Archive for May, 2014

Ultimate Sustainable Dividend Portfolio – May 2014 Update – New Record!!

By: ispeculatornew | Date posted: 05.14.2014 (3:00 am)

moneytreeIn September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here.

The past month has been a great one with the overall markets doing very well. I’ll also be trading for the USDP in the coming days and have more about that later in this post. I’ll be looking for 1-2 new stocks and will be going through the process in the newsletter in the next few days.

If ever you would like to receive those types of updates, please join, it’s free:

 

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNameSharesMay 13 2014 PriceMay 13 2014 Values
OMCOmnicom Group Inc31$68.77$2,131.87
MSFTMicrosoft Corp74$40.42$2,991.08
JCIJohnson Controls Inc41$45.08$1,848.28
PEPPepsiCo Inc/NC29$87.23$2,529.67
ETNEaton Corp33$73.20$2,415.60
DOVDover Corp25$86.58$2,164.50
KNKnowles Corp12.5$30.02$375.25
ITWIllinois Tool Works Inc29$86.90$2,520.10
XLNXXilinx Inc39$46.18$1,801.02
SJMJM Smucker Co/The20$100.40$2,008
BLKBlackRock Inc12$302.96$3,635.52
TROWT Rowe Price Group Inc30$81.32$2,439.60
OXYOccidental Petroleum Corp23$97.52$2,242.96
COPConocoPhillips26$78.64$2,044.64
XOMExxon Mobil Corp21$102.36$2,149.56
ADIAnalog Devices Inc45$51.47$2,316.15
HASHasbro Inc31$55.50$1,720.50
MATMattel Inc44$39.74$1,748.56
INTCIntel Corp55$26.45$1,454.75
AFLAflac30$63.73$1,911.90
BAXBaxter International25$75.41$1,885.25
IVZInvesco Ltd68$36.04$2,450.72
VWOVanguard FTSE Emerging Markets61$42.19$2,573.59
BNDVanguard Total Bond Market34$81.80$2,781.20
Cash$1,050.81
USDP$53,191.08
SPX15.32335164$3,427.01$53,513.28

Dividends Received

Wow.. the below chart looks AMAZING:) I’m very excited to say that the USDP will end up generating $179 this month, setting a new record. It’s not enough to live by but we’re clearly making progress here. Part of the reason is the $1000 that I’m investing every month but the portfolio has also performed extremely well.

usdp2

Ultimate Sustainable Dividend Portfolio News

Some positive news as 3 stocks will be paying a bit more:

XOMExxon Mobil CorpDividend increase from $0.63 to $0.69, a 9.5% increase
BAXBaxter InternationalDividend increase from $0.49 to $0.52, a 6.1% increase
IVZInvesco LtdDividend increase from $0.225 to $0.25, a 11.1% increase

Returns

As has been fairly typical, in a month where the market performed extremely well, the USDP underperformed slightly which is what you’d generally expect from an income focused portfolio.

usdp1

Trades

Last month, I mentioned that I had received Knowles Corp (KN) as a spin-off. It does not have a dividend history and frankly, I’d rather not own the stock at this point. I decided to take a look at the key metrics for the stocks of the portfolio looking for anything else that looks very off.
TickerNameDVD 1Y GrowthDVD 5Y Gr.Sales 5Y GrEPS 5Y Gr.Payout RatioP/E
OMCOmnicom Group Inc23.0821.6758.442.8817.73
MSFTMicrosoft Corp24.4217.398.5616.9435.1914.26
JCIJohnson Controls Inc10.819.5411.37N/A41.7714.68
PEPPepsiCo Inc5.585.959.293.0151.219.7
ETNEaton Corp PLC13.7512.7214.9N/A42.7417
DOVDover Corp8.069.26.8434.2625.7116.45
KNKnowles CorpN/AN/AN/AN/A0N/A
ITWIllinois Tool Works Inc9.336.273.59N/A43.821.84
XLNXXilinx Inc14.2913.1810.2918.7742.2620.73
SJMJM Smucker Co/The10.78-17.714.5721.5341.5917.66
BLKBlackRock Inc12.7817.4426.665.7339.0117.6
TROWT Rowe Price Group Inc-34.1710.2520.5454.9838.1920.89
OXYOccidental Petroleum Corp16.8115.5816.2245.7734.913.91
COPConocoPhillips3.417.752.2838.4441.6614.38
XOMExxon Mobil Corp10.269.7512.6420.834.3113.93
ADIAnalog Devices Inc12.111.686.6678.7860.3223.49
HASHasbro Inc10.1415.31.88N/A72.8823.4
MATMattel Inc13.1814.254N/A55.216.27
INTCIntel Corp09.9513.6657.2546.5614.32
AFLAflac Inc5.887.573.6914.3720.910.32
BAXBaxter International Inc16.3215.477.07N/A49.715.67
The stocks I’ll be looking to replace at this point are:
Certainly – KN
Possible – ITW, HAS, COP
I’ll likely end up getting rid of 2 names and replacing it with a new name. Stay tuned, the trade will likely happen soon:)

