Super Stock Blog

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Month: December 2013

Year-End Tax Sell-Off

At the end of the year, there is usually a sell of stocks for people to do tax harvesting.  People will be finalizing their last transactions for the year and it benefits them to shift their stock portfolio for tax purposes and accounting.  This is also called asset allocation.  It gives investors a way to do portfolio balancing which makes sure their portfolio leans too strongly towards a specific industry or stock.

So far, the futures has been up this morning but I wouldn’t be surprised to see a sell off before the year-end.  I hope everyone had a great 2013 and 2014 continues to bring great fortune!

Ford Still Looking Strong

Ford has a big drop around 10% in the past week.  They had a conference call that stated they would be lowering 2014 forecasts.  This meant they would be in-line with 2013’s forecast, their profits would be less, their revenue would be still increasing, but the earnings would be less than they had forecasted in the past.  The profit margins were expected to be 10%+ but instead it will be in-line with 2013 at 8-10%.

This drop is a short-term occurrence that will be a small blip in their future.  Remember, they are still a small-cap car company if you compare them to Honda (HMC) and Toyota (T).  They will have 23 new cars coming out in 2014 and they stated the marketing budget would reduce their profit margins.  Yes, this is short-term weakness but for the long-term holder they will do really well.  Remember, by making this international play, they will become an international growth play not just a North American growth stock.

I sold my BlackBerry (BBRY) Shares

I am surprised by the run-up on the Blackberry stock.  The pop was much greater than I anticipated.  This morning I created a stop at $7.49.  The stock was currently trading around $7.60 and it was rising but I was already happy with the gains and I wanted to take some profits if it were to hit my new stop.  When I came back from doing my errands, I checked the BBRY stock ticker and found it closed at $7.06.  Click here for the current stock analysis on BBRY.

My stop had gone through and I had taken a profit of over $1 per share.  I’m quite happy with my gains and I hope to get a better entry in the future.  In the meantime, I’ll be looking at other stocks that provide me with another window of opportunity.  Of course, Blackberry stock can continue to go up but if it hits my target I’m open to selling.  Just remember the saying “buy low and sell high”, I felt I already hit the mark today.  If it goes below $6.50, I might plan to do another purchase but I will have to see volume to the upside as well.

Blackberry Pops After Earnings

Blackberry shows new found strength today with a stock price that is up over 10%.  The shorts are covering and people are now finding out about this new rag-tag management team at Blackberry.

The CEO John Chan is giving his earnings report and it appears he isn’t the greatest of speakers.  That should not be an issue for a guy that has turned multiple companies from bankruptcy to success.  He is going to utilize Foxconn to help on the retail business.  This is definitely a smart move as they compete with the iPhone and Android devices and they should be focusing on the bread and butter enterprise product.

For the long term investor, I believe this is a great stock to pick up.  Of course, it will be rather volatile so you might be able to get a better entry.  Remember Blackberry still has tons of cash and zero debt.

Blackberry is Ready to Comeback!

You heard it!  Blackberry is coming back!  Nope, it cannot beat Apple nor can it be any of the android devices.  Heck, it already lost the retail phone competition.  However, it has secured its place in enterprise mobile technology.  Blackberry is the only phone company that has worked with the United States government to create a secure mobile network.  It also has partnered with Fortune 500 companies, banks, and other public agencies to secure their network: citi, MetLife, ADP, Whirlpool, ING, Los Angeles County Sheriff, pwc, etc.

This model is definitely not as flashy as their retail phone business but businesses will give much bigger contracts and that means pay money to get a safe, secure, and reliable network for their company.

The Blackberry Enterprise 10 network is a full device management for iOS, Android, and Blackberry.  It’s definitely a small niche market but many companies do not have the infrastructure to create their own secure mobile network.  It will be much easier to use Blackberry’s own product to setup and utilize for their company.

Blackberry’s stock is currently at $6.08.  It has a small uptrend forming from a low in the mid $5ish level.  They also have a earnings report due out next week.  I doubt we will hear anything good in the earnings but I’d be interested to hear what they plan to do for the next year.  This is a risky investment but if it works out it will pay nicely.