Super Stock Blog

MetroPCS has reached decade low prices.  It already reached the March 2009 lows being at $5 currently.  If you take a look at its earnings, they have continued to bring in profit quarter after quarter.  The Super Bowl ad shows it’s pricing power – for $40 you get unlimited phone minutes, text, and web access.  AT&T is the only closest competitor at $70.  We’re at a recession right now and it’s surprising to see their stock price keep dropping even though they keep bringing in more subscribers.

Investors are selling because they believe Verizon and AT&T have the edge with the biggest network.  However, I seriously doubt they would drop their prices to MetroPCS’s prices.  Their profit margin would be seriously cut if they did.  MetroPCS has a big niche.  It markets to urban cities and it markets a very competitive price and it remains profitable.  I think the current price of $5.88 is a bargain.  There’s a lot more reward vs risk in this stock.

Electronic Arts (ERTS) has had a terrible winter quarter.  They had massive layoffs, miserable sales during the holidays, and lowered guidance in January.  Their stock has been punished.  It’s almost at $16 which is very near its all-time 5-year lows which was hit previously in March 2009.  However, I tend to look at the long-term case especially the risk vs rewards.  The last time stocks reached these levels were in the year 2000.

Let’s take a look at it’s financials.  They have had annual losses for 2009 and 2009.  Could they be finally getting out of their cold?  The economy is picking up, but consumers are still not buying.  If you’re unemployed, I’d bet you’d still have $60 to buy a game.  Anyways, long-term wise their financials do not look that good.   They have negative cash flow and net losses for the year.  However their game lineup is strong this year.

Games influence the price.  If Electronic Arts can get a ‘Modern Warfare 2′ effect, they will be able to hit profits again.  You’ve also seen it with Rockstar Games with Grand Theft Auto.  They just released Mass Effect 2 last week.  It has already sold over 2 million copies.  Especially with their lower guidance it makes their stock much average to what it should be priced out.  We’re looking for the future though.  If the games are good, the stock price will move with it.

In 2009, we saw a pretty mediocre lineup: Madden NFL, Battlefield, Fight Night, Dead Space, Tiger Woods Gold, Godfather Part 2, My Sim Party, Nascar Kart Racing, Skate 2, Lord of the Rings, and Mirror’s Edge.  These games did mildly well, some did bad, but none of them were blockbusters.  Here’s what is coming out in March 2010: Command & Conquer 4 (PC), Battlefield: Bad Company 2 (PC, PS3, XBOX).  These are two very strong games.  I’d say for the short-term 6 months there’s money to be made with ERTS.

I’ll be taking a further look into ERTS in the future.  If the market continues dropping, it might be better to wait it out before buying.  The stoichastics have already hit the lows for the daily and weekly.  The RSI(2) is weak also.  There could be continued downside for this stock as the video game industry continues to drop, but the long-term perspective continues to get better.

You are looking at two big bell companies that will continue to thrive through the recession.  Both give a dividend of 6+% and both have EPS.  I consider them to be Warren Buffet-like stocks.  Looking at the results, they have both increased the EPS as the years have progressed.  AT&T has increased net income year-after-year.  Even though their stock prices have barely moved for the past 5 years their dividend has increased and they continue to be profitable.

I consider them both to be safe bets.  Why hold a bunch of cash in the bank when you can be getting a safe 6% dividend?  You also help stimulate the economy

Short-term things to consider: AT&T has continued to get deals with Apple.  They will be the exclusive provider of 3G for the iPad.  This is a big win as the iPad is a GSM made table.  In the 3rd quarter 2010, Verizon and other phone networks should be getting the iPhone.  This is not for sure as their has been a good relationship of AT&T and Apple.

AT&T’s 10 Year Summary

Verizon’s 10 Year Summary

Obama is talking currently in his State of the Union address.  He’s endorsing a lot of spending programs to stimulate the economy.  He wishes to cut taxes for small businesses and large businesses alike.  He will give incentives for companies to move their offshore businesses in-house.  He also re-iterated his commitment to alternative energy.  This includes solar, wind, and nuclear energy.

