Sunday, August 7, 2011

Get ready to make money when fear grips the market

Banking stocks are taking a hit, especially Bank of America!  We don't know what's going to happen there and we all hope BoA survives this mess, especially since BoA partly saved the world from the financial crisis by taking in Countrywide.  Trust me, if you knew the back story, you'd appreciate the sacrifice.

But there are quite a few jewels out there that's performing.  They have paid off their govt bailout debts, decent earnings, and will likely out perform in the long term (3-5 years).  Banks like JP Morgan.

While no doubt the banking sector will take a hit Monday morning, this is when smart investors actually bring capital into the market and buy low...then sell high.  Funny concept, right?

I'm buying JP Morgan on Monday's session and it's running around $38.  Cheap.  Check the fundamentals.

Thursday, July 7, 2011

Stock tip: Why Microsoft is hot again (MSFT) -- Facebook, Skype, Bing

Google's been drawing battle lines against Facebook, and in response Facebook allied itself with Google's main nemesis: Microsoft.

Facebook's relationship with the Microsoft's Bing team and now video chat through Skype is an effective partnership that makes sense. Video chat has been Skype's bread and butter and tying it up with a social network of 750 million people automatically lifts Skype from a dying platform to a de facto monopoly, with Microsoft benefiting the most out of this partnership.

The ability to monetize this is still "cloudy", but what it does mean is additional users and access to a platform (Facebook's social network) that Microsoft was never really good at. Plus the fact that Microsoft is still a cash cow in its legacy line up (Office, Windows), this makes Microsoft's stock extremely attractive long term.

I'm buying more Microsoft today!

Friday, February 18, 2011

Turmoil in Egypt and Middle East - chance to invest?

There are several ways you can invest in the Middle East without having to leave your house.

First, let's talk about Egypt. It's the gate keeper of the Suez Canal and all of the economic activity that passes through there they take a piece of the pie. Not to mention its energy reserves and tourism dollars -- which recently have been hit by the turmoil behind non-violent protests for Mubarak's removal. Now that it has some decent stability with the military promising democratic elections within six months, investors should take a look at NYSE: EGPT as a potential investment now.

A much older and more "aged" choice is the Middle East's premier ETF which is NYSE: GULF. Like the Egyptian ETF, it continues to be challenged with recent protests and negative news in the region. Yet the truth of the matter is, most of the allocation for GULF is based in Qatar, Kuwait, UAE, and other players that are "more stable" than the rest of the countries. The focus on telecommunications in these emerging countries also is a different strategy than solely depending on energy.

At the end of the day, the question whether to invest is your belief on whether the Middle East will get back to "normal". If your position is long term, it looks like it will. If your position is short term, your money will not be earning anything for a while.