September, 2012

...'And so if you have a business, you built it.'

~Mitt Romney

The Professional Opinion

None this month - taking a subscription vacation.

Buy Recommendations

From the Compost Bin:  According to Suze, another Doomsday Prophet,  buy no more than 15% gold, buy TIPS, ETFs and Dividend paying stocks.

Hey Suze!  How's those TIPS and Gold investments working out for you???

 Gopher Snake
A Gopher snake saved from being road kill.

Personal Portfolio
Not a bad return for the year so far.  Took a hit on KCG though, which supports the saying that just because a stock took a hit and  went really low, that doesn't mean it can't go a lot lower.
The Telepropter
They say a picture is worth a thousand words.

I was sitting on a plane the other day and could not help but notice a man in front of me with a laptop out who was laying out a plan for
Cisco Systems in terms of splitting up the sales force in to specialty areas  of concentration and at the same time, putting special emphasis on 'the cloud'.

I penciled a few notes  and did a little research on the company that many, myself  included, considered a losing company.  I ended up buying some before their  earnings announcement, which worked out rather well. I ended up selling after the pop, but I think the stock might be worth a second look.


Electronic Arts on the Sixth Month  (Never Again!)


I swear, I'm once and for all done with Electronic  Arts.  I ended up selling the lot when rumors came out that the company was putting itself up for sale,
providing a temporary boost to the stock price.  


Globe Specialty Metals is a company I learned about from Cramer, on CNBC.  The company makes silicon and other silicon alloys and........
They own the whole supply chain.  The own the quartz mine and they also own the Kentucky coal mine which produces a special grade of coal found
in only two places in the world - Kentucky and South America..  They also own the manufacturing facility.

If you think the Tech firms which high quality silicon are going to experience an uptick in manufacturing,  this is a company worth considering.
They had a great quarter and upped their dividend by 25%.  I ended up locking in some nice gains by selling half.


The half that I sold got reinvested into Jefferies, an investment banking firm that I have traded in and out of several times,  and I think now is a good time to get back in.

The market has been riding higher on hopes and dreams of more stimulus, which means the more printing of money.  Not a very good way to invest, at least not for the long term.  However, there are two Fed meetings in the upcoming weeks and who knows what rumors will be coming out of Europe .  If however  the rumors are all positive and encouraging, banking stocks should tick up nicely.  

In the interim, I think Jefferies is a decent company worth owning if you need exposure to the sector.  If  further exposure is unnecessary and you feel like doing some speculating,  I also think Jefferies is a company for doing just that.

Bottom Fishing


Staples stock got hammered over a lousy quarter, and a number of institutions agree that if there is one bricks and mortar store that stands a chance against everything Internet,  it is Staples.  Someone still needs to sell stationary and office products at the local level, provide copier services and printer ink.

Assuming Staples continues paying its dividend, the 4% yield at these prices, is attractive.  

I bought some.


What we have here is CNBC's
 prophet, seer, revelator - and major PITA.    Detailed Opinion Here

Financial Analyst - NOT

Soothsayer - NOT

Bearer of Practical Financial Advice - Occasional

Man's Worst Nightmare - Maybe......

Having to listen to annuity pitches interspersed with vitamin infomercials  could be worse.
Let's  keep track of just  how well this PITA's  'predictions' pan out for the rest of the year.

2012 Predicted Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Gold $2,000.00 1736.7 1716.28 1671.9 1664.2 1616.9 1604.2 1613.8 1683.4
Recession  60% Chance Nope! Nope! Nope! Nope! Nope! Nope! Nope! Nope!
TIPS Current 5yr Yield Home Run - Maybe 0.95% 0.90% -.126% .125% -1.03% -1.00% -1.22 -1.286

Lesser Goldfinch

Lesser Goldfinches at the thistle feeder.