New Trade: Long Apple ($AAPL) & Short Rackspace ($RAX) – Earnings play?

By: ispeculatornew | Date posted: 05.12.2014 (3:00 am)

It’s time to trade again!! After skipping a couple of weeks because I had all my long & short fund invested, I then went a few weeks without opening new trades. Being busy, a lack of opportunities and the earnings season all were partially responsible for that but things have been going well and with today’s MSFT/AOL trade being closed, I now only have 3 live trades and am ready to get at it. Just as a reminder, you can see those trades here:

http://www.intelligentspeculator.net/livetrades

You can see the numbers for both companies involved in today’s trade here:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
AAPLApple Inc587.9914.1512.426.89.24.22139.460.89184.741.2353.24
RAXRackspace Hosting Inc26.6544.8529.7-31.2317.233.767.481.0211.0823.4526.1

$AAPLLong Apple (AAPL)

It’s fairly simple. I’m a BIG believer in Apple. It’s the only “long term speculative pick” that I made last year, was sitting at the #1 position in my 2014 tech stock power rankings and I simply think the potential upside vs downside risk is the best value you can find right now. It is trading at a P/E of 14 and despite its size continues to show decent growth. The company arguably has the top ecosystem play in the world in what I am convinced will be a world dominated by these ecosystems.  I will soon be doing a much more detailed post with an “updated” view of Apple but it’s safe to say that I remain a big time believer in the stock.

aapl

Next earnings release: July 23rd 2014

$RAXShort Rackspace (RAX)

I usually stay very far away from stocks that are about to report earnings. I simply feel like it’s playing with fire and I’d rather not get involved. I’m making an exception here for a few reasons but the main one is the fact that I think this is one of the most overvalued stocks in my universe. It is trading at very high P/E’s based off of the (very true) assumption that “cloud” based stocks will see incredible growth in revenues in the coming years. I don’t argue that point but I do think that the competition is incredibly fierce and that will drive down margins and put a lot of pressure on non-ecosystem plays that cannot afford to operate at break-even (or even losing) businesses for several years in order to gain market share.

Just look at this chart and I personally think it’ll get a whole lot worse:

RAX Revenue (Quarterly YoY Growth) Chart

RAX Revenue (Quarterly YoY Growth) data by YCharts

RAX Chart

RAX data by YCharts

Next earnings release: May 12th 2014

Disclaimer: Long Apple (AAPL)

Closing Trade ($MSFT, $AOL)

By: ispeculatornew | Date posted: 05.12.2014 (2:30 am)

Part of any good year of trading is a bit of luck and while I certainly think my abilities and analysis has been for the most part good this year, the results have been better than I could reasonable hope for. I’ve been able to close 8 long & short stock picks this year, 6 of them being for profits and my average trade has returned 12.4% so far this year. There is still a lot of time to screw up this average but I’ll enjoy it while things last. As is always the case, you can see my live long & short stock pick results here:

http://www.intelligentspeculator.net/livetrades

The 8th trade that I am closing will be done this morning as I will close the March 10th pick when I went long Microsoft (MSFT) and short AOL (AOL).  That trade currently stands at +27% after AOL reported very disappointed results.

The trade will be closed on today’s opening

AOL Chart

AOL data by YCharts

Weekend Readings

By: ispeculatornew | Date posted: 05.08.2014 (3:00 am)

General Readings

Hedge fund kid bets against treasure hunt success @ BusinessWeek
Zombies destroyed Japan in the 80s, is China next @ QZ
Highlights from the 2014 Berkshire meeting @ ReformedBroker

Top 100 Dividend Stocks – May 2014 Edition

By: ispeculatornew | Date posted: 05.07.2014 (3:00 am)

goldenDividend investing is a huge part of my investment strategy. As I’ve mentioned in my now monthly passive income updates, receiving dividend income from my both my Ultimate Sustainable Dividend portfolio and my ETF portfolio is a primary driver of how my retirement will be like a few decades from now:) Today, I went back to find the top dividend plays in the S&P500! The top of the top is similar to what I saw last month but as you know, there’s a lot more than yield that counts:)

Find Out More

I did further analysis which I present after the list, which I personally found very interesting and would love to hear your thoughts on those names:)

In the meantime, here is the list!

