I love you Jaewoo, rest in peace in heaven by God

On our son Ace's third birthday today, I am writing this for Jaewoo, my beloved husband. Several days before he went to heaven, he asked me to write in this blog to let everyone know how much he enjoyed this blog and thank everyone who cared and prayed for him.

Ever since he was diagnosed with stage IV colorectal cancer in October of 2005 until he passed on May 3rd, 2007 to be with God, he bravely and aggressively fought the fight. He was truly amazing in his ability to cope with pain and disease and not letting it get the better of him. Even towards the final days of his battle, he cared and loved others and showed tremendous faith. He never gave up. He gave me the strength and he was my inspiration. I've never met anyone who enjoyed and loved his life the way he did. Jeawoo had an infectious laugh, a warm smile and a beautiful heart and most of all, he had so much passion for life.

He went to heaven while Ace was holding his hand and the minister was praying for him laying his hand over Jaewoo's head in the presence of his mom, his brother, my mom and me. His father and sister's family came from Korea to bid him farewell and thankfully so many people came to mourn our family's loss.

Today is our son Ace's third birthday. Jaewoo wanted to live until Ace could remember him.
Jaewoo, my love, Ace will definately remember you and know how much you loved him. Yesterday, he asked me to give you a phone call to heaven. I'll live and raise Ace the way you would have wanted me to and make you proud. I thank you for the tremendous love that you gave me which I'll live the rest of my life with and I will cherish all the beautiful memories with you.

Jaewoo, rest in peace in heaven by God. I'll miss you until we meet again.

You will always live in my heart. I love you.

Brain is OK.

I am still alive.
After two surgeries last two weeks, I am feeling very weak. In fact, I believe this is the worst I felt since the onset of my colon cancer. I will fill you in on the details soon.

I do realize that many are wondering about out stocks.
Simply put, unless I say anything, everything is a status quo.
Remember our portfilio was designed to go through what we are going through now. If you read the last note before I went into the hospital, I said to add to your QID holding. I last added QID on 2/23/2007 at $50.19 and the recent quote is at $57/share. QID will still go higher (this is now my 2nd largest holding).

CMGI: Acting beautiful. Add if price falls.
RICK: Sold some at $9.80 but hold on to rest - will go higher.
BTYH: Wait for our spin-off shares to freely trade in a few months.
MIDS: Keep buying at this levels - buy, buy.
UTK: Just came out with the financials - fantastic - this will hit $20
PRZ: Last added at $0.67 - this is too cheap.
AUTO: Wait for the financials. I will make decision on this one soon.
NTE: Hold steady. Acting nicely under these bad market conditions.
GDX: Weird - our smallerst holding and is a good insurance in any portfolio.

Potential buys:

OIH: if it falls below $130
REFR: Definately under $9 but lets see where it settles.

This was a quick and dirty version to let you know that I am still in the game. Pain medication 24/7 if you know what I mean. I now weigh 122 pounds (normally 152). Have not had any solid food for over a month. Be patient with me. My brain is still good : )

P.S: I too like MRVC but I prefer FNSR. Either way, wait for the market to settle down.

I've been sick

Most of you were waiting for my usual timely updates.
I am sorry that I could not log on. I was really sick. From the very beginning (October 2005) of my cancer battle, the last week was the worst. I had pain in so many different places that I didn't even care. My oncologist, gave me even more powerful pain medication (Fentanyl) to ease the pain.

Just so you know, I am now wearing a bag that collects my urin coming from my left kidney. Yes, doctors inserted a tube to drain the kidney. As if this wasn't enough, CT scan showed suspicious "things" on my hip bone (this may be the cancer spreading to my bones). Let me just say that I am in no shape to write in any length right now.

With your help, I will get better soon and return to this pages as soon as I can.

Quick recaps then:

RICK: when I first reccommended this in the $4's I said that we will see double digits on this baby - well, now you have it. If you have a double, take some off the table but definately hold on to some shares for the long term - just sold some at $9.80

IDWD: this went up almost 50% today - one thing you can not say is that IDWD is boring. I am still holding on to my most speculative shares - I am as curious as you are as to how this story unfolds - my last purchase was at $0.41

BTYH: you probably see the Southland shares in your brokerage account by now. My estimate is that during the second quarter of this year, these shares will freely trade with ticker symbol. Once again, BTYH owns 25% of Southland shares.

MIDS: Those to can afford - keep adding to your shares - we bought more at $0.60

CMGI: Keep holding - I expect much higher price by the end of this year

PRZ: Just added more at $0.77

New ideas: I am interested in REFR under $9 and IRBT under $14

The market is showing quite a bit of strength. U.S. economy is in a fine shape. However, it will take a rest before moving up again. Buy some QID is you have not.
I am really tired ...

RICK: our ace

If I had to guess which stock is most widely held by my readers - it is RICK. This is one of those stocks where you will want to hold onto it until ... The last time RICK was in trouable, price went from $9 to under $5 rather quickly. Most people didn't know what to do. We, on the other hand, advised buying more, lowering your average cost.

Some followed my advise, some did not. Those who didn't, is now kicking themselves you know where. RICK charged back up to $9 even more quickly, if you can believe that. So many people threw in the towel in the $5 range that I even used Apple (AAPL) as an example to calm people down (do you remember that? read past notes). I happened to know a guy who bought RICK in the $9 area and sold it in the $5 area (he said RICK was a piece of shXX). Emotion can play a powerful role in your life if you do not control yourself.

Did I know for sure that RICK will come back alive so quickly? Why was it down so much in the first place? When you are investing in the small cap area, many times things do not make sense. If RICK had been a large cap stock with numerous analyst looking into it, those wild moves probably would not have happened. And the truth is, I did not know for sure either. All I can tell you is that based on all available information, RICK was a buy, not a sell. If the company had been a fraud, there's nothing I can do. I just have to trust the SYSTEM. There will always be bad apples but more likely than not, the SYSTEM will take care of most of them.

I believe that most of our CEOs and managers are hard working, honest people. But I realize that there is always an exception. That's why we diversify. That's why we hold 10+ stocks in our portfolio. If you still hold only 2-3 stocks and your portfolio goes down big - don't bother calling me. You just broke the most important rule of this game. Good luck.

RICK just aquired a new club in Dallas. This outfit will add $4 million in addtional revenue as well as $1 million in EBITDA. Nice work. Eric, the CEO, is just cranking out the business plan as he said he would. When I met Eric, he looked 10 years older than he was (we are almost same age). And guess what, Eric holds over 2 million shares of RICK. Question: " Do you think he sold any when RICK was trading near $5 recently? I think not ".

Question #2: Mr. Nunan, the CEO of BTYH, and the single largest shareholder of Bad Toys: " Will he be selling his shares soon? I think not either".

Could PRZ be a fraud company (made up financials and all)?
Maybe. Could PRZ be delisted from the exchange (under $1 rule)?
Perhaps. Assuming it is not a fraud, it this a good deal at under $1?
Yes. Acetrader just added more of PRZ at $0.77 today.

Market will take a rest soon.
Don't go shopping now - wait for the 07' sale.

BTYH: spin-off

I feel I am at about 60% of my usual self.
Still having hard time eating solid food but slowly gainning strength back. I need to quickly get to the point where I will be able to do some excercises. Spending too much time in bed can not be good for anyone. Thank god for pain medications available today.

The truth is that I did not really appreciate the underlying business of Paincare (PRZ). I simply saw the value and made money on it. The fact that PRZ somehow has to continue "Paincare" services to individuals in order to continue making money - did not sit well with me. Think about it for a moment: why would any business send customers away quickly, voluntarily? The more pain you have, the better business it is for me. Well, I may be getting a little out of line here. But, now that I have constant pain for a while, I appreciate "Pain Management". Hold onto your PRZ shares. We will make our double in a year or so.

