Super Stock Blog

Let's make our own bull run!

Author: SuperStocker (Page 13 of 16)

Activision/Blizzard Looking Good for the Future

This must be the investors’ ultimate game stock.  There is no other company that encompasses so many great games: Guitar Hero, Starcraft, Diablo, World of Warcraft.  They have a line of games that will bring in recurring income for a long time.  Starcraft is a very old game, but it still gets lots of press coverage.  In Korea, there is even a channel specifically for Starcraft.  They have game shows and prizes with audiences passing over 10,000 people just to show the video game on projectors and have the best players come out.

Starcraft II will be coming out sometime this year.  It has been said to be released sometime in the first half.  If you visit Gamestop, you will notice a link for the pre-order of the game.  You can bet this game will break major records in sales.  Also, if you look at the stock chart, you will notice this company has a very strong uptrend since January.  The big dips and drops of the stock market has not affected this company at all!

I’ve also recently got access to MarketClub.  They have a feature for their members that gives a trending system.  0 being negative and +100 being very positive for the future.  Activision/Blizzard is ranked to be +75.  This means it is showing some near term weakness. However, this market remains in the confines of a longer term uptrend Uptrend with tight money management stops.  This is very good looking for the future.  If the market looks right tomorrow, maybe I will pick up some shares.

One More Big Drop Before We Have Clear Skies

That’s correct, I’m calling it.  Back in 2001-2002, we had over a 25% drop, then it went up, but it followed another huge 20% drop in the DOW market.  These two drops happened in a span of one year.  We’re facing a loan crisis that we should seriously not be able to come back from.  Japan attempted to bailout their country in the 1990s and still continue to face a stagnant economy that never fully recovered.  We just made a $1 trillion bailout plan to help fix the mortgage security problem.  The money does not exist, but the government is asking international parties, international banks, private investors and forcing tax payers to front some of the amount.  Suffice to say, we are the heart of the economy to the world.   We will survive and will come out stronger.  However, this might be the last time we get to push around other countries to help us.  China will continually try to move their economy from a US export economy to a domestic and international power house.

Back to the DOW, many analysts say we are bottoming out.  However, look at the 1980s oil crisis, you will also notice a 10% drop, a rise, and then another 10% drop.  We will face not only another drop, but possibly more than one.  Obama has been doing a great public campaign to persuade the people that there are better days.  We will survive this problem, but it’s not over yet.  I suggest investors continue to hold their cash in the bank or put it in CDs.  Wait some time to see where things go.  You’ll have a nice nest egg eventually to put in the stock market, but now is not the time.

RSO, Resource Capital Corp, Making it Happen

Resource Capital Corp, RSO, has reached highs going over 100% of its value in just one week.  The company runs a steady and conservative portfolio of commercial real estate loans that were most likely made during the late 1990s and early 2000s.  Only one single condo loan deal has been a default.  The others have been doing quite well.  It was at an all-time low on March 3, 2008 at $1.43.  Right now, it is at $3.87.  The company has a well established management team including  Jonathan Cohen and Leon Cooperman who have many years of real estate experience.

The recent $1 trillion dollar bailout was a huge stimulus to their stock price this week.  It started on monday moving from less than $2 to almost doubling which I would like to see by the end of this week.  President Obama’s $1 trillion bailout will secure all the mortgage securities making sure that these loans are paid off and the money keeps rolling in.  The dividend yield was set to be $0.30 per share for the upcoming quarter.  If you multiply that by 4, you get a yearly dividend of $1.20 almost 1/3 of the share value.  As a long-term stock, this will reap you many years of rewards.  Put it in your Roth IRA and just collect easy money.

You are Siriously Rich Now

If you followed my post from February 18, 2009, you are sitting on an almost 50% gain on Sirius.  This is an great gain vs what we are seeing in the market.  You can only get this type of gain from small companies and distressed companies.  Sirius hits both of these marks.  It has a great chance of going bankrupt, but when Liberty Media comes in and funds them millions to pay off their loans, they have a good chance of weathering this storm.  There must be something up their sleeves and it shows it with the closing price today at $0.235.  I, myself, am looking for the long-term gains and I will wait this one out.  It’s so cheap that the up-side is definitely much bigger than the downside.

Is it time to put our money back in?

Dow Jones moves up +379.44 to a magnificent 6,926 points.  This is an absurdly high increase in the DOW.  Two reasons are a big boost in Citi (C) and Bank of America (BAC) which are both part of the DOW top 20.  A profit report from the bank is huge, expect many more green things to be happening from stocks.  Short sellers will start getting more money out as they are seeing the bottom of the Dow.  However, this is not the bottom yet!  We haven’t hit below 6,500.  Once the stock prices hit below this mark, it will be a great time to start getting in the market and investing again.  I see the big boost as just a starting point of good things to happen, but don’t expect any big gains for at least another year.  We will see many more hills that look like ‘the rally’, but don’t be fooled.  We have a lot of rich people with tons of money that can manipulate the market every way they feel fit.  If you know how to play the short-term, you could probably make some dough selling on highs and buying on bottoms.

