Thoughts On 5 Technology Stocks

By: ispeculatornew
Date posted: 10.24.2011 (5:00 am) | Write a Comment  (0 Comments)

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After what has to be considered an exceptional year of trading, I still have one trade that is live (long Google and short eBay) but no matter how that turns out, the yearly return on the long & short technology trades is likely to be around 80-90%. As much as I’d like to take credit, I have to say that there’s no way I’m that good!:) Luck helped somewhat and a few trades that turned out very well. That being said, as proud as I am about my year of trading, being up 3 years in a row is even better and that is the streak that I really would like to keep going.

Technology Stocks Newsletter

First off, after doing a survey a few weeks ago, I got a lot of positive feedback regarding a technology newsletter where I will be discussing my opinions about certain of the stocks that I follow, more discussions about my current trades, etc. As the current newsletter is mostly focused on dividend investing/passive income, I think that adding a second one makes a lot of sense. For now, I will be sending this newsletter out every 2 weeks and that may change over time.

If you are interested, you can sign up here, it is free of course:

Feel free to let me know of any questions or comments regarding these tech companies, I’ll be more than happy to answer as best as I can!

Removing Ku 6 Media (KUTV) From My Radar

I currently have 38 stocks that I follow with Groupon to be added very shortly. The great thing about having so many stocks is that it gives me so many possibilities when trading but the challenge of course lies in the fact that tracking and staying up-to-date on these companies is always a challenge, especially the Chinese ones. Today, I decided to remove KUTV from the stocks I follow, mostly from lack of reliable information about the company which makes it impossible for me to trade the name in the near to medium term. That might change if KUTV can become a serious challenger to Youku (YOKU) but for now, I’m taking it off the board!

IS Tech Stock Thoughts

Since I will not be opening any new long & short trades for 2 more months, I thought I’d share my thoughts on a few names today. I’ve already written about my rationale for being a believer in both Amazon (AMZN) and Netflix (NFLX) recently so I will ignore those 2. They are both reporting earnings this week so I might discuss them more in the next few days. While I do have good impressions on LinkedIn (LNKD) and bad ones on Pandora (P), they are based off of too little given these companies are so new so I will also refrain! Here are some thoughts on others:

Blue Nile (NILE): Negative Outlook: The stock that I have loved to short in recent years has continued to trade at expensive prices. Sales are rising a bit but it’s coming at the expense of earnings which are more or less flat  How in the world does such a company justify a 35-45 P/E ratio beats me.

Baidu (BIDU): Positive Outlook: I’ve been vocal about my long term belief in Chinese internet stocks, especially in leaders and Baidu is the best example you could hope for. The stock is certainly risky because of its activities, the fact that it relies so much on the Chinese government, etc. I do still think that on a valuations basis, the stock looks cheap and I would certainly be positive about its perspectives.

Apple (AAPL): Positive Outlook: Again, not much of a change for me, I do still think that despite its huge size, Apple remains undervalued as it can still put up some growth. I am very much in belief in the fact that the earnings miss was more than anything about millions of customers putting off a purchase in anticipation of the release of the latest iPhone (4S). Over the long term, the company is still very much setup for long term growth and while it does face an increasing amount of competition, I think the group of loyal consumers continues to increase which will translate into more use of all of its other products. Buying Apple at a 10.03 forward P/E is a bargain no matter how you look at it.

Yahoo (YHOO): Unknown Outlook: I know, this view might not help much. My point however is that Yahoo outlook is increasingly uncertain as the bidders come in and out, management goes over different strategies concerning all of its assets. I have been very bearish on Yahoo in the past few years with much success but until the situation does become more clear, I will personally not trade Yahoo either long or short. It becomes a guessing game unless you have a great deal of (insider) knowledge.

Travelzoo (TZOO): Positive Outlook: Because of the way Travelzoo has set up its business, it has a strong and loyal customer base with a stronger contact point (email) than most competitors which has helped it a great deal put up strong growth in recent quarters. I do expect that tendency to continue in the short to medium term making its current valuation very attractive.

I would love to hear your thoughts on these 5 stocks or others on our radar, I will leave you with the numbers for these 5 names:

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