Economics 101

The best economic advice that you will ever receive - maybe.

Saturday, July 22, 2006

DELL looking good! Technology is being oversold!



On Friday (yesterday), Dell just got hammered 9.28% or $2.05 and is now on sale for $20.05. Qualcomm hit a new 52-week low of $34.11, but closed down $1.30 (3.63%), and is now at a limited time offer of $34.55. Hewlett-Packard Co. (HPQ) went down $1.28 (4.03%). Have you noticed that all of these stocks have one thing in common? It's technology! Although I gave you their quotes in my last blog, I'll give them to you again: Texas Instruments (TXN) $27.03 down $1.02 (3.64%), Ericsson (ERICY) went down 99 cents (3.10%) , Nokia went down 61 cents (3.08%), Advanced Micro Devices (AMD) went down a whopping 17.27% ($3.74), and the semiconductor future, SMH, went down 98 cents (3.26%). All of these companies are either tech companies or semiconductor companies. These two industries are being oversold, which is why I think it is time to buy. I think your two best bets are Advanced Micro Devices (AMD) and Dell (DELL). AMD can't afford to go much lower and Dell is a world class company being the largest computer manufacturer in the world.

Friday, July 21, 2006

What a crazy day!





Today has been crazy. Just yesterday the Dow was up over $212 ( the highest single day gain this year) off of Ben Bernanke's speech and today even though Ben Bernanke made a somewhat identical speech, the Dow plummetted $59.72. My stock, Apple, was considerably up the whole day. Until 11:00 it was fine, but then it started to go a bit rocky after news that Microsoft's MP3 player was going to take on Apple's iPod. It had started going down but made a quick rally and closed up 22 cents at $60.72. The funniest thing today would probably be looking at the Dow and then looking at the Dow Jones & Co. Inc. (symbol:DJ). The Dow (the market) went down $59.72 while DJ went up $1.37 which is 4.02% for the stock. Computer Based Systems were the best industry today, going up a mere 2.33%. You didn't want to own Metal Fabrications today, because they went down a horrible 4.05%. Boeing went down $1.61 or exactly 2% nd currently has a market value of $79.08. Palm went down 38 cents (2.55%) and has a market value of $14.54. Ericsson (ERICY) went down 99 cents (3.10%) off of poor earnings. Nokia went down 61 cents (3.08%). Advanced Micro Devices (AMD) went down a whopping 17.27% (3.74) after it was said that AMD had bought ATI (ATYT) for $5.5 billion. Amazon.com (AMZN) went down $1.02 (2.98%). The semiconductor future, SMH, went down 98 cents (3.26%).
TD Ameritrade (AMTD) went up 2.34% (37 cents). Etrade (ET) down 45 cents (2.01%). Microsoft up a good 4.38% ($1). Texas Instruments (TXN) down $1.02 (3.64%). Cisco down 42 cents (2.35%). Sears (SHLD) down $3.30 (2.36%). The largest gainer today was a particularly interesting stock I've been following for a while now, Boston Cummunications Group Inc. Today it went up 79.69% ($1.53) and is now $3.45.

Tuesday, July 18, 2006

Big Companies to watch tommorow!






There are many key companies to watch tommorow. They are: eBay, Motorola, and Intel. Lately these three stocks haven't done well. Thisi is a chance for them to prove to the public that it is the time to buy or at the least, just pay attention to the stock. My stock, Apple Computer, is up 39 cents today at $52.76. Today was a very bad day for Yahoo!, who went down 13.68% in after hours trading. Of course, I've seen worse. I've seen Google down $50 in after hours trading. The reason Yahoo! is down so much is because of the following:

[$$] Yahoo Net Plummets Almost 80%; Ad-System Upgrade Is Delayed.

Electronic Arts down 16 cents today at $44.99. Boeing up $1.04 at $79.99. California Pizza Kitchen down 49 cents today at $26.31. Chevron up 67 cents at $65.54. Palm up 24 cebts today at $14.74. The Dow is up $51.87. The Nasdaq is up $5.50. And the S&P 500 is up $2.37.

Monday, July 17, 2006

Wall Street Is A Wreck! Who Am I Kidding, The World Is A Wreck!






