Super Stock Blog

Let's make our own bull run!

Author: SuperStocker (Page 12 of 16)

Activision to Make New Highs

Yup, I’m calling it.  They broke the record for most pre-orders of any video game with Modern Warfare 2.  The first day they make over $310 million dollars.  If you think that’s good, try calling any Best Buy (BBY) or Game Stop (GME) and you will surely get a ‘inventory is sold out’ or you will need to order it and pick it up later on.  Activision is putting a huge advertising campaign to promote the game.  You might have seen the spectacular trailers, game footage, and/or reviews.  This is definitely the block-buster game of 2009.  They put it out just in time for the holidays also.

I’m expecting this baby to hit $18.  However, I don’t think it stops there either.  Their lineup for 2010 includes Starcraft 2 which is the top-selling game in Korea for over 10 years.  It’s played like an olympic sport with sold-out crowds of people watching Starcraft gamers play head-to-head.  Don’t forget Activision also holds the largest MMORPG with World of Warcraft.  They also have expansions of WOW which bring in additional revenue.

I like getting Activision right now.  It’s at really low prices and anything can make this thing boom up.  You still have Diablo 3 online for 2011.  Long-term or Short-term, this is a great trade!

Stocks to Look at for 7/6/09-7/12/09

Sorry for not posting for a while, I’ve been out-of-the-country and on my own stock research sabattical researching short-term trading and swing trading.  Now we can get down to business and make more money than just doing value investing.  I’m not to fond of big drops in the market.  If we want to make cash, we ogtta be able to swing our trades no matter what the scenario.

The past week we bottomed out at the market at 9200.  The only next point of resistance is at 10,500.  We have a lot of bull to go and the stocks that I am posting below all have an advantage to gain for the next couple weeks.

ETFC, E-trade, is a online broker company and mortgage financing company.  They trade at $1.55 but ran up to $1.92 last week before hitting a low of $1.50.  A lot of institutional investors have been trading this stock.  Citadel investment put out a press release stating they will not be selling their shares of stock.  They are the largest holder with 120 million shares!  Goldman Sachs bought over $38 million and Barclays bought over $60 million worth of shares.  There has been recent buying by Vanguard, IShares, Equity Advisors, and other mutual funds.  Companies like Vanguard continually buy more shares through 401k programs.  I see this company as a very safe trade at these levels.  There is also a ton of shorts in this stock.  I definitely see it breaking $2 just by the short-covering alone.  Great stock to get in now!

CMO, Capstead Mortgage Corporation, is a mortgage REIT that invests in residential and commercial properties.  It makes money by investing in mortgage loans.  The last quarter is gave a whopping .58 dividend.  This comes out to a yield of 17.34%.  The company makes money by profitting off the spread on interest rates.  Since the United States is at all time lows on interest rates it is making tons of cash right now.  Just last week the interest rate for short-term loans went down furthur this will add to its profitability.  The only way this company will lose is if the interest rates go up; however, this only happens when the FED wants to slow the growth of the country.  We have the highest unemployment rates for the past 27 years and tons of mortgages that will be going into foreclosure for at least the next year.  I highly doubt interest rates will be rising anytime soon.  Technically, the daily stoichastics are at the lowest its been for the past few weeks.  The risk is low right now.  Buy now at $13.35 and hold it long-term for at least a year.  Easy dividends and easy cash.  Nothing to lose.

FSLR, First Solar, has low stoichastics.  It has already started a move up from hitting a low of $112.  It currently trades at $121.47 and I see it moving up to $145-150 range.  After that depending on market conditions it can either move up or drop.  This is a very easy trade right now with the current bullish market conditions and solars at all-time lows.  If you want to play with more leverage, JASO, JA Solar Holdings, moves up a lot more.  I don’t know what the long-term trend for solars will be but for the short-term they both look like fine plays.

BSTK is a penny stock with a lot of potential.  This stock currently increased 100% from .12 and it was at a low of .05.  I see it moving it .50 cents before it hits strong resistance.  Another great short-term play!

Good luck!

Western Refining Looking Good

Continuing the oil play, I introduce you today to Western Refining (WNR).  This stock is a great long-term play with the rising price of oil.  They recently got a 50% haircut when there was high speculation that they will not be able to pay off their high debt.  Last week, they announced that they were making a stock offering that would generate the necessary revenue to get rid of the debt.  Worse case scenario, we’re looking at them surviving another 5 years.  Best case scenario, this thing is gonna move up high and I expect doubling within the next year.

