• Reader Q&A
    Posted by on June 1st, 2006 at 2:34 pm

    Dear Sir:
    I am a new investor and know squat about the market. I came across your site via Google and after reading through your site, I had a couple of questions. They are quite naïve I am sure. What would you recommend for a short term gain of at least 50%? Does it exist? Let’s say I have $5,000 to invest. Would you (suggest) any stocks or shares that would return double my money by the end of the year or sooner? Note that I encased “suggest”, as I know you are not here to recommend as you stated. I have called (2) brokers to date, and they really make me nervous with their tactics. Whatever info you can provide would be helpful. To be honest, I have about $20,000 I can invest, BUT that $20,000 NEEDS to be returned at least two fold under a year. I must be really making you laugh about now with my expected returns, but I have to ask. Thanks for your help sir.

    No, no…we would never laugh at you. But I have to be honest—you have to bring your expectations back down to earth! Holy Toledo! According to the best statistics, it’s reasonable to assume that the stock market goes up about 10% a year. It doubles, on average, every seven years. Sometimes better, sometimes worse.
    I would never, EVER say a stock could double by the end of the year. It’s ahistorical, and I would be highly suspicious of anyone who made that claim.
    To quote Gordon Gekko (pbuh): You’re walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place.
    Don’t be that fool!
    Best regards,
    Eddy

  • Balchem
    Posted by on June 1st, 2006 at 1:36 pm

    Here’s another unknown stock that’s made tons of money for investors, Balchem (BCP). This is from the company’s Web site:

    Balchem provides state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company consists primarily of three business segments: Encapsulated/Nutritional (Balchem Encapsulates) Products, ARC Specialty Products and BCP Ingredients, Inc. Balchem employs over 200 people in the United States who are engaged in many diverse activities, developing our company into chosen market leadership positions.
    Our Encapsulated/Nutritional segment (Balchem Encapsulates) utilizes proprietary microencapsulation technologies in an ever-expanding variety of applications – seeking out and answering key market needs. Through microencapsulation – essentially providing a protective coating designed to “control, protect and deliver” any of a wide range of ingredients – Balchem Encapsulates enables manufacturers to speed production, overcome challenges, enhance shelf life and improve the quality or effectiveness of their end-product. Our encapsulation segment continues to identify new and innovative applications for this delivery technology and includes our Chelated products (produced by our subsidiary, Chelated Minerals Corporaiton) which provide enhanced nutrient absorbtion for many animal species.
    Through ARC Specialty Products, Balchem provides packaged specialty chemicals for use in healthcare and other industries. ARC Specialty Products is the major supplier of packaged 100% Ethylene Oxide sterilant to contract sterilizers, medical device manufacturers, and others in the healthcare field. In addition to packaged 100% Ethylene Oxide, ARC Specialty Products supplies Ethylene Oxide blends, Propylene Oxide and Methyl Chloride in two-way, environmentally safe containers.
    BCP Ingredients, Inc., a wholly owned subsidiary of Balchem, manufactures and supplies choline chloride, an essential nutrient for animal health, predominantly to the poultry and swine industries. Choline, part of the vitamin B complex, plays a vital role in the metabolism of fat and the building and maintaining of cell structures. Choline deficiency can result in, among other symptoms, reduced growth and perosis in chicks, and fatty liver, kidney necrosis and general poor condition in baby pigs. In addition, certain derivatives of choline chloride are also manufactured and sold into industrial applications.
    Across all operations, our Company is committed to, and known for, customer service and satisfaction.

    Balchem isn’t even a member of the S&P 600 Small-Cap Index. The stock is currently followed by one analyst.
    Here’s a 20-year stock chart against the S&P 500:
    bcp.bmp

  • Joseph Weisenthal on Anya Kamenetz
    Posted by on June 1st, 2006 at 1:26 pm

    Bravo to Joseph Weisenthal, who skewers professional whiner and “Generation Debt” columnist Anya Kamenetz:

    At the risk of of sounding like Holden Caulfield, Kamenetz is the worst kind of phony. It’s common that in wealthy societies privileged persons seek to identify with and give voice to an oppressed class. This can be a good thing when such a class actually exists. But Kamenetz goes a step further. She brilliantly created a new oppressed class and made a lucrative career out of being its spokesperson. Surely it will be a new model for similarly ambitious people for years to come.

    Nah, she’ll just grow up to be Gretchen Morgenson (oooh burn).

  • The Bambi Blog
    Posted by on June 1st, 2006 at 1:20 pm

    For no reason in particular, I give you the Bambi Blog!
    Watch as Bambi Francisco talks with assorted tech nerds about their nerdy start-up nerd farms. Enjoy!