Here is the news on BTYH:
On February 1, 2007, Bad Toys Holdings, Inc. distributed seventy-five percent (75%) of the common stock of its wholly-owned subsidiary, Southland Health Services, Inc. ("Southland"), to the Company's stockholders as a dividend (the "Spin-Off"). In the aggregate, 21,111,521 shares were distributed in the Spin-Off at a ratio of 0.9825 shares of the common stock of Southland for each share of the Company's common stock issued and outstanding as of the record date of January 31, 2007.

The BTYH shares trading now represent only 25% of the value of Southland division. You do the math. My math tells me we are doing just fine. The bare minimum price of Southland shares will be $1 but I would not be surprised if it is well above that. Hold on guys.

As I have said before, this is not the time to buy shares. Let's wait for better entry point in a few weeks. In the mean time, we need to look for targets and study them carefully. Here is the list I am currently working on:
IRBT / SFUN / ASFI / MTLK / JDSU / LVLT
You may look into some of these and send me your thoughts.
I am willing to enter a position if above stocks get 10-20% discount from current price.

I'm back again

Hello, everyone.
I am back from two (2) surgeries last week. First, doctors inserted a tube into my kidney to drain it. Then, doctors had to remove the stent they put in place two months ago (this is done through your penis). The bottom line: I survived both and I feel OK so far.

Just so you know, I have not had a decent meal in the last 10 days. The 5 days I was in the hospital, I could not even have a drink of water (due to surgery). I am still on a strong pain medication all day. I am barely walking stright at this point. I will need a few days to regain some strength. I was very touched by some of your comments from the last blog. Thank you.

Since I can not sit for any length of time (there's a hole in my back), I am going to be quick and to the point. I will only tell you what you need to know now - further analysis will follow.

PRZ: Down 11% to $0.84 today. I know some of you are getting nervous - don't be. I know the value of PRZ better than most. PRZ is worth $2. My cost was $1.01 and I will add to it if this goes down any further. The truth is, you should be happy that you get a chance to buy this on the cheap. Remember, we bought this near $1 and sold it near $2 in two months, last time.

BTYH: The company has completed a spin-off. It is now trading without the value of Southland division. We should be getting the new stock in our brokerage statement soon. However, it will take some time before this new stock acquires a new symbol and trade in Nasdaq. So hold onto your shares - we did not get a chance to get out before the spin-off. Well, we will wait for the new shares to trade before deciding to sell.

IDWD: No news. Absolutely no news from the company. Without the updates from the company, some investors will try to bail out. This is why I always said IDWD is the most risky stock in our portfolio. Remember, recently, I bought more IDWD at $0.41 and I will be holding this until we know what's going on.

Even technology leaders like google (GOOG) is falling without any reason these days. When a leader is looking weak, the whole group will suffer. Market will be very weak in coming months. Most of our holdings will move on its own stories. If you do not see me every trading day, please do not worry. For the next week or two, I will be going in and out of the hospital for follow ups.
Thank you again for your concerns.

I am going in

The surgery to insert a tube into my kidney will be done either today or tomorrow. I will be checking into the hospital this afternoon. Obviously, I am not too happy about this. Wish me luck guys.

Tomorrow, the Fed will leave interest rates unchanged. This is widely expected. None event.

I will be back before you know it.

My cancer update

Phone rang.
It was my urologist. He received results from my previous tests. Remember, I was having constant pains. Well, guess what. I am going to need additional surgeries. My left kidney is not functioning at all. Not too long ago, doctors inserted a stent in my ureter to help drain the kidney but it did not work. Now, doctors need to insert a tube into my kidney to drain it. This means I will need to carry a "bag" to collect urine that will be drained from the kidney itself. All I am going to say is this: " This better be temporary". Once again, I will need prayers from you (especially from those who are close to "you know who").

Although the exact date has not been set, I am sure it will be any day now. At least I know why I had so much pain. God is really testing me this time. As always, I will take it like a man.

The market is showing obvious weakness. This is not the time for aggressively buying high beta stocks. We need some more weakness to confirm the down trend. The market could actually jump up from here too. But even if it does, it won't last. We need to rest before going again.

Quick Recap

My weekend was a chellenging one.
Pain killers every 4-6 hours. I have absolutely no appetite. I have pain coming from places I don't even know. Just so you know, I now weight 128 pounds.

For the first time, I feel like a cancer patient.

Emotionally, I am still doing OK. I am still happy and greatful for what I have. And believe me, I am glad that I can still type and my laptop has wi-fi capability. Below, I will write a quick comment on the stocks we carry in our portfolio: I hope this helps.

RICK: This is our favorite. The last price swing was the last chance for anyone to get on board at bargain prices. Chances are, RICK will go onto an all time high this year. Buy.

BTYH: This is the last week before the spin-off. I am expecting 50%+ move during the next few sessions. As I have said before, I am not too crazy about the ambulance business. I am looking to exit with quick, short gains.

MIDS: We have been slowly accumulating this one. MIDS is one of my hidden joker. I do expect this to move up substantially in coming months. If you still do not own MIDS, I suggest you start now. $1 and below will be a history soon.

UTK: Either this is a bargain or this is a fraud. I don't think this is a fraud. The business on fire. Investors have to regain the confidence in management. I feel this is a terrific risk/reward play. Infact, if this goes above $12.50 we will be buying more!

AUTO: I can not explain it. Revenue and profit keeps moving up. The stock price has not. I have no problem holding the shares as long as business is good. Actually, this is the best type of situation I am looking for. Sooner or later, stock prices always reflect the underlying business. Buy.

CMGI: When I was selling XMSR recently, I also considered selling CMGI. I changed my mind. I am willing to hold this through the down turn because I think CMGI will come alive in 2007.

GDX: In 2007, you want to have at least some gold exposure in your portfolio. There are just too many good reasons to own some gold related assets. Among them, GDX is offers the best bang for a buck. If you expect gold price to move substantially higher, GG is your best bet.

QID: I think there's a better chance of downward move in coming months than upward move in stocks in general. QID is a good insurance for your portfolio.

NTE: Not too may companies are expanding production capacity for future expected orders. NTE is well positioned to be the low cost producer in this arena. We have already received fat, juicy dividends in the last two quarters. Eventhough the dividend was reduced by nearly a half (to fund the expansion), NTE still offers over 5%+ annual dividend. Keeper.

PRZ: Regular followers made handsome profit with this one last year. We will do it again this year. This one is similar to BTYH story. I am not crazy about the business - I just know a value when I see one. Get it near $1 and wait please.

IDWD: This crazy horse is running everywhere. But if you know how to buy and sell, you can make some decent $ with stocks like this. IDWD was one of the top three profit makers for our portfolio last year. As you know, I just added some more at $0.41 recently. Let's wait for some news from the company.

Hope this quick note helps.

Smart doctor

Most of you know that I am from a family of doctors. My dad, grand father, uncle, cousin and even my best friends are doctors. Although I have great respect for doctors in general, I could never be a doctor myself. I just can not be around all that sick people, many of whom you know you can not help.

My experience tells me that many doctors are not as smart as most people would think. Especially when it comes to the field of finance, doctors are in trouable. The smart ones quickly allow professionals to take care of their finance. The real smart ones actually study the market themselves (we all know that one thing they can do well is to "study").

