Utek (UTK)

As most of you know, every other Monday is my chemo session at the Memorial Sloan. Before the chemo is given, they always draw my blood to check if all is good to go. For the last seven months I've been on the chemo, there was no major problem. But today was different. My white blood cell (this is your disease fighting cells) count is below the range where chemo can be given safely. Basically this is not a good news. Doctors want to give me another injection with a drug called Neupogen (by Amgen (AMGN)) to boost my white blood cell count. The side effect? Pain in your bones (that's where white blood cells are produced). Nice.

For the next week or so, please do not call me before 9:00am.
I might even have to skip my daily blogs to maybe every other days.
I need a major rest. The truth is that I have been keeping myself very busy the last two weeks. You should know that I sit on the board of KCS (Korean Community Services of NY). Our annual budget is in the millions. We recently acquired a property where it serves as our head quarters. Because the building is not being used during the weekends as much, we have chosen two start-up churches to use it to establish themselves. Basically, I've been busy and this is obviously having an ill effect on me. I need a rest.

If you have been following my blog carefully, you probably know that I refer to two of our stocks as an "A" students. One is RICK and the other is UTK.
I also said that if any of our stocks will hit $100/shares in the future, it is going to be UTK. I have my reasons for saying that. UTK is growing like mushrooms. It is aquiring new startup companies almost every other week! The hidden value is growing and investors are beginning to notice! Today alone, UTK went up +10% with six times (6X) the normal volume!
Trust me, someone out there knows something.
UTK is $1 away from being all time high (similar to our other "A" student RICK). It will no doubt hit all time high in the not too distant future and then some.
Own UTK if you can.

Just ask yourself, how many stocks are hiting all time high in this market? Not many. These are special group of companies. These are the types where it will out perform the market when the bulls finally arrive. And remember, the bull is just around the corner. Most people just don't see it.
I can smell the bull - it smells pretty good.

Rick's Cabaret (RICK)

I hope you had a beautiful weekend.
I certainly did. My usual Saturday mountain hiking was not usual at all. The trail was quite chellenging and when we came back down there was Korean BBQ waiting for us. By the way, if you do not know what Korean BBQ is like, I feel bad for you. Simply visit your nearest Korean restaurant and order either Bulgoki (fire beef) or Kalbi (BBQ ribs). I have yet to find a person who didn't like Korean beef dish. Try - take a chance.

Acetrader's largest holding, RICK, just hit a all time high!
It closed Friday at $7.72/share. Those of you who own it, congratulations. Those who do not - you simply can not say you didn't know. I have been repeating myself over and over why you need to own this. Besides, let the numbers speak for themselves - RICK is our largest holding. Why do you think? I believe in the growth story of RICK.

Last Friday, I was at the Rick's cabaret (NY location on 33rd street & 6th Avenue) having lunch with my fellow shareholders (small, quick shareholders meeting you might say). First, the lunch itself was great. I had salmon (medium-rare) and others had steaks (also medium-rare). The bottom line is this: having great juicy steak, sitting right in front of plasma TV (watching the ticker tape) while numerous beautiful girls dancing around you - simply can not hurt. We had a great time. Most importantly, I do not feel bad spending few dollars there because it's my money too. Girls told me the business is great (I am always doing my homework). This girl that sat next to me (Anna) told me that she worked at Rick's since February and that she would not work anywhere else (she had a college degree too). I advised her to own Rick's shares. She brought her pen and paper to write down how to open a brokerage account. I think she will be our fellow shareholder as well. Let me tell you one last time. RICK will not be trading at this level for long. I am looking for it to be in the double digits soon. Watch me.

Two or three days ago, I told you that I am eyeing on XM Radio (XMSR). Everyone hated this stock. I said we need to buy this if it goes down any further (it was at $10 and change). Well, guess what. Friday it closed at $12.67 (up 16.37% in one day).
Do I have a nose or what?
Sometimes I can smell these things. My gut feeling told me that XMSR at $10 or better is a deal. Do you want me to tell you my other gut feeling on this? Well, my gut tells me that XMSR will be in the $20's soon. I will tell you when the time is right to enter in this deal. Let's be patient.

My open order for MIDS still have not excuted. But it came close. You know that my order was for $1.51 Limit GTC. Friday it traded between $1.70 and $1.52. Ouch, I missed it by a penny! Now guess what - I will be lowering my limit price to $1.41/share. I think I can buy it at this price. I am not in a hurry. Bottom line: my initial buy order will be changed to 4,255 shares to buy at $1.41 Limit GTC (good-till-cancel). Adjust accordingly...