Wall Street is confused while Ben Bernanke is nowhere to be seen. Where is the guy, when you need him the most. Gold is down, the semiconductors are down, the MUTUAL FUNDS and BONDS are down, the 10-year bond is barely up, everything besides OIL id down. Let's not forget that gold and the 10-year bond are two very good indicators of Wall Street. And when the bonds and mutual funds are down in a time of crisis like this, you the world is screwed (plus Ben Bernanke). I think you have to have a defensive portfolio. We had to own a defensive portfolio before the interest rate meeting (in which interest rates rose .25% and went to 5.25%), why is the G8 summit any different. The funny thing is the timing. Right when the G8 meeting is going to happen they decide to start a war. I think that oil will continue to do good, which is why I advise you to buy Chevron but only as a short-term investment. I also think that you need to own Electronic Arts. These guys make sports video games. With the release of FIFA 06, Electronic Arts is going to do great. I think you hold until the holidays, and when all the new video game systems come out, that's your triger. But I advise you to buy Electronic Arts somewhere between $40-$42. I also think that Apple Computer is a definite buy. You buy it now and sell it at $90-$100. This may take a few months, or a few years.

Sunday, July 16, 2006

S&P 500 Index

NBA Draft






Here are the picks:


1
Tor
Andrea Bargnani (F)
2
Chi
LaMarcus Aldridge (C)
3
Cha
Adam Morrison (F)
4
Por
Tyrus Thomas (F)
5
Atl
Shelden Williams (F)
6
Min
Brandon Roy (G)
7
Bos
Randy Foye (G)
8
Hou
Rudy Gay (F)
9
GS
Patrick O'Bryant (C)
10
Sea
Saer Sene (C)
11
Orl
J.J. Redick (G)
12
NOK
Hilton Armstrong (C)
13
Phi
Thabo Sefolosha (F)
14
Uta
Ronnie Brewer (G)
15
NOK
Cedric Simmons (F)
16
Chi
Rodney Carney (F)
17
Ind
Shawne Williams (F)
18
Was
Oleksiy Pecherov (F)
19
Sac
Quincy Douby (G)
20
NY
Renaldo Balkman (F)
21
Pho
Rajon Rondo (G)
22
NJ
Marcus Williams (G)
23
NJ
Josh Boone (C)
24
Mem
Kyle Lowry (G)
25
Cle
Shannon Brown (G)
26
LAL
Jordan Farmar (G)
27
Pho
Sergio Rodriguez (G)
28
Dal
Maurice Ager (G)
29
NY
Mardy Collins (G)
30
Por
Joel Freeland (PF)
Complete round-by-round draft picks
NBA Draft
Round 1
Round 2
Jun 28
All picks
Pk
Tm
Player
1
Por
James White (F)
2
Hou
Steve Novak (F)
3
Atl
Solomon Jones (F)
4
LAC
Paul Davis (C)
5
Tor
P.J. Tucker (F)
6
Min
Craig Smith (F)
7
Min
Bobby Jones (F)
8
GS
Kosta Perovic (C)
9
Mil
David Noel (F)
10
Sea
Denham Brown (F)
11
Orl
James Augustine (F)
12
Cle
Daniel Gibson (G)
13
NOK
Marcus Vinicius Vieria De Souza (F)
14
Orl
Lior Eliyahu (F)
15
Ind
Alexander Johnson (F)
16
Uta
Dee Brown (G)
17
Uta
Paul Millsap (F)
18
Was
Vladimir Veremeenko (F)
19
Den
Leon Powe (F)
20
Orl
Ryan Hollins (C)
21
LAL
Cheick Samb (C)
22
LAC
Guillermo Diaz (G)
23
Sea
Yotam Halperin (G)
24
NJ
Hassan Adams (F)
25
Cle
Ejike Ugboaja (F)
26
Tor
Edin Bavcic (F)
27
Min
Loukas Mavrokefalidis (C)
28
Dal
J.R. Pinnock (G)
29
SA
Damir Markota (F)
30
Det
Will Blalock (G)
Complete round-by-round draft picks

The Summer Portfolio






I think you need to buy the following stocks:


  • Apple Computer (AAPL)
  • Electronic Arts (ERTS)
  • California Pizza Kitchen (CPKI)
  • Chevron Corp. (CVX)
  • Palm (PALM)