"Gus" from stockton is one such individual.
I don't know how he found my blog but he is one of few followers that actually make more money ($) than yours truly. And I am happy for him. Here's his latest comment:

"Wish you feel better soon and write your blogs for a long time. Following your blogs I shorted AXR 500 shares at 119 and another 500 shares at 129 And they are already making $ 30,000. Also bought 2000 shares of QID at 49.45 and they are making $ 8,000. Get well soon and I want to pay for you and your family's steak dinner by credit card from stockton. Just tell the resturaunt to call me for credit card authorization. Gus. 10:02 PM"

Thank you Gus.
Happy New Year to you too.
I am sure one day you will get your chance to buy me a juicy steak!

Bonus advise: If I were you, I would start to accumulate shares of MIDS starting now. This is a low priced, early stage, speculative play so please use only your speculative dollars. Use limit orders only and accumulate it under $1 if possible. Please look at the chart yourself and place only "limit" orders. Something tells me you will end up buying me more than a steak!

Kidney pain

I have spent all day at the hospital.
My kidney pain is getting worse and my urologist decided to perform detailed tests to get to the bottom of this situation. I am on the pain medication almost 24 hours a day. This is not the way to spend an otherwise beautiful day.

Regarding the market, stocks look tired as well.
We are in the middle of massive earnings season and so far, companies are reporting beautiful numbers. The problem is, we all expected that. An exception was Ebay: it really performed better than investors expected. 2007 will be a good year for ebay. We may jump into this when prices settle down (anywhere near $30 looks fair to me).

The ex-dividend date has been set for BTYH.
February 2nd is the last day the stock will trade with the dividend shares attached. As per my last message, I am looking to sell half of my position in BTYH before the spin-off. I just wish I can get much better price for this (mid to high one's).

When I sold my XMSR shares at $15.85 last Friday, I was a bit upset with the low price I got. Guess what - it is now trading at $14. Nice move indeed.

Once again, excuse me until I feel better.
I may not be able to write everyday. I am in pain guys ...
Wishing you a healthy new year.

Sold: XMSR

I have not been well the last few days.
The long trip and my chemo therapy is obviously taking a toll on my body. My last communication was on last Thursday. Please excuse me until I get back to myself again. Right now, I am on a pain medication called Percocett (awsome drug I might add). Tomorrow I am scheduled to see my Urologist - the stent that was placed in my kidney is giving me pain as well. Let's just say that I am not feeling too hot lately ...

Everyone is interested in my views on BTYH.
This is my game plan: Since this stock became the largest in size in our portfolio, I will be trimming back soon. I will be selling about half of my position in January before the actual spin-off. I am hoping to get mid to high dollar range for this sale. After the spin-off, I feel that the stock will fall in price before resuming again. Another words, we can get better price later. Most of you will be able to sell this with near double - so let's not get greedy. There is only one comparable public stock: Rural Metro (RURL). Although current PE number is shown as 110x, the forward PE is only 12x at current price. As you know, the forward PE is what's most important. Anyway, the bottom line is this: I am not crazy about ambulance business. Let's get our quick profit and move on for better growth story.

GDX is getting major attention from the investors. I think gold is setting itself up for another move toward a new high. As I have said before, Gold (GDX) has a place in anyone's porfolio. If you prefer stand-alone mining stock I would suggest GG or KGC.

If anyone wish me to talk more about a specific stock in our portfolio, please use the comment section below. I will answer all questions. I just don't have the energy to go over everyone right now. Pray for my fast recovery if you want to see my consistant views on the market.

P.S: Our recent entry into QID is working out just fine. Oh, I got out of XMSR at $15.85 after my last blog entry - nowhere near the $16.45 on Thursday but that was all I can get on Friday. But let's not get upset with +23% gain in two (2) months. We may revisit this one again ...

Buy: QID (again)

Let me repeat what I said yesterday: " The market is quickly loosing its mojo". When the general market seems weak, we go and buy QID (most of my readers learned at least this much). Today, we purchased QID for the Acetrader's portfolio at $51.82/share. This is our second try to short the market. (For those of you who don't remember, we first tried this during mid-December but quickly got out - the market was still strong then). There's no guarantee that this time will be any different. I just feel that the risk/reward ratio looks fair at this time. Those of you who want in - try to buy it near my price or better. Usually, most of you can get better price than I did, since I tend to buy it early and sell it early.

I am comfortable with most of our holdings right now but I am looking for excuses to trim it down. Regarding XMSR: FCC today stated that there will be no appeal in the decision to block the merger between XMSR and SIRI. OK, OK, we get it now. Theses companies have to survive on its own. The potential $ savings from the merger was very, very juicy but I guess it will result in creating a hugh monopoly (oh, how I love monopoly - Microsoft is almost a monopoly). The bottom line: Due to this news, XMSR will loose interest from the investment community. As you know, I like this company even on its own. Although the price is cheap, it might get even cheaper. Our cost was $12.89 and we have a gain of +27.6% as of today's close. Let's lock in our gains and try to buy it back at better price. Sell XMSR tomorrow near $16.45

This weekend, I will try to close the accounting for the year 2006.
I am still weak from the long trip and need much rest. But let me share a secret: "Acetraders portfolio just hit an all time high today!" The recent strength from our top three holdings did it. In investing, gains and losses come in quick, short intervals followed by slow, long periods of going nowhere. As I will share it with you later but: during the first 2 weeks of 2007, we have almost same gains in our portfolio as the entire year of 2006! Nice ...

2007 is the year of the Golden (actually Red) Pig.
Just know that this only happens in a few hundred years.
This will be a fantastic year indeed : )

I'm baaack ...

I am safely back in USA.
The long trip has taken some toll on me and I need some rest before resuming my usual schedule. I will keep this one short. The important thing is: you now know Acetrader is back in town!

Quick short takes:

1. Before I left, we sold our QID holding after only a few days of purchase. Anyone who did not, probably felt the pain. What happened recently (QQQQ) is the reason why we decided to sell our QID. By the way, I am now getting interested in QID again. QQQQ is loosing its mojo. I smell it. We will enter into QID soon.

2. Regular readers know that I have been accumulating BTYH as it fell with no mercy. It became my second largest holding before I left for my vacation. Guess what, it is now the largest holding in our portfolio. I will be selling some to reduce the relative size. BTYH will be moving up until the end of January. Then BTYH holders will receive spin-off shares of Southland Health Services. Just as I thought ...

3. Did you notice the +55% jump in MIDS shares today? This is another stock that we have been buying as its price was falling. This is our second largest holding now. Another story unfolding just as I had expected ... buy.

4. IDWD has fallen down to $0.40 today with no news. The shares are so cheap that I just added more shares today at $0.41/share. Remember, this is our most speculative stock. Unless you have the stomach for such shares, stay away. However, if you can afford the risk, this one is a roller coaster! We now hold 30,000 shares.

5. The FCC has rejected the possibility of XMSR and SIRI merger. Both sotcks fell on the news. So, now what? Please allow me some time to study the situation. I will come back with the answer in a few days. Hold.

The market is close to the top then the bottom.
This means the "risk" is in owning stocks rather than owning cash. Fortunately, most of our holdings have low correlation with the major market averages (this is by design). Our current top three holdings: BTYH / MIDS / RICK will not be dancing with the market (this is a good thing). I expect the market to fall in the coming months. Adjust your stock holdings accordingly.

2007 will be another good year for stocks.
It will behave very similar to the 2006 (explanation will follow soon). Basically, it will make a huge " V " during the year just like in 2006. Got it?
It's good to be back : )

Happy Holidays !

Guys and gals:

This will be my last blog before leaving tomorrow morning to Japan & Korea. Our family (including Ace, my son) will spend three days in Toyko, Japan during Christmas and two weeks in Seoul, Korea. This will be a nice needed vacation for all of us.