Let the Carnage Pan out…

Ouch!  Another eye-sore!  The dow has hit a all-time low of 6,793, something not seen since 1997.  I, for one, are starting to feel the fear in the market.  I thought things were bad enough when we broke 10,000, but at this rate, we are hitting new lows like there is no tomorrow.  There are still lots of quarterly earning reports that have to be reported, and I bet they are not looking good.  I’d hold off unless you are going to get some dividend stocks and just wait it out.

I wouldn’t expect anyone to start any purchases until the DOW hits 6,500.  It might be tomorrow, it might be in a month, but if you have the patience to wait it out, there will be good investments in the end.  Look for big names such as Wal-Mart (WMT) or Colgate (CL) to put your money in.  These names have continued to prosper during this time since their products are always necessary no matter what is happening in the economy.

Dollar Cost Averaging Down

We know the economy will eventually get better.  We are seeing things at the worse: the interest rates have hit bottoms never seen before, job rates are at all time lows, the stimulus package will take at least 6 months to start getting into effect, the stock market is hitting lows seen from year 2000.  The DOW has continued its drop, now hitting below 7400.  Many advisors assume that the market will drop below 6500 before things get better.   One of the reasons is in April, many of the ARM loans will get reset.  We will see another huge round of foreclosures, and the result is more lows for the DOW.

I suggest right now is a great time to just hold your money or buy some commodities such as gold.  If you have a 401k, it’s a good time just to continue your dollar cost averaging down.  You might as well just stay on the sidelines and let the things unravel while building your nest or paying off your debt.

Getting Serious with Sirius

Sirius/XM Radio, SIRI, has dropped to an all-top low last week at $0.05.  Yesterday, it made a whopping increase of 60% and ended the day at $0.16.  This was triggered by a loan made by Liberty Media.  This helps prevent Sirius from filing bankruptcy and gives it more time to find a buyer.  This also gives Mr. Malone, Liberty Media’s chairmen, ownership stake in the company.  Liberty Media also owns DirectTV.  It be interesting to see what type of partnerships and deals come out of Sirius/XM Radio with their satellite packages.  I see this stock moving up from here on.  Even Dish was interested in this deal, but lucked out when DirectTV helped them out.  I see plenty of potential in this stock.  At $0.016, you have a lot more upside than downside.  Buy 1,000 shares and wait a few years, let’s see what happens 😉

Where is the Bottom?

Oil has not reached the bottom yet, the dow hasn’t reached the 6500 point mark yet, where is the real bottom?  Of course looking at 2008, this is not a bad time to buy stocks if you are looking long term.  But buying at the bottom and timing the market has always been a losing proposition.  When people wait for the bottom, they will always miss the timing and miss the big stock hikes when it does happen.  This recession will be different though.  We have multiple banks getting bailed out and companies getting funding through the stimulus.  It will take at least a few years to get out of this mess.  In 2006, multiple countries starting slowing their funding into the U.S. Treasury and putting their money into other countries.  China slowed down their funding and is now continuing to grow their domestic products.  Europeans are putting less money in the US banks and also are putting it into strong currencies such as the Swiss Franc.

We are not in any normal recession.  From my advisors, they have suggested we will have one more drop in the stock market.  It appears it will happen sometime this summer.  ARM loans will soon expire in April, more foreclosures, more bankruptcies, more people in the gutter.  Take your time, be patient, and if you do wish to invest, get into commodities such as gold and wait it out!

Mueller Water Products on the Cheap

Water infrastructure is looking to be a rather important function going forward in the United States.  Clean water is not only an essential part to living, but also something that is declining at a rapid rate.  The funding needed to replace existing old infrastructure has been lacking.  Barack Obama has stated that one of his goals is to use federal funding to help fix roads, bridges, utilities, and you know for sure part of his stimulus package will be for helping fix these water problems.

Mueller Water Products, MWA, got knocked down to $4.22 from $6.66 on Wednesday.  Currently, it is at $3.33 this morning.  It got as high as $7 earlier this week.  At this price, it’s at the point of hitting a bottom.  The price can only go down furthur if there is no funding to help the infrastructure.   Possibly worst-case scenario, there’s a few quarters to which this might happen, but once people realize the importance, this stock will hit double digits in no time.  Obama wants to put people into jobs and helping improve the water situation will not only benefit the country nationally it will help improve the mess of an unemployment market.

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