TickerNamePriceDividend YieldPayout RatioEx-Dvd
WINWindstream Holdings Inc9.110.99250.776/26/2014
DODiamond Offshore Drilling Inc51.66.7888.697/31/2014
FTRFrontier Communications Corp66.67362.426/11/2014
CTLCenturyLink Inc34.846.2#VALUE!5/30/2014
ESVEnsco PLC50.755.9136.96/12/2014
RIGTransocean Ltd42.855.2363.795/28/2014
HCPHCP Inc42.25.17106.925/8/2014
TAT&T Inc35.765.1553.137/9/2014
KMIKinder Morgan Inc/DE32.745.13138.487/31/2014
HCNHealth Care REIT Inc63.5453110.775/8/2014
TETECO Energy Inc17.914.9196.665/9/2014
NENoble Corp plc30.944.8525.28/7/2014
MOAltria Group Inc39.894.8181.436/13/2014
RAIReynolds American Inc55.944.7978.666/11/2014
SOSouthern Co/The44.494.72107.367/31/2014
TEGIntegrys Energy Group Inc58.564.6461.885/28/2014
PBCTPeople's United Financial Inc14.324.6187.677/30/2014
ETREntergy Corp73.134.5483.115/13/2014
DRIDarden Restaurants Inc49.114.4864.097/7/2014
VZVerizon Communications Inc47.394.4751.737/9/2014
EDConsolidated Edison Inc57.034.4267.895/12/2014
PMPhilip Morris International Inc85.344.4167.716/24/2014
PPLPPL Corp34.364.3479.796/10/2014
VTRVentas Inc66.984.33164.066/6/2014
FEFirstEnergy Corp33.424.31245.238/5/2014
DUKDuke Energy Corp73.524.2482.385/14/2014
LOLorillard Inc58.384.2169.925/28/2014
PNWPinnacle West Capital Corp54.664.1560.317/31/2014
PCGPG&E Corp44.864.06100.616/30/2014
SCGSCANA Corp52.254.0260.36/6/2014
PCLPlum Creek Timber Co Inc44.063.99135.515/14/2014
POMPepco Holdings Inc27.143.98245.456/6/2014
AEEAmeren Corp40.623.9475.816/9/2014
KIMKimco Realty Corp22.933.92174.486/30/2014
CNPCenterPoint Energy Inc24.473.88114.155/14/2014
IRMIron Mountain Inc27.83.88213.916/18/2014
MATMattel Inc39.343.8655.25/21/2014
XELXcel Energy Inc31.243.8458.436/17/2014
SPLSStaples Inc12.553.8244.266/25/2014
MACMacerich Co/The65.013.81208.325/7/2014
AEPAmerican Electric Power Co Inc53.363.7564.465/7/2014
PEGPublic Service Enterprise Group Inc39.623.7458.576/4/2014
KRFTKraft Foods Group Inc56.263.7345.056/26/2014
WMBWilliams Cos Inc/The43.523.7222.626/4/2014
FCXFreeport-McMoRan Copper & Gold Inc34.073.6784.827/10/2014
LEGLeggett & Platt Inc32.673.6787.716/18/2014
GASAGL Resources Inc53.53.6670.935/14/2014
CMSCMS Energy Corp29.783.6359.698/6/2014
CINFCincinnati Financial Corp49.023.5952.226/16/2014
COPConocoPhillips76.893.5941.665/15/2014
CVCCablevision Systems Corp173.53122.865/13/2014
OKEONEOK Inc63.733.51114.418/6/2014
IGTInternational Game Technology12.563.532.746/17/2014
PFEPfizer Inc29.963.4757.685/7/2014
GMEGameStop Corp38.153.4637.215/22/2014
GMGeneral Motors Co34.753.4506/6/2014
INTCIntel Corp26.173.4446.568/7/2014
EXCExelon Corp36.243.4273.555/13/2014
CVXChevron Corp125.363.4134.895/15/2014
STXSeagate Technology PLC50.513.4128.185/12/2014
WMWaste Management Inc44.113.4696.946/10/2014
SESpectra Energy Corp39.63.38795/7/2014
NUNortheast Utilities46.623.3759.455/28/2014
PAYXPaychex Inc41.493.3783.785/8/2014
DDominion Resources Inc/VA71.163.3772.885/28/2014
CACA Inc29.663.3748.486/9/2014
DTEDTE Energy Co77.933.3668.536/12/2014
AVBAvalonBay Communities Inc138.243.36932.946/30/2014
GRMNGarmin Ltd57.483.3460.316/13/2014
LLYEli Lilly & Co58.883.3344.895/13/2014
CSCOCisco Systems Inc22.963.3133.167/1/2014
GEGeneral Electric Co26.583.3153.116/26/2014
AIVApartment Investment & Management Co31.473.3335.825/14/2014
CAGConAgra Foods Inc30.353.2952.557/30/2014
EQREquity Residential60.793.29#VALUE!6/19/2014
ABBVAbbVie Inc51.363.2776.997/9/2014
PSAPublic Storage171.933.26105.026/11/2014
WECWisconsin Energy Corp48.023.2556.965/12/2014
CLXClorox Co/The87.313.2560.067/21/2014
LMTLockheed Martin Corp165.123.22525/29/2014
PLDPrologis Inc41.193.2288.826/9/2014
MCDMcDonald's Corp101.143.255.55/30/2014
FFord Motor Co15.743.18227/28/2014
PGProcter & Gamble Co/The81.73.1556.757/16/2014
SYYSysco Corp37.193.1265.997/2/2014
COHCoach Inc43.393.1133.736/4/2014
HASHasbro Inc55.523.172.887/29/2014
GISGeneral Mills Inc53.013.0946.797/7/2014
WUWestern Union Co/The16.273.0734.726/12/2014
PEPPepsiCo Inc85.913.0551.25/28/2014
KMBKimberly-Clark Corp110.233.0558.086/4/2014
IPInternational Paper Co45.883.0541.055/23/2014
OXYOccidental Petroleum Corp94.73.0434.96/6/2014
MCHPMicrochip Technology Inc46.763.04214.955/20/2014
DOWDow Chemical Co/The49.36334.446/26/2014
MRKMerck & Co Inc58.633116.536/12/2014
KOCoca-Cola Co/The40.762.9957.856/12/2014
SPGSimon Property Group Inc174.052.99112.095/14/2014
LYBLyondellBasell Industries NV93.662.9929.38/14/2014
SYMCSymantec Corp20.12.9905/22/2014