I will be back on January 10th, 2007.
Whatever thoughts you have, please leave it in the comment section below. I will try to answer them as frequently as I can. Several stocks (in our portfolio) had given back gains lately and our yearend performance won't be as beautiful as I thought it would be. But I do feel very comfortable with our soilders looking into 2007.

Have a beautiful holiday season and may your family have a happy, healthy New Year! For your information, 2007 is the year of the "Golden Pig". Just know that this is a good karma. 2007 will bring many new, exciting ideas for you and me. Take care ...

P.S: Jo, I use GDX instead of GLD because of the leverage it provides. Although GDX has short history, if gold were to go up (we are in a multi-year gold bull market now, we are just resting a little here) GDX will go up much, much more than gold (vice versa). Similar to EXPE versus EXPEZ. I am constantly looking for leverage on my money (the main reason real estate is considered a good investment is because the leverage it provides - only 10% down). I am not interested in the "physical" gold - gold coin sellers to tell you otherwise : ) Don't listen to them and all the talk about how the world will end soon, dollar will free fall, USA will go under etc etc.
Gus, you have a wonderful holiday too!

RICK: love & hate

I have one grand mother left - on my mother's side.
She is now 84 years old and still semi-active. Yesterday, we moved her into an "assisted living" facility in Long Island. Although I felt that this was a good move for her, seeing her cry made me feel uneasy. The facility was clean, professional staff was on board, serves three meals and snacks everyday. I was happy with everything except that most people in that place had some shades of Alzheimers conditions.

My granma's new roommate for instance (she says she was 82) asked us who we were about 5 times. She was like a fish. One quick turn and forgets the whole thing. Do you know why fishes can survive in a small fish bowl? Because after a quick turn, it thinks it is swimming in a new water. The fish bowl seem like an ocean to them. A new place to swim every time.

RICK just made a move yesterday: up 8% on a low volume.
Hopefully this marks the end of selling that started in mid October. The 4th quarter and year-end earnings will be released on December 28th. Investors will try to buy the stock prior to the announcement. That leaves us with only three (3) days of buying before the earnings. Let's watch. Remember, we have not sold any of our holdings in RICK yet. In fact, it is still the largest holding in our portfolio.

I know that some of you were getting worried about RICK. I mean it did had a 35-40% drop between October - December period. It was easier for me to handle this because our cost was $4.80/share. Many of you have much higher cost. For those of you, this should be a welcome time. A time to buy RICK on the cheap. The problem with most investors is that they do not understand the value of holdings.

People only look at the price they bought versus the price now.
If it happens to be higher - they are happy and feel smart.
If it happens to be lower - they get upset and try to sell.
I have no patience for such dumb people. These kinds of people should not be investing in individual stocks. They should buy mutual funds - managed by active human managers. These people should not even buy ETFs (exchange traded funds - which I prefer to mutual funds).

One person had told me "RICK is such a bullshit, low quality company that it fell 35% in such a short time, and for no good reason - I'm selling" ( by the way, RICK was $5.20 when he/she said that). Smart move, oh great one.

The truth is that RICK is not a proven, quality player yet. But then, you all knew that. This company basically buys and manages "strip clubs" (quality ones though). Not a rocket science. Still too small for the big wall street boys to enter this game (excellent!). The reason I liked RICK: 1. the CEO's vision made sense to me. 2. the price was fair. 3. business was simple. Unless there are information I am not aware of (non-public info.), I feel that the business is sound. Let's confirm it on Dec. 28th with all the pertinent financial numbers.

Just so you know, 40% price move up or down is quite "normal" for stocks in our universe. Here's an example: Do you think Apple (AAPL) is a quality company?
Let's look at the price move of Apple in 2006:

January 2006: $86.50
June 2006: $50.16
November 2006: $93.15
Today: $83.05

The move Apple made between Jan-Jun 06' is ( - 42%) then Jun-Nov 06 ( +82%) now back down to $83. Such is a life of stock investor. You now know that 40%+ moves are not only reserved for small, unproven companies. Apple with the iPod does the same thing.

Human emotion is not predictable.
One day RICK is your love, the next it is a bitch.
I am sticking with my love just a little longer until I find out the truth. The truth will be told on December 28th 2006. Merry Christmas!

Comments from you

Comment #1:
You mention that over the long term stocks produce the best returns over cash, bonds and real estate. Stocks(even the lesser known names that you buy)have better liquidity than real estate. Just look at all the "for sale" signs out there! I was also wondering what you thought about shorting GROW. - Anonymous.

Reply: U.S. Global Investors, Inc. (GROW - what a great symbol) through its wholly owned subsidiaries, provides mutual fund management services. It provides investment advisory services to institutions and individuals. First of all, this is a great business to be in right now. Although price went up quickly during the last few months, and this does look over-extended (what isn't these days), I would not reccommend shorting this one. The risk/reward ratio is not good enough. At any time, a bigger money management company can easily step up and offer to buy this one. No debt, over 5X current ratio, over 50% return on assets and equity is too juicy for bigger guys. When market falls, this will too but you have so much better shorts to go after. Let's not mess with the good stock in the right business. For shorting ideas, look below.
P.S: Give at least your first name next time.

Comment #2:
Goldman Sachs ups the 12-month price target of BIDU to $128 today. Do you think it is still a good short target? How about its Jan115 puts? I also like the AXR short and can not find any shares available.-Dennis

Reply: Dennis - thank you for sharing the information with the rest of us. Although I knew this already, other readers may not have. I read a lot and I can not share all the pertinent ideas with you. So here goes my thoughts.
BIDU: Basically, Baidu.com is the Google (GOOG) of China. Sounds great so far. Due to the initial success, many investors are flocking into this company. BIDU is already trying to mimic their success in Japan as well. But people are blindly pouring money into this without thinking. See if you agree with me if I lay the big picture for you like this:
1. With all the success, this company has only $88 million in revenue
2. Current market value stands at $4 Billion dollars - what?
3. Forward PE of 67X ( compare this to Google forward PE of 34X)
4. By the way, Google is not cheap either.
5. They are moving into Japanese market (this will cost money - a lot)
6. Japan will not lay still or bend over for BIDU
7. The Real bad news - Google just arrived in China!
8. Google is hiring the best talent in China (few hundred top ones already)
9. If you were a hot engineer in China, would you work for GOOG or BIDU?
10. BIDU should worry about China, never mind Japan.
11. I will maybe (maybe) consider this at 50% off - no less
12. Now what do you think? Yes, I thought so.
Lastly, using an option is a great idea (however, Acetrader will not utilize options). If you are buying the puts, do not buy Jan. contract. Buy at least a Jun. contract at lower excerise price. I will not go into details but trust me - I have extensive experience with naked options.

AXR: This is simply too pricy. I have no idea why. This is another 50% off candidate. I will not bother with an analysis on this one. I would short this.

P.S: As per my previous blog, I have this funny feeling that the market has not hit the top yet. (we just sold our QID remember?) Which means that both BIDU and AXR might go up further from here. I would wait until the down turn is more obvious before shorting either one. I am assuming that you are not a day trader. For day traders, every day is a potential short day. By following my blog, you will see when I turn decisively negative (when I buy QID back). Do not chase just yet - Dennis ...

PPS: Dear Readers - does this kind of Q & A help you guys? Comments please...

My vacation schedule

This is a good time for me to share my vacation schedule with all of you. Due to the chemo injection in me right now (pretty big needle I must say), I am not in the best of conditions (actually, it is kind of amazing that I am even up and typing at this point). But after telling you what I will be doing, hopefully I will feel much better.

