Archive for December, 2007

Is There Any Money in Internet Search Stocks?

By: ispeculatornew | Date posted: 12.31.2007 (4:45 pm)

One of the first stocks I owned was Ask Jeeves (bought out by IACI – formerly ASKJ) which I bought after the tech bubble collapsed. It was trading at a little over a dollar and the company was quickly growing revenues and earnings. I sold the stock too early but I still made over ten times my money in that stock, a ten bagger in Lynch speak.

Ever since then I have followed the internet search sector to see if another small player could follow a similar path as Ask Jeeves. I’ve followed the second tier search companies for a couple of years and frankly I don’t think there is any money to be made investing in these companies (from a fundamental perspective).

The smaller companies like Looksmart (LOOK), Copernic (CNIC – formerly Mamma.com MAMA), Miva (MIVA – formerly Findwhat.com FWHT), and Local.com (LOCM) are nowhere close to making a consistent profit. If you have ever used their websites you know why. They simply don’t deliver relevant search results. (more…)

Value Investor? Want to Share Adsense Revenue?

By: ispeculatornew | Date posted: 12.27.2007 (1:55 pm)

Value Investing News is a community driven value investing news site. You can submit links to news items, bid up stories to the front page, bid down stories, and make comments.

The feature that distinguishes Value Investing News from other stock news aggregators is you are rewarded for the success of Value Investing News by sharing in the Adsense revenue.

If you are interested in submitting stories to Value Investing News click here. I am currently registered with Value Investing News and I think it is a good site.

CAAS Plans to Acquire 36.5% of Henglong Automotive Parts Company

By: ispeculatornew | Date posted: 12.26.2007 (5:44 pm)

CAAS – China Automotive Systems (Nasdaq) – (Closing Price – $8.28)

China Automotive Systems announced that it has started discussions with Hubei Wanlong Investment Co. to acquire an additional 36.5% of Henglong Automotive Parts Company.

China Automotive Systems currently owns 44.5% of Henglong Automotive Parts Company. In 2006 Henglong posted sales of USD$54.54 million, representing 57% of China Automotive Systems’ total net sales and net profit of USD$9.75 million, while CAAS’ net profit was USD$4.81 million. Acquiring a bigger portion of Henglong will obviously be beneficial.

I don’t see any reason to sell China Automotive Systems and I would continue to hold your shares. According to Yahoo Finance the insider sells that were weighing on the stock price have stopped and there was even an insider buy on Dec. 3. (more…)

Timothy Sykes Stock Blog

By: ispeculatornew | Date posted: 12.26.2007 (4:45 pm)

If you base most of your stock making decisions on technical analysis you should check out the stock blog of Timothy Sykes. He provides his personal trading decisions along with trading advice.

He is also the author of An American Hedge Fund which details the wild ride of the hedge fund he started. It has many good reviews so it should be worth a look.

Stocks Worthy of More Research

By: ispeculatornew | Date posted: 12.23.2007 (1:57 pm)

Here are a couple of stocks that have been submitted to me that are worthy of more research.

The first is Shengdatech (SDTH). Shengdatech has good fundamentals and the stock price is currently showing some momentum.

The second is Envoy Capital Group (ECGI). Envoy Capital Group has bought back a ton of shares in the last year and the company is trading at a discount to book value.

I am not recommending that you buy shares of these companies. However, they are worth a look.

Disclaimer: I have no position in SDTH or ECGI.

Want a Risk Free 14% Return?

By: ispeculatornew | Date posted: 12.21.2007 (3:19 pm)

DVW – Covad Communications (Amex) – (Closing Price – 0.88) 

Every investor would like to make risk free investments, but risk and return have a direct relationship. Investments with the least risk usually have the least amount of return and vice versa.

However, right now you can get a fourteen percent return without much risk.

Covad Communications (DVW) announced on October 28 that it is being acquired by Platinum Equity for $1.02 a share. However, since the announcement Covad shares have traded as low as $0.77 and they are currently trading at $0.88.

If you buy at today’s closing price you are looking at a 14% return when the acquisition closes. (more…)

Stock Blogs You Should Check Out

By: ispeculatornew | Date posted: 12.17.2007 (4:51 pm)

If you like to find free stock analysis and opinions you should check out a couple of other stock websites/blogs that I found.

Stockblogs.com is a directory of stock blogs that compiles “some of the most interesting, provocative, relevant, and useful blogs for investors.” The website has tons of stock blogs categorized into different market related topics.

Investmentquest.net is a blog that provides “unparalleled stock market commentary from a value and contrarian perspective.” You should definitely check it out.

Wizetrade

By: ispeculatornew | Date posted: 12.13.2007 (5:16 pm)

I haven’t done much research on Wizetrade but I am confident that it doesn’t work for the majority of investors/traders that use it and the marketing of it is unethical at best.

For those of you who have never seen an infomercial for Wizetrade it is a program that shows green boxes (indicating a buy) and red boxes (indicating a sell) as indicators of whether you should buy or sell a stock. The boxes also show a time frame for a trade. After you enter a stock you will see boxes for 1 minute, 5 minutes, 15 minutes, etc. and the boxes will be either red or green. As an example you might see a green box with 30 minutes on it which means that Wizetrade is indicating that the stock is going to go up in the next thirty minutes.

If you watch the infomercial they make it seem like all you need to do is buy a stock when the light is green and sell when it is red and you will make money. However, common sense should let most people know that investing/trading in the stock market is not that simple. (more…)

Technical Analysis

By: ispeculatornew | Date posted: 12.12.2007 (3:34 pm)

I use a little technical analysis (TA) in my investment decisions but for the most part I think technical analysis is a bunch of nonsense. However, I think becoming familiar with TA can make you a better investor.

Technical analysis is the strategy of reading price charts to evaluate whether a stock is a good investment/trade. Technical analysis is in contrast to fundamental analysis which is the strategy of studying a company’s fundamentals (revenues, earnings, etc.) to determine potential investments.

A lot of traders who hold stocks for a very short period of time (day traders, swing traders, momentum players) use TA as their primary evaluation method for buying or selling stocks. However, trying to consistently predict the price movement of a stock over a short period of time is very difficult, if not impossible. In fact I’ve read an article stating that most day traders lose all of their capital within a year. (more…)

China Automotive Systems Announces U.S. Aftermarket Deal

By: ispeculatornew | Date posted: 12.10.2007 (7:11 pm)

CAAS – China Automotive Systems (Nasdaq) – (Closing Price – $8.41)

China Automotive Systems reported an almost twenty percent gain today after the company announced it signed its first aftermarket supply contract in the U.S. with aftermarket supplier Dorman Products Inc.

Financial terms were not disclosed.

This contract is obviously a positive development for China Automotive Systems and I would recommend to continue holding your shares. The stock price of China Automotive Systems has shown the ability to make strong runs in the past so I would see how it plays out over the next few days.

Disclaimer: I have no position in CAAS.