Find Out More

I then took an extra step to find stocks that had at least 5% of average growth for these 4 metrics:

-dividend 1 year growth
-dividend 5 year growth
-earnings per share (diluted) 5 year growth
-sales 5 year growth

Here were the results:

TickerNamePriceDividend YieldPayout RatioEx-Dvd
WINWindstream Holdings Inc9.110.99250.776/26/2014
DODiamond Offshore Drilling Inc51.66.7888.697/31/2014
FTRFrontier Communications Corp66.67362.426/11/2014
CTLCenturyLink Inc34.846.2#VALUE!5/30/2014
ESVEnsco PLC50.755.9136.96/12/2014
RIGTransocean Ltd42.855.2363.795/28/2014
HCPHCP Inc42.25.17106.925/8/2014
TAT&T Inc35.765.1553.137/9/2014
KMIKinder Morgan Inc/DE32.745.13138.487/31/2014
HCNHealth Care REIT Inc63.5453110.775/8/2014
TETECO Energy Inc17.914.9196.665/9/2014
NENoble Corp plc30.944.8525.28/7/2014
MOAltria Group Inc39.894.8181.436/13/2014
RAIReynolds American Inc55.944.7978.666/11/2014
SOSouthern Co/The44.494.72107.367/31/2014
TEGIntegrys Energy Group Inc58.564.6461.885/28/2014
PBCTPeople's United Financial Inc14.324.6187.677/30/2014
ETREntergy Corp73.134.5483.115/13/2014
DRIDarden Restaurants Inc49.114.4864.097/7/2014
VZVerizon Communications Inc47.394.4751.737/9/2014
EDConsolidated Edison Inc57.034.4267.895/12/2014
PMPhilip Morris International Inc85.344.4167.716/24/2014
PPLPPL Corp34.364.3479.796/10/2014
VTRVentas Inc66.984.33164.066/6/2014
FEFirstEnergy Corp33.424.31245.238/5/2014
DUKDuke Energy Corp73.524.2482.385/14/2014
LOLorillard Inc58.384.2169.925/28/2014
PNWPinnacle West Capital Corp54.664.1560.317/31/2014
PCGPG&E Corp44.864.06100.616/30/2014
SCGSCANA Corp52.254.0260.36/6/2014
PCLPlum Creek Timber Co Inc44.063.99135.515/14/2014
POMPepco Holdings Inc27.143.98245.456/6/2014
AEEAmeren Corp40.623.9475.816/9/2014
KIMKimco Realty Corp22.933.92174.486/30/2014
CNPCenterPoint Energy Inc24.473.88114.155/14/2014
IRMIron Mountain Inc27.83.88213.916/18/2014
MATMattel Inc39.343.8655.25/21/2014
XELXcel Energy Inc31.243.8458.436/17/2014
SPLSStaples Inc12.553.8244.266/25/2014
MACMacerich Co/The65.013.81208.325/7/2014
AEPAmerican Electric Power Co Inc53.363.7564.465/7/2014
PEGPublic Service Enterprise Group Inc39.623.7458.576/4/2014
KRFTKraft Foods Group Inc56.263.7345.056/26/2014
WMBWilliams Cos Inc/The43.523.7222.626/4/2014
FCXFreeport-McMoRan Copper & Gold Inc34.073.6784.827/10/2014
LEGLeggett & Platt Inc32.673.6787.716/18/2014