Have a wonderful Monday. I will be at the Sloan to receive my chemo session.
P.S: Buy IGLD: it is trading at a discount at $4.30/share.

Big Picture

July of 2006 is almost gone (it went fast -didn't it?).
Now I have seen enough of earnings reports (2nd quarter) from various companies and I have also witnessed how stocks reacted to those earnings to form an opinion.
You are not going to like my assesment of the market (I personally think it is great). The market will go down again.

Let me give you the big picture:
2006, the U.S. stock market started with a bang. We had a beautiful gain in the first week. Thereafter, the market basically went up slowly (and stright up) until the first week of May. That was the high point in 2006. From second week of May until last week stocks went down fast (and stright down). You probably don't remember this but the market went down so fast that in two (2) weeks (by the third week of May) stocks lost all of its gains for the year. Now the major indexes are negative for the year. This week, stocks tried to come off the market low and so far it looks great. But I feel that we have not seen the real low of 2006 yet. Which means we will go down again. Now, do you get the feel for this year thus far?

Regular readers know that I have always said that the 3rd quarter of this year will be the low. I have also said that the 4th quarter will be the best quarter of this year (see my past notes). If my assesment is right, you should be happy knowing that you will get a chance to buy stocks at a discount soon. Of course the safest thing is to get out of the market now.
But here's the problem with that: When will you get back in? How will you know that that's the best time to jump back in?

Over time, earnings drive the prices of securities (stocks).
As long as our stocks are making money, I am not too worried.
I understand that even profitable, good stocks go down in a bear market, but they jump right back up when the market turns. And usually, investors miss the ride - up.
Bottom line: Get your ammos ready now!

As per my notes yeaterday, XMSR reported 2nd quarter numbers this morning. Basically, revenue went up more than expected ($228 million) but earnings were lower than expected (-$0.87 per share). XM added close to 400,000 new subscribers in the quarter and now expects about 8,000,000 (that's 8 million) subscribers by the end of 2006. Wow. I personally think that's not bad - not bad at all. And the stock is off 66% this year! Talk about discount!
Bottom line: Acetrader likes it. We will buy it soon.
This one is also a potential double within 12-18 months -Not bad either.

My order for Midastrade.com (MIDS) did not excute yet. I think we need to be calm and cool with this one. Do not chase it. My gut feeling tells me that within a few months, something big will happen with this. I am going to slowly accumulate this one. You should too.

Midastrade.com (MIDS)

I told you yesterday that I will be seeing my surgeon (she operated on me) today for a check up. Well, let's just say that my behind got a major lube job today. Basically I need to go for additional tests to make sure everything is alright (such as CT scans and colonoscopy etc.). I guess more tests will be good for me. I'll just have to bend over...take it like a man...

First, my order was excuted this morning per my last note. OIH was sold at $141.31/share. Up +8.3% in three (3) days (100 shares x $11 gain = $1,100.00). OIH was as high as $144.45 today. Well, my rule is simple. If you can make $1,000.00 in a few days, take it.
Simple rule indeed.
And don't worry, I will revisit OIH again. I love OIH.

Second, XM radio (XMSR) will be reporting earnings tomorrow at 10am. You will see some action. I expect the earnings to be disappointing for wall street guys. But since the expectation is low already, anything can happen. If the earnings per share comes any better than -$0.66/share and revenue at $221 million or better, the stock will jump. Otherwise it may fall. If XMSR falls significantly from here ($10.36 now) I am buying. Let's watch.

Third, I just placed a limit order to buy MidasTrade.com (MIDS) at $1.51 or better. It closed today at $1.60/share. I will be writing about this one tomorrow. For now, just know that MIDS will link (direct trade of stocks, futures and options) the United States and Korea. I personally think this is big news. However, no one knows it yet. The average volume in the last 90 days is less than 10,000 shares per day. I am willing to bet that soon this volume will surge. I am going to slowly work myself in (my order was for 4,000 shares at $1.51). If price falls, I will add more. If it goes above $2.00 then I am buying my full lot. Go visit their website and do your own research as well. Just know this, Koreans do not pay taxes on stock gains!
And they trade like there's no tomorrow : )

P.S: Did you know that Korea ranks #1 in the world in terms of broadband internet access?

Oligopoly

Early tomorrow morning, I will be meeting with the surgeon who operated on me (removed 1 foot of my large intestine - but don't worry, I still have about 4-5 feet of it left) to check my ass. Lately I had to visit my bathroom too frequently. Basically, the brain (my brain) does not understand that there is one foot of colon missing. In any case, I am not looking forward to my doc (lady doctor no less) probing into my anus tomorrow morning. Wish me luck.

