You work hard for your money, your money should work hard for you.
TwitterFacebookYouTube

Monthly Archives: April 2011

Why are Android phones leaving tablets in the dust?

Posted on by Posted in Investing, News, Opinion Leave a comment

Android smartphones have overpowered the iPhone in market share, yet Android tablets barely register in sales versus the iPad. Android tablets are as competitive in most respects against the iPad as Android smartphones are against the iPhone. So why the difference in success? Galen Gruman examines five theories for the gap, and concludes the reason is that Android tablets’ real competitor is in fact not the iPad…READ MORE.

My Take: A good summary of why Google’s Droid platform is thriving on phones, but not tablets.  As you will read, the author sides with the idea of a different perception between iPad buyers vs Droid tablet buyers.  It’s a very interesting idea to contemplate, especially since the general perception is that it’s a iPad vs Droid tablet war.  Is that the real war or is it actually a different battle that the Droid tablets face?

Good research can lead to good investing.  If you’re attempting to understand phone and tablet markets, I highly recommend the linked article.

Motorola Mobility ships 250,000 tablets, beats estimates

Posted on by Posted in News, Opinion Leave a comment

Motorola Mobility beat analyst estimates, saying it shipped over 250,000 tablets since the Xoom went on sale in February, as the company reported better-than-expected results today…READ MORE.

My Take:  I was actually very surprised when I heard the news above.  I make a weekly trip to Costco and constantly monitor the Motorola Xoom tablet stock and interest among fellow shoppers.  From my observations I was fearing the Xoom was dead on arrival.  Maybe it’s the market I’m in?

Supposedly Motorola Mobility (MMI) is not simply filling up storage space with their tablets.  During the conference call a company rep said he was pleased with the current level of sales.  We’ll take that at face value, since that’s about all you can do from a statement like that.  The market is responding positively being up over 4% in after-hours trading.

If Motorola plays its cards right, they’ll find lots of success with the Xoom.  It’s not as if Apple and the Droid tablets are fighting over a fixed pie.  The pie is growing and room exists for both companies to grow with their tablet devices.  It’s very comparable the the Smartphone market.

Overall I take the shipments as a positive sign for tech, especially the emerging mobile and social focused companies.

3 Hedge-Fund Myths Exposed

Posted on by Posted in Funds, Investing, Opinion Leave a comment

The best way to profit from a hedge fund may be to start one. In the meantime, consider a proxy that mirrors hedge-fund strategies at a fraction of the cost…READ MORE.

My Take: If you pay the slightest bit of attention of mainstream news the past few years, you have heard about hedge funds and hedge fund managers.  Take a few minutes to get a better handle on some of the perceptions of hedge funds that aren’t compelely true.  Nick Vardy does a nice job of providing an overview in the article linked within this post.

Shipping Is Picking Up

Posted on by Posted in Investing, News, Opinion Leave a comment

In shipping news for March, the Port of Galveston reported its highest monthly tonnage in 11 years, container volume handled by the Port of Charleston increased 5.7% from a year earlier, and the volume of containers handled by the Port of Savannah increased 4.5% in from the same month last year…READ MORE.

My Take:  If you read each report linked above, you’ll see that the commentary is bullish, but not overly bullish.  Yes, things are heading in the right direction, yet it’s not as if guns are a-blazing.  If you’re an investor that is considering entering into a position in a shipping company this should make your ears perk up.

Shipping has been a very difficult place to be in the last few years.  A few companies that were able to lock in long-term contracts at the height of the boom (2007) have fared alright.  The others have not.  Most shipping companies have seen their stock prices beaten down severely since the market crashed in late 08 and early 09.

What advice would I have for an investor looking to get into the shipping industry?  In my opinion, the bad news that exists throughout most of the shipping sector is well known.  It’s not as if analysts don’t know about what has been going on.  Its been 2 years now.  Therefore, I would assume that the negative news that is known has been fully priced into each stock’s price.  I might even go further to say that the market is overly bearish on the shipping sector.

If what I’ve stated in the above paragraph is true, then you have an advantageous situation.  Things are bad and may not become ‘good’ for a long time, but the market is forward looking.  If shipping trends change, then the trend changes and that means shipping stocks begin to look more attractive to current and new investors.

If shipping is an area that you’ve considered as part of your portfolio mix, I would certainly give it another look at this point in time.  Growing economies around the world will spur shipping demand, which is ultimately a good thing for shipping companies, no matter how dark the current picture appears to be.

TravelZoo – Investment Opportunities Under Your Nose

Posted on by Posted in Investing Leave a comment

As an investor you have limited time and resources to identify, research and (potentially) act on buying/selling a stock.  I’ve said many times that often some of the best investing ideas will come from the daily interactions you have.  This could mean through your daily web browsing habits or strolling through a grocery store.  Companies that make for good investments aren’t necessarily all hiding under rocks, some are sitting right under your nose.

