Economics 101

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

Thursday, August 10, 2006

I think I see some bargains!

I've been looking at the stock market and I found good bargains on good stocks. Here is my list:

  • Hansen Natural Corp. (HANS)
  • Palm, Inc. (PALM)
  • Openwave Systems Inc. (OPWV)
  • Peet's Coffee & Tea Inc. (PEET)
  • QUALCOMM Inc. (QCOM)

  • Starbucks Corp. (SBUX)
  • Google Inc. (GOOG)

I think that HANS is a potential takeover target and that it is a great bargain as well. HANS is a stock that came into the market as a $1.19 IPO. The stock reached $200 last year and had a 2 for 1 split. This year it easily went past $200 and had a 4 for 1 split. So after the 4 for 1 split it became $50. Now it is at $28.05. This couldn't have happenned overnight, could it? Unfortunately, it did happen overnight. A few days ago, HANS had earnings. It dropped 10.4% and even more in after hours. This same kind of disease has recently struck Starbuck and Whole Foods. That is why I think HANS is a great bargain. HANS was taken over by two young men two years ago. They created a drink and so far it has been a hit. I'm sure that these two young men will think of another innovative idea soon, because frantically I wouldn't be able stand watching my company's stock drop so badly. Let's get into Starbucks now. Starbucks was hit hard by shareholders. After every stock hits a 52-week high you know that it will come down. But know one thought that they would see Starbucks at less than $30 so fast. I think it's because all those shareholders who had bought Starbucks at $28 and $29 decided to throw a sell-off party. They were having a blast, while Howard Shlutz was sitting in front of his computer, wondering what he missed. For those of you who don't know, Howard Shlutz is the CEO of Starbucks. Recently, he stated that 20% of Starbucks' profit will come from China by 2010. I think that if you hold Starbucks long enough you will make a great gain. I mean as the years draw closer to 2010, Starbucks will continue to grow more and more and more. And I think that in 2 years Starbucks will have at least reached $45-$50. By 2010, Starbucks should at leat have reached $80. Let's look at Palm. Palm is one of the very innovative companies in an industry that is growing fast. At the moment, a bit too fast for Palm to handle. I think that with the release of cell phones like the Motorola RAZR, SLVR, Sidekick 3, and Moto Q that the Palm Treo 700 is just not enough to keep up. I think Palm is just having a temporary growth-slowdown. That's the bottom-line. I think that by November Palm should be back on top ready to rock. Let's talk about the stock that most investors don't know about, Openwave Systems. Openwave makes games for cell phones. This is an international company that should do well especially with the new cell phones being made. More and more kids are buying cell phones each day. That means more and more of them are playing games. Openwave is a stock that has a 52 week high of $23.19 and is currently at $7.10. I think that Openwave is a must buy. Think about it, you could make 3 times more money on this investment. This is one of the most creative companies in the market at one of the most conveniant prices. Openwave is looking better by the day. That means more investors are going to buy it. I think that you need to stay ahead of all the funds and don't let them be ahead of you. Aah, Peet's Coffee. They make such a good cappucino. Peet's is doing very good compared to it's competitors and when the Associated Press sees Starbucks this low they make a big deal out of it. they make such a big deal that the investors of PEET hear it. Then the stock goes up. Peet's also shows growth. This is a company that is growing by the day. This is easy money. Qualcomm. What a good, old, wise company. This company has a very well-experienced management annd I think that when you could buy Qualcomm less than a dollar off its 52 week low you need to buy it. Qualcomm is a very good compay that should go up even higher. It has beaten earnings 7 consecutive times. And I think that trend will continue. Google is probably one of the most successful stories of all time. With an IPO of $90 a few years ago., nobody really cared. Everybody thought that Yahoo! and AOL were the search engine dominators. They never payed attention to Google. Well, Google reached $475 not too long ago. Google payed $900 million to News Corp. (symbol: NWS) to become the search engine provider for Myspace.com. Google has also lauched things like Google Earth, G-mail, G-talk, and the Google video store. Google Earth gives you a satellite image of anywhere in the world, even your own house. This has been very popular among TV stations and very conveniant for reporting news. G-mail is Google's own e-mail service. G-talk is Google's own instant messeging service. The Google video store is a place where people can upload their videos on to the website and can be viewed by the public. The NBA has started uploading games to video store. Not all the videos are free, but it is still a very nice service.

Overall I think that these stocks could make you some mad money!

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