Remember that I purchased OIH at $130.31 two days ago; it closed at $139.46 today. Please note that I have placed a limit order to sell at $141.31/sh. When this excutes it will yield +8.4% return in a few days - not bad I'd say. Once in a while, I will take advantage of the market to get a quick return in a few days to supplement my overall portfolio return.

Regular readers know that I love monopoly business (hard to find though). The next best thing is oligopoly (just as powerful - still hard to find). The oligopoly busines that I am interested in is non other than satellite radio services. There's only two players - thus an oligopoly. XM Satellite radio (XMSR) and Sirius Satellite radio (SIRI).

I have made good earnings in XMSR two years ago. XM was my choice between the two all the time. Until Sirius started to really push the business. XM always had more subscribers than Sirius (double actually). XM still have double the revenue but half the market cap. This will not continue. The reason I am interested now is because both XMSR and SIRI came down in price where it looks ripe to pick (didn't I tell you that there's too many bargains out there?).

Check out the two players:

XMSR: $10.88 X 258 million shares = $2.8 billion dollar company. It has $663 million in revenue so it is trading at 4X sales. It has about $520,000,000.00 in cash.

SIRI: $3.92 X 1.4 billion shares = $5.5 billion dollar company. It has $325 million in revenue so this one trades at 17X sales. It has about $721,000,000.00 in cash.

By the way, satellite radio business is real - it is here to stay. This is not a fad. It is like a GPS system in your car. Once you have it - you have to have it - there you have it.
I believe both company will prosper but if you had to buy one, which one?
Would you pay $2.8 billion for $663 million in sales? or pay $5.5 billion for $325 million in sales? Yes, I know that people think SIRI will grow faster than XMSR because of Haward Stern but are you serious? Which would you buy?

I will tell you my pick when I issue a buy signal.
I am definately buying one of these.
Isn't this fun?

P.S: Both of these are potential double in 12-24 months. Nice!

Q & A session

You should all get excited.
I am working on a new investment ideas that will wet your pants!
Within a week, when I am done with homework, I will present them to you. Most of you will probably say this after reading my notes: " You, -- you, good you, No, ---no, you're good!".
Get your ammos ready.

Today I will answer readers questions. It should help.

Q#1: What do you think of RCHN, Rouchon Industries Inc.? Recently announced a 400% Increase in Year-to-Date 1st Quarter Earnings.Worth getting into?

A#1: No. Did a quick check. RCHN is, an investment holding company, operates as a precision elastomeric and polymeric fabrication company in Singapore, Indonesia, and the People’s Republic of China. They are in a business that is very competitive and RCHN is a small fish within the low margin industry. The stock can jump here and there but there is no fire behind the story. Better wait for other opportunities. By the way, RCHN just dropped -24% today on 10x times normal volume - no news for this action. AVOID for now.

Q#2: EXPEZ-Why didn't my trade execute?I'm sure this is stock trading beginners 101, but I put in a limit order on EXPEZ today for 238 shares at $4.00. The stock went down to $3.98, with a volume of 4,472 shares traded.Why didn't my trade execute; i.e. the stock went below my limit price?

A#2: First of all, you are smart to place a limit order on this. Sometimes due to bid/ask spread your trade might not go through eventhough there were 2 penny difference. Out of 4,472 shares traded today, 2,000 shares were traded at $4.11 on 3:33pm and 2,472 shares traded at between $4.16 - $3.98 on 10:22 am. It is possible that only few shares were actually traded at $3.98 and you were behind the que. Most of it were traded at $4.16 I believe. By the way, I have a limit order to buy at $4.01 and mine did not excute either. If you really want this, place an order a penny or two above me. In the end, few pennies will not make a difference. Hold on to your shares once you get'em.

Hint: When placing an order, try not to use round numbers. Most people like to do this - we try to be different. For example, do not place $4.00/sh order, instead place $4.01/sh. There's no logic in this except that I try not to go with the mass. Yesterday, I bought OIH at $130.31/sh. I love odd numbers like that : )

Oil Services Trust (OIH)

As most of you know, investing requires patience.
I happened to have quite a bit of patience and I hope you have too. The current market situation calls for such skills. Yes, being patient is learned skill set. With some of our holdings, we really have no choice but to be patient anyway.

