Thursday, January 20, 2011

Direction Blog Is Heading

It has been about a month of me having this blog and I still have not exactly settled into exactly what I want it to be.
Some things that I will start writing about:
1). Book Reviews
2). Stock Picks & Detailed Analysis
3). Financial Industry News
4). Reasons/How To save
5). Job Market
Anything that any of you can think of please email me with your ideas.
It is my goal to become very knowledgeable about finance and investing. I will do that through reading and studying of different subject matter.
I know for certain that I am a value investor, however I remain cognizant of overreaction to news items and finding good prices as a result of this.
A new post will be forthcoming each day that the market is open about stocks. I will sprinkle in additional posts throughout the week.

Tuesday, January 18, 2011

Company on the rise

CWTR- Cold Water Creek Inc.

I feel strongly that by the end of this year that CWTR will prove to be a fantastic investment. They are working on paying down their debt as profits return in the retail industry.
They are at a great price of about $2.95, at the moment. Their market cap is under 300 million, which is great if a big investor takes notice.
Any sort of good news can have a dramatic effect on a smaller cap stock such as CWTR.
In checking the open interest for options on this stock, I found that there is strong interest for the $5 dollar calls. This bodes well for the long and short-term of the price. With the price being so low for a fairly strong company it deters short sellers, that otherwise would have driven the price down even lower.
I think 2011 will be the year that we see a good recovery from the financial mess that we all have endured as American citizens. A recovery will lead to more spending, and investor sentiment will go in the direction of BUY! BUY!
CWTR is one of the stocks that have not made a dramatic recovery yet. Reason being is because consumers have not fully returned to their pre-meltdown spending habits.
Time heals all wounds and the time for dramatic healing is near. In addition, to their retail stores, CWTR also owns spas, which will see a rise in sales.
All in all, I think this is a great company, with very limited downside, to own.

Thursday, January 13, 2011


AT&T announced today that they are changing the way that they recognize profits in accounting. Rather than amortize them over a period of many years they will recognize them on the year that they are incurred. What exactly does this do for the company’s long-term outlook?
I contend that it does nothing. Their obviously is a short-term market reaction based on the stock currently being up over 29%. I feel this news, conveniently, is a response to them losing the market of being the only exclusive carrier of the Apple Iphone. Verizon already has a stronger and larger customer base for the simple fact of fewer dropped calls.
I feel AT&T needs to do more than change their accounting procedures to mask the fact that they have just taken a shot in the gut.
Long-term, I would say, short AT&T and invest in the growth, and stability of Verizon.