Archive for May, 2008

New Stock Recommendation: FEED

By: admin | Date posted: 05.31.2008 (6:57 pm)

FEED – AgFeed Industries (NASDAQ) – (Closing Price on Friday 5/30/08 – $15.37)

AgFeed Industries is a company that has experienced strong growth over the past year and the company is forecasting even stronger growth in the coming year. The company has given tremendous guidance for 2008 and if the company can meet its numbers the stock price should continue its rapid ascent.

AgFeed operates two integrated business lines in China: premix animal feed and hog production. The company is currently the largest premix feed company in China in terms of revenues and the company distributes its feed through over 700 independently owned chain stores. AgFeed expects to have a total of 1,000 independently owned chain stores by the end of 2008. The company also distributes feed directly to over 600 large commercial hog farms across China.

In addition to its feed business AgFeed has been rapidly expanding its hog production business. The company has acquired quite a few hog farms in the past year and the company raised money through a couple of stock sales in April to acquire even more. AgFeed currently owns controlling interest in 24 commercial hog farms throughout China with annual hog production capacity of 550,000 hogs. (more…)

More on this topic (What's this?)
China’s Factories Improve (Wall Street Daily, 2/1/12)
Scary: Why China is Buying Gold Like Mad (Learn Mining News, 1/30/12)
Read more on Agfeed Industries Inc, Investing in China, Agfeed Industries at Wikinvest

Has Oil Peaked?

By: admin | Date posted: 05.27.2008 (10:08 pm)

The price of oil has defied logic and has continued to rise in the face of many bearish catalysts. However, I think the current price of oil has had a significant affect on demand and this can no longer be overlooked by the speculators who have been bidding oil to stratospheric levels.

The morons such as the analysts at Goldman Sachs who have called for $200 oil seem to think that the demand for oil is inelastic (that demand will remain the same regardless of price). This is definitely not the case and it is fairly clear that oil at its current price is putting a considerable dent in demand.

Edward Meir, and analyst at MF Global UK Ltd. said in a research not that “if the present trends continue, we could be heading for the first annual drop in gasoline consumption in some 17 years.” Also, Asian countries are being forced to cut subsidies due to the soaring price of crude.

I think the price of oil has probably peaked and if it hasn’t I don’t think it will run up too much more before there is a sizable correction.

When this happens it would be wise to buy airlines and short pricey alternative energy stocks such as solar stocks. You can also short energy stocks such as MXC that have made ridiculous speculative runs.

Disclaimer: I have no position in oil futures, airline stocks, solar stocks, or MXC.

More on this topic (What's this?)
The Five Factors Moving Oil Prices This Year (Investment U, 1/10/12)
2012 Oil Price Outlook: How to Profit From $150 Oil (Money Morning, 1/6/12)
Read more on Oil at Wikinvest

Wall Street Humor

By: admin | Date posted: 05.24.2008 (3:23 pm)

Bumblet Cartoon

EGHT Q4 08 Results

By: admin | Date posted: 05.24.2008 (2:51 pm)

EGHT – 8×8 Inc. (NASDAQ) – (Closing Price on Friday 5/23/08 – $1.19) 

8×8 Inc. reported fourth quarter results on May 21 and the company continues to show improvement in its financial numbers.

8×8 Inc. reported revenue of 16.33 million and diluted EPS of 0.01. Revenue was up 14% YOY and EPS improved six cents from a loss of 0.05 last year. Gross margin also improved considerably from last year.

8×8 Inc. continues to be on the right track and I would continue to hold your shares or accumulate more. As earnings start to increase the share price should follow in tandem.

Disclaimer: I have no position in EGHT.

More on this topic (What's this?)
Traders and Investors Could See Gains of 54% or More from This Small Stock (Jutia Group, 6/14/11)
ADES, EGHT, PCYC, SODA Among Charts to Watch (Wall Street Sector Selector, 6/7/11)
Read more on 8x8 at Wikinvest

Converted Organics, Lesson in Speculating

By: admin | Date posted: 05.19.2008 (8:51 pm)

COIN – Converted Organics (NASDAQ) - (Closing Price – $8.05) 

I wrote an article about the foolish speculating in Converted Organics a couple of months ago and just as I predicted the greed that was driving up the stock price turned to fear and the stock price took a huge dive. However, the stock price rebounded from its lows and held up for a little while but is now starting to sell off again.

The reason for the most recent sell-off is the company issued a dismal earnings report last Friday. Converted Organics reported revenue of 260 thousand and a loss of 2.4 million. That is pretty egregious. Some of the greater fools that are still buying Converted Organic are going to say that this earnings report is better than their last earnings report because the company actually reported some revenue. However, this company was actually a better speculative investment when it had no revenue.

If you do not understand this let me give you a lesson in speculating. When you buy a company such as Converted Organics you are buying the story not the actual stock. The reason Converted Organics made such a big run was because it had a small float and was in a hot sector. It also helped that the company was a “developmental stage” company and had no revenue. This meant that people could justify their purchase of Converted Organics because of the potential of the company.

Now however, the hype has faded away and the brutal financials have to be taken into account. The reality is that Converted Organics is no where near making a profit. On top of that the chart is starting to get pretty ugly. I wouldn’t be surprised to see the stock price of Converted Organics fall all the way back to the $2.50 range in the next several months.

The lesson here is to trade the story and the momentum when it comes to super speculative stocks like Converted Organics. When those to things start to fade away it is time to get out.

Disclaimer: I have no position in COIN.

More on this topic (What's this?)
12-30-11 Strategic Stocks To Watch CONVERTED ORGANICS INCORPORATED (OTCBB: COIN) (Strategic Stocks and Penny Stocks, 12/30/11)
Converted Organics (COIN) Bullish Triangle Play (Self Investors, 1/29/08)
Read more on Converted Organics at Wikinvest

Wall Street Survivor

By: admin | Date posted: 05.18.2008 (4:08 pm)

I recently competed in my first stock market competition at Wall Street Survivor under the name Intspeculator and I did quite well. In the contest that finished in April I finished 17th out of more than 23,000 participants. I generated a return of 84.62 percent in just a few months. My return would have been higher but I stopped putting much effort into the competition when I realized I probably wasn’t going to finish in the top three (only the top three earned money). I was in the top three at a couple of points in the competition though.

I generated such a big gain by making the same investments I recommended on my website: shorting solar stocks and financials.

Wall Street Survivor is currently having a new competition that started on May 1 and ends on August 29. The top ten players in two categories (investor and trader) earn prizes. Investors are the players that place less than fifty trades. Traders are the players that place more than fifty trades.

The top player in each category wins a vacation to Cozumel worth $6000 and the next nine players in each category earn cash prizes. There are also cash prizes given out to the top five players with the highest weekly return. If you are interested in learning to trade stocks without any risk you should try Wall Street Survivor. Even if you don’t think you can place in the top ten you could potentially catch a hot stock and win a couple hundred dollars for having the highest weekly gain.

If you are interested in playing Wall Street Survivor click on the Wall Street Survivor picture on the left side of my website and sign up. Even if you are not interested in playing but you want to support my site sign up through the Wall Street Survivor banner and place at least one trade. You will be rewarding me for the time and effort I spend on the site.

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