I placed a limit order to sell half of my PRZ shares and it excuted this afternoon at exactly $1.75/share. As I have said before, I decided to sell half because the momentum on PRZ was lost and there are share dilutions expected near term. Having said that, I still like the company and its business - like it enough to hold half position still (for me that's 7,000 shares). Yes, I know that we could have sold it at $2.25/share but we did not. Therefore, I only have about +33.5% gain on this one in less than two (2) months. : )

There are now too many stocks on my buy list - I don't know what to do. In the mean time, while I am waiting, I used proceeds from the PRZ sale to buy Oil Service Trust (OIH). Now, you probably remember that we made some money with OIH previously. We sold it at $165.11 back in May 11th.
I just bought 100 shares at $130.31 this afternoon.
Let me remind you again that you can not buy less than 100 shares of OIH. The minimum is a 100 share lot. Other than that, this is a great basket of Oil related stocks. I like every company in the OIH basket.
I love OIH.

If you still have not bought IGLD this is a good time to add.
Tonight Israel will invade Southern Lebannon with ground troops and tanks. Many people think this is going to be one terrible war.
I disagree. This conflict will end swiftly.
This situation will not have lasting effect on IGLD business in Israel. In fact, it might help. There is no better way to be connected to the rest of the world than through the internet. Internet related business in Israel will boom.
Trust me, you want a piece of that.
See my previous write up for more info on IGLD.

Two days ago, I was able to buy some more of EXPEZ at $4.01/share. As you can see, I am adding to my position while lowering my average cost. At these prices I will keep adding to my position (I can't find a seller these days). By this Christmas, do not be surprised to see me on vacation with money from EXPEZ.

Have a great weekend!

PRZ

As per my note yesterday, I am placing a limit order to sell half of my holdings at $1.75/share. Please execrcise caution by not placing market order especially if you own many shares.
Again, I am selling half of my position (7,000 shares) at $1.75/sh limit.
Have a good day!

Sell PainCare (PRZ)

I am having a tough time with my new chemo drugs.
This is just a part of package I have to live with. Overall however, I am doing great! Thanks again for those who are praying for me. Do you know why I appreciate praying?

Money lost can be earned again.
Time passed will never be captured again!

When you pray for someone, you are spending your precious time for that person. Time is the most valuable asset we have. How you decide to spend that limited time is how your life will unfold before you. Spend it wisely.
You have no time to waste by being upset with someone.
You only have limted time to love someone.
Spend it wisely because you may have alot less than you may think.

In investing, time is also the most important variables.
The beauty of componding does not work without sufficient time. All risks are reduced if you have more time. "Time value of money" is the main concept taught in MBA programs. So simple yet so many people do not really comprehend.
Make sure you value your time.

Although PainCare (PRZ) is doing a fine job of growing the company, it is about to get some dilution through more shares being thrown in the market. Our average cost is $1.29/sh and some of you have even lower cost basis on this. I will be selling using limit orders starting tomorrow. The stock closed at $1.73 today. I suggest you do the same. I have decided to lock in my +33.5% gain on PRZ.

If you do not own RICK, buy some now before it runs away from you.
The action in the market was terrible today.
There are some great companies at fire sale price now.
Let's be patient for now.

Summer Rally ?

I could not type.
This past Monday my oncologist & I decided that we needed to change my chemo drugs. For those medically inclined, I was on FOLFOX program (mix of 3 different drugs). Besides the normal side effects of chemo ( tiredness, nausea, loss of appetite etc.) FOLFOX also makes your hands and feets numb. It effects your nerve endings. When I go hiking, I could not feel my steps, when I try to type I was pushing all the wrong buttons, I could not use my cell phone because my fingers were pushing wrong numbers. And this was only getting worse. Time for a change.

Two days ago I started on a new drug mix called FOLFIRI (almost same cocktail but one different drug: Irinotecan instead of Oxaliplatin). Now this new drug comes with different side effects - stomach aches & diarrhea. Nice.

With all these things happening, I have no time to get bored. Internally (my body) and externally (the world) is in a state of WAR! And I am fully enjoying the fight. Because I happened to have an idea how both will end. (Did you know that the average survival rate for people on either FOLFOX or FOLFIRI chemo is about 15 months?) Anyone interested in learning more about any of above information, just google the key words like "FOLFIRI".

Back to business: Every year about this time, we get a summer rally in the stock market. This is similar to the Santa Clause rally in the winter. So, are we going to get one this year? Things look very bad but I think we might just get one. Why? Because no one is expecting one. The market has a beautiful ability to kill weak hands - amateurs. Do you know how many people I know have said " I will never invest in stocks again - its a fixed gamble - I am out! ".

Last week I told you that the market is oversold and that this week we will have a bounce. Well, do you see what I see? Buyers are slowly coming in. Monday the Dow went up a hair, Tuesday (yesterday) the Dow went up 0.62%, Wednesday (today) the Dow will probably go up even further. Let's see. It is now 6:41am on Wednesday (working hard early in the morning).

