iBooyah.com Investment Matters

EBAY, As the only brand name auction site on the internet, Ebay holds a consumer monopoly in the auction business.  Moreover, the stock is currently trading at its 3 month support level and appears to be moving upward with the recent upward movement of the stock market.  While the company’s P/E ratio is fairly high at 35, it is relatively inexpensive compared to its main competitors, Amazon.com (AMZN), which is trading with a P/E of 43.  The current Ebay share has already priced in the lower guidance the company announced last quarter.

Posted by ibooyah at 12:23 PM | Permalink | Comments (1)

It is finally Friday!  No serious topic today, here are some thoughts on leadership.  Have a good weekend!

A successful leader must excel in a social context as leadership involves building relationship as well as being able to craft a vision. These characteristics are equally important. Leadership is not a vacuum. It is give and take relationship. For example, a leader needs to be able to take orders as well as give orders. To inspire and motivate followers, a leader must be respected socially.

Posted by ibooyah at 03:15 PM | Permalink | Comments (0)

The HP (HPQ) spy scandal keeps getting more interesting by the day.  In fact, it is so interesting that some investors have forgotten about the great quarter the company recently delivered.  The stock price is taking a big hit today, down approximately 5%.  It is unfortunate, but the company’s financial success is being overshadowed by this scandal. This is an excellent opportunity to consider buying the stock at a reduced price. While the spy scandal is bad PR, the company’s fundamental remains intact and should have no bearing on the business. Even if the CEO is found to have played some role in the scandal, he’ll likely receive a slap on the risk, if that.  At $35, HPQ is still expensive compared to its competitors.  However, if the stock keeps falls a few more points, to let say $32.50, it would be the time to buy.  Once the smoke clears, the company will still be doing well, which should then push the stock price to the upper 30’s or possibly low 40’s.

Posted by ibooyah at 11:38 AM | Permalink | Comments (0)

The coup in Thailand is a perfect example of how connected the world has become.  Once the news hit the street, the stock market sold off and eventually recovered towards the end of the day.  Personally, I was rather surprise the U.S. stock market recovered most of its losses.  Perhaps the lack of resistance to the coup is a clue that the situation will peacefully resolve itself.

Posted by ibooyah at 03:40 PM | Permalink | Comments (1)

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The recent concern over pesticide and human generated hormones in our food has sparked great interest in specialized grocery stores such as Whole Foods (WFMI).  Whole Foods of course specialize in selling organically grown food.  In the last five years, Whole Foods have enjoyed a nice growth.  In 2002, WFMI was trading at around $15 per share.  The stock split in 2006 and is now trading in the mid $50 range. All in all, this stock has performed well.  

Posted by ibooyah at 10:40 AM | Permalink | Comments (0)

The flavor for September appears to be technology and retail.  While not all of these stocks are trading at their 52 weeks high, we have seen significant movements in September.  Case in point, Advance Micro Devices (AMD) is currently trading above $27. Just a few weeks ago, this stock was in the low 20s.  Oracle (ORCL), which has been in the low teen forever, is now trading above $16. Home Depot (HD) was hammered last month and is now battling back, HD closed above $37 today (HD was trading at $33 a few weeks back). Retailers such as Best Buy (BBY) and Circuit City (CC) have also been rallying.

Posted by ibooyah at 09:26 PM | Permalink | Comments (0)

While visiting friends and family in the Central Valley over the Labor Day weekend, I visited several of the newer home communities to gauge the housing market in the region.  I was please to see new home prices has dropped 20 percent compared to 8 months ago.  For example, the same home that was once selling for 400K is now having difficulty selling at 320K.

Posted by ibooyah at 02:47 PM | Permalink | Comments (0)

There are two types of corporate phoniness that exist in the business world.  The first is the phoniness we often find in our daily work routines.  These include the fake hand-shakes, the fake smile you get from colleagues and the usual corporate BS that Human Resource (HR) puts out for everyone to follow.  The following are just a few examples; chances are you have come across them at some point:

Posted by ibooyah at 09:57 AM | Permalink | Comments (0)

Valero (VLO) has been taking a hit lately as the price of oil has been dropping.  Yesterday, Citigroup (CIT) downgraded the stock to “hold” citing concerns over margins as the summer driving season comes to a close.  The stock shed almost 5% and closed slightly below $53 per share.  The new price target by Citigroup is now $65.

Posted by ibooyah at 10:40 AM | Permalink | Comments (0)

The recent news of declining new home sales is actually good for the economy. It is about time people come to their senses. The price increases is unsustainable and has put home ownership out of reach for ordinary people. In the past few years, the homebuilders were basically taking advantages of the demand by jacking up their prices monthly. This time last year, I remember helping my parents fill out a long application for a KB home (KBH) that I felt was overpriced.  By the way, the application was just for a lottery.   We decided all the frenzy was too much decided to wait.  Glad we waited as the same house today is now 20K less.  I still think it is over priced, we’ll continue to wait longer. 

Posted by ibooyah at 03:48 PM | Permalink | Comments (0)

What separates an investor from the fools is our knowledge.  Knowledge keeps us safe from our own foolish impulses.  The impulse to sell when we believe the sky is falling or buy when we believed we are about to miss the boat is inherent in all of us.  As a result, we end up buying high and selling low.  We all make this mistake from time to time.  The only thing that can keep us from this mistake is to understand what you are buying.

Posted by ibooyah at 10:32 AM | Permalink | Comments (0)

The internet is fast becoming a medium of choice for Marketers to effectively target their audiences.  The look and feel of a website must be appealing and customized to fit the local culture if it is to be effective.  In today’s increasingly digital world, an effective web site must go beyond the site quality, navigation and the perception by consumer. This article examines the role in which culture plays in effective site design.

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