PAL is a metals mine specializing in palladium and a little platinum. It has moved down from $9 all the way to a closing monday price of $4.25. They report earnings on August 8. I believe there price is very undervalued. With the growing inflationary dollar, there should be an increase in price much higher than we see currently. I expect huge jumps after the earning call. If we do see it go down even more, expect a very good time to buy. It cannot go down much more until it makes explosive moves up like fertilizer had been experiencing.
Month: July 2008
VCLK, an internet advertising agency, is hitting lows not seen since 2003. This stock rallied to highs of $30 back in 2006 to 2007. It went up as the economy continued to prosper. Finally, it has hit reality and is coming down with the economy. At the price right now of closing today at $10.18, it has pretty much hit the bottom. This company has really good fundamentals, and when the economy starts moving up again, you can bet this stock will start moving up too. It has some good names in it, such as Commission Junction, which is the most popular internet affiliate marketing company. It also has Price Grabber, a price comparison engine, which is very popular in London and it has growing popularity in America. They are positioning to internationalize many of their websites and take advantage of the globalization. I do think their management could do a little re-structuring, but fundamentally, they will eventually take off to over $20 per share.
When the DOW went below 11,000, I should have taken that as a sign to put more cash into the stock market. There were blue chips that were being rocked hard and taking a huge beating. The four stocks particularly were Fannie Mae (FNM), Freddie Mac (FRE), General Motors (GM), and Ford (F). These were all great short buy candidates and they all sky-rocketed at the end of this crazy week.
The early part of the week had the DOW hitting new lows. Fannie Mae and Freddie Mac, two of the most renown mortgage loan companies, were stating they they had finally made too many foreclosed loans and they would have to find ways to establish funding. These two companies are the life-line of 50% of America’s mortgages. It would be a huge shame of they were to go under. Stock prices dropped to less than $10 on each company as people started short selling to stock. I knew these companies would eventually be funded by the government. They will not let these companies take down the economy. It would be a disaster in the United States’ economy. I should have seen these signs and bought early. Both of these stocks doubled at the end of the week.
The next two companies made a pretty fast drop this year to which one company hit a 50-time all year low and the other hit a low not seen for 20 years. These are both America car companies that have been running since the beginning of the Industrial Revolution to which one had created the first car and the other, General Motors, has been a respectable car company building cars for the United States since the early beginnings. These two were a harder speculation because oil could have kept going down. Both of these stocks increased to 20% at the end of the week.
You know the american car companies, ford and general motors, with their continuing debt and their gas guzzler cars making less and less sales. Ford even sold their Land Rover and Jaguar line of cars to raise cash. Who bought these two lines of cars? TTM, Tata Motors, a fast growing company in India that manufactures small to medium-sized cars for the regular folks on the street. I found out about the stock today, and it was at one of the lowest prices it has even been $9.03. With the need for more MPGs and cheaper car lines, I see their car brand spreading across to europe and possibly america. They are the number one selling brand in India and especially with oil they will hit a strong mark in the future.
I am so confident in this stock that I bought 550 shares at $9.03 for a total of $4966.50. So here is my updated portfolio:
—— SUPER STOCK BLOG PORTFOLIO TRANSACTIONS ——
$4966.50 – Buy TTM for $9.03 for a total shares of 550
———— SUPER STOCK BLOG PORTFOLIO ————-
TTM – 550 at $9.03 per share
CDE – 3,067 at $3.26 per share
PAL – 1,000 at $5.13 per share
So far, my portfolio is in the negative, but I can wait these short-term bumps to make major bucks!
Yesterday, I have to report on a commercial REIT that I have been looking for sometime. When I first heard of the mortgage crisis, I thought it only affected the residential market. People took out too big of a loan, and they had to foreclose or go bankrupt on their houses. The others were investors trying to make a quick buck took out 5-year ARM loans instead of the normal 30-year fixed rate, and when real estate prices started dropping, their investments turned stale. It’s easier to foreclose or go bankrupt then pay off a half million dollars on a worthless house.