My largest holding RICK is acting like an "A" student.
It is now trading quietly in the $7 area. I bet you that you will soon see $8 on this baby. By then those of you who did not go in at $4s/$5s and even $6s will feel terrible. Don't you agree that during this very difficult times in the market RICK is acting nicely? Just imagine when the market turns positive! Wooo - I am getting the chills...

I have not expressed too much about our other "A" student. His name is UTEK (UTK). This company is doing so well that it is almost approaching our "target" price already. A few months ago, we bought this at $14.35/sh. My target for this was about $24/share then. This will definately get there this year ( nice return huh?). In fact, I might just raise my target on this baby soon. I just love what this company does. And they are doing it well. Go visit www.utekcorp.com for your viewing pleasure. If there is any stock that we own which could hit $100/share in the future - it is UTK. Read my past notes on this.

Mr.Bernanki is talking today in the senate about interest rates.
Oil is moving up but OIH is not following yet. (I love OIH).
Gold is taking a breather.
The market will bounce.
Have a nice day.

Naked Short Selling

The market is in a major down turn.
Normally I write my blog at night after the market close but today I am at my desk at 11:30 am. As you see, I too am a hard worker : )
The Dow just fell over 400 points during the last few days.
There is blood in the street.
But I think the market is oversold in the short run. Technically, we should see the bounce next week (give people a weekend to come to senses). Unless there is major international crisis (which is always a possibility), we should see the market going up next week. So why such a negative sentiment in the market you ask? Let me give you few reasons:

1. North Koreans are firing (testing) long range missiles (bad)
2. Iran is developing Nuclear Weapons (they are not going to stop)
3. India just had a terrorist attack killing few hundread citizens (real bad)
4. Iraq is in the middle of civil war (very messy)
5. Israel is fighting with two countries (this is serious)
6. Nigeria is having oil supply problem (fire, what else?)

President Bush is in Russia to discuss above problems with fellow G8 members (wooo!). So what is the bottom line? Actually, this is playing out exactly as I thought. It's just that it came a bit too soon. All this will end in the third quarter. We just have to be strong for a few months. Let me offer you my predictions for your amusement sake (this is expensive stuff):

1. North Koreans have nothing (no big deal)
2. Iran will have to scale down (economic sanctions maybe?)
3. India's stock market went up after the bombing (terrorist? so?)
4. Iraq is going through a natural growing pain (freedom is new to them)
5. Israel will cease fire soon (if they want - they can kick some ass)
6. Oil problem is actually a supply/demand issue (price will head up)

All in all, no major disaster. I am looking forward to the 4th quarter.
Get your fire power (money) ready and start buying as prices fall. In a year or two, you are going to look pretty smart. RICK - my largest holding looks quite healthy. The next earnings report will blow away estimates. If you do not own yet, it is not too late - buy now.
You can also buy IGLD & EXPEZ cheaper than I did. IGLD is based in Israel - now you know why you get the chance to buy this on the cheap.

Finally I would like for you to understand how naked short selling works (it should be illegal). This is very educational and intelligently made - please forward it to your other friends for review as well. The link is as follows: http://www.businessjive.com/nss/darkside...

Have a beautiful weekend...

P.S: Those who are familier with the stock market and warrants I have one challenge for you. Expedia (EXPE) is now at $13.50/sh. EXPEW is at $1.7 (ask) and EXPEZ is at $4.3 (ask). Which is a better deal? Why did I buy EXPEZ instead of EXPEW? Can you explain the difference? I welcome the answers in the comment section.

More shopping: EXPEZ

Unfortunately for me, I was quite sick yesterday.
I stayed in bed for almost 24 hours. High fever, stomach pain, feeling weak - you know the drill. Tuesday night I could not sleep (slept for maybe 2 hours) then on Wednesday, I went mountain hiking early in the morning. When I came back home, I fell down on my bed and stayed there for the next 24 hours. The thing is, sometimes I forget that I am a sick man. Going through a chemo therapy (now for 7 months) is no walk in the park. Maintain your health when you are healthy.

Most of you know that my dad is a doctor. I have many useful medical information and I will give you one now. I remember when I was a little kid, I used to go into my dad's study and read various medical books (mostly studying the gruesome pictures). Lets just say that I have above average medical information.

We all need sleep.
Without sleeping 1/3 of your life, your 2/3 will give you problems. Basically, your body goes through hugh amount of activity during the day (internally) and it needs time to re-group for the next day. Most importantly between 1-3 am, your liver collects blood to filter it (cleaning) and replenish it with necessary enzymes to collectly do its job the next day. By the way, did you know that your liver is the largest organ in your body? If you are still up at 2am, even if you sleep for 8 hours, you will still feel tired (your blood has not been cleaned entirely). Your body is designed to rest when sun goes down (dark) and be active when sun comes up (light). Try your best to keep that schedule if you want your body to serve you right.
I've learned my lesson once again.

