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).

Valuation #2: what earning?

Yes, I am feeling nervous about the "stent" insertion (into my kidney) procedure next week. All things being equal, it is generally not a good idea to either put something in or take something out of your body cavity. Any surgery comes with risk. Otherwise, the hospital would not ask you to sign a waiver form; just in case.

I even chose not to circumcise my son Ace. I am a simple man. I like to keep all things as we were, if possible. I just see no reason to cut out a fold of skin on your baby's penis. By the way, it hurts. Even babies get erections, I've seen it. Anyway, I'm a little bit nervous.

Assuming you have read my "Valuation #1" piece, let me continue the thoughts. We now understand that PE & PS ratios are quick and easy methods of relative valuation. Additionally, you should now know that PE (Price Earnings) ratio of 20X, implies an internal rate of return of 5% (assuming that the earnings do not grow). As such, if you pay 10X PE, you're getting 10% and so on.

So, do stocks with low PE ratio, offer better value than high ones?
Generally yes, but it is not that simple. Otherwise we will all be rich by now investing in low PE stocks. The most important factor in looking at the PE number is knowing "which" earnings? To recap, you get the PE number by dividing: the share price (P) by the earnings per share (E). But what earnings are you talking about? If you pick up the newpaper such as the Wall Street Journal, the PE numbers are based on last 4 quarters. (Last 12 months of earnings? Who cares?).

Here's a simple question: If you were buying an investment property (2 bedroom apartment) that the tennant used to pay $1,000/mo. in rent (your earnings from this investment) to the owner (you) but the tennant will be moving out in 2 months after your purchase and worst of it all, you have no idea how long it will take to gain a new tennant (no imcome). Would you still pay the same price as if $1,000/mo, income is guaranteed? Of course not!

As far as I am concerned, the only logical earnings number is the future earnings. Next 4 quarter is sufficient but the longer we can look into the future earnings numbers, the better. Many times, you can get these estimates from Wall Street analysts or directly from the companies themselves. Knowing how "legit" these estimate number is, is more art than science. This is where your gut comes into play. If you've been following the company for a while, listening to the conference calls by the CEO, eye witnessing the new events unfold, you start to get the feel for the numbers.

This is why stocks fall like a rock when they miss the numbers.
Once I loose confidence in the management, sayonara! (translation: get lost).
There are plenty fishes in the sea. I do not need a lier, imcompetant manager or simply a looser.

Here's another rule in life: Loosers tend to be loosers, winners somehow keeps winning, complainers always find things to complain, and chances are, the majority of poor will be poor and the rich will get richer.

Let's work hard to be rich and happy OK?
It is soooo much better than poor and happy.

Sold: EXPEZ at $7.40 Buy: QID

Now that the Thanksgiving is over, back to business.
By the way, most people forget that the reason we (not only Americans but Asians and other cultures as well) celerbrate Thanksgiving is to give "Thanks to god" for the good harvest we received. People worked hard all year long, sawing the seeds, watering plants, making sure pests do not harm them and finally when the fall season arrives, it is time to harvest. This is the time to collect your earnings. The happy season.

People used to pick the first and the best crops for the table designed to honor god for his blessing. I too, placed my best crops (money) for god the other day at the church. Sharing some of your harvest with the others is generally a fine idea. Give it a try.

Acetrader has decided to "harvest" some of our ripe fruits as well. We sold half of our IGLD with a +80% gain and we have also sold half of our EXPEZ with a +70% gain the other day. Most of our recent buys such as CMGI, STMP, XMSR, may fall some due to market correction but I have decided not to sell these. Especially because these are not the top holdings by size, yet.

So here's a recap:

Sell some now & buy it later at better prices:
IGLD / EXPEZ / NTE
(These are still part of our holdings)

Buy more of these now for future gains:
RICK / BTYH / UTK / AUTO
(If anyone wish to buy something now, these are it)

Hold it if u have it or get it if u don't yet:
STMP / XMSR / MATK / CMGI
(Wait a little to enter at better prices)

Accumulate for potential homerun:
IDWD / MIDS
(Keep adding to these if u dare)

I hope this helps. Happy holidays!

