Economics 101

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

Friday, January 05, 2007

Sell JMBA!!! + Cramer's 3 growth stocks + a fashion pick from me

Well, I'm sorry for those of you who bought JMBA. At least, if you bought it at about $10-$11. There aren't any analyst reccommendations I can turn to, better yet, blame, but I do think that you will get your money's worth. This thing should at least go back to $11. But I wanted to inform all my viewers about the 3 top growth picks from Jim Cramer for 2007. Check them out the following sites:

http://www.madmoneyrecap.com/daily_recap_openingsegment_010407.htm
(only the 3rd and 2nd growth pick are on the first link)

http://www.madmoneyrecap.com/daily_recap_closingcomments_010407.htm
(the first growth pick for 07 is here)

Remember that these are according to Cramer, even though I agree with him all the way. Now I promised a fashion pick and I'm going to give it to you.This is a bit of a risky play and I'm going to reccomend it to you even though it was downgraded numerous times at the begininng of November. I'm reccomending True Religion Apparel (TRLG). These guys are the next big mover in the fashion & apparel industry. I think you buy them now, maybe hold onto them for 1-3 years, and you made a hefty profit. Check them out, and as Jim Cramer says, "Do yoyr homework!" You need to do your homework on these guys. These guys have a price-to-earnings ratio (P/E for all of you advanced players out there) of 15.80, which means that they are very cheap. And to double check that they are cheap, you check out their PEG, which is basically the same measurement (measurement of price), except it's telling you if you're getting your money's worth for a company's growth. Remember that if the P/E is over 20, you will get slaughtered in a time of a recession, if you have a P/E ratio of 30 you're making a risk if you buy the stock at any time, and if your over 40, you may even have a good stock, just know when to sell. Really if you know how/when to sell, I don't care if you buy a stock with a P/E of 75 (even though, you should be pretty cautious with a stock like that). These guys have a PEG of 0.55 which is perfect. If it is over 2.0, then you should be a bit worried. The PEG should be taken a bit more seriously, at least if you feel like bending the rules. If you want to buy a stock that has a PEG higher than 2, you shouldn't even look at that stock because their is a much better one to buy, especially if you're looking for a stock in a particular industry. I also think that the distance between the stock's current price and its 52-week high is enough for it to go up. I think that True Religion is the way to go. There is only one minor problem that you shouldn't think about too much, but think about it nonetheless. True Religion is being copied and could go out of style tomorrow, or realistically in a few months. I think that True Religion is on the verge of a complete breakaway and upward trend so just think about this a little bit. Thank you to all my loyal readers and I hope that you don't even need my luck and best wishes (even though I do offer them to you) to make money.

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