Back to business: We will see the bottom (new low) sometime in this quarter. Which means the general market will go down before coming back up. You have two choices: sell every thing and stay with cash or buy things that you think is of value. As you guessed it, I am staying with the second choice. Why? Because I always miss the boat on the way up.

For example: if you think that "Apple (AAPL)" is worth $80 and you bought it at $60 but it falls to $50; are you happy or sad? Most people get upset that they lost money (paper money) but they really should be happy - now you can get it even cheaper (higher potential profit).
Does this make any sense to you? Or is it me?

Today I bought more of EXPEZ ($4.24) and IGLD ($5.05).
This action is called "averaging down".
I still expect that EXPEZ will hit my target price of $9.60/share. And I was able to pick it up at $4.24 today (I am happy). The bottom line is that Expedia (EXPE) is the largest player in the field and they are coming out with some fancy vacation packages that I think people will appreciate. This is a great time to pick up some EXPEZ.

As one of the readers of this blog stated "IGLD might have few days of weakness", I agree and I bought half my usual amount initially and today I bought more. Who said you can not buy more? IGLD offers value and I see it.
Now, I just hope that others see it as well.

Both PRZ and AUTO went down over 10% each. Don't worry, no bad news other than few big guys are selling shares in PRZ for whatever reason (money for vacation maybe?). As you know, I go with available information. And the infomation is saying - Hold on...

P.S: For my day trading account I just bought Stamps.com (STMP) at $21.55/sh. This is too risky for most of you. If you are interested, look it up yourself. I am looking for a quick 10%. Either way, I am out in a few days (this does not get included in our investment portfolio).

Big picture 2006

The earnings season is here.
Starting this week, companies will report their second quarter numbers. Overall, the numbers will look good compared to previous numbers. However, that does not mean stocks will go up automatically. The important thing is to understand the "big picture" (refer to my note dated 5/10). If you agree with my analysis on the market, you will not be scared off like most other investors (amatuers).

I forgot which day it was but I have painted an overall assumption of 2006 stock market trend for you in this blog (it's in there - you just have to find it). For your benefit, let me give you the short, dirty version. During 2006:

1st quarter: up a few percent
2nd quarter: down a few percent (erasing the previous gains)
3rd quarter: will hit the bottom & start moving up
4th quarter: up - double digit percentage gains (best quarter)

So for the entire year of 2006, we will probably see a small gains overall.
This was and is my own assumption based on many variables like: seasonal & political movements, interest rate movements, the general economy and others.

By the way, this is also the reason why simply holding an index fund does not work in 2006. Let me be clear - generally, I do recommend index funds for those who are not active investors. Mutual funds are too expensive - they charge too much for no reason. I much prefer exchange traded funds (ETF), which is a topic for another day.

Now, let me answer some readers questions.

Q.#1: Any idea what a good price to buy at would be (IGLD)? Looks like it is going to have a few days of weekness ahead.

Answer: You are pretty sharp to notice that IGLD might have few days of weakness ahead. I just bought a few thousand shares at $5.40 today. Anything in the $5 range is a great buy. I just hope that you do not miss a chance by trying to squeez out few cents. Let me remind you that this is a 12-24 months play (or until we hit our target of $12/share). At that time, few cents will not matter much. I just want in. Thanks.

Q.#2: Please refer to July 9th comment section - too long to print.

Answer: If you are too busy to read my blog (usually takes less than 5 minutes to read - it takes hours to write though) then you should not actively engage in investing - period. Please refer to my very important note dated April 25th titled "Portfolio for the 21st century". That report contains all my knowledge sumed up in a simple (too simple it seems) menu. Once again, that non-active portfolio will beat 80%+ of all investors for the next 10-20 years (now you can thank me).
In addition, I know I am being clear when I say that I am buying or selling. I placed a limit order to sell IDWD at $0.97 (per my blog) and it excuted. You can place any amount you wish to excute at. If you wish to sell or buy before me, then place it a penny lower or higher than me. It's that simple. Just know that I do not care for small changes.
Lastly, when I say you should hold as many stocks in your portfolio compared to AceTraders portfolio - of course I mean you need to buy. Very few will beat my performance by trying to pick & choose; remember, I already picked and chose.

I chose to hold onto half of my IDWD shares until further review.
I made it clear on Friday that I am selling half.
Any other questions?