P.S: Please understand that I will be going in & out of the hospital everyday next week. Next Thursday is my "operation" to place a plastic tube (called stent) in my left kidney. If you don't hear from me everyday, do not be concerned (I am still alive). I will try to place at least one sentence if I have to. I know how much you wait for my communication - thanks.

PPS: For the first time in the Acetrader portfolio, we are buying QID. I have just bought QID for our portfolio at $51/share. Mentally, we are going to sell this between $57 - $59/share.

Valuation #1: EXPEZ

Happy Thanksgiving Everyone!
By the time you read this, I assume you've already had some turkey, yams, stuffings and the works. Unfortunately for me, I could not have any of the above due to my mouth sores. As soon as my mouth gets better, I am getting me a big plate of turkey. I've lost about 4 pounds in last week. I weigh about 136 lbs now. Not good.

Urologist meeting: The doctor has decided to put in a plastic tube in my left kidney. Well, to be precise, the line that connects kidney to the bladder. Although I'll be asleep during the procedure, the idea of small camera and the tubes entering through my penis does disturb me quite a bit. But you know what? You got to do what you got to do. Thanks for the concern.

My thoughts on stock valuation:
Logically my thought process ask three step questions: 1. Purpose of investing 2. Why stocks? 3. Which stock? (all three are very important questions).

1. Purpose: There's only one purpose - to gain maxium profit with minimum risk. Understand that all investments comes with risk, whether you perceive it or not.

2. Why stocks: There are many forms of investments: Bonds. Stocks, Real Estate, Buying a business etc. Over the long term, stocks offer highest relative return on your money with highest liquidity. Buying and running a business may be more profitable but this requires much of your time and expertise. Real estates are nice (especially due to leverage) but it is not liquid and trading costs are very high. Stocks are my main vehicle for investments.

3. Which stock?: Now that we have an eye on stocks in general, which one? This is the ultimate question that I will try to answer. Since most people have no clue as to how to value the stock, let me use an easy example to illustrate this. First, understand that a stock is simply a small portion of an entire business. Thus, you can not value a stock without valuing the entire business itself. Second, realize that the only purpose of a corporation, is to generate profit. To me, profit is profit, I do not particularly care where the profit comes from as long as it is legal. Do you care if the profit comes from selling pizza or computer chips? I don't discreminate money.

Valuation methods: Follow me on this carefully - let's assume you want to buy an apartment for investment purpose. You already own a house to live in, this is simply going to be for an investment purpose. This two bedroom apartment, if you were to buy it and rent it to others, will produce $1,000/month rent income to you. So annually, this investment will produce $12,000 (1,000 x 12 months) of earnings. What are you willing to pay for this apartment (investment)? If you were to pay $120,000 then you just paid 10x earnings (P/E of 10). If someone pays $240,000 for this apartment, then he just paid 20x earnings (P/E of 20). Do you now understand the PE concept? Where ever you live, if you're paying rent, calculate to see how much PE your apartment is going for.

BTW, if you pay 20X earnings for above example, you just invested $240,000 for this apartment while getting $12,000 of annual income, which comes to 5% return on your money. For simplicity, we are not including other expenses of owning an apatment and we are assuming you paid it in cash (no mortgage). 5% in a year? You can almost get that in your bank CD without the hassel of buying a property. Would you really buy this apartment for $240,000 as an investment? Now you know why the prices of real estates will be heading down.

Autually, there are many reasons why I might pay $240,000 for above partment. 1. If I thought that the rent will go up 20% to $1,200/mo. next year and to $1,400 the year after, I don't mind paying 20X current earnings. I am actually paying 14X next year earnings (not bad). 2. The rent might not go up next year, but you happened to know that there will be buyers who are willing to pay maybe $275,000 - $285,000 next year (high demand). 3. You knew that there will be a new shopping mall being built near your apartment within the next few years. There are many more possible reasons as you can see.