Technically, the stoichastics look good.  It’s past the bottom 20 right now.  It’s had a huge drop and we have a strong support coming in at $7.35.  The stock also doesn’t reflect the market very well which works to our advantage when this market could drop again below 7,000 on the dow or continue its move up.  There was great insider trading buying in at $9 after the money came in.  I’d suggest getting in soon.

Canadian Sands + Dividend = $$

As the market continues to plummet and things continue to worsen, dividend stocks will allow you to continue to win.  They work for long-term investors.  People that can wait it out a few years.  As they wait, they get rewarded.  I have a couple stocks I like currently that are pretty safe and if you have money to invest it will make you pretty rich in a few years.

HTE, Harvest Energy Trust, is a open-ended investment trust in Canada.  Their primary investments are in oil-related industries including shale-mining, oil refining, and drilling.  They also do invest heavily in petroleum and natural gas.  Right now, with crude oil hitting highs of $70, their stock price of $6.21 looks like a real bargain.  This gives you a dividend of 8.40%.  As with all stocks, make sure you do your due diligence!  I mention DD because HTE will get taxed in 2011 by the Canadian government and this will lower the dividend.  I do believe buying at this time will continually yield a pretty good dividend.  As oil prices go back up, you will see this stock price go up and you will happily be enjoying a nice dividend no matter what happens in the future.  I do believe oil prices will rebound, and I also believe this will rebound sooner than later.

PWE, Penn West Energy, is another open-ended investment trust in Canada.  They are paying off a yield of 11.40%. This one is also at a very low price.  I think both will be a good way to make money long-term and if you are willing to wait it out, you will be handsomely rewarded as oil gets back to its normal $80+.  Oil could become the next major currency.  Think about it, US dollar going down, what does everyone still use in the world?  Even with hybrid cars we still rely on that black gold.

If you have some money in your bank, put some of it in these two stocks.  Why not collect a fatty dividend!  When the market finally moves up, you will continually be rewarded and when the time comes when you need to sell, you can surely bet the price of these stocks will be more than it is right now!

Waiting for the right time to Short Treasuries

We are looking at a unsustainable rally.  The government has put a lot of programs in place that are propping up the stock market.  Look at all those TARP payments.  They’re all in the billions and they have kept the bank stocks up in the market. Some banks have more than doubled from their March lows.  Bank of America, BAC, has increased 300% from its bottom.  That’s insane!

China has a problem with these TARP payments.  They have been continously funding our economy by buying our debt.  However, their funding has been decreasing as they see us printing billions of dollars to pull ourselves away from this recession.  Tim Geithner recently made a visit to China to persuade them to continue to buy the US Dollar.  He went to a university and all the chinese students got a good laugh when he stated the economy was in great shape and the United States will continue to have a strong dollar.

The chinese need some convincing to continue to help us out.  They don’t want to fund us if our US Dollar is going to get weaker.  They can start buying other currencies that still keep their strength.  Hence, the government needs to give them ‘more for their money’.  They start raising the yield on the treasuries.  To do this, the government starts buying the treasuries.  Countries like China will get a fat yield for holding the US Dollar.  However, this artificial buying to keep the yield up cannot last forever.  Our treasury yields are reaching historic lows, and when these prices finally drop, we need to plan to take advantage of the situation.

This is where our two short ETFs come in, ProShares UltraShort Lehman 20+ Year Treasury ETF (TBT) and Direxion Daily 30 Year Treasury Bear 3x Shares (TMV).  When the government keeps lowering the price, we make money.  People will not buy treasuries unless they can get a nice yield for their money.  The government will have to raise interest rates, lower the price of the treasuries, or continually buy them up to continue this trend.  Whatever way they do it, shorting will be the way to go.  It’s just a matter of time to do it.  Currently, treasury prices are kind of high but in the next few months I expect there will be a good time to get in.  Just monitor those prices and yields and wait for the right time to bite!

Natural Gas is Bottoming Out

Yup, it’s time to start loading up on UNG, the natural gas ETF.  The summer has hit so it would seem like the worse time to buy this commodity, but market conditions and technical analysis give us a good reason to start getting into this stock.  It’s showing high volume, a flat-lining curve, and it appears to have start it entry back up.  This stock was at a high of over $40 just one year ago.  It has reached a very low price of $14 within the last month, and currently goes for $14.56.  As we get furthur into the weeks ahead, I see a increase in the price as demand starts increasing with futures trading.  Look as oil, it has irrationally moved back over $70 not because of demand but people are trading it and bumping that thing back up to levels from last year.