GASAGL Resources Inc53.53.6670.935/14/2014
CMSCMS Energy Corp29.783.6359.698/6/2014
CINFCincinnati Financial Corp49.023.5952.226/16/2014
COPConocoPhillips76.893.5941.665/15/2014
CVCCablevision Systems Corp173.53122.865/13/2014
OKEONEOK Inc63.733.51114.418/6/2014
IGTInternational Game Technology12.563.532.746/17/2014
PFEPfizer Inc29.963.4757.685/7/2014
GMEGameStop Corp38.153.4637.215/22/2014
GMGeneral Motors Co34.753.4506/6/2014
INTCIntel Corp26.173.4446.568/7/2014
EXCExelon Corp36.243.4273.555/13/2014
CVXChevron Corp125.363.4134.895/15/2014
STXSeagate Technology PLC50.513.4128.185/12/2014
WMWaste Management Inc44.113.4696.946/10/2014
SESpectra Energy Corp39.63.38795/7/2014
NUNortheast Utilities46.623.3759.455/28/2014
PAYXPaychex Inc41.493.3783.785/8/2014
DDominion Resources Inc/VA71.163.3772.885/28/2014
CACA Inc29.663.3748.486/9/2014
DTEDTE Energy Co77.933.3668.536/12/2014
AVBAvalonBay Communities Inc138.243.36932.946/30/2014
GRMNGarmin Ltd57.483.3460.316/13/2014
LLYEli Lilly & Co58.883.3344.895/13/2014
CSCOCisco Systems Inc22.963.3133.167/1/2014
GEGeneral Electric Co26.583.3153.116/26/2014
AIVApartment Investment & Management Co31.473.3335.825/14/2014
CAGConAgra Foods Inc30.353.2952.557/30/2014
EQREquity Residential60.793.29#VALUE!6/19/2014
ABBVAbbVie Inc51.363.2776.997/9/2014
PSAPublic Storage171.933.26105.026/11/2014
WECWisconsin Energy Corp48.023.2556.965/12/2014
CLXClorox Co/The87.313.2560.067/21/2014
LMTLockheed Martin Corp165.123.22525/29/2014
PLDPrologis Inc41.193.2288.826/9/2014
MCDMcDonald's Corp101.143.255.55/30/2014
FFord Motor Co15.743.18227/28/2014
PGProcter & Gamble Co/The81.73.1556.757/16/2014
SYYSysco Corp37.193.1265.997/2/2014
COHCoach Inc43.393.1133.736/4/2014
HASHasbro Inc55.523.172.887/29/2014
GISGeneral Mills Inc53.013.0946.797/7/2014
WUWestern Union Co/The16.273.0734.726/12/2014
PEPPepsiCo Inc85.913.0551.25/28/2014
KMBKimberly-Clark Corp110.233.0558.086/4/2014
IPInternational Paper Co45.883.0541.055/23/2014
OXYOccidental Petroleum Corp94.73.0434.96/6/2014
MCHPMicrochip Technology Inc46.763.04214.955/20/2014
DOWDow Chemical Co/The49.36334.446/26/2014
MRKMerck & Co Inc58.633116.536/12/2014
KOCoca-Cola Co/The40.762.9957.856/12/2014
SPGSimon Property Group Inc174.052.99112.095/14/2014
LYBLyondellBasell Industries NV93.662.9929.38/14/2014
SYMCSymantec Corp20.12.9905/22/2014