  • Zimbabwe Government Raids Stock Exchange
    Posted by on May 31st, 2006 at 11:35 pm

    This doesn’t look good.

    HARARE – A desperate Zimbabwe government, hard-pressed for cash, has raided the Zimbabwe Stock Exchange (ZSE) demanding Value Added Tax (VAT) on all brokerage incomes received on the bourse since 2004, a move that analysts say gives a graphic illustration of the Mugabe administration’s “policy deficiencies.”
    The intelligence-led swoop on the ZSE, accused by government of failing to remit VAT for two years, was expected to raise a Z$15 trillion windfall for government.

    I’m selling my Zimbabwean stocks immediately.

  • The Cara 100
    Posted by on May 31st, 2006 at 11:20 pm

    Blogger Bill Cara has unveiled his Cara 100. I’m happy to see that it features several stocks from our Buy List.

  • A Few Brief Comments
    Posted by on May 31st, 2006 at 4:38 pm

    From Ken Lay’s Web site:

    Dear Visitor:
    Now that my trial has concluded, I would like to offer a few brief comments.
    Certainly, we are surprised at the verdict against me. Perhaps it is more appropriate to say we are shocked, as this is not the outcome we expected.
    I firmly believe that I am innocent of the charges against me, as I have said from day one. I still firmly believe that to this day. I will continue to work diligently with my legal team to prove this.
    In spite of what has happened, I am still a very blessed man. I have a very warm, loving and Christian wife and family that supports me, as well as many, many loving and supportive friends. I’d like to thank all of the people who have shown their concern, support and kept our family in their prayers.
    Most of all, my family and I believe that God is in control and, indeed, He does work all things for good for those who love the Lord. And we love our Lord.
    Thank you.
    Kenneth L. Lay

    Did anyone see the word “sorry”? Me neither.

  • The Fed’s Minutes
    Posted by on May 31st, 2006 at 2:55 pm

    This is what everyone was waiting for, the minutes from the Fed meeting three weeks ago:

    Although the Committee discussed policy approaches ranging from leaving the stance of policy unchanged at this meeting to increasing the federal funds rate 50 basis points, all members believed that an additional 25 basis point firming of policy was appropriate today to keep inflation from rising and promote sustainable economic expansion. Recent price developments argued for another firming step at today’s meeting. Core inflation recently had been a bit higher than had been expected, and several members remarked that core inflation was now around the upper end of what they viewed as an acceptable range. Moreover, a number of factors were augmenting the upside risks to inflation: the surge in energy and commodity prices, some recent weakness in the foreign exchange value of the dollar, and the possibility that the apparent increase in inflation expectations could, if it persisted, impart momentum to inflation. In addition, the economy appeared to be operating at a relatively high level of resource utilization and had been growing quite strongly, and whether economic growth would moderate to a sustainable pace was not yet clear. At the same time, members also saw downside risks to economic activity. For example, the cumulative effect of past monetary policy actions and the recent rise in longer-term interest rates on housing activity and prices could turn out to be larger than expected. Still, it seemed most likely that, with modest further policy action, including a 25 basis point firming today, growth in activity would moderate gradually over coming quarters, pressures on resources would remain limited, and core inflation would stay close to levels experienced over the past year.

  • Tiffany’s Earnings
    Posted by on May 31st, 2006 at 12:59 pm

    audrey.jpg
    From TheStreet.com:

    Overseas Demand Adds Luster to Tiffany
    Tiffany’s first-quarter profit beat Wall Street’s expectation as strong sales in overseas markets overshadowed a soft performance at its U.S. stores.
    The jeweler earned $43.1 million, or 30 cents a share, in the quarter, compared with $40.1 million, or 27 cents a share, a year earlier. Analysts had forecast earnings of 28 cents a share for the latest quarter, according to Thomson First Call.

    It’s always worth tracking the earnings of a company like Tiffany’s. The reason is that the company’s business moves in two gears–very fast or nothing at all. That’s the life of being a high-end retailer.
    Even though the company had a good earnings report, the share are down over 20% since last November.

  • Overpriced Curio to go Public
    Posted by on May 31st, 2006 at 7:53 am

    segway.jpg
    At least at some point:

    Gauging Segway’s prospects in an IPO is difficult, since the company will not reveal its yearly revenue or whether it is profitable. Norrod will only say that “tens of thousands” of Segways have been sold around the world, and that the company’s revenue has been growing by at least 50% over each of the last few years.

    Just to be safe, I’m going to give it a price target of $200 a share. I think it’s a tipping point.

    The company’s critics believe Segway’s continued silence regarding its finances is an indication it is still not profitable, especially given the reported $100 million spent developing it.

    Sources close to “walking” indicate that it will continue to be private.