Super Stock Blog

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Year-End Tax Sell-Off

At the end of the year, there is usually a sell of stocks for people to do tax harvesting.  People will be finalizing their last transactions for the year and it benefits them to shift their stock portfolio for tax purposes and accounting.  This is also called asset allocation.  It gives investors a way to do portfolio balancing which makes sure their portfolio leans too strongly towards a specific industry or stock.

So far, the futures has been up this morning but I wouldn’t be surprised to see a sell off before the year-end.  I hope everyone had a great 2013 and 2014 continues to bring great fortune!

Ford Still Looking Strong

Ford has a big drop around 10% in the past week.  They had a conference call that stated they would be lowering 2014 forecasts.  This meant they would be in-line with 2013’s forecast, their profits would be less, their revenue would be still increasing, but the earnings would be less than they had forecasted in the past.  The profit margins were expected to be 10%+ but instead it will be in-line with 2013 at 8-10%.

This drop is a short-term occurrence that will be a small blip in their future.  Remember, they are still a small-cap car company if you compare them to Honda (HMC) and Toyota (T).  They will have 23 new cars coming out in 2014 and they stated the marketing budget would reduce their profit margins.  Yes, this is short-term weakness but for the long-term holder they will do really well.  Remember, by making this international play, they will become an international growth play not just a North American growth stock.

I sold my BlackBerry (BBRY) Shares

I am surprised by the run-up on the Blackberry stock.  The pop was much greater than I anticipated.  This morning I created a stop at $7.49.  The stock was currently trading around $7.60 and it was rising but I was already happy with the gains and I wanted to take some profits if it were to hit my new stop.  When I came back from doing my errands, I checked the BBRY stock ticker and found it closed at $7.06.  Click here for the current stock analysis on BBRY.

My stop had gone through and I had taken a profit of over $1 per share.  I’m quite happy with my gains and I hope to get a better entry in the future.  In the meantime, I’ll be looking at other stocks that provide me with another window of opportunity.  Of course, Blackberry stock can continue to go up but if it hits my target I’m open to selling.  Just remember the saying “buy low and sell high”, I felt I already hit the mark today.  If it goes below $6.50, I might plan to do another purchase but I will have to see volume to the upside as well.

Blackberry Pops After Earnings

Blackberry shows new found strength today with a stock price that is up over 10%.  The shorts are covering and people are now finding out about this new rag-tag management team at Blackberry.

The CEO John Chan is giving his earnings report and it appears he isn’t the greatest of speakers.  That should not be an issue for a guy that has turned multiple companies from bankruptcy to success.  He is going to utilize Foxconn to help on the retail business.  This is definitely a smart move as they compete with the iPhone and Android devices and they should be focusing on the bread and butter enterprise product.

For the long term investor, I believe this is a great stock to pick up.  Of course, it will be rather volatile so you might be able to get a better entry.  Remember Blackberry still has tons of cash and zero debt.

Blackberry is Ready to Comeback!

You heard it!  Blackberry is coming back!  Nope, it cannot beat Apple nor can it be any of the android devices.  Heck, it already lost the retail phone competition.  However, it has secured its place in enterprise mobile technology.  Blackberry is the only phone company that has worked with the United States government to create a secure mobile network.  It also has partnered with Fortune 500 companies, banks, and other public agencies to secure their network: citi, MetLife, ADP, Whirlpool, ING, Los Angeles County Sheriff, pwc, etc.

This model is definitely not as flashy as their retail phone business but businesses will give much bigger contracts and that means pay money to get a safe, secure, and reliable network for their company.

The Blackberry Enterprise 10 network is a full device management for iOS, Android, and Blackberry.  It’s definitely a small niche market but many companies do not have the infrastructure to create their own secure mobile network.  It will be much easier to use Blackberry’s own product to setup and utilize for their company.

Blackberry’s stock is currently at $6.08.  It has a small uptrend forming from a low in the mid $5ish level.  They also have a earnings report due out next week.  I doubt we will hear anything good in the earnings but I’d be interested to hear what they plan to do for the next year.  This is a risky investment but if it works out it will pay nicely.