Buy Internet Gold: IGLD

Last Friday we sold half position of IDWD freeing up some cash for new buys (just so you know, I am seeing many potential buys right now). Regarding IDWD, I have decided to keep the other half until further analysis. There are just too many good things happening to IDWD (assuming there is no fraud) for me to totally abandon ship. However, the safest thing to do is to get out. Having said that, when was the last time I chose the safest route?

Investing in stocks by nature is not safe.
Money in the bank is relatively safe ( although banks themselves invest your money for itself ). Basically, you are giving them access to your money so they can profit from it. AceTrader's investment style is definately more riskier than the overall market (we specialize in small companies). How do you explain our +40% gain year to date when the general market lost money? We did it by taking additional risk; calculated & managed risk but added risk to be sure.

We manage risk in three ways:
1. Time 2. Diversification 3. Stock selection
I will devote a whole section regarding RISK soon. For now, just know that I am managing it and that "yours truly" is aware of the issue.

Let's go shopping (Sales season has began).
Internet Gold (IGLD) should ring a bell to anyone who followed this blog for a few months. We sold it ($5.96/sh) for a small loss back in May 17th to free up money for Martek (MATK) purchase. Good move since IGLD is trading at $5.50 now.

Internet Gold-Golden Lines, Ltd. operates in the fields of Internet access, e-content/e-advertising, e-commerce, search, and VoIP-based telephony in Israel. Its subsidiary, MSN Israel, Ltd., offers Microsoft-branded search, instant messaging, Hotmail, and various portal services.

IGLD is a much bigger company now than two months ago when we sold it. It just bought a company (012-Golden Lines) with cash it had (over $60 million in cash) with some financing. Believe me, this was a smart purchase. The combined company will have in excess of $200 million in revenue and about 60-70 cents per share in earnings.

This is a bargain! I am buying.
I am sure that most people will not recognize this value until too late. We have some time - do not chase the stock. Use limit orders for your purchases.

My target for IGLD: $12 per share in 12-24 months.

P.S: Macy's having a "One Day Sale" on July 12th in NY.
You know I love the word Discount and Sale ...

Performance Update 06'

Yes, I know that my blog has been a little slow in updating since my vacation. First, I had to re-start my chemo therapy on Monday and second, both my sisters are here visiting from Korea. As I have told you many times, nothing comes before your health and your family. And, I have spent some quality time with my family this weekend. I hope you did too.

Now that first half of the year is behind us, it's time to check our pockets to see how we are doing so far. No matter what your business is, keeping a regular measurement of your performance is essential.
One simply can not improve unless one measures itself.
The last time we did this was back in May 15th ( go back and re-read them - it's interesting).

For those new to this blog, please keep in mind that our portfolio is REAL with real money involved. There are many hypothetical portfolios out there claiming not so real numbers. What makes this blog interesting is that I make it crystal clear what we do and what we don't. It is through my mistakes that I hope you can learn and be better off. Good luck.

We gauge our performance with both SP500 and NASDAQ indexes (again, read May 15th blog as to why). Currently, our holdings are mostly small caps (smart move). I am begining to like large caps and we will probably move into them slowly.

Index NAV (1/1) NAV (7/7) Performance %

SP500 1,248.29 1,265.48 +1.38 %
Nasdaq 2,205.32 2,130.06 -3.41 %
AceTrader 1,315.32 1,848.00 +40.50 %

As noted above, these numbers are as of last Friday (July 7th 2006).
No matter how you look at it, this is an amazing performance during a lousy year thus far. Don't ask me how we will do during a good year!
Our current holdings and our cost is listed below.

Stock Avg.Cost Price (7/7/06) Gain/Loss % Target

RICK $4.80 $6.62 +37.92% $10.10
PRZ $1.29 $2.11 +63.57% $2.60
AUTO $1.09 $1.74 +59.63% $2.56
MATK $28.70 $29.96 +4.39% $38.00
BTYH $1.46 $1.05 -28.08% $2.80
UTK $14.35 $22.70 +58.19% $24.00
IDWD $0.89 $0.94 +5.62% $2.75
EXPEZ $4.50 $4.76 +5.78% $9.60
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.
It is very important to be diversified in investing. Try your best to hold as many of these holdings as possible. So there it is.

The market will be very rocky in coming weeks.
Good chance to add to your portfolio...

Sell IDWD now ...

I have came across a disturbing news regarding the IDS Worldwide Inc. and its CEO Mr. Downs. At this time, I can not verify whether this is true but I am not willing to risk our money waiting for it. My advise is to sell all or if you are daring, sell at least half of it now.

Do not place a market order!
Place a limit order so that you know what price you are getting.

I just placed an order to sell half of my shares at a limit of $0.97/share.

If you are interested, please visit www.investorshub.com and type IDWD.