Well, let’s hope the residential bottom out at the beginning of the year and it will finally stop bringing down commercial real estate with it. RSO, a commercial REIT, is close to hitting a new low, but I think it’s due to move up for now. It’s around $6.50 with a dividend yield of 20%. The stock has had minimal exposure to the mortgage crisis, but it has been taken hold with the other REIT stocks because the sector that it is in. I highly doubt they will go bankrupt. If you look at their financials, you will notice that mose of it’s real estate is pretty stable. I doubt the 6.48% drop has anything to do specifically with this stock, but the sector. I’d suggest a buy if you are a long-term holder. You get a nice fat dividend as you wait for it to move back up.
I am a serious believer in stock market manipulation. This might be common sense or just my irrational thinking, but hedge funds are there to make money; therefore, it is easy for them to take money from the small guy. This would include you, me, and any other small investor trying to be independent and cut those percentages going to mutual funds, ETFs, and the big investing companies. As I watch inflation-proof stocks fall with the market, I can only believe the hedge funds are trying to get more and more investors to sell the holdings. They want to cut out all the margin holders and force brokerage companies to force their investors to sell their stock or put in their cash to make up for their margin holdings.
These same hedge funds will either put the DOW down to 10,000, then put a massive amount of cash in the stock market making another big rally and making everyone look rich, or start buying sooner and put the market up again. The stock market is bound to have bottomed out soon. GM has already hit the lowest price in the last 50 years. When the hedge funds have pushed it low enough, they will then start buying back their own stocks and move the market up to new levels that we have not seen yet. Let’s see what happens today, and good luck to us all!
What an odd day for the stock market. There was a posted 72 point gain on the DOW, but from the looks up the stocks, it looked like a down day. The commodities were all down in a day to which we saw continued job losses for a 6th month. Oil continues to break record highs and there is the commodities that are supposed to be a hedge, but instead are going down some more. Uranium stocks decreased, silver stocks decreased, and this happens before a national holiday. I expect a big gain on monday for the commodities. I feel there is still tons of shorting occurring in the market, and the hedge funds are making the most of their liquidity. CDE continued to move lower to almost $2.50, but I think the long-term view is still the same and the more it drops, the better to start dollar cost averaging and making money in the long term.
So, inflation has been increasing, silver prices have been increasing, silver stocks have been increasing, but CDE is still going down. What gives? Shorts are still selling the stock and keeping it low. CDE is still very undervalued. It was undervalue at $5, so at the current price of $2.90, it is considered a bargain. As long as your time-frame is for at least one year, you will see a sizable gain in this stock.
Another mineral that might be worth investing in is aluminum. It’s cheaper to produce than steel and it has many of the qualities that are needed in the material. As steel prices rise, you will see more and more companies find substitutes for steel and aluminum will be the first choice to come to hand. To play this stock, you can go with the biggest aluminum producer, Alcoa (AA) or play with a new aluminum company from china, ACH. Both are undervalued and will go up as inflation continues to increase and the price of resources move up.
If you have been looking at James River Coal Company (JRCC), you would notice that the stock has gone from $3 to $60 within the year! That’s more than a twenty-fold increase within six months. I’d wish I knew there would be such a rush for coal. It’s odd because coal is very plentiful in the world. I would need to do more research to find out why the price has increased so much, but other than the price of oil dragging up the prices to transport coal, it’s not a resource that is hard to get. Silver, palladium, and platinum have a finite amount in this world and there price is justified to the supply.
Aluminum appears to be the next ‘coal stock’. I see it being the next super stock that will increase like coal to ridiculous levels. Although plentiful, it has the same supplies that can make it have that crazy increase. Here is a link on aluminum from Seeking Alpha: Aluminum Prices Are Expected to Soar 30%.