Ford – The American Muscle Becomes International Muscle

Ford has been a very good stock for the past year.  It has almost given a 100% return and there’s no doubt that it will hit this mark in the next few months.  The stock currently has been trending up and down for the past 6 months.  It’s time for it to make it’s move up again.  Technically, you can see that it really hasn’t moved much but by all means it is on an up-trend still.

Fundamentally, Ford has been making great strides to grow it’s market share internationally.  It already has taken back the North American market by storm.  Their car sales are off-the-charts and they are continually breaking new highs.  In China, they are growing rapidly.  Their Ford Fusion fits the bill for many of the chinese population as it’s affordable and it gets great mileage.  In Europe, they are just starting out.  They are building factories and increasing their growth into the market.

They are not as big as Toyota or Honda but that gives them more room to grow.  First, their PE ratio is lower than these car giants; however, they also have such a small share of the market in international countries that they can rapidly make their footprint bigger.  This means better stock prices and better growth ahead for them.

This is a great long term play.  Their stock is currently trading at $16.91 and this would be a good entry.

Procter & Gamble – The Slow and Steady Earner

You are in it for the long-run, you are tired of trading the markets but you still want to make the stock returns with it.  Procter & Gamble is a nice old-age company that continues to perform and you get to collect a dividend at the same time.  They have had some recent mishaps and they are priced to go up in value.  The stock has hovered around the high $60s for quite a bit of time.  It yields around a 3.3% dividend and it isn’t shaken too much by the market.  There is plenty of reason to see this stock move up in the future.

You also get the added benefit of following Bill Ackman.  He is on the board and suggesting that the company buy of some of their own stock to bring up the value.  These are all good things for the stock investor.

Buy it, forget it, and look back at retirement with a winner!

Gold Investing? Is it time to get back in?

Gold is an interesting product.  You cannot use it for any material purposes other than jewelry but it also is a product that cannot be artificially created.  There also is a limited supply of gold.  Warren Buffet said it best that you could make a big square cube of gold that would be around 20 football fields tall, wide, and length.  That would be a huge cube and that would contain all the gold in the world!

Ben Bernanke has been known to continue to print money.  With his latest QE3, he is printing $40 billion a month to keep interest rates low.  We are artificially having low interest rates because of the money printing.  It will definitely lead to inflation in the future, but we don’t know when.  That being the case, gold and silver has continued to rise in price.  He has been helping gold and silver continually increase since he took office.  I suggest you visit Bullion Vault and you can see today’s current value for gold and silver.

I would recommend looking at a few gold and silver stocks that can have a nice push up if inflation does indeed occur.  A favorite of mine, Coeur d’Alene Mines Corporation, is a silver miner stock that is very volatile.  It has jumped from $16 to $32 in a matter of months.  It also dropped from $32 to $25 in a couple days after the election.  If you need more diversification, you should look at Market Vectors Gold Miners ETF (GDX).  This ETF holds lots of gold and silver stocks and it should take away lots of that volatility you normally see in the commodity stock market.

 

CSTR – You have your 3% Loss

Coinstar (CSTR) took a big hit after the earnings outlook, but it still has tons of potential.  The DVD market will eventually go away but there’s still plenty of demand and there is still many people that would still be going to their local Blockbuster if it existed today.  Of course, that business model has been taken over by the Red Box, and you can bet there are many people every single day going to their local 7-11 or supermarket just to rent some more movies.

I suggest looking to get into CSTR once it ranges around $45.

CSTR – buy it now!

I’m a strong-believe that CSTR will break out.  It’s already made new highs but I don’t think it’s done yet.  It’s one of the few bullish stocks in the current market and it’s ready to go higher.
Here’s how to play it:
Stop at $66.54
Sell it at $79.54
You get either a 3% loss or a 16% gain.
Why?
Technicals are great and fundamentals are great.  Coinstar is teaming up with Starbucks to bring coffee into the vending machine.  Look at last week’s post for more information.

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