Tuesday, January 31, 2012
Gold Bars versus Gold Mining
Click the title of this blog for a five minute video editorial on the difference in investment value between betting on gold extraction companies and the overhead/management that goes along with them against simply buying gold via GLD (which we've done) and other methods.
Sunday, January 29, 2012
RAX it, again
My selection is rack space hosting. They did well for us last year and I'm sure they will do well again this year. Data construction was booming in 2011. No signs of letting up in 2012 too. http://wallstcheatsheet.com/stocks/data-center-construction-booming.html/
Great article on data center construction. They offer a lot more than just data construction and with an awesome atmosphere to work in, I think getting in now, like we did last year, will give us profits again.
Go to google finance and look for news on this company. Lots of great information!
Typing on an iPad is not fun! :(
Saturday, January 28, 2012
FCX
My pick this quarter is Freeport-McMoRan Copper and Gold Inc. FCX. Trading at $46.13. They are a copper and gold mining company. They are all over the world. Out of all the Metals and mining companies they have the highest Earnings yield. That means most of the time that the stock is Undervalued. We all know tha the price of copper and gold are very high right now and I see us making a ten percent gain on this stock o problem.
Ps - Steph is making pulled buffalo Chkn sandwiches for tomorrow!
Thunder CAT again
My pick for this qtr is CAT. I know I've made this pick before but I still feel there is alot of potential in it. You guys all know what the company is all about so I won't bother with details. Although its trading above $100 - i think it will reach the $130s. Construction is picking up again in the US and CAT made huge profits last year and I think they will continue to beat estimates this year.
Answering the Call of Duty
On February 9th, Activision Blizzard (ATVI) announces their 2011 earnings. I think they will beat earnings based on record sales of Call of Duty, and new games on the horizon including Diablo III and potentially The Hunger Games.
Activision reported that COD3 was their most successful launch ever, selling over $1B in product in only 16 days following their November 8th launch. ATVI also introduced new features such as Elite over the past quarter, and over 1M paid subscribers at $50/year as of January 9th. That's just additional income for ATVI and shows you they are looking for ways to exploit their die-hard fan base who can't get enough of the new maps and features offered to Elite subscribers.
Also coming in 2012 is the much anticipated (since 2008) release of Diablo III to consoles, courtesy of ATVI. Diablo has a huge fan base that can't wait to get their hands on the cult-hit game. Everything points towards an announcement for a release date on February 9th when they report 2011 earnings.
The last point I want to mention is about a book I've read recently called The Hunger Games. The Hunger Games is set in a future post-apocalyptic world where citizens are forced to participate in an annual "game" which is basically a fight to the death to show their allegiance to the capital. It is a great book and a must read for any of you. Lions Gate (NYSE:LGF) is releasing a movie in mid-March 2012 which is the first of 3 films documenting the Lions Gate series. The series is sure to be a box-office hit just going by the sheer numbers.. in mid 2011 there were just under 10M books in circulation, by the end of 2011 there were nearly 24M books in circulation and the book trilogy was the top seller on Amazon and as you can see is still #1 on the Amazon book store with nearly 500 days in the top 100. While I can't find too much concrete evidence that ATVI will be releasing the video game series associated with The Hunger Games, a simple google search reveals a lot of "chatter" speculating that they will be the beneficiary of the video game series. This, needless to say, would be a huge win for them considering the cult-like following.
As I mentioned before, ATVI is announcing earnings on Feb 9th. The company is profitable, pays a small dividend, and trades at about 19x earnings, so it isn't overpriced considering future earning potential. Most analysts rate ATVI a "buy" giving it an average rating of 1.9 on a scale of 1-5, with 1 meaning "strong buy" and 5 meaning "sell". The median target price is $16, representing about a 30% upside to the stock.
Activision reported that COD3 was their most successful launch ever, selling over $1B in product in only 16 days following their November 8th launch. ATVI also introduced new features such as Elite over the past quarter, and over 1M paid subscribers at $50/year as of January 9th. That's just additional income for ATVI and shows you they are looking for ways to exploit their die-hard fan base who can't get enough of the new maps and features offered to Elite subscribers.
Also coming in 2012 is the much anticipated (since 2008) release of Diablo III to consoles, courtesy of ATVI. Diablo has a huge fan base that can't wait to get their hands on the cult-hit game. Everything points towards an announcement for a release date on February 9th when they report 2011 earnings.
The last point I want to mention is about a book I've read recently called The Hunger Games. The Hunger Games is set in a future post-apocalyptic world where citizens are forced to participate in an annual "game" which is basically a fight to the death to show their allegiance to the capital. It is a great book and a must read for any of you. Lions Gate (NYSE:LGF) is releasing a movie in mid-March 2012 which is the first of 3 films documenting the Lions Gate series. The series is sure to be a box-office hit just going by the sheer numbers.. in mid 2011 there were just under 10M books in circulation, by the end of 2011 there were nearly 24M books in circulation and the book trilogy was the top seller on Amazon and as you can see is still #1 on the Amazon book store with nearly 500 days in the top 100. While I can't find too much concrete evidence that ATVI will be releasing the video game series associated with The Hunger Games, a simple google search reveals a lot of "chatter" speculating that they will be the beneficiary of the video game series. This, needless to say, would be a huge win for them considering the cult-like following.
As I mentioned before, ATVI is announcing earnings on Feb 9th. The company is profitable, pays a small dividend, and trades at about 19x earnings, so it isn't overpriced considering future earning potential. Most analysts rate ATVI a "buy" giving it an average rating of 1.9 on a scale of 1-5, with 1 meaning "strong buy" and 5 meaning "sell". The median target price is $16, representing about a 30% upside to the stock.
Friday, January 27, 2012
Let's Have BSX Together
Boston Scientific is a Natick-based company that develops, manufactures and sells cardio vascular, urinary and digestive-aiding medical devices. The company has over 20,000 employees, an 8.5b market cap and a PE ratio in the 15's. This pick brings us back into the health care sector (we miss you HNT) and medical supplies/equipment are new to our portfolio. Major competitors Johnson & Johnson, Covidien and Stryker trade in the low $50's while BSX trades in our wheelhouse at $5.93/s.
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