TravelZoo (TZOO) is a travel site that I LOVE.  I receive their weekly top 20 travel deals and often look through the site to see what best deals are being offered for specific destinations.  It’s a travel deal accumulator site that’s best suited for travelers that are looking for the best deals online.  It also tailors itself to your geographic region.  Needless to say, I’m a big fan of the site and have actually booked a travel deal through a deal they posted.  It was all simple, straight-forward and totally legitimate.

How come I never asked myself, “I wonder if this company is public?”  Or, “I wonder if this site has a parent company that’s public?”  I’m not certain why, but I never thought of the site as an investment.  Stupid me.  The site, which I’ve been going to for over a year and half now, HAS BEEN ON FIRE!  Since this past Summer it has moved from the teens to over $100.

The bottom line is that you need to constantly think about what products and services you truly enjoy and who is the company behind that product or service.  It might not be as direct as this Travel Zoo example, but it could be!

It doesn’t take identifying 10 different variables when doing a stock-screen to come across a good company to buy.  Keep your eyes open and do not forget to think about potential investments when you’re out & about in the world around you.

The Assault on Saving

Posted on by Posted in Investing, Saving Leave a comment

You would think that the credit crisis/economic recession we’re digging ourselves out of would have put savers in a better light.  To some extent, maybe the general perception of the saver has changed…Yet, I still feel as if a general feeling of guilt is thrown upon those that habitually save.

It’s not hard to find some influential figure giving his or her platitudes towards the U.S. consumer.  Each month the mainstream media broadcasts the level and direction of the Consumer Confidence Index.  The index is built upon the assumption that increased consumer spending (higher consumption) corresponds to increased economic growth.  Therefore, if you are a saver, you’re perpetually in opposition to the improvement of the Consumer Confidence Index.  You’re a dark cloud on a sunny day.

Saving (and investing) should not be seen as the dark cloud on a consumption crazy sunny day.  Unless you’re putting your money in a jar in the ground, when you save via a bank account or invest your money through other means, it’s not sitting idle.  Your money is being put to work in a number of ways.  How is it possible for a business to take out a loan?  In the U.S. it’s called a fractional reserve banking system. The bank takes in X dollars and is able to lend a percentage of the funds to people, business and governments.

The economy is not a one-way street.  Yes, growing sales is a wonderful thing, but it’s not the entire equation.  For the economy to thrive their must be people willing and able to save/invest.  Without such capital reserves to draw from the concept of lending is impossible.  Lend?  Without the saver what shall we lend?

14 Energy Stock Picks to Power Your Portfolio

Posted on by Posted in Investing, Opinion Leave a comment

Energy is once again on the front burner. Crises in the Middle East and North Africa are roiling global oil markets, and disaster in Japan set off a chain of events that once again calls into question the safety of nuclear power, an important source of electricity. The most immediate impact on most Americans is pain at the pump, with gasoline prices now more than $4 a gallon in parts of the U.S. But what’s painful for the pocketbook may also resent opportunities for investors, who can find attractive stocks in almost every segment of the energy market…READ MORE.

My Take: Interest in energy stocks is on the rise as the result of increasing energy costs.  I’ve written about energy related investments on numerous occasions.  The article above does a good job of providing a primer on a number of energy related investments and mixes a few specific stock recommendation in.

If you’re mad about your energy bill and need some direction as to where to invest, start with the article above.

Apple & The iPhone (50%)

Posted on by Posted in News 1 Comment

Tag this one as interesting as a new report indicates that 50% of Apple’s revenue comes from its iPhone product. Not 5%, not 20%, but 50%. In just three months from December 2010 to March 2011, Apple has raked in a total of 24.6 billion dollars. 50% of that came from the iPhone…READ MORE.

My Take:  It’s a little shocking to hear that 50% of Apple’s revenue is from the iphone.  Only a few years ago the iphone wasn’t even around!  Yet, when you think about this news a little more, it makes sense.  The audience that the iphone reaches is beyond any other product Apple sells.  Yes, ipods were popular, but they’re a one time transaction.  With the iphone you buy it, Apple get royalties from the carriers, you buy additional components, and don’t forget the apps you’re also buying.  It’s all part of the revenue counted as iphone revenue.

The expansion of the iphone throughout additional carriers, like Verizon is a big deal.  Anytime such a revenue streaming product reaches a new and large market, the company is going to have the opportunity to capitalize on some untapped potential. As the iphone grows in international markets, I would expect the same type of increasing revenue growth.

With the iphone’s success also comes danger.  If the Droid phones are able to ramp up their customer adoption rates, they may begin to steal customers away from Apple.  Right now most people are in the adoption stage; they are buying their first smartphone.  Yet, what will happen down the road when the market is filled with smartphone users and they look to change/upgrade their smartphone?  Will they turn away from the iphone to some other company?  If so, this will be extremely painful for Apple.  That is yet to be seen, but it is something that could spoil the apple cart.