My family will be leaving USA on December 24th (X-mas eve) to the "Land of Rising Sun" (Japan). We will be spending christmas in Toyko (I gotta see this) eating sashimi while watching Japanese Santa on the street. The first Santa my son "Ace" will be experiencing in his life will be a "Japanese" Santa. Great.

We will then fly over to the "Land of Morning Calm" (Korea) and stay there until January 9th. By the way, I mean the South, not North Korea OK? So many dumb (yes, stupid because half of them don't even know where Korea is on the map - so much for American education) people ask me that I have to clearify each time. Just so you know, the North Koreans are not allowed to enter USA. They do not have any diplomatic relations with the U.S.

We (Americans - yes, I am an American citizen) do not like to be friends with any country that wishes to have "Nuclear Bombs" like North Korea. But wait! The Chinese have nuclear bombs, so do India, Russia, Israel, England and even the French have them. Hmmmm, what's wrong with this picture ...

Bottom Line: I will be away from December 24th - January 10th.
I will do my best to keep up with the blog but please understand if I skip it for a few days. You have a wonderful, healthy, happy holiday season as well.

P.S: Within the next 2 weeks, both RICK and PRZ will experience big swings. It could be to the upside (I think) or it could be to the downside (smaller risk). Prepare and adjust your holdings accordingly - if you know what I mean.

Enjoy the ride

I hope you all had a great weekend.
As usual, we had several guests over the weekend and also I spent quality time with my son "Ace" and my family. Tomorrow (Monday) being my scheduled chemo day, I am already feeling somewhat sick everywhere. Human body is truly amazing. I see no reason for me to feel this way except that I am not looking forward to tomorrow (besides chemo, I will be away from studying the market). Well, as I always say, "You can't have everything".

As per my previous blog, I have sold QID at $15.49 on Friday. Until recently, I felt that we have reached the high (QQQQ) for 2006 already (Nov. 22nd). The stock behavior of late, made me rethink my outlook. I feel that QQQQ has a good chance of making new highs before year end. Obviously, if I think this, I should not be holding QID at this time. Bottom line: Acetrader has sold QID for a small profit. We are still holding GDX - continue holding GDX.

As we are coming to the close of this year, I will be writing about various mistakes we have made this year. Although hindsight is always 20/20, I have made several mistakes that I really should not have. Remenber the main purpose of this blog:

"This site was designed to communicate with friends who share similar interest. The interest in the "free market". Stocks, over the long term, provide the best return on your money. More than cash, bonds and even real estate. Understand that investing is a learning process. We will learn from our mistakes and move on. This is a journey. Enjoy the ride!"

I am enjoying the ride so far - are you?

P.S: I have not sold MATK yet. The highest price on Friday was $24.44/share. I really should not penny pinch here but I will be selling it soon.

QID: Watch carefully

The market made a strong move yesterday.
It looks like this will continue today (it is 8:30am now).
This obviously extended market just does not want to quit. On a closing basis, QQQQ made a one year high on November 22nd at $44.73/share. If the QQQQ moves above this number, I have no choice but to call it a short term bullish pattern. To be sure, I believe we are near the short term top. But near does not mean we are at the top.

Bottom line: There are still a lot of money in the street chasing stocks for the last minute gains. Our economy in general, is in good shape. The inflation is low and stable. The companies are in much better shape (financially) now than ever. Although stock prices are extended, it can easily get more extended. Acetrader followers: Sell QID if it hits our buy price of $51 or if QQQQ hits $44.73 which ever hits first for no loss trade. For the traders, look at the QQQQ numbers and react quickly as I have explained (QID & QLD).

Sell MATK near $25.

Two days ago, I have written about MATK and in it, I have expressed some caution regarding the future of Martek. I have thought about it and this is my opinion:

1. Long-term prospect for the MATK business is valid.
2. Infant formula is 90% of the revenue and it did not grow.
3. Much anticipated "food" deals did not occur.
4. Food products represent less than 2% of revenue.
5. Recent quarterly EPS of 12 cents did not impress me.
6. Restructuring charge will impact 1Q of 2007 business.
7. Next quarter estimated EPS is only 11-14cents per share.
8. During the conference call, the new CEO did not impress me either
9. Management does not have any "deals" they are willing to share
10. Today the stock price went down - this is not a good sign
11. I am quickly loosing interest in this management.

Bottom line: I see the potential to high 20's. I do not see a major down side either. But until a "major" food deal is signed, this stock is going nowhere soon. I am taking my chips else where until I hear better news from the company. Sell MATK near $25 (even this might be a chellenge). The next few days, MATK will swing wildly. Sell it near $25. Let's look for something else.

I am not feeling too hot right now.
Let me keep this one short. Good night...

Enjoy the gift

I live in a nice gated condominium complex in Bayside, New York. I must admit that I am very lucky to live in such a wonderful surroundings. From my bedroom window, I have the view of a beautifully lighted bridge as well as the view of an ocean (this view is worth between $50K-$100K in market value). The ocean side is less than 10 minute walk from my door.

I have the luxury of breathing the clean air (sea side) and drinking clean water (Culligan H2O filter). There is a brand new luxury bus right in front of our condo that goes stright into the heart of Manhattan ($5). I have the HD TV with video-on demand service in my bedroom and the living room. By the way, I have a good sized bedroom since we converted two bedrooms into one. One corner of my bedroom is my office - fully functional with Human-touch massage chair.

Let me put it to you this way, my morning commute is about 2 minutes (if I jump, I can make it in 3 seconds). So why am I telling you all this? First, I think many people enjoy looking into other people's lives - it is somewhat entertaining. Second, I want all of you to know that I am very happy with my life eventhough I am going through one of the most difficult chellenges anyone can endure (cancer is no joke).

I constantly receive many warm wishes from my "fans". I just want them to know that I am doing just fine. But don't get me wrong, I do need your encouragement from time to time (sometimes I cry by myself until I am too tired). I have never experienced "depression" in my whole life - including now. For me, it is hard to understand how a person can get "low" (depressed) in this beautiful life. If you can just stop for a second and take a closer look at your world (from a third person's point of view), I am sure you will find numerous things that are just too beautiful.

What did you do to deserve such a wonderful, loving parents? a child? or a lover? Really, what did you do to deserve being born in America instead of Ethiopia or Iraq? Trust me, you will have entire different set of problems if you were simply born in other places (which will make your current problem look like a child's play). I wonder why you were chosen to be so lucky? Why you?

I don't know.
Let's just enjoy the gift.
We have no time to be upset with ourselves or with each other.

Buy RICK now if you haven't yet.
Buy BTYH if you can wait for a while.
Buy MIDS if you dare.
Buy PRZ if you understand what value is.
Buy GDX if you have heard of supply/demand formular.

Don't buy the market at this point. All of the above are special situation issues.

P.S: Here's an info on MIDS from one of our readers:
http://www.allbusiness.com/finance-insurance/1183422-1.html
Thanks Jo.

MATK: earnings good

Now that I can officially say that I have survived one year as a stage 4 colon cancer patient, I feel as though I have achieved something. You should know that many in my shoes did not make it this far. My next hurdle is making it to the end of 2007.

To most of you, this is "like" a reality show.
Actually, this-is-the reality show. I get to produce the second season for all of you. Occational comments from my audience keeps me in check. If you've been a "regular" without sending one single comment to me, shame on you. I am going to repeat this one more time: "How do I get a steak from you if I don't know who you are?" Give yourself up.