Price-to Sales: Now that you know the PE concept, please always look for the PS ratio. This is very simple - if the business generated 1 million in sales last year, while the company is selling for 1 million, then PS ratio is 1X sales. Why is PS ratio relevant? Accounts can easily play with the earnings numbers (legally of course) but no one can fudge the sales numbers (I mean legally). Besides, I never wish to invest in a business that sales are going down. You can simply fire employees to save cost and raise the earnings short term, but you can not suddenly raise sales unless you have a new product or services. I always look at the relative PS numbers.

Historically, stocks commend about 17X-20X PE (on average) and you want no more than 1.5X -2.0X PS unless it is in a special situation where sales are growing much faster than other companies.

Example: RICK
Sales: $26M (06'E) $15M (05'A) $14M (04'A)
EPS: 2006 estimate: $0.50-$0.55 (year ending Dec.)

Bottom line: RICK is now going for about 13X PE and about 1.5X PS. For a company growing this fast, this valuation seem quite fair. RICK's growing curve is just now beginning. As the stock price get higher, they can afford to aquire more businesses, easier. More importantly, almost no institutions have joined RICK yet. Once this company grows to $100 million mark, many will try to jump in. That's when we intend to sell. Hold on tight to your shares.

This series will continue...

Traders: BIDU short was quick and sweet. I still hold half of BIDU shorts. The market is really near the short term top. Trade with down side bias...

P.S: Acetrader sold half of EXPEZ at $7.4/share (gain of +70% from our buy). Did you notice the high volume Wednesday? I intend to buy it back at $6.4 or so. Besides EXPEZ grew to be the top three holding in the portfolio - a little trimming don't hurt.

Sold: IGLD $9.50/sh

Tomorrow morning, I will be meeting with the urologist.
Plain and simple; wish me major luck.
It doesn't help anyone if I am lying in the hospital with needles sticking out of me. For one reason or another, god has chosen this road for me to travel. And guess what, I will gladly walk this line until I am absolutely down and out. You know me by now - it's not that easy to put me down. And this is all I have to say, " Let's get it on!"

IDWD: This one is on fire lately. The buying pressure will persist at least until next week. Here's latest:
ORLANDO, FL--(MARKET WIRE)--Nov 21, 2006 -- IDS Worldwide, Inc. (Other OTC:IDWD.PK - News) HLS has informed IDS that it will proceed with the tender offer of $2.35 per share for the outstanding shares of IDS common stock following the completion of the spin-off of IDS 995ad.com division. IDS 995ad.com division is a separate asset that is not part of the HLS $2.35 cash buyout of IDS common shares. IDS has received numerous requests to issue the following clarification. Investors purchasing IDS common shares at this time still qualify for both the $2.35 per IDS common share and the 995ad.com spin-off shares.

IGLD: Acetrader sold half of our holdings at $9.50/share (up +80% from our buy). For now, I expect to sell the other half at near $12, next year sometime. However, this needs to take a breather soon too. If it falls too much, I am ready to buy more too.

STMP: Nice jump in price today. A new coverage on Stamp.com was initiated by the First Albany. More coverage is good for us. I feel some of you did not get this one yet. Try your best to own the portfolio instead of buying just one or two that you like.

Traders: Since I will be in the hospital tomorrow, I won't be trading. But, I did short BIDU near the close at $115.97/share. If it move higher, and it might, I will short some more. I expect this to fall by at least $5 or so. Just so you know, BIDU is the Google of China. It is a very promising stock that I think is ready to take a rest. Google jumped today and this followed - and I was watching it and shorted it. Take a look.

P.S: Despite my sell advise, I know that some of you might decide to hold on to IGLD. You may be right or wrong, but know this: "Diversification is the only sure way to success". I say this because many of you only hold some of our shares. Acetraders portfolio never holds more than a dozen or so stocks. Most money managers show a portfolio of 50+ stocks (that's stupid) and they don't even actually own them (crazy). We are very real and copyable. That was the main attraction, wasn't it?

PPS: EXPE has been going up in a hurry and it looks a bit tired. Although this is nowhere near the eventual top, I think it will take a rest too. If you so dare, take some profit on EXPEZ and buy it back later. For most of you, just hold (don't be fancy). EXPEZ will go beyond $10 mark next year.

