AceTrader

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

Name:
Location: Bayside, New York, United States

My love for the market began in 1987 when I first opened a brokerage account with Fidelity Investments. You know what happened back in 87'. "Black Monday", the market crashed. My initial $ went down fast. Thus began my thirst for the challenge to make it in the market. Although I have science background, my Bachelors degree is in Economics from Washington University (great school). I also have earned an MBA in Finance from Fordham University, New York. Although I am registered as an "investment advisor" with the NASD, any information in this blogger is not intended for any business use.

Tuesday, December 05, 2006

Which one? (CMGI)

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

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

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

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

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

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

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

3 Comments:

Anonymous Anonymous said...

IDWD went down almost 11% today. Why? A good time to buy more?

1:05 AM  
Blogger Jaewoo said...

Small:

I will answer in my blog tonight. For now, just know that this is not unusual. Read my notes before buyuing more.

9:38 AM  
Anonymous Anonymous said...

Ouch. What is happening with MIDS today? Would love to hear your thoughts.

3:59 PM  

Post a Comment

<< Home