IDS Worldwide Inc.
Last Friday Microsoft (MSFT) dropped a bomb in the Wall Street by announcing that its profit will be less than previously expected estimates. They blamed Google (GOOG) saying that it will have to spend more money to effectively combat with Google. (Oh really?). Basically, Google is kicking everybody's ass. And I like it! More competition is always good for the whole.
Obviously this made the whole stock market nervous. Microsoft is so big that when it goes down (down over $3 per share) it takes the whole market with it! Let me put it to you this way: Bill Gates alone owns over a billion shares of MSFT. This means that last Friday, Bill kissed goodbye to about $3,000,000,000.00 (that's billion) U.S. dollars. Bad week for him I say. This teaches us one thing. Never put all your eggs in one basket. Go back and read my notes on units. We all need to build about 12 units for safety and performance (minimize unsystematic risk). Don't worry, the market will recover in a few days...
One of our holding (the most risky) IDS Worldwide (IDWD) just announced that it will delay record date for the special dividend to May 5th. For details go back and re-read my note dated 4/17. The company will spin off its Home Land Security (HLS) division and we will receive this special dividend. In addition, it will spin off its 995ad.com (please visit this site) division through an IPO (Initial Public Offering). Shareholders of IDS will receive 1 share of 995ad.com stock for every 3 shares of IDS stock we own. By the way, the initial price of the IPO will be $5 per share!
If you are smart and do the math, IDWD is trading at a significant discount. Why? Because investors are still wary about the management. Can they actually spin off HLS division? Can they actually complete the planned IPO? Are they even telling us the truth? etc. etc...
When large corporations like Enron, MCI and Tyco lie to us, how can we trust small company like IDS? The answer is we will never know. That's why we do not put all our eggs in one basket remember? And that's why this stock is selling at $1 instead of $2 or even $3 per share. Do I like the risk/reward ratio? Yes.
I bought some more today at $1.03/sh. Now, I have a good amount of chips riding on this. My average cost was $0.70 but due to today's buy it went up to $0.84/sh. I also have a limit order to buy more if this goes down to $0.85 in the next few days. I kind of wish that it does. Remember, that this is a risky bet. I know it and now you know it (I just told you).
Having said that, when was the last time you made decent money without the risk?
RICK (my largest holding) just hit a new all time high at $7.15 per share. Wow!
The earnings will come out on May 15th. I can almost guarantee you that it will have a record earnings. The stock will pop. During the last month, it passed $5 and $6 mark. Today it passed $7 mark. Would you believe me if I told you that during May this will pass $8 mark? I have wrote about RICK so many times that if you do not own this - shame on you. If you are simply a spectator then watch and root for us. This is really exciting. I even gave you the address of its NYC location so that you can visit and sample the fun (4-star steak house with gorgeous girls).
I am just too sexy for my shirt.
P.S: I will be climbing a mountain tomorrow morning. I will be back by 2pm.
Obviously this made the whole stock market nervous. Microsoft is so big that when it goes down (down over $3 per share) it takes the whole market with it! Let me put it to you this way: Bill Gates alone owns over a billion shares of MSFT. This means that last Friday, Bill kissed goodbye to about $3,000,000,000.00 (that's billion) U.S. dollars. Bad week for him I say. This teaches us one thing. Never put all your eggs in one basket. Go back and read my notes on units. We all need to build about 12 units for safety and performance (minimize unsystematic risk). Don't worry, the market will recover in a few days...
One of our holding (the most risky) IDS Worldwide (IDWD) just announced that it will delay record date for the special dividend to May 5th. For details go back and re-read my note dated 4/17. The company will spin off its Home Land Security (HLS) division and we will receive this special dividend. In addition, it will spin off its 995ad.com (please visit this site) division through an IPO (Initial Public Offering). Shareholders of IDS will receive 1 share of 995ad.com stock for every 3 shares of IDS stock we own. By the way, the initial price of the IPO will be $5 per share!
If you are smart and do the math, IDWD is trading at a significant discount. Why? Because investors are still wary about the management. Can they actually spin off HLS division? Can they actually complete the planned IPO? Are they even telling us the truth? etc. etc...
When large corporations like Enron, MCI and Tyco lie to us, how can we trust small company like IDS? The answer is we will never know. That's why we do not put all our eggs in one basket remember? And that's why this stock is selling at $1 instead of $2 or even $3 per share. Do I like the risk/reward ratio? Yes.
I bought some more today at $1.03/sh. Now, I have a good amount of chips riding on this. My average cost was $0.70 but due to today's buy it went up to $0.84/sh. I also have a limit order to buy more if this goes down to $0.85 in the next few days. I kind of wish that it does. Remember, that this is a risky bet. I know it and now you know it (I just told you).
Having said that, when was the last time you made decent money without the risk?
RICK (my largest holding) just hit a new all time high at $7.15 per share. Wow!
The earnings will come out on May 15th. I can almost guarantee you that it will have a record earnings. The stock will pop. During the last month, it passed $5 and $6 mark. Today it passed $7 mark. Would you believe me if I told you that during May this will pass $8 mark? I have wrote about RICK so many times that if you do not own this - shame on you. If you are simply a spectator then watch and root for us. This is really exciting. I even gave you the address of its NYC location so that you can visit and sample the fun (4-star steak house with gorgeous girls).
I am just too sexy for my shirt.
P.S: I will be climbing a mountain tomorrow morning. I will be back by 2pm.
posted by Jaewoo | 10:14 PM
4 Comments:
Jae:
Thanks to your advice I got in to RICK at $4.61. I can't wait for it to hit $8! Let me know when is a good time to get out.
UTK seems to be another winner - it's behaving very much like RICK. I will try to get in soon.
Hey Jae,
Checked out Rick's afterthe draft saturday night. i had the Veal and my friend had the steak, the food was good. and the view overlooking the stage was fun.
Girls were ok this night, drinks were crazy expensive ($16 for a soda and a bud)
As you know my wife has RICK in her IRA so it is a goodthing it is acting strong.
Ross
Dudes:
The most common mistake made by investors is selling too soon. I will write about this on the blog. Just hold on until I say so. Don't call me greedy but I am waiting for double digits...
Johnny: I hope you are right about UTK.
Ross: Thank you for sharing the info. Drinks were crazy expensive at RICK? I hope so. This is how we make money. Selling something that cost 10 cents to people for $10.
Your website has a useful information for beginners like me.
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