The normal ratio of oil to gas has averaged 6:1, we’re looking at over 14:1 currently.  It’s time for natural gas to move.

Add Some Electricity to Your Profile

Mirant (MIR) is a business that makes money through the transportation and selling of electricity.  They recently had a very successful quarter by hedging their electricity.  Their reasoning was to secure them for 2009 and 2010 from lowering electricity prices.  This was definitely a good bet.  They have the lowest PE of any of the electricity companies at 1.48.  The next companies all rank of PEs of 8+.  They have over $2.4 billion of cash.  So much that many people arguably would like them to give it away as a dividend.  However, management is smart enough to utilize this money and use it to make the company even better.

Long-term wise, this stock can only appreciate in value.  Inflation will continually make this stock move up.  Everyone needs electricity.  Electric cars will eventually come out and you can bet this industry will continually be utilized as its a cleaner source of energy than others.  In the short-term, there are rumors of it getting bought out.  With the cash on hand of at least $10 in stock and its business operation, I wouldn’t see a sell unless the price was at least $20.  This is a worth-while stock at $14 and I’d suggest taking some shares while at this level.

For you dividend players, Consolidated Edison (ED) is the perfect choice with a dividend of over 6%.  They have been giving their dividend consistently for over 35 years.  They provide electricity to New York probably the safest bet in any utility location.  As a regulated industry, you will not see much downfall in this stock but I’d definitely see a lot more gain in it.  In the mean time, collect a nice dividend. 😉

Add Gas to Your Portfolio

I’m not talking about the gas you get from food or drink consumption.  It’s time for gas commodities to move up: crude oil and natural gas.  MarketClub has given me access to a technical analysis video for crude oil: check it out.  I think we hit a nice bottom, and it’s time for oil to move up.  It has reached such a low price for a commodity that will continually be needed in this world.  It’s like black gold.  I’d expect to see $60 per barrel of crude oil within the next few years again.  Although I expect it hit $60 probably within this year maybe even this summer when gas prices start moving up.

The Market Club video establishes that is a great time to get into USO.  I’m not too much a fan of this ETFs especially with so many undervalued gas stocks.  I’d suggest looking into PWE, Penn West Energy, a stock giving a dividend of over 11%.  It is able to sustain this dividend as long as oil stays above $50.  This is a great stock that is priced very low and it will easily double up as oil starts moving up.  You can’t see this type of action with the big oil companies.  If you are a more conservative investor, I’d suggest looking at BP, British Petroleum, at a price of $48 currently.  I earlier stated around $40 that it was a great buy, but if you have not got into it and your money is sitting in a bank account, you might as well buy some of this stock and get a nice 7% dividend.

On the natural gas commodity, there are multiple companies that are deeply in debt and it’s risky to buy any of them that can go bankrupt.  However, we can still play this market with the UNG, United States Natural Gas, a hedge on the natural gas.  Summer is coming up and natural gas will not be used that much, but with the recession ending and wide spread inflation coming up, expect commodities and natural gas to finally make its move up.  It’s reach lows such as $4 million British thermal units.  Just a few years ago, this would have been $12 mbtu.

Remember, we’re looking at the long term.  These are easy plays to make money within a few years time.

Apple Has Topped Out!

That’s right.  The apple chart shows an evening star doji.  I still expect this to be a great stock moving forward, but it has leaped 30 points in one month giving it almost a 40% gain.  It doesn’t help that Steve Jobs is not at work anymore.  We can only wish for more excellent keynotes from the great orator of Apple.  However, Apple is still pushing out great products.  They have the best mobile phone, and arguably, the best laptops.  They continue to carry the best line of music devices through the IPod.  Sheesh, they are just doing a great job.

If you like to gamble, throw some short sells into Apple.  However, I suggest not risking too much.  Don’t lose your house over this trade.  It might be in a bearish mode, but expect it to continue moving up.  As a safety net, I suggest short-selling this thing for at max 10 points to be conservative.  Also, remember to put in your stops.

Heading for Another Downturn

Adam, from MarketClub, stated that this trend is still going down.  He believes the S&P will hit a target of 500 as a bottom.  At the current S&P, I think it is time for the market to drop.  We have had a rally lasting almost 1 month.  This will definitely show if the stock market is headed to go up or it will continue its downturn.  Here is the video from Market Club, it’s called Is the S&P running out of gas?, Enjoy!

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