SELL: IGLD

Pardon me but I was in pain last weekend.
Actually, I was under very strong pain-killers 24 hours a day. Nowadays these pain-killers are so good that not only do they stop the pain, it actually makes you feel pretty good. Anyway, I will be meeting my new "Urologist" this Wednesday. I really hope that I will not need additional surgery. Currently, I may have problem with my left kidney. Right now, I feel like I just received a kidney-punch. You know what I mean.

Several news regarding our holdings:

IGLD: Sell at least half (50-66%) of your shares if you have near a double (more than +75%). No matter what, Sell at least 66% of your holdings when it goes above $10. Most of you need the diversification. Do not fall-in-love with these stocks. Getting near a double within a few months is simply the way to play this game : )

EXPEZ: Today's action proves why we did not get involved with EXPEW. Buy EXPEZ.
EXPE +1.5% / EXPEW -11.6% / EXPEZ +4.1% Nice ...

IDWD: My previous blog was titled "IDWD: time is near". What do you think that meant? That day, IDWD traded as low as $0.82/share. Today, it closed at $1.23 (+50%). And, no, I don't think it is over just yet! Read the news below:

HLS to Release Tender Offer for $2.35 per Share and Dividend Update
ORLANDO, FL--(MARKET WIRE)--Nov 20, 2006 -- IDS Worldwide, Inc. (Other OTC:IDWD.PK - News) has set the record date for shareholders to qualify for the shares pertaining to the 995ad.com spin-off for November 30, 2006. To qualify shareholders must already own the shares or purchase the shares three trading days prior to November 30, 2006 to allow for the settlement of the trade (shareholders should note that November 23, 2006 will not count as a settlement day). IDS will determine through information provided by the company transfer agent to compile a list of shareholders who qualify for the 995ad.com spin-off as of the aforementioned record date. HLS has informed IDS that later today it will update the tender offer for $2.35 per common share of IDS and the previously issued dividend

Traders: Very successful short trade with ICE today. I also got out of FLML short position. Right at the close, I bought some QID for tomorrow. Yes, my defination of short-term in this case means "days". I try to short very liquid, very successful stock that has been streached to the upside. Therefore, most of my short candidates are very good stocks for the long-hold. Do not get confused. I only share this info with you so that you can study what I did & why I did it. If you so care.

P.S: Wait for the "Thanksgiving" special blog from me in the next few days. I will share with you how I value stocks. I will tell you what to look for. This will be a series of sorts.

PPS: Visit 995ad.com : IDWD owns it.

IDWD: time is near

One of our holding IDWD has issued an update: 1. Reagarding the spin-off of its 995ad.c0m division and 2. Buyout offer from HLS for $2.35/share. The actual news is printed below:

IDS to Announce Record Date for Qualification of 995ad.com Spin-Off:
ORLANDO, FL--(MARKET WIRE)--Nov 16, 2006 -- IDS Worldwide, Inc. (Other OTC:IDWD.PK - News) has been informed by HLS Worldwide that the company will update IDS common stockholders of record on Monday, November 20, 2006 the proposed timing regarding the anticipated trade date of the dividend and the beginning of the tender offer for IDS common shares for $2.35 per share. IDS also plans to release Monday the record date for shareholders to qualify for the shares pertaining to the 995ad.com spin-off.

The stock has traded between $0.82 to $1.01 today with volume of about 481,000 shares. Since the news came out late in the afternoon (after 3pm), I expect the shares to continue moving up tomorrow. I have no idea when or how things will unfold but I feel that the risk/reward ratio was fair enough to wager on this bet. This stock has been a roller coaster trading between $0.10 - $1.80 within the last 12 months. The fact that they are in talks with Tyco (TYC) a $60 billion dollar company regarding a joint venture, I am getting warmed up to the idea that IDWD may indeed be real! Still there are many that do not believe in this story. That's the reason IDWD is trading near $1 instead of $2.