MATK just released 4th quarter earnings after the market close. As I have suspected, Martek Biosciences beat the estimated earnings (its about time). Today MATK closed at $23.36 and I think by tomorrow, the price will be close to $25/share. In addition to the shares I own in the Acetrader portfolio, I have just bought 1,000 shares in my trading account hoping that earnings would be good. I think I got it. I will be selling my trading shares tomorrow for a quick profit.

I am loosing my interest in MATK recently. Depends on how it reacts tomorrow, I might decide to issue a "sell" soon. MATK has been a slow pain in our portfolio. The management have not done their job as smoothly as I expected. In addition, I have just learned that a Korean company found DHA substitute in eggs. I will advise you more later. In the mean time, enjoy the ride.

P.S: We have sold STMP as per my last blog at $15.25/share for a small gain. I do enjoy a good fight but I do not particularly wish to fight with the U.S.Postal Services. I am out.

PPS: Our two most speculative holdings IDWD & MIDS will jump up and down with no mercy. Especially during this time (December) these will fluctuate more due to tax selling and such. Just accept the fact that these will move more than 10% on any given day with no reason. If you can not stomach such swings, get out now. One of these two can potentially go to zero. The other, can easily double to make it up though. These are wild.

Market Falls... Sell: STMP at $15.25

Good morning!
It's Monday morning and I got up at 5:00am. I could not go back to sleep. Thoughts were running through my head. What kind of thoughts? I am thinking about the market (come to think of it, I wonder if it is healthy for me to be thinking about the market just as I get up in the morning, hmmm). But then again, this is why you guys come and read my stuff, right? My curse is your gain I hope (no, seriously, I do not think of this as a curse - you know I love what I do). I am just glad that with the technology we have today, I get to share my ideas with you.

Anyway, sitting on my bed at 5:15am (dark outside still), I am visualizing the stock market charts - the future version that is. What will the market do in the next 6 months? More importantly, what will each of our holdings do in the near future? The truth is that if I knew the answer, my life would be boring - very boring. So, to keep my brain stimulated, I run through the various possibilities (it is now near 6:00am). Then I decided to type. So, here it is.

Dow 30 / SP500 / NASDAQ / QQQQ will all fall from here.
This is my prediction. As most of you know, I have been a little uncomfortable with the general market for sometime ( thus the QID in our portfolio for the first time). Of course I could be wrong, but I could be right. You decide.

First, I went into my IRA (401K) and moved all money to: 10% Stock / 45% Bond / 45% Fixed. This is until we get the 10% or so discount that I am expecting from the market. Next, I looked at our portfolio. Two things you should do now:

1. Sell STMP if you have it. I just placed a Sell Limit order at $15.25/share. Since we bought it at $15.08 this will be no loss trade. To cut long story short, I don't like the fact that U.S.Postal Services is getting into the online postage action. I do not want to compete with U.S.P.S. I don't need the headach at this point. Sell.

2. Buy QID. Recently, we have bought QID in our portfolio at $51/share. This is a short term investment. Well, this will act as a hedge against our portfolio (an insurance). My target for this is $59.33/share. If I were you, I would place a sell limit order (GTC: good-till-cancel) as soon as I buy QID.

P.S: I have added more of RICK at $5.69/share on Friday. Technically, RICK looks terrible. Fundamentally, I don't know why this is so weak lately. All the information I can gather says that RICK is cheap at this point. Toward the end of December, RICK will announce yearly financial. I am going to assume that this will be good. Bottom line: Although things do not look all rosy, I am going to stick with RICK. As I have said before, unless things change fundamentally for RICK, I am going to hold this until ...

My bad: EXPEZ = $9.48

Two days ago, we sold our last remaining shares of EXPEZ at $7.72/share. To be sure this represented a gain of over +72% in a few months. I have also made it clear that this was simply a valuation move and that I still liked Expedia. Another words, I wanted to buy it back again at lower price. I thought it was fairly valued. When we first bought it, it was definately undervalued.

Guess what, I was a little early.
Expedia company just announced that it will be buying back 30 million shares of its own shares! (this represents about 10% of the total company). Wait just a minute, - the company is spending about $600 million dollars to buy its own shares? They must really think it is worth much more than the current price. Of course, they could not do this when the price was much, much lower (like when we bought it). In any case, this is a fantastic news for the stock holders. Companies do not spend this kind of money without really knowing what they are doing.

Today EXPEZ price jumped to as high as $9.98/share!
Had we sold it at this price, we would have had over +110% gain on our investment. My bad. I was a little early - two days early. Bottom line: If anyone still holds EXPEZ, try to sell it at near $10/share (let me know if you do - you lucky sons of xxx, you).

By the way, you should hope that I keep making these kinds of "+70% in a few months" mistakes. I'd rather be a little early than a little late any time.

Trust me, I feel worse than any one of you.

But still --- my bad.

P.S: I will write about RICK over the weekend. (just buy it).
PPS: PRZ went as high as $1.20/share today. Do I hear anyone complaining? We bought this a few days ago at $1.01/sh. This is only the beginning.

Just read the title of my last blog - yes, I am this good.

PRZ: ready to takeoff

Our recent buy PainCare (PRZ) looks like it is finally ready to make a move. A few days ago, we picked this up at $1.01/share. In fact, since November 14th, PRZ has traded near $1 every day. I was very patient this time, buying this at such a good price. Oh, you may not know how good a deal this was until sometime later. I have a feeling most of you will thank me for this again !

If you have missed the original buy alert, go back to the (11/28th) blog. Today, I have witnessed a large (100K) block buy order hitting the tape. Someone definately want to acquire PRZ at current price. People who do not understand the true value of this stock were selling and I believe most of the selling has already occured. At this point, any buying pressure will move the price upward.

I believe PRZ will move up nicely into January.
There will be some tax selling pressure in December. (Remember my last note regarding the "January effect"). PainCare is a perfect "January effect" candidate. However, I feel that buying demand will overcome tax selling in this case. Let's see.

If you haven't bought enough, do so now.

Added: MIDS at $0.60/sh Sold: EXPEZ $7.72

If you recall, I have mentioned a few days ago that I predict December to be a wild swing month for stocks. 2006 so far has been a good year for stocks in general and money managers and investors are all trying to finish the year with a bang.

You should also understand the "January effect" that will influence certain stocks in the month of December of every year. Basically, any stock that fell during the year, will fall more in December because investors will want to sell it to realize the tax loss to offset the taxable gains he/she might have. This will artificially pressure stock price to fall without any regard to the value it may represent. Bottom line: Good time to pick up shares (I mean fallen shares) at discount prices.

Regular readers to my blog understand that I carry two (2) speculative stocks in my portfolio. They are IDWD and MIDS. I will comment on both tonight.

1. MIDS: Please refer to my note dated (11/7th) and read what I said. MidasTrade.com is a start up company. There is almost no information available to the general public except for the company website at http://www.midastrade.com/news2006qanda.htm . The company is in the process of hiring a public relations firm to finally start telling their story. As you know, when this happens, prices usually rise. I have done my own homework to find that its business is real, very real. I have personally talked to the principals of the major brokerage house in Korea to confirm that Midas indeed have contracts to do business with them. The firm is actually making money now. Audited financial will be provided sometime in 2007 (soon I hope). Bottom line: this was my gut pick. You simply wager your play money on this. You simply have to trust me on this. I have been slowly accumulating this and today I just added to my shares at $0.60/share. As of today Acetrader owns 30,550 shares of MIDS at $0.896 average cost. If it falls any further, I might buy one last time during December to lower my cost base. I feel that this will show its true colors in 2007. Wager only what you can afford to lose. Good luck.