Ensco (ESV) certainly looks very intriguing and I’ll be doing further analysis on that name in the newsletter shortly, if you’re not a member yet, join now, it’s free:

LinkedIn ($LNKD) Getting Killed… What To Do Now?

By: ispeculatornew | Date posted: 05.05.2014 (3:00 am)

662803-simpsons_sideshowbob2I’ve been very vocal about my strong belief in LinkedIn both as a business and as a long term stock. I’ve been extremely reluctant to buy it though because the valuation has been so extreme. No matter how good of a story it would become, the upside vs downside test would not make it attractive. After dropping for over 6 months, I did finally decide to take a position in my long & short stock picks on March 31st:

Long LinkedIn (LNKD) & Short Pandora (P)

I knew that the trade was a bit risky because in many ways, LNKD could be considered a “falling knife”. But the upside potential on this trade seemed significant. Clearly, that trade has not worked out as it is now down 24% and I will be closing it this morning as a result. It’s not that I don’t believe in LNKD or in this trade (quite the opposite), but at some point, fighting a strong trend can kill you. Even including this trade, my long & short picks have done exceptionally well (+10,11% on average) this year so this seems like the perfect time to get out before things get much worse. Just look at this chart, it hurts for anyone that has been long for the past 6-8 months.

ycharts_chart

What’s Next?

While I am closing a losing trade, a smaller bet that I made, I am now closer to opening a longer term, more significant position. For that to happen, I’d need to understand part of what is happening to the stock though. Are fundamentals changing significantly? This is clearly a major source of concern:

LNKD Revenue (Quarterly YoY Growth) Chart

LNKD Revenue (Quarterly YoY Growth) data by YCharts

Also, it’s important to note that LNKD is not the only web related stock that’s getting killed. It’s a wave that’s taking down many players and is pushing others (BOX, SQUARE) to push back their IPO. To be honest, I think that trend certainly could continue. Many tech stocks have significant downside risk at this point.

Longer Term Picture

I personally continue to believe in LNKD’s future. Why?

-Very little competition in its space (professional social network)
-Diversified revenues (subscriptions, advertising, corporations and individuals, etc)
-Poised to do well in places like China
-Great leadership

I also personally think that some concerns are overblown. For example, it would make no sense to expect LinkedIn to compete with Facebook for things like #users, time spent, etc. Why? It’s a completely different customer base and those busier individuals simply do not spend as much time “surfing”, “chatting”, etc.

Ready To Pull The Trigger?

I’m not quite there yet to be honest as I think the valuation doesn’t scream bargain (although it’s getting closer to that point), but it is now on my radar (with stocks like TRIP) as potential long term speculative picks.  And no, I will not personally feel like I need to hit the bottom here. If the valuation makes it a no-brainer, I’ll pull the trigger even though I might not catch its bottom. That is what I did with both Facebook (FB) and Apple (AAPL) in the past 2 years.

Disclaimer: Long LinkedIn (LNKD) which will be closed on today’s opening

Weekend Readings – Wealth Tax

By: ispeculatornew | Date posted: 05.02.2014 (3:00 am)

reI am personally opposed to a wealth tax mostly because there are so many ways to get around such a tax so thinking it will solve everything is a mistake. Closing loopholes and having other “smart” tax changes would be  higher priority in my opinion and the wealth tax could then be part of the overall package. Thoughts? Here are some readings for the next couple of days:)

General Readings

Obstacles for the sharing economy @ TheEconomist
MIT to give $100 in bitcoin to students @ TechCrunch

Tech Stock Readings

How Google can leverage Facebook’s biggest weakness @ TechCrunch
Peak iPad @ Medium
Twitter beats expectations but guidance is low @ TechCrunch