He stated to continue the clean air act that we needed better clean energy programs.  The first topic he stated was building more nuclear energy plants.  I already have endorsed two companies that look good for this, EXC and USU.  Both companies have been dropping since their has not been any news on nuclear programs, but Obama has finally rung the bell to nuclear.  There will be loan funding for nuclear plants in the future and I believe these two companies are great plays.  Exelon has multiple nuclear power plants already in the United States.  They are a profitable nuclear energy company.  Obama would want more of these plants to bring more jobs in the US.  He knows infrastructure will be important to moving forward.  Look for them to continue to grow in the future.

USU, USEC, is a play on the government funding.  They have already been given exclusive access to old nuclear warheads to extract uranium.  They have also been doing extensive R&D to create new nuclear power plants.  I think this company is in great position to be given loan fundings. They already have done their research to create the next nuclear plants through their American Centrifuge program.

Bank of America (BAC) and Citigroup (C) are both repaying their TARP funds so they can reward their executives with huge salaries and bonuses.  Citigroup made a huge offering this week to sell over $30 billion dollars of common stock.  Bank of America already paid off its $45 billion TARP funds with a $19.3 billion equity offering recently.  Both stocks trade at lows that we won’t see for a long time.  Citigroup went as low as $3.20 recently this week and Bank of America reached a low it set in July at $15.  These prices are valid bargains and with the amount of money the FED is creating you can bet these stocks will go up as inflation-protected stocks.  They also will continue to make more revenue as they release more loans out which the government is encouraging to help create more businesses and jobs.

I got in CDE this morning at $20.60.  However, I changed up my strategy.  I know silver will be a big money maker but I don’t know short-term where it’s headed.  So I bought puts, that’s right, naked $20 puts at 55 cents.  Once it expires on Dec 19, I make some easy dough.  If that backfires, I end up owning the stock for $20 which is a discount of 60 cents.  It ended the day at $20.80 so it looks like my naked put is already doing well.

Last week the US dollar got weak with the economic reports of better unemployment rates and job growth.  I expect even with the better economy we will have to have a weaker dollar.  You can’t justify a strong dollar when the FED is producing billions of dollars to stimulate the economy.  Once of the gold guys stated that gold could up to $8,000.  I don’t expect that to happen but you never know.  This is the first president to break the deficit within three months.  It usually takes a president at one-term (4 years) to break the deficit.

CDE, Coeur d’Alene, released the third quarter earnings earlier this november.  The numbers were not what analysts expected and the stock plummeted to below $19.  Of course, gold and silver kept rising so the stock just had a temporary dip before breaking $23.  If you read the third quarter transcript, the CEO Dennis Wheeler stated they invested the company for $900 gold.  Gold is now over $1,100.  You can bet that their next quarter will be a smashing hit.  They have more mines coming into production than any other junior mining company.  They also are highly invested into silver which will rise with gold and bring up their revenues.

Long-term great trade!

I’m taking a gamble with this play but the risk vs reward looks really good. I’ve been researching the uranium business and it seems like now is a great time to play it. Stockpiles are very high and the demand for uranium is picking up with the future to be nuclear plants. The recent cap and trade proposal will cut many emissions including the coal power plants and oil industries. This will put furthur pressure for alternative energies and nuclear energy. These energy alternatives are very clean and will still be within the bounds of carbon emissions.
I’m looking at USU. It’s the only company currently working with the government. The government is supplying uranium to USEC throught old nuclear warheads. This is the only company getting this benefit. Not only is this helping the environment but it brings over $5 million dollars worth of uranium and helps remove the stockpiles of nuclear waste. Look for this company to get more financing from the government. They also have the new nuclear technology American Centrifuge to utilize for the future US nuclear power plants. All they need is the funding of the Department of Energy. They stand a great chance at getting this loan.
The construction of new nuclear plants would put many unemployed people back to work. It also would be part of Obama’s plan to use clean, renewable energy. France already utilizes 90% of it’s energy from nuclear. China is set to produce more than 10 nuclear power plants. We won’t be caught out of a bright future for cheaper and more clean energy. Expect the US to join the global effort for cleaner energy and USU to be one of the main companies in the United States to bring it.

