September 2012

Stock picks for next week

Stocks that hit their 52-week highs.

I scoured the web for stock news and also TV channels like Bloomberg and CNBC before composing this post for your benefit. Traders looking to make a quick buck might make use of the strategy to buy a stock that hit its 52-week high and profit from the trading session the following week.

The point is that when you buy a 52-week high stock, you are buying a winner as recognized by the market. A lot of the work on fundamental analysis is done this way and remember that there is no such rule as a stock not rising after hitting its 52-week high. But investors should look at other aspects of the stock before deciding to buy.

Winklevoss Capital

Its first investment is called SumZero.

The Winklevoss twins are back and are making good use of the money they got after suing Mark Zuckerberg on the grounds of intellectual property. The Winklevoss twins should be happy with the $65 million they were paid because it was a tough case to prove as it did not have a formal contract.

There was a lot of evidence that showed that Zuckerberg stalled the Harvard Connection to make time for his glamorous Facebook to take shape. But the point is that the Facebook CEO has done an amazing amount of work on developing the site into a global social network with over 500 million viewers. The court made the right decision and I sometimes feel like the $65 million awarded was too rich.

One57 – The global billionaire building

A billionaire haven in Manhattan. Nothing surprising.

When looking out of the 85th floor of this Midtown Manhattan luxury residence, this is the view of Central Park that you can expect to get. However, you would need about $45 million to $50 million to buy one of these apartments. Moreover, a Forbes billionaire splurged $90 million on a duplex.

The billionaires' haven has not only attracted American billionaires but also buyers from around the globe with a couple of them from China and one each from Britain, Nigeria and Canada. One57 is a $1.5 billion development and there are a lot of wealthy people that are more than willing to buy property in the residential tower.

Warren Buffett quotes to remember

Words of wisdom

I really think that this stock fest blog should not continue to run without a special mention of the Oracle of Omaha and some of his memorable quotes.

“Rule number one: Never lose money. Rule number two: Never forget rule number one.”

I guess this is the ultimate value investor mentality. It really is a tricky quote because investors and especially those like Buffett are prone to losing money all the time. But what he really means is to buy the company stock at the right price and at its correct value.

“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”

This quote is not only stressing the value of patience, but also the strong knowledge that Buffett has built to be able to time the market.

“Never invest in a business you can’t understand.”

As an investor, it is vital to have good judgment. The best way to develop this and make consistently good investment decisions is to understand the business that you're investing in really well.

Beware of penny auction sites

Penny auctions are addicting and you may spend more money than you intend to.

Everyone is now hearing about penny auction sites, and how great they are. Well, the truth is that these sites can be great, but they can also be very addicting. There are people that are spending all of their time and money on these sites to try to purchase items for really low prices.

I have heard of these sites and written many articles about them, but I personally have never used them. The reason for this is because of the information I have found out about these sites.

The national debt is now above $16 trillion

How did it get there?

Analyzing the national debt and how it ballooned to over $16 trillion is going to be done a lot by political analysts and economists. There was a very big rise in the national debt in the 2000s that coincided with the wars and the much-criticized Bush presidency.

The Obama presidency has had to inherit a lot of this debt and be able to pay it off. Is it really fair to blame George W. Bush's presidency on the current debt problems? Let's take a look at the facts. The eight years of the Bush presidency saw the U.S. debt go up by $4.899 trillion to $10.626 trillion. Now the national debt has gone past $16 trillion as Obama approaches the end of his first term in office.

Is credit card debt burying you?

Try making daily payments to pay off debt.

Credit card debt is an aspect many people have had to deal with in the recent economic downturn. However, people still have to pay this credit card debt off and that can be a major challenge when people see the payment amount due to be paid. Here is why daily payments, in small amounts, can help to pay off this debt in a timely manner to guarantee the debt does not impact people over an extended period of time. 

The first thing people need to realize is the credit card companies bill interest based on the daily balance. For example, if a card has a balance of one hundred dollars the first day it will be billed interest at that amount. However, the next day the amount will be the original one hundred plus the interest added on.

Getting the national debt under control

There was a national debt clock at the RNC.

The debt was a big topic in the recently concluded RNC and it should continue to be so in the months to come. And this is rightfully so because the American people need to understand how important this is going to be. Mitt Romney did promise to move the country in the direction of a balanced budget in his RNC speech, which I was very impressed with.

There is now talk of another stimulus. Mitt Romney has promised not to raise taxes on the middle class, but I really think that higher taxes on the country's highest income earners is the best way to go about paying the debt off. Debt will always be an impediment to growth and the economic recovery taking place right now and it must be dealt with. This debt clock is a reminder by the Republicans of how much Obama has spent, but is it not true that Paul Ryan backed policies under President Bush that saw the deficit balloon by higher percentages.