2. IDWD: This baby made me so much money this year that all the shares I have (15,000 shares) are all from the profits. Prices went up during November because that was the record date for the 995ad.com dividend (spin-off). I think that some investors are selling because they are already qualified to receive the dividend shares even if they sell IDWD shares. For me, I am going to hold my shares until I hear the final news regarding the buyout at $2.35/share. Isn't it amazing that this is trading below $1 when HLS Worldwide already agreed to pay $2.35 for IDWD without the 995ad.com division? I have to witness how this unfolds. Bottom line: I am holding my shares - either a homerun or strike out.

P.S: I have sold my remaining shares of EXPEZ today as per my note yesterday. I sold it in the morning at $7.72/share which gives me a gain of +73.7%. This was a good pick. I will be jumping back in when prices are better. Busy, busy ...

Which one? (CMGI)

This is the afternoon version, the morning note is below, so don't miss it. Allow me to explain the title "which one?". When investing in stocks, you need to be aware of what's out there.
Would you blindly buy the BMW without driving the Mercedes? Would you just buy Coca Cola stock without looking into Pepsi? Would you simply invest your hard earned money in Citibank stock without comparing it to the Bank of America stock? I hope not.

I am cheap when it comes to buying stocks. I am very generous when it comes to food. Let's go back to August 16th, when I first recommended XMSR (go back and read it - oh, that day I wrote both morning and afternoon versions as well). At the time, everyone loved SIRI: how Howard Stern will make a hugh difference in attracting customers to SIRI. My question was this: Yeh, but at what price? I think if you were to add both salary and stock options Howard received, it amounts to close to $1 billion dollars (5 year contract). What? You can have Howard. In any case, Acetrader bought XMSR at $11.20, same time SIRI was at $3.65. Fast forward December 5th. XMSR closed at $14.32 gain of +27.86% during the same period, SIRI closed at $3.85 gain of +5.48%. Now what do you think?

Case $2: When we bought EXPEZ, I saw three choices.
EXPE: $14.00
EXPEW: $1.51
EXPEZ: $4.36
We could have bought any of the three securities (all Expedia company) that day at above prices. Upon my analysis (details are in the past notes) I decided to buy the EXPEZ. And heres what happened as of today:
EXPE: $18.71 gain of +33.64% (not bad at all)
EXPEW: $1.90 gain of +25.83% (still good)
EXPEZ: $7.96 gain of +82.53% (now do you see?)
There are still lazy investors out there who are buying EXPE & EXPEW everyday. Either they do not know about EXPEZ or they don't understand warrants. BTW, if you think Expedia is about to fall, you should not buy any of them (obviously).

The point is this: I am doing these kinds of homework for you guys. In the process, I hope you can become better equiped investor. Knowledge is something no one can take away from you. As I have said before, you will use this skill for the rest of your life. I sincerely hope that you can take away as much as you can before I cease to be able to continue this work. The average stage IV colon cancer patients have already passed away. I am living on bonus times. Every new day is a present from god as far as I am concerned. I am very content with my life right now. My only wish is that I get to see my son "Ace" grow up into adulthood. I love Ace.

1. As per my note this morning, we bought more of CMGI today at $1.42. This brings our average cost to $1.38/share.

2. I will be selling the remaining shares of EXPEZ tomorrow. I believe we can buy this back at cheaper prices. If I were to sell it at $7.95, our gain would be +82.53% in a few months- do we have a problem with that?

P.S: If anyone beat my performance YTD using our stocks, I would love to hear from you. That's the whole point of this anyway. Use the comment section with first names. There's got to be at least one right?

Sold: IGLD @ $12 (+127%) Buy: CMGI

My chemo yesterday knocked me down.
Thank you to those who sent warm messages via comment section. I really do appreciate it, especially when it comes from those who I barely know except through these pages. I feel that I am getting to know some of you, just like you probably feel that you are getting to kow me as a person, investor and as an artist.
Trust me, investing is more art than science.

Important news:

1. Acetrader sold the remaining shares of IGLD at $12. This represents a gain of +126.84% ! I sincerely hope that many of you took this advantage along with me. In fact, most of you should have better results than me, since I have been yelling about IGLD as its price went below my purchase. Some of you bought this in the $4's. My cost was $5.29
Congratulations and let's move on. (I smell many steaks from ya)
Oh, I still love IGLD. We will be buying this baby back later.

2. I finally got the news I was waiting for.
CMGI has turned the corner and is making money! If you remember, I initially bought half my usual unit on this one (at $1.33). Now I am buying the other half unit to make it a full unit in my portfolio. Something tells me that 6 months from now, this price may look ridiculous. CMGI will hit the new 52week (1 year) high price soon. Buy now. (try not to pay more than $1.50)

3. The market will become very volatile in December. Many professional money managers are trying their best to not look stupid when the year is over. Many mutual funds have less than 10% gain for the year so far. They will try to buy and sell in desparate moves to at least equal the market return (no bonus if they fail). In the end, more than half of all money managers will fail to beat the market (and can you believe that investors pay for them?)

P.S: SIRI is in trouable. This will probably affect our XMSR. Let's keep an eye on this tight.

Have a nice day : )

Performance Update 2006

My surgery last Thursday went as smooth as silk.
This time around, I don't even remember when the doctors put me under. The last thing I remember: I was joking around with the doctors while lying on the surgery bed. When I woke up, I was in the recovery room already. Wow! I love these amzing drugs. When I came home, I did have some pain while urinating but as of today the pain has subsided. If you think about it, it is quite amazing what modern medicine can do today. Too bad, that we have no cure for cancer yet. Well, I guess you can't have everything.

Now here is our YTD performance in 2006:

Index NAV (1/1) NAV (12/1) Performance %

SP500 1,248.29 1,396.71 +11.89 %
Nasdaq 2,205.32 2,413.21 +9.43 %
AceTrader 1,315.32 1,874.34 +42.50 %

As noted above, these numbers are as of last Friday (December 1st, 2006). We were up more than +50% not too long ago, but some of our holdings gave back some recently. Not to worry. Even with those mishaps, our performance is in the top 1% of all professional money managers (mutual funds, hedge funds and institutions). And most importantly, this is not a hypothetical portfolio. We use real money! Our current holdings and our cost is listed below.

Stock Avg.Cost Price (12/1/06) Gain/Loss % Target
RICK $4.80 $6.79 +41.46% $10.10
BTYH $1.04 $0.60 -42.31% $2.40
MIDS $1.03 $1.10 +6.80% $2.75
AUTO $1.09 $1.07 -1.83% $2.16
IDWD $0.76 $1.17 +54.35% $2.75
UTK $13.65 $12.53 -8.21% $28.00
QID $51.00 $53.32 +4.55% $57
PRZ $1.01 $1.02 +0.99% $1.90
GDX $40.18 $41.54 +3.38% $48.00
CMGI $1.33 $1.33 +0.00% $2.45
XMSR $12.89 $14.45 +12.10% $22.50
EXPEZ $4.37 $7.57 +73.07% $9.90
STMP $15.08 $15.60 +3.45% $28.00
NTE $14.97 $16.18 +8.08% $22.00
IGLD $5.29 $11.44 +116.26% $12.00
MATK $26.42 $24.29 -8.06% $38.00
HLS - no value yet (special dividend from IDWD)

The stocks are listed by size of holdings. Another words, RICK is my largest holding in our portfolio. You will notice that the size ranking has changed quite a bit from the last update (9/4 th blog). This reflects our various recent sales to lock in profits. It is very important to be diversified in investing.