I always wanted to wager on a long shot. We can afford maybe 10% of our capital to such dares. Luckily for me, IDWD has provided so much gains that I am really not risking any of my own capital anymore. This is also the reason why I am slowly accumulating MIDS. This may seem like a long shot for most people but I believe that MIDS will become a real player connecting the investors between Korea and USA.

Traders: This was a good day for me shorting ICE & NDAQ. FLML short is not working out yet. Maybe in a day or two it will. Keep trading with the idea that down side risk is now greater than the up side. Try not to hold much of a position over night.

Market too strong

The market is acting too strong.
Many of our holdings are benefiting as well.

XMSR is up +6.2% to $14.85
IGLD is up +4.4% to $8.65
EXPEZ is up +8.4% to $6.84
RICK is up +3.3% to $7.27

How do you like that? These were just today's gains. Acetrader's portfolio is moving nicely. If you are new to this site or thinking of purchasing some of our holdings, please use discretion since I expect prices to come down a little. If you have specific buy questions, please utilize the comment section below. I always answer your questions.

Since I have just finished my chemo (Monday - Wednesday, bi-weekly) I am feeling very tired. I am going to make this short. If I were you, I would go back and read the past notes in this blog if you have not had the chance to read them all. I am sure you will pick up some useful ideas.

You lucky devil, you

I assume that many who follow my site were nervous about the dip RICK experienced yesterday. I immediately sent my thoughts last night that you need not worry about it and I gave you several reasons as to why. I hope today's action vindicated my advise.

RICK went down to as low as $6.25 on a volume of 187,000 shares on Monday. Since the average volume for RICK is just under 100,000 shares, this was somewhat significant. However, I thought it was not big enough to worry about. Tody, RICK went as high as $7.11 and closed at $7.04 (+12.6% from yesterday's low) on a volume of 316,000 shares! When stocks go up in double the volume, it means something. Looking back low $6's was a fantastic price, wasn't it? Just so you know, I have added 1,000 more shares at $6.69/share.

Lesson: Don't get overly concerned with our types of stocks (small caps) simply because it goes down. It could be that someone just wanted to exit the position to raise money to buy Silver Mercedes for his girlfriend this christmas! (I know people who do such stupid things - and some of RICK buyers are such individuals)...

Our last few buy are all in the positive territory as well: CMGI / STMP / NTE

UTK is also bouncing back nicely from the attack.
IGLD is dacing simply beautifuly.

Most of you do not own MIDS but let me show you my buying pattern on this: August 2006 $1.43 & $1.33 then in November $0.82 & $0.75 and I have additional buying limit order at $0.60/share. When I am done, my average cost will be around $0.80 area. You will see how this unfolds next year. Wait for the climax!

EXPEZ is teasing you right? Most of us already have nice gains on this but you are looking for more, I know. Acetrader's average cost is $4.36 (+45% gain already). Some of you are at higher or lower than me. I fully intend to get out with at least a double. I still say that we will see $10+ on this baby.

How do I have such convictions?
Almost 20 years of watching the market, you get such feelings. Although far from being perfect, my open record shows that I do OK. I will update Acetraders YTD performance soon (after all earnings are out). But I can tell you this. If Acetrader portfolio was a mutual fund, we would be in the top 1% of all money managers. Give me high-five!

You lucky devils you.
How did you find me?

Traders: I know that I have said that if QQQQ closes above $43.5 then all bets are off. Well QQQQ closed at $43.93 and I had to re-visit my trading schedules. After an extensive thought process, I have came to a final plan. Short term, I remain negative. I still say that QQQQ will visit $40-14 area before resuming its uptrend. I realize I am being stubborn, but the risk/reward ratio is too compelling for me not to have this stance. Therefore, I remain in QID instead of going QLD. Many individual stocks are due for a discount: FLML/ICE/NDAQ to name a few. The earnings season will be over soon. Watch out then.

