iBooyah.com Investment Matters

3-30-07:  The latest news out of Dell is there are accounting issues. With this news, we are extremely concern about the company’s future.  We once believed Dell was a value stock and worthy of consideration.  Given the new circumstances, we are looking to sell this stock. This so call “misconduct” is probably worse than what is being reported.  We have seen these type of issues before with other companies, it always end up badly.  Here is what will likely happen:  

Posted by ibooyah at 12:07 AM | Permalink | Comments (0)

3-29-07: Aruba Networks (ARUN):  The recent IPO of ARUN sparked our attention since it has been awhile since we have seen a decent tech IPO.  This company provides the software technology that allows employees within a corporate environment to connect wirelessly and securely. In its debut last week, the stock climbed 20% over its IPO price. Trading now at $14.00 per share, we believed this company has what it takes to become a major player in the enterprise wireless software business.

Posted by ibooyah at 01:51 PM | Permalink | Comments (0)

Circuit City Stores Inc (CC):  There was time when Circuit City was the store for consumer electronics. It used to be the place to visit if you happen to be in the market for electronic goods.  Today, the company is struggling to remain competitive. The increased competitions and changing consumer buying pattern have resulted in a dim outlook.  Is this company viable? Trading below $20 per share, is this a good buy?

Posted by ibooyah at 01:38 PM | Permalink | Comments (0)

The homebuilders and the overall mortgage industry is about to go through another round of pain. The February new home sale basically validates the notion the housing market growth is over and bottom has not been reached.  To those of us who follows the real estate market, this is hardly news.  The decline which started in late 2005 continues to show signs of further correction.

Posted by ibooyah at 04:09 PM | Permalink | Comments (0)

Vonage (VG):    There has been a lot of interest in Vonage Group (VG) in recent days.  Last Friday (3/23/07) the stock tumbled 20 percent in the wake of negative news concerning their patent lawsuit with Verizon.  It appears VG is losing the battle and the future of this company is even more questionable.  As of this morning, the stock appears to be rebounding, trading up almost 18 percent at around $3.50 per share.  The market might have over-reacted last week, but it was not without justification.  This company has been a disaster since they first went public. Is this a buying opportunity?

Posted by ibooyah at 10:25 AM | Permalink | Comments (0)

Jamba Inc. (JMBA):   The first time we came cross JMBA, we were struck with the company’s ability to sell grass juice for $5.00 a cup (of course, I'm joking a bit here).  As far as we can tell, no other company that has been able to successfully market such product this well.  Of course, JMBA is not only about grass juice, the company actually sells great smoothies. In many ways, JMBA is very similar to Starbucks. Before Starbucks coffee came along, spending more that 50 cents for coffee was unusual.  Similarly, spending more than a buck fifty for a cup of smoothie would be unheard of.  The popularity of JMBA has been growing in the West Coast. We believed it will continue to grow across the country given ample time.

Posted by ibooyah at 09:09 PM | Permalink | Comments (1)

Oracle (ORCL): As previously noted, we remain bullish on Oracle. In our view, Larry Ellison is determined to make Oracle the largest Software Company through acquisition.  While we can no longer keep up with the number of acquisitions Oracle has made in the last 5 years, one thing is certain; the company is once again interesting from investment perspective. 

Posted by ibooyah at 08:28 PM | Permalink | Comments (0)

3-21-07: The Apple (AAPL) iPhone threat appears to be forcing the hands of Motorola.  In the race to dominate the hand held market, Motorola is rumored to be interested in acquiring Palm Inc.  If the deal does happen, the hand held market would change dramatically. Motorola will instantly be a major player within the hand held device market.  Recent trend suggest the market is headed towards a device that can perform multiple functions like the Palm Treo.  In today’s market, a phone is no longer just a phone; it needs to be able to play MP3, surf the web and be a mini computer (at the very least!). Let’s look at the scenario more closely.

Posted by ibooyah at 05:03 PM | Permalink | Comments (1)

This over the counter penny stock has been receiving a lot of interest in the past few days.  Unfortunately, there is not much information about the company aside from the few press releases. CYTV.OB skyrocketed with recent news that they have signed an agreement with a major Media company is China to become the Youtube.com of China.

whoa! 0.80 (47.90%) as of today (3/21/07).

Posted by ibooyah at 10:08 AM | Permalink | Comments (1)

Century Casinos (CNTY) is one wild stock.  After the company reported a 64% profit compared to prior year, it was not enough to impress Wall St.  As a result, Brean Murray downgraded the stock today from a buy to hold.  This sent CNTY down almost 9%.  CNTY closed today at $8.67, very close to its 52 weeks low.  The fundamental reason this stock dropped despite posting a decent profit is because of its high expectation. If you compare this stock valuation with its peers, its P/E ratio is much higher. The less than optimistic future outlook basically caused investors to sell; perhaps the expectation had been too high.

Posted by ibooyah at 08:42 PM | Permalink | Comments (1)

3-18-07: The recent market slump has created buying opportunities for many well managed companies.  One of these companies is Johnson & Johnson (JNJ).  JNJ has been a great performer, beating the S&P 500 consistently in the past 30 years.  We believed the current market situation has made JNJ as buying opportunity.  Realizing past performances does not guarantee future success, trading at around $60 per share, we believed this a great entry point for interested investors.