As you know, I like to keep my holding size to be about a dozen (12) stocks in our portfolio. Currently we have sixteen (16). This is too many. However, this situation won't last too long:
1. The QID holding is for short term only. As soon as it reaches the target of $57, it will be sold, pronto.
2. Sell the rest of your IGLD on Monday. I still like the company but it went up too fast and we have near +120% gain on this stock in a few months. Let's lock in the gain and wait for better entry later.
3. I will look to exit one or more positions in coming weeks.

This is not a time to be aggressive. The market seems to be tired and it looks like it wants to rest. Let's wait for better prices before buying.

P.S: Our final performance update will be at year-end. Although I will be on vacation (from 12/24/2006 - 01/09/2007) I will try to give you the final numbers. Being up +43% YTD is no small feat. Most professional money managers would die to have numbers like ours. Our most recent two buys (QID & GDX) reflect my cautious stand. Both are up nicely in a few days. Let's see how the market unfolds in December. I am very comfortable with our holdings ...

Bought: PRZ @ $1.01/sh.

Tomorrow is my surgery day.
As I have shared with you, the doctors are going to enter through my penis to get to the kidney area. How does a camera, hooks, tubes all fit through my tiny pee hole is anybody's guess. I better not be pissing blood afterwards or I am going to get a bit angry. They did say that I will experience slight "burning" sensation while pissing for a few weeks. A slight burning sensation? Let's be real, when it comes to your penis, nothing feels "slight" OK?

Today we bought PRZ at $1.01/share as per my yesterday's note. Once again, I fully expect to see this investment grow rather quickly through next year. We will be exiting near $2 area, just like the last time we sold (Aug. 8th). This is a value play: the base business is worth more than the share price right now. In this regard, this is in a same situation as our BTYH.

Important lesson to remember: Never forget the stock after you make a sale. Too many investors sell a stock then forget about them until they catch it at a much higher price later in the news or something. That's when they all say "Doh!, I knew it!". The truth? No. you didn't.

Wish me luck.

P.S: Anyone regular but never send me a comment? Please use the comment section below and introduce yourself. I happened to know that there are over 700+ people who visited my site. Come on, let's at least say hi! Besides, how do I get my steak if I don't know you? Make sense? I hope there are no free loaders ... : )

Buy: PRZ once again

I am very tired - spent all morning getting all types of tests at the hospital in order to get prepared for the "stent surgery" scheduled for this Thursday. I will let you know how it goes once I wake up from the anesthesia.

The last time doctors put me under, I was lying on the surgery bed (made of steel), barely big enough for me to fit in (I have no idea how the fat people fit into those beds), lying quietly under the bright lights of the multiple headlamps above (as bright as the sun), naked (realizing that all six girls in the room will see my "goods" for free - although it is not in the best of condition right now), feeling very warm (some type of warm air was being injected around me-nice idea), the last conversation I remember was, "We will take care of you Mr. Kim, now, just count backwards starting from 99". Although this was my first surgery in my entire life, I've seen enough TV to know the drill. I said "sure", and started counting, " 99, . . . ". Let's just say I don't remember getting to 98. I was gone (can you say "sayonara"?). It was nice ...

You like me telling you stories, yes?
Back to business kids. The core fans of my site will remember Paincare (PRZ). We bought it in June at $1.29 and sold it in August at $1.98 for a gain of +52% in less than 2 months! Looking back, this was a move only genius would have made. It was selling yesterday for $1.02/share. So what? you ask? Well, it is time to pick this up again for a second serving. I was actually waiting for it to go below $1 but, I decided to not wait. I am not going to pinch pennies here. So here's the scoop:

1. Go back and check 08/08/06 blog for the last comment
2. Go back a bit more to get more info on PRZ
3. PRZ near $1 is a no brainer
4. I am not crazy about this business (pain management)
5. But this is definately worth more than a buck a share
6. PRZ is selling the unprofitable ambulatory care unit
7. This sale might close within days (stock will jump)
8. Someone is buying this at $1 non-stop, hmmmm...
9. Risk/Reward is awsome!
10. We will sell this again near $2 in a few months.
11. Any questions?

I am placing limit order to buy PRZ at $1.01/share tomorrow. You just wait until I have bought my shares before jumping in OK? Do not over pay - be patient.

P.S: The QID we bought (paid $51) for Acetrader portfolio will only stay for short term. As soon as it reaches our target of between $57-$59, we will exit quickly. I hope this occurs within the next two weeks. We will however, hold our latest buy GDX for a while - no target set yet. Isn't this exciting?

Sold: IGLD @ $10.36 Bought: GDX @ $40.18

As you know, I spent almost all day at the hospital.
Basically, making sure that I absolutely will need to place a "stent" in my kidney. Tests after tests ... and guess what, I do need to put the stent (small plastic tube) in my kidney. Tomorrow I will be going through some prep work prior to the actual insertion. The "D" day is this Thursday.

We have several good news to report:

1. Sold another half of IGLD at $10.36/share (gain of +95%). This has potential to go to $12 area, but the risk seem too high right now. Let's take most chips off the table for now and wait for better prices. Sell on the good news.

2. IDWD is kicking some ass! The shares are on fire as well. Anyone who took the risk to get into this, are being rewarded quite handsomely indeed. Carefully read below and decide for yourself.

ORLANDO, FL--(MARKET WIRE)--Nov 27, 2006 -- IDS Worldwide, Inc. (Other OTC:IDWD.PK - News) HLS has informed IDS that it will begin a multi-media campaign featuring the world's 1st Vista(TM) compatible biometric encryption flash drives and computer mouse beginning with the Wall Street Journal this Wednesday the 29th of November, one day before Microsoft(TM) releases its new Vista(TM) operating system to government and business customers, HLS and its worldwide marketing and distribution partner Worldwide Security Acquisitions, LLC (WSA).

3. Wooo, BTYH is coming around as well. Again, read the news:

KINGSPORT, TN--(MARKET WIRE)--Nov 27, 2006 -- Bad Toys Holdings, Inc. (OTC BB:BTYH.OB - News) (the "Company") announced today the filing by Southland Health Services, Inc. ("Southland") of Amendment No. 2 to Southland's Registration Statement on Form S-1 with the Securities and Exchange Commission. Southland, a wholly owned subsidiary of the Company, filed the aforementioned registration statement to effect the spin-off of Southland to the Company's shareholders. Larry Lunan, CEO of Bad Toys Holdings, Inc., commented, "The process of completing this spin-off has been a long and difficult journey. The Company appreciates the patience of its shareholders and continues to believe that the separation of the Company's two operating divisions will benefit each division as well as the Company's shareholders. If the registration statement is declared effective, the Company plans to give effect to the spin-off during the first quarter of 2007."
The Company's common shares have been trading with the Southland stock dividend attached since January 12, 2006. The Company will attempt to provide its shareholders with at least ten (10) days notice of the date that the Company's stock will begin trading "ex-dividend" (i.e. without the right to receive the Company's declared dividend of shares of the common stock of its wholly owned subsidiary, Southland).

4. We have decided to sell another half of our remaining shares of EXPEZ. I just placed a sell limit order at $7.70 or better. I think EXPE stock might come down with the market as well.

5. I will explain more in detail later: Acetrader just bought GDX at $40.18/share today. This is as much an insurance as for possible capital gains. Buy GDX.

Traders: A beautiful day for our short BIDU position today. This is the beginning...

P.S: The market suddenly looks nervous. And I think this is only the beginning. Please be careful buying at this time. The best vehicle for times like this are: QID (Remember, this was our lastest purchase: we are already making good $ on this) and GDX (When U.S. dollar is weak, gold related stocks are place to be).

PPS: Acetrader portfolio just hit an all time high! (update will follow).