Better safe than sorry...

Birthday Gift

Yes, thanks to most of you, I had a wonderful birthday with my family and friends. When you are in my situation, every birthday counts. In fact, believe it or not, everyday is a gift as far as I am concerned. My birthday bash really started yesterday by Macy's fireworks (every year since coming to America, they do this for me). Today I also received several nice gifts from above. They are:

AUTO: + 30.37%
IDWD: + 11.24%
UTK: + 13.01%

These are one (1) day gains in our holdings!
By the way, the market was terrible today: Dow down 76points, NASDAQ down 2%.
Need I say more?
My chemo session ended this morning so I am quite tired.
I will give you more detailed analysis on our current holdings but until then you know exactly what I own.
Here is a tip you should know: If I don't sell, then it is a buy.
A stock should be either a Buy or Sell, no in between.
Some people use "Hold" rating. What is that? A "Hold" means not sure? If you are not sure, then it is a sell.
One more tip: Sell some or all of your stock if you have nice gains.
I always try to sell 33% - 50% of my holdings when it doubles. Remember that I also gave you my target price for all stocks in our portfolio for your use. It is only a guideline. I am not that smart. Use your own judgement when you need to lock in your gains. Of course, I will tell you when I sell.
Last tip: Whenever possible, try to go back and read past notes in this blog regarding your stocks. It will help you gain instincts in this business. Gut feeling is quite imortant I think.
Thanks gain for those who sent nice words and gifts!

P.S: Since my average cost for AUTO is $1.08 I have placed a limit order to sell half at $2.16 good-till-cancel. Just so you know.

Review: I'm Back !

It's good to be back.
I had a fantastic vacation in Korea. Too bad that the Korean soccer team (World Cup 2006) could not beat the Swiss. But the Korean team finished 1st (#1) among the Asian teams. We beat Togo 2-1 and we tied with France 1-1. Asians all over the world cheered for us and I am proud of what Koreans accomplished thus far. See you again in 2010 World Cup.

There are only four teams left to compete to gain the top spot. They are France, Portugal, Italy and Germany. This is very unusual situation. Who would have guessed that Germany beat Argentina and France to upset Brazil! This is why the World Cup is exciting. Did you know that more people around the world watch World Cup compared to the Olympics? The U.S. is finally waking up and realizing that soccer rules ...

Obviously I need to review our holdings ( I was only gone for three weeks you know). Let me show you the percentage gain/loss since my last blog dated 6/7/06.

RICK: $6.54 $6.15 -5.9%
BTYH: $1.37 $1.17 -14.6%
MATK: $28.12 $28.95 +2.9%
IDWD: $0.92 $0.63 plus HLS stock (can't place value on HLS yet)
AUTO: $1.05 $1.19 +13.3%
PRZ: $1.20 $2.05 +70.8%
UTK: $15.92 $20.05 +25.9%
EXPEZ: $5.05 $5.28 +4.5%

So, what do you think? If you look at the above carefully, I think you will agree that we did a fantastic job! Oh, by the way, if you did not buy PainCare Holdings (PRZ) shame on you. Please re-read my blog dated 6/5/06 and 5/25/06. I specifically told you that I was buying more that day. In fact, you could have bought it cheaper than I did. Please read again for my reasoning behind that move. You do not get +70% move in 3 weeks frequently.
PRZ already paid for my vacation and then some : )

Our worst performer while I was gone was Bad Toys Holdings (BTYH) -14.6%. If you have all the stocks in our portfolio and still have money to invest, buy more of BTYH. This represents good value now. No significant news while I was gone. Buy.

IDS Worldwide (IDWD) is reporting some excellent news regarding the core businesses. We have received special stock dividend (1 for 1 HLS stock) in our account. Until HLS stock starts to freely trade, we can not place a correct value to the stock we just received. My gut feeling tells me that it will trade above $1 per share! (we just doubled our money). Let's wait and see.

RICK is still a strong buy. I still say that this stock will be trading in the double digits within a year. Business so far have been excellent. Cash flow is beautiful. Simply taking a rest.

As I have predicted previously, gold has come down from $700+ area to below $600/oz. I am warming up to finally buying gold related stock soon. Wait a few days.
Since we just finished our 2nd quarter of 2006, I will do my accounting of our stocks in my next blog.

P.S: Remember MVK (I said no brainer buy on 5/22 blog) at $43. It is now at $63.20 - Ouch, I did not buy (I told you to buy) - kicking my self right now.

PPS: I have a Chemo session on Monday (7/3). And my birthday is July 5th (7/5). You know what to do. Don't make me upset. When I get upset, I stop typing. You decide ...