Posted by ibooyah at 10:48 AM | Permalink | Comments (1)

3-15-07: Tivo has achieved a status most companies could only dream about.  The company’s name has become a verb.  Similar to Google is to search or Xerox to copying; Tivo is synonymous with Television recording.  This first mover advantage however has not been as lucrative for Tivo.   Despite the impressive subscription growth rate in recent years, profitability has been elusive for this company.  Each year it is usually close, but no cigar.  Trading near its 52 week low ($5.88), the question here is whether TIVO is a good investment for the long term.

Posted by ibooyah at 07:30 PM | Permalink | Comments (0)

As some of our readers have pointed out, there are many websites that recommend when to buy stocks, but very few provide any insight into when to sell.  We cannot agree more, knowing when to sell is more important in some cases.  After all, we don’t actually make any money until we sell our positions.  The belief that everything will work out for the best if one holds a given stock long enough will not fly. We believed a better strategy for superior return in today’s market is buying, monitoring and adjusting when appropriate.  Here are some of our strategies in respect to when to sell:

Posted by ibooyah at 06:07 PM | Permalink | Comments (1)

Posted by ibooyah at 12:11 AM | Permalink | Comments (1)

In our effort to provide readers with relevant articles, we would like to solicit your recommendation on which company you are interested in.  Simply provide us the company name or the stock symbol and a short reason for your interest.  We will do our very best to research the company and provide our evaluation and opinions. To suggest a company, simply click on the "comments" link below.

Posted by ibooyah at 12:58 AM | Permalink | Comments (53)

03-08-07: The market has finally found some footing after a week of sell-off.  Rational thinking is finally beginning to overcome irrational behavior.  Looking at the macroeconomic view, the economy shows no sign it is headed towards a recession. In fact, Allan Greenspan’s recent comment that the economy faces about 33% chances of recession was taken out of context.  The China sell-off was probably a needed correction.  In some respect, the recent sell-off is turning out to be a blessing in disguise as we were able to acquire additional positions of solid companies at a discount.  Although the market has been up in recent days, there still many bargains out there.  Here are three stocks we are looking to buy.

Posted by ibooyah at 09:19 PM | Permalink | Comments (0)

03/07/07:  The latest concern on Wall St. relates to the housing sector, specifically the subprime lenders. From 2000-2005, the real estate market was hot.  Everyone who owned real estate saw the value of their homes appreciate at an unprecedented level.  Long term interest rate was at is lowest since the 1960s which made it possible for more homebuyers to borrow even if their credit is not as strong. As a result, this drove up home prices faster than most local economy can support.  In order to remain competitive, lender had to lower their qualifications to attract customers.  Has this lenient practices finally caught up to the industry?

Posted by ibooyah at 03:39 PM | Permalink | Comments (0)

The market appears to be rebounding this morning as overseas markets closed up for the first time since the sell-off last Tuesday.  While this market might not be done selling, we are dipping our toes back into the market today. We have added Starbucks (SBUX), Halliburton (HAL) and Microsoft (MSFT) to our positions.  These stocks appear to have stabilized and trading at its support level.

Posted by ibooyah at 07:39 AM | Permalink | Comments (1)

The stock market resembles Las Vegas in many respects. Despite our fundamental and technical analysis, picking a winning stock is sometime a matter of luck and timing.  Similar to gambling, one can be on a winning streak and then all of the sudden, luck will turn for the worse. After last week’s market decline, we could use a few days in Las Vegas.  At least we would have fun losing our money.

Just like other sectors, the travel and leisure stocks are taking it on the chin for fear the economy might be headed into a recession.  Let’s take a closer look at MGM Mirage (MGM).

Posted by ibooyah at 12:03 AM | Permalink | Comments (0)

03-02-07:  Have you checked your brokerage account lately?  How about your 401K account? If you are like us, the damage is probably high. This is the worse week for the market in 4 years. Unfortunately, the selling is not done.  Despite the strong fundamentals and reassurance from the government, this market will likely continue to sell-off next week. The best thing to do for now is build up a large cash reserve. There will be a time to buy again, for now it is a waiting game.

Meanwhile, there are many bargains out there.  We are keeping our eyes on the following stocks:

Posted by ibooyah at 04:05 PM | Permalink | Comments (0)

Posted by ibooyah at 12:26 AM | Permalink | Comments (0)

The concern over worldwide recession will continue to linger for some time.  It will take awhile for investors to put Tuesday’s madness behind us. Expect Wall Street to be studying every economic data with a Hubble size telescope.  Any sign of weakness could trigger another major sell-off.  Make sure you understand the key economic data. If you are unfamiliar with these key economic data and how they relate to the economy, see “key economic data for dummies”.  Although stocks may appear cheap, be careful on your choices if you decide to go bargain hunting. Choose wisely. Here are some stocks we would consider buying:

Posted by ibooyah at 12:25 AM | Permalink | Comments (1)