Archive for May, 2008

Make Real Money at Updown.com

By: admin | Date posted: 05.17.2008 (3:55 pm)

I’ve mentioned Updown.com a couple of times on my website but for those of you who haven’t heard of it Updown.com is a great place to learn to invest stocks and earn real money risk free.

At Updown.com you get one million dollars in play money and you make real money by beating the return of the S&P 500, writing stock analyses, and referring people to the site. Even if you don’t think you can beat the return of the S&P 500 you can make significant money just by writing stock analyses. The top money earner, Legmaker, has earned $3700 in about eight months by writing a bunch of highly ranked stock analyses.

You can also make significant money by generating a large return. The player with the highest return, Invest, has made $2628 in five months by turning one million dollars in play money into 15 million dollars in play money.

If you are interested in joining Updown I would appreciate it if you would sign up through my referral link below:

http://www.theupdown.com/create-account.do?_refer=31970 

I will provide a couple of incentives if you sign up through my referral link. First, when you sign up through my referral link I will get an email that says you signed up through my link. I will then add you as a friend and when I see that you have written an analysis I will give you a good rating (providing you put at least a little effort into the analysis).

Second, I will tell you exactly how Invest is generating such a large return. You can either contact me through my website or through Updown and I will tell you what strategy/exploitation she is using.

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China Automotive Systems Releases Impressive Q1 08 Results

By: admin | Date posted: 05.14.2008 (9:48 pm)

CAAS – China Automotive Systems (NASDAQ) – (Closing Price – $6.85) 

China Automotive Systems announced impressive first quarter results today and the stock price responded by trading up 25% on the news.

China Automotive Systems reported revenue of 41.47 million and diluted EPS of 0.18. Revenue improved 46% year over year and 10% sequentially. Diluted EPS improved 157% year over year and 100% sequentially.

Even with the big jump today China Automotive is only trading at a trailing PE ratio of 14. That is very cheap considering the strong growth in revenue and earnings. If China Automotive Systems can continue to show both top and bottom line improvement in future quarters China Automotive Sytems will reach a much higher share price. I think the share price could easily retest its highs of the past few years ($12 – $14 range) in the next few quarters. Therefore, I think it would be wise to be patient and hold onto your shares.

Short term I also think the share price will see more upside. Over 7% of the float is short and I think the shorts will continue to be squeezed over the next few days.

I don’t see any reason to sell I would continue to hold your shares of China Automotive Systems.

Disclaimer: I have no position in CAAS.

SWC Cover Recommendation

By: admin | Date posted: 05.12.2008 (10:21 pm)

SWC – Stillwater Mining Company (NYSE) – (Closing Price – $13.19) 

In my last update I wrote that I thought SWC was going to continue to decline and that you should continue to hold your short position. However, if you shorted SWC at my initial recommendation you are sitting on a big gain and I think now would be a good time to cover.

SWC reported lousy first quarter results last Thursday and the stock price has managed to hold up. Also the price of platinum is starting to creep back up again. Therefore, I am going to give a cover recommendation at today’s closing price.

Disclaimer: I have no position in SWC.

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AMR Sell Recommendation

By: admin | Date posted: 05.07.2008 (9:08 pm)

AMR – American Airlines (NYSE) – (Closing Price – $8.57)

I recommended airline stocks, American Airlines in particular, as a play on oil falling in price from its highly speculative levels. I figured oil would pull back quite a bit after the Fed announced it would halt future rate cuts since oil has been rising mainly as a hedge against the falling dollar. However, after a very brief fall speculators have sent oil right back up in spite of bearish reasons for oil to go down.

Today it was reported oil inventories rose 5.7 million barrels last week and supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks. However, oil continues to go up for reasons such as supply disruptions in Nigeria that only affect a few thousand barrels.

Due to the nonsense that is going on in the oil market I am going to recommend selling American Airlines essentially at the price I recommended it at. I should have recommended selling the news after the Fed meeting but I didn’t think oil would surge up from its bubble like levels in the face of bearish news. I will throw in the towel for now but this is a trade I will keep an eye on.

Disclaimer: I have no position in AMR.

Free Stock Picks – May Report

By: admin | Date posted: 05.04.2008 (9:02 pm)

SWC – Stillwater Mining Company (NYSE)
I forgot to update Stillwater Mining Company so here is my take on SWC. I still think the stock price of SWC is going to continue to decline. The stock price of SWC was trading in the ten dollar range before it had its huge run and I expect the stock price to go back to that range as platinum and palladium prices continue to correct. I would continue to hold your short position.

Disclaimer: I have no position in SWC.

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Free Stock Picks – May Report

By: admin | Date posted: 05.04.2008 (1:26 pm)

AIXG – Aixtron (NASDAQ)
Aixtron has announced a couple of new orders since my initial recommendation and the stock price is already up 11%. A dividend will most likely be approved at the shareholders meeting on May 14 and this should provide a boost to the stock price. Aixtron reported Q1 results last year on May 8 so they should report earnings pretty soon.

AMR – American Airlines (NYSE)
All airline stocks had a strong rally since my initial recommendation but they pulled back on Friday due to profit taking and a rise in oil prices. AMR was already close to my price target but I didn’t give a sell recommendation because I think oil is going to continue to go down short term. I think the dollar will continue to strengthen and the demand for oil is going to decrease. This should push down oil prices and help airline stocks.

CAAS – China Automotive (NASDAQ)
China Automotive reported decent results in March and the stock price initially went up but has sold off since. They are set to report Q1 results this month so I will provide an update then. (more…)