Kidney pain: RICK

I spent all day in the hospital today.
Here's the good news: My cancer cells did not grow larger.
Here's not so good news: Cancers did not die in droves either. In addition, the back pain I had this past weekend (remember I said I had some pain in the last blog) turned out that it was not my back that had a problem. CT Scan showed a blockage of the main line that leads into my left kidney. Sonogram confirmed this today as well. Basically, I have an appointment with the "Urologist" (not the kind of doctor you want to see exactly) next Wednesday to discuss what's the next step. Let's just hope that this did not occur because cancer has spread to my kidney too. This just might make me a little upset then.

The market was showing great strength.
RICK had a down day today. (RICK tends to move opposite of market). This will be one of the rare chance that you can buy RICK on the cheap:
1. The business of RICK is going very well.
2. The downside volume was not high enough to worry.
3. Slowly but surely, institutions are moving into RICK (4 now)
4. Probably some guy wanted get out for whatever reason
5. It is still Acetrader's largest holding.

Traders: Let's see how tomorrow unfolds. Anymore strength, we may have to change sides.

Ace is too young

We are at the important point in the market.
This could be the new floor for the QQQQ or it could be the near term ceiling. For long term investors, this does not matter at all. If you have a stock you always wanted to buy, try to buy it when it goes down a little from here. Nothing new to add. I have had to deal with some pain during this weekend. Again, nothing new.

Tomorrow, I get to hear the result of my latest CT Scan. I am obviously expecting to hear that my cancer cells are dying in droves but I am ready to hear just about anything. Today I just realized that my son "ACE" is too young (2.5 years old) to remember me if I were to die soon. I certainly do not remember what happened when I was that age. Just so you know, I am Ace's most favorite person on this earth. I just don't know how long this will last. It would be nice if he can always recall that I was his chosen favorite.

Traders: I have QID with me over the weekend. If QQQQ closes above $43.5 then all bets are off. I tend to believe that this is not how things will unfold. QQQQ can easily go to $40-$41 area in a hurry. Most important news are already out. Any movements of stocks due to news from here is simply an excuse. Let's be patient and follow the new trend as it unfolds.

P.S: I will be in the hospital all day tomorrow. Have a nice trading day!

Quick Review.

Mr. Bush got the message.
Officially, as of this afternoon, Democrats got the control of both houses. (Ouch! for Republicans). This obviously changes things. Personally, I think the Republicans deserved what they got. Time for a change indeed.

The funny part is that these days Democrats act like Repulicans and vice versa. I am a big fan of the "Blue Dogs" among the Democrats. I am not a fan of the new Speaker of the House. I don't think that the Blue Dogs like her either. However, I wish the Democrats all the best. Enough said.

Back to business: this changes things. I do not believe that investors took into account that the Democrats would have the control of both houses. This is not a disaster per se but it is definately not what WE expected. Short term, the market will go down. Remember that I said short -term.

Traders: Initiate new QID positions. If the QID is trading at a high premium (like all ady today), try shorting the QLD instead. This is what I did today.

Quick thoughts about our holdings:

RICK: Are there anyone still without RICK? Buy now.
AUTO: Nice earnings. This will move up from here. Buy.
NTE: Next month we get a fat dividend again. New buyers - wait until the market settles. December maybe? before the ex-dividend date?
XMSR: Beautiful long term hold but wait a little to add more at better prices.
EXPEZ: We may see this one in the double digits soon.
IDWD: You read the news and tell me what you think. I am playing with the house money - quite a bit of it.
STMP: This is a value play. Keep adding on dips.
MIDS: I just placed an order to buy this again. As I have said before, I will keep adding to this everytime it goes down a dime or two. In about six months to a year, you will be pleasently surprised.
UTK: I am with the management of Utek on this. Cheap.
BTYH: This became my top three holdings. I am buying.
IGLD: This will hit new high for the rest of the year.

Got milk?

The New America

The mid-term election of 2006 is now over.
Wow, what a show it was. This election will have profound effect on our lives - most people simply don't care. Americans in general do not care much about politics. Do you know why? Because we are too comfortable. People in America worry more about what's on TV tonight than who will represent us in many vital issues that effects our lives. Is this acceptable to you?

