MOTO Update

What's up boys? Motorola stock took a big hit today as the company forecast a loss this quarter due to their increased spending getting the android smartphone out on the market. Despite the fact that the Droid phone sold very well, it did not produce the revenue that investors had hoped it would. When we purchased MOTO we were hoping that the droid sales would boost profits and the stock would rise after the holidays. Unfortunately, that didn't happen.

What are your thoughts on our next step with MOTO? Should we hold on and hope that they get their finances in order and the smart phone continues to sell? Or should we dump the stock, take a loss and invest in another security - News Corp?

http://www.blogger.com/post-create.g?blogID=7800821988700778743

Sometimes we swing and miss - its all a part of the game.

News Corp bet big on Avatar - and that bet should pay off

Many of News Corps investments are somewhat questionable -- MySpace is losing ground on a daily basis to Facebook and other rivals, and its investments in paper publications can be looked at as a thing of the past, but News Corp also owns 20th Century Fox -- the studio that is behind Avatar. Avatar is slated to surpass Titanic in sales by the end of this week.. only a couple months after having been released... by comparison, Titanic took 10 months to hit the sales target that Avatar is about to beat in a fifth of the time. Going by those numbers, not only will it surpass Titanic, but it should absolutely CRUSH it in sales globally taking in over 2 Billion. At current numbers News Corp stands to net about $250,000,000 during the end of Q1 2010 and should report those figures during their Q1 earnings calls. After that I'm sure you'll continue seeing profits pour in for the next 6 months or so while DVD sales go out (even though it should be noted that 3D films typically gross less on DVD than normally 2D movies do).

News Corp is currently trading at $12.41/share and I think it's a stock that should be watched over the coming months for some serious action.

HNT, etc.

Hey guys,

Any other thoughts/opinions on Healthnet (HNT)? So far we've heard from me and Mike (via email -- for some reason he's anti-blog). Since Joe's post, HNT has slipped 4% (which in all fairness is consistent with the rest of the market). I'm not lobbying my position in any way I just want to hear some other thoughts on the matter.

On another note, I've added some links from the option writer to the blog as well as some other ads. I've also updated our ticker to reflect our current 10 holdings.

What Can Brown Do For Us?

HNT is up over $26/s and most of our holdings are climbing. It will be interesting to monitor whether a delay in health reform will negatively impact the industry's stocks. Also notice if tech stocks stall as a chain reaction and see if financials spike as a counter to the proposed bank tax. Or, don't.

Theta Vs Wild

Happy 2k10 boys! This is gonna be our year, i can feel it! Lets start this decade off on the right foot and make some money with our 1st qtr pick. I really like the picks that you guys have submitted so far - lots a variety and lots of potential. Joe stole a bit of my thunder as I was also looking into water/sewer utility stocks and WTR was one i was looking at as well. So instead of submitting a similar stock pick this qtr, i figured i'd go in a different direction and pick a stock in a sector close to Joe's heart - Broadcasting.

My stock pick for this qtr is Discovery Communications (DISCA). A channel that in my opinion has has the best shows on TV hands down. If i could only chose 3 cable networks to watch the rest of my life - Discovery would be #1 on my list. Now this stock is currently selling a bit higher than what we usually target (32), but I believe its worth taking a serious look at. They own the discovery channel, learning network, animal planet, and also they are in a partnership with Oprah for her own channel that is set to launch in 2011 (OWN) once Oprah's show is off the air. Discovery made a killing this past year in a down market (it was trading at 15 back in March) and all things point to them having a great 2010. They are beginning to become very big in international markets (such as Brazil and Mexico), which will only make them more profitable.
And once Oprah's channel takes off - who knows what will happen. Its an expensive stock, that is selling high right now, but they are a very profitable company and i believe they will continue to be for the forseable future.

Mikes PIck

"whats up boys. This quarter I am going with a company called Cogent (COGT). They are a provider of automated fingerprint identification systems and other fingerprint biometrics solutions to governments, law enforcement agencies and other organizations worldwide.

I started thinking about the national security sector when the latest attempted attack on us happened. It only failed because of a brave person on the plane that risked there life to save others. Homeland security is, or is now, a top priority of out fearless leader after this latest attack. He will be forcing other countries that have flights going to the US to beef up there security a great deal. I have to say that I was looking at a few other companies until Cramer mentioned this one on his show. It is trading much lower than some of the other ones and it is definitely in our price range. (10.70) I think 2010 will be a good year for this sector as we increase our efforts to protect this country and it is something that will not be going away for a long time, unfortunately."

Brazillian Girls are Hot

My pick for Q1 2010 is Banco Bradesco (BBD). BBD is a "giant bank for the little guy" according to Hoovers.com. As one of the largest banks in Brazil, serving low to moderate income families, this bank has on average tripled each year over the past 10 years. A $100 investment in BBD in 1999 would be worth 6 million dollars today -- think about that! Brazil is a hot market, and it's GDP is expected to grow over 6% in 2010, which means more cash in the pockets of our friends in Brazil, and in turn more deposits in the coffers of BBD. BBD also offers pension and insurance services. BBD is in excellent financial health with excellent profits. Currently trading at around 16 times price to earnings, it's priced about right for entry and should be viewed as a long term hold. Heck.. if BBD keeps up their performance for 10 more years, we all could be sitting very pretty in a decade! Plus, Brazilian Girls Really Are Hot!

Piss And Drink

The same approach was again taken to diversify sectors and this selection is close to home for our friend Eggman. I motion for AquaAmerica Inc. (WTR), a water distribution and waste water treatment company out of Pennsylvania. The company has began by providing running water to sinks, spouts, showers and sh:tters over 125 years ago and went public in 1971. Through a business model of municipal contracts and acquisitions, they have grown from servicing a few counties to over three million customers in thirteen states. They've paid a dividend the last twelve years in a row, each year higher than the last.

We are certainly in a position to capitalize on risky tech or financial stocks, but our laid back approach to portfolio maintenance steered me to this more conservative play. I look forward to each of your selections and seeing you guys this weekend.