last several weeks shows a tightening of the price pattern, demonstrating continued institutional interest and consistent accumulation. This means I am watching closely for a potential breakout to the upside on heavy volume for even more gains!
Take a look at ISRG and see if you like what you see. Good trading!
DISCLAIMER: I own both GMCR and ISRG and am not giving anyone investing advice, just talking about stocks that I personally like (so figure that I own them or am looking to buy)! :)
Enough with that, on to a great growth stock with a great-looking chart: Intuitive Surgical, Inc., Nasdaq stock symbol ISRG. ISRG is a medical supply company that provides hospitals with the Da Vinci surgical robot. Just like GMCR from yesterday's entry, ISRG also has a great business model where the hospital purchases the surgical system and is then locked into purchasing the associated supplies from ISRG in a classic "razor and blade" scenario. ISRG isn't alone in the market but certainly seems to be the gold standard. My local hospital even advertises that it uses this advanced robotic surgical system!
ISRG is no doubt a pricey stock, but it's been very good to me over that past several months. Even better, technical analysis of ISRG charts over the last several weeks shows a tightening of the price pattern, demonstrating continued institutional interest and consistent accumulation. This means I am watching closely for a potential breakout to the upside on heavy volume for even more gains!
Take a look at ISRG and see if you like what you see. Good trading!
DISCLAIMER: I own both GMCR and ISRG and am not giving anyone investing advice, just talking about stocks that I personally like (so figure that I own them or am looking to buy)! :)
Sunday, March 21, 2010
Stock - Green Mountain Coffee Roasters
I am enjoying my second cup of one of my favorite growth stocks, Green Mountain Coffee Roasters. Its stock symbol is GMCR, and its had a great run of late. I think it has legs and will continue despite many saying its over-valued and doomed as a fad.
Personally, I don't see any growth stock that has developed a nice "moat" for its product and has a solid foothold as a "fad". What is their moat? Well GMCR owns the Keurig brewer and produces the coffee, selling in the millions. Its a unique product that is getting well established with the well-loved "razor and blade" business model. What about other associated products and coffee? GMCR has a sweet deal to get a cut of the profits, even down to ~6 cents per K-Cup sold of another coffee brand. Not bad. As for their solid foothold, well, GMCR provides coffee to McDonald's and has signed an agreement with Smuckers to offer mainstream Folgers and Millstone K-Cups. Again, not too shabby and not what many of us would consider the hallmark of a "fad". I like it.
Give GMCR a look and good trading!
Personally, I don't see any growth stock that has developed a nice "moat" for its product and has a solid foothold as a "fad". What is their moat? Well GMCR owns the Keurig brewer and produces the coffee, selling in the millions. Its a unique product that is getting well established with the well-loved "razor and blade" business model. What about other associated products and coffee? GMCR has a sweet deal to get a cut of the profits, even down to ~6 cents per K-Cup sold of another coffee brand. Not bad. As for their solid foothold, well, GMCR provides coffee to McDonald's and has signed an agreement with Smuckers to offer mainstream Folgers and Millstone K-Cups. Again, not too shabby and not what many of us would consider the hallmark of a "fad". I like it.
Give GMCR a look and good trading!
Saturday, March 20, 2010
http://www.stockgumshoe.com/2010/03/china-joins-copenhagen-best-ways-to-profit-hsu.html
If you are a stock newsletter subscriber, I recommend you stop by the Stock Gumshoe site. It's free, although there is a membership option (I only use the free parts). There are user-submitted reviews of various services there, and the host tries to solve the newsletter "teasers" we receive in our email inboxes. Check it out below. No compensation from Gumshoe for me by the way. :(
First Post
Welcome. If you are a fan of ramblings, musings, and sharing of both market trading ideas and the constant pursuit and protection of American liberty, you have found a blog I hope you find entertaining and perhaps educational (by sharing others' ideas?)! :) This blog is simply a place to post my thoughts and share the thoughts of others that I find educational, amusing, interesting, or perhaps even outrageous. I hope others find it interesting as well. Cheers!
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