More importantly, people forget that the reason we are so comfortable is because we have so many intelligent people working hard day and night for this country. Too many of us are too quick to judge our representatives (e.g: politicians are crooks) and are only good at complaining (most people who complain, did not even vote!). I really have difficult time dealing with the uneducated, lazy, disrespecful individuals.

My view is this: If you are not going to work to better our lives, stop saying negative things about people who are working hard for the rest of us.

I have been in many leadership roles in both private and business settings. One thing is clear: those who don't work, have time to complain. Make sense?

There is a group within the Democratic party called "Blue Dogs". These are the representatives who vow to be fically responsible. The membership is growing and I really like what they stand for. This group will have the power to change our lives. Please try to keep a close tap on these guys. Oh, guess what. The #3 man (women) in America, the Speaker of the House is Ms. Nancy Pelosi. I really liked what she stand for but she showed no respect toward the President Bush publically - not cool. I expect people in those high places to show better self control than the rest of us. Maybe I am asking too much. I just hate people who show no respect.

Did you know that our Defense Secretary Mr. Rumsfeld was the youngest person to hold such position at the age of 43? He is also the oldest person to hold same position in our history under Bush. Mr. Rumsfeld just resigned his post today. Democrats controlling the house is already having an effect. It is vicious.

Bottom line: Both the stock market & I liked what we saw in the mid-term election. America will be more fiscally responsible and this is good for all of us. Long term, I remain very very bullish. We're fully invested.

Traders: I am out of QID with $1 profit per share. In these types of market, you need to have quick trades. Cisco (CSCO) earnings were good after the market close. This will have positive tug on the QQQQ at the open. I still think that $43 on the QQQQ won't hold. I will jump into QID again when QQQQ jumps up.

P.S: AUTO is close to moving in a major way soon. I hope it is on the upside. Keep an eye on this. If this falls below $0.94 - sell all. If not, this is going to $2.

Election 2006: MIDS

As of this writing (5:30pm), the election results are still coming in. I just came back home after the CT Scan this afternoon. Let me share with you what goes on when I go for the CT Scan. First, I have to sign a disclosure form (there could be complications you know) stating that I am aware of the various dangers. Then, I have to drink a full bottle (30-40 oz) of dye (red fluid) liquid. This will highlight various organs in my stomach. A nurse will prep me by sticking a rather large needle in my vein (ouch). Finally, I walk into the room with the hugh GE machine that look like a hugh dougnut. Once I lay down, a different nurse will hook me up to the small machine that will inject glow-in-the-dark like substance into my vein (this is called contrast). As soon as this material pumps into me, I feel hot (literally hot) in my face and between my legs. I can feel this fluid running in my veins! The scan just takes five minutes. I am done.

Listen, I am just trying to entertain you.
Back to business. As I have stated many times, I expect balance of power (Republicans control the Senate and Democrats contol the House). If not, we are in for a surprise. If Republicans end up with total sweep, stocks will probably fall. Mr. Bush however, will have a field day! As much as I like the Republican economic agenda (low taxes, pro business), I do not wish for one sided total control. So, make sure you understand the election results before going to bed tonight.

Traders: I have QID action, just in case. At this point, there are more risk on the down side than up. The market seems to price in the balance of power. Anything that disturbs this will have consequences. I am covering my butt with the QID.

Today, I had the chance to buy more of MIDS at $0.82/share. As usual, I am lowering my average cost on this. Most investors have no clue what MIDS has to offer. Many are getting too tired of waiting and some are selling. Yes! I get to buy it from them at ridiculous prices. I am in the mode of heavily accumulating MIDS shares. Sometime in 2007, this will trade at much much higher price. This information is coming from purely my gut. There are no news available to justify my bullishness on MIDS. Please commit only the money you can afford to kiss away.

For the record, MIDS is a speculative play - I have said it many times. But, I think it has potential to double, triple and even quardruple in a year. I will be buying more and more as prices fall. My ultimate wish is for MIDS to go down to a quarter, maybe? This will be exciting.

