April showers ...
"April showers brings flowers"
I don't even know who said that; I just remember the quote.
The market has been quite hot.
We are hitting highs for the year. Most of you made money (in stocks, mutual funds and IRAs) in 2006. The intersting thing is that some stocks were badly damaged but the market in general went up. We are probably near the top short term. After a quick April shower (stocks down) we will see flowers (stocks up), we probably have one more run before hitting the actual top. We must get busy since easy money has been already made. (Read my last blog dated 3/31). It is going to get a lot tougher to make it out there. I am up to the challenge however. Saty tuned.
Lesson #2:
Q: Trading stocks and going to the casino; Isn't that the same thing?
A: Yes and No. If you blindly put $ into stocks (wager) because Dick said it will go up, then you probably have worse odds than the casino. If you understand the business, know how much is the whole business and realize the relative value of that business, you have better odds than going to the Ceasers ( I love casinos by the way).
OK, OK, let me make it easier. If somebody offered you a 2 bedroom condo for say $250,000 would you buy? If yes, what would you want to know before you actually pay? 1. Where is it? (trust me this make a hugh difference) 2. Is it in good condition? 3. What price do other 2 bed condos go for in that area? Let's say that the condo in question is in New York City, 32 street East side, decent condition and other condos go for $700,000 in the neighborhood. Now, would you still say this is like gambling?
Two days ago, a good friend of mine said EGLY is a god buy. Asked for my opinion. He actually did some homework. There are about 10 million shares (info from yahoo), selling for $1.25 per share (used to be $0.35 back in January), owns a clothing factory in China (nice) and most importantly, actually made money (cash I mean) last year in the tune of $1 million net profit! All this info from him, great! Interesting! I went digging ( I want a piece too) ...
Turns out, the company actually has 20 million shares (yahoo was wrong). Now this make a hugh difference. EGLY company is now worth $25 million instead of $12 million I originally thought. The story gets better, there are also 7,500 preferred shares (80% owned by Mr. Kang the CEO and 95% owned by the executives) which are convertible into common shares at 1 for 7,600 shares. What? 7500 X 7600 = 57 million common shares! I don't know when but they will definately convert the shares. 1 preferred shares into 7,600 common shares. The stock was as high as $3 back in January (some suckers lost a lot of money in this) now goes for $1.25 (hmmmmm...). I prefer to wait and see this one. It is not as cheap a stock as I thought (there never are). People can still make $ in this type of play. I once knew an idiot who made thousands in the casino too.
I like the big potential in EGLY but not for me just yet.
P.S: Buy MATK. I will write about this one soon. Chow.
I don't even know who said that; I just remember the quote.
The market has been quite hot.
We are hitting highs for the year. Most of you made money (in stocks, mutual funds and IRAs) in 2006. The intersting thing is that some stocks were badly damaged but the market in general went up. We are probably near the top short term. After a quick April shower (stocks down) we will see flowers (stocks up), we probably have one more run before hitting the actual top. We must get busy since easy money has been already made. (Read my last blog dated 3/31). It is going to get a lot tougher to make it out there. I am up to the challenge however. Saty tuned.
Lesson #2:
Q: Trading stocks and going to the casino; Isn't that the same thing?
A: Yes and No. If you blindly put $ into stocks (wager) because Dick said it will go up, then you probably have worse odds than the casino. If you understand the business, know how much is the whole business and realize the relative value of that business, you have better odds than going to the Ceasers ( I love casinos by the way).
OK, OK, let me make it easier. If somebody offered you a 2 bedroom condo for say $250,000 would you buy? If yes, what would you want to know before you actually pay? 1. Where is it? (trust me this make a hugh difference) 2. Is it in good condition? 3. What price do other 2 bed condos go for in that area? Let's say that the condo in question is in New York City, 32 street East side, decent condition and other condos go for $700,000 in the neighborhood. Now, would you still say this is like gambling?
Two days ago, a good friend of mine said EGLY is a god buy. Asked for my opinion. He actually did some homework. There are about 10 million shares (info from yahoo), selling for $1.25 per share (used to be $0.35 back in January), owns a clothing factory in China (nice) and most importantly, actually made money (cash I mean) last year in the tune of $1 million net profit! All this info from him, great! Interesting! I went digging ( I want a piece too) ...
Turns out, the company actually has 20 million shares (yahoo was wrong). Now this make a hugh difference. EGLY company is now worth $25 million instead of $12 million I originally thought. The story gets better, there are also 7,500 preferred shares (80% owned by Mr. Kang the CEO and 95% owned by the executives) which are convertible into common shares at 1 for 7,600 shares. What? 7500 X 7600 = 57 million common shares! I don't know when but they will definately convert the shares. 1 preferred shares into 7,600 common shares. The stock was as high as $3 back in January (some suckers lost a lot of money in this) now goes for $1.25 (hmmmmm...). I prefer to wait and see this one. It is not as cheap a stock as I thought (there never are). People can still make $ in this type of play. I once knew an idiot who made thousands in the casino too.
I like the big potential in EGLY but not for me just yet.
P.S: Buy MATK. I will write about this one soon. Chow.
posted by Jaewoo | 9:29 PM
1 Comments:
Nice idea with this site its better than most of the rubbish I come across.
»
Post a Comment
<< Home