USU stands at $3.62. The possibility of dropping furthur is really slim. They could get bought out at these prices. Once they get the loan expect this stock to skyrocket to $6. Great long term play!

Yup, I’m calling it.  They broke the record for most pre-orders of any video game with Modern Warfare 2.  The first day they make over $310 million dollars.  If you think that’s good, try calling any Best Buy (BBY) or Game Stop (GME) and you will surely get a ‘inventory is sold out’ or you will need to order it and pick it up later on.  Activision is putting a huge advertising campaign to promote the game.  You might have seen the spectacular trailers, game footage, and/or reviews.  This is definitely the block-buster game of 2009.  They put it out just in time for the holidays also.

I’m expecting this baby to hit $18.  However, I don’t think it stops there either.  Their lineup for 2010 includes Starcraft 2 which is the top-selling game in Korea for over 10 years.  It’s played like an olympic sport with sold-out crowds of people watching Starcraft gamers play head-to-head.  Don’t forget Activision also holds the largest MMORPG with World of Warcraft.  They also have expansions of WOW which bring in additional revenue.

I like getting Activision right now.  It’s at really low prices and anything can make this thing boom up.  You still have Diablo 3 online for 2011.  Long-term or Short-term, this is a great trade!

Sorry for not posting for a while, I’ve been out-of-the-country and on my own stock research sabattical researching short-term trading and swing trading.  Now we can get down to business and make more money than just doing value investing.  I’m not to fond of big drops in the market.  If we want to make cash, we ogtta be able to swing our trades no matter what the scenario.

The past week we bottomed out at the market at 9200.  The only next point of resistance is at 10,500.  We have a lot of bull to go and the stocks that I am posting below all have an advantage to gain for the next couple weeks.

ETFC, E-trade, is a online broker company and mortgage financing company.  They trade at $1.55 but ran up to $1.92 last week before hitting a low of $1.50.  A lot of institutional investors have been trading this stock.  Citadel investment put out a press release stating they will not be selling their shares of stock.  They are the largest holder with 120 million shares!  Goldman Sachs bought over $38 million and Barclays bought over $60 million worth of shares.  There has been recent buying by Vanguard, IShares, Equity Advisors, and other mutual funds.  Companies like Vanguard continually buy more shares through 401k programs.  I see this company as a very safe trade at these levels.  There is also a ton of shorts in this stock.  I definitely see it breaking $2 just by the short-covering alone.  Great stock to get in now!

CMO, Capstead Mortgage Corporation, is a mortgage REIT that invests in residential and commercial properties.  It makes money by investing in mortgage loans.  The last quarter is gave a whopping .58 dividend.  This comes out to a yield of 17.34%.  The company makes money by profitting off the spread on interest rates.  Since the United States is at all time lows on interest rates it is making tons of cash right now.  Just last week the interest rate for short-term loans went down furthur this will add to its profitability.  The only way this company will lose is if the interest rates go up; however, this only happens when the FED wants to slow the growth of the country.  We have the highest unemployment rates for the past 27 years and tons of mortgages that will be going into foreclosure for at least the next year.  I highly doubt interest rates will be rising anytime soon.  Technically, the daily stoichastics are at the lowest its been for the past few weeks.  The risk is low right now.  Buy now at $13.35 and hold it long-term for at least a year.  Easy dividends and easy cash.  Nothing to lose.

FSLR, First Solar, has low stoichastics.  It has already started a move up from hitting a low of $112.  It currently trades at $121.47 and I see it moving up to $145-150 range.  After that depending on market conditions it can either move up or drop.  This is a very easy trade right now with the current bullish market conditions and solars at all-time lows.  If you want to play with more leverage, JASO, JA Solar Holdings, moves up a lot more.  I don’t know what the long-term trend for solars will be but for the short-term they both look like fine plays.

BSTK is a penny stock with a lot of potential.  This stock currently increased 100% from .12 and it was at a low of .05.  I see it moving it .50 cents before it hits strong resistance.  Another great short-term play!

Good luck!