I will be following the election results closely tonight.
Don't call me. I am going to savor every minute of the coverage. To me, this is more exciting than the Worldseries. See ya tomorrow.

P.S: Traders: if the market suddenly jumps tomorrow, go short. You know what I mean.

Election 2006: IGLD

Two important things are happening tomorrow.
The election of 2006 and the CT scan of my body (to see if those cancer suckers are still there and growing). Just so you know, I am too tired right now to continue typing. I will keep this short.

The market showed impressive strength today which confirms the bull market we are currently in. However, there will be dips along the way. And the dip is coming. The QQQQ probably will fail to cross $43 mark. If it fails, we will see it down to $40 area (give and take $1) before resuming the bull march.

IGLD just hit the new high for the year - and this will go up further. We now have almost a +50% gain in Internet Gold. Many of you have greater gains than I do. My average cost is $5.29 but many of you bought this near $4 area. Please re-visit 8/1/06 notes. Read what I said. It is interesting to go back in time sometimes. I know that some of you have almost +100% gain on this - congratulations!

As soon as I get the energy back, I will do a new "portfolio review" for you. Good things to those who wait. Wish me luck with my CAT-Scan tomorrow.

P.S: The election will be an non-event. The two parties will likely share the power, which is a good thing. This is why the market was having an orgasm today ...

Buy XMSR: once again

XMSR just released its 3rd quarter numbers.
Let's just say it was good - very good. Some of you were second guessing me on this one for a while - well, just stop it and buy this now. My original cost was $11.20 but I will be buying more soon. This morning, XMSR is already showing $12.60 bid (+12% ouch!). Most of you will have to pay higher I guess.

Once XM goes above $14/share, it will race toward $20/share.
By the end of next year, this is what you will hear from me.

" I told you so."

Buy XMSR - it offers better value than SIRI.
I will do more detailed analysis this afternoon.
Have a beautiful day?

P.S: IGLD will see new high soon. This too had a fantastic quarter! Our boys are doing well...

UTK is cheap ...

November 2005 was my surgery (saying good-bye to 12 inches of my colon) as well as my first chemo therapy for colon cancer. Now that I have about a year of "cancer patient" experience under my belt, I am semi-pro when it comes to dealing with cancer related issues. If any one of you or your loved ones need to speak to me, call me any time ( I will release my number if you ask me).

For me, what's worse than the actual chemo therapy is the anticipation of the chemo sessions. Suddenly, I feel nervous, feeling sick inside, things smell funny, and I hate needles! What's better than sex? Anticipation of having sex! Well, you get the picture.

UTK just came out with the 3rd quarter earnings. The amateurs (the general public) were disappointed with the numbers. However, I looked at the numbers in detail. Guess what. I liked what I saw. Acetrader just bought more of UTK this afternoon at the price of $12.32/share. I had to sell some of my IDWD holdings to come up with the funds immediately. I currently have about +57% gain on the IDWD shares so I feel better trading these with the fallen UTK shares.

I will do a write up on this as well as our recent buy CMGI. I just wanted you to know that I bought more of UTK at $12.32 this afternoon. Wait for additional info.

Traders: FLML looks expensive. My past short candidate AXR finally broke yesterday. If you are still short AXR, cover it soon.

6 days to Election: CMGI

November is here. In 6 days, we will have an important election in the U.S. This election is vital to the Republicans because Mr. Bush would like to change a few things before ending his second term. Obviously, this will not be easy if Democrats control either the house or the senate. My feeling is that Republicans will hold their power this time around. For the market however, balance of power is better. The best senario is to have the Republicans control senate and the Democrats to control the house. This is also he most likely senario. Just vote.

CMGI: As per my last writing, my initial order for CMGI was excuted today at $1.33 per share. As I have been saying before, markets look a bit extended. Which means we might see some sort of selling pressure coming in soon. CMGI might go down a little more. If so, I am buying more. But I do not think CMGI will fall too much. This baby is heading toward the $2 level soon. Get it now. Don't penny pinch. This will likely be a big winner for us! I will be buying more if this trades between $1.10-$1.20/share. Wooo, I hope it gets there ....