Sunday, December 25, 2005

Thanksgiving day shopping -- Update

My CTSH shopping (?!) worked out just fine. I sold the shares at 52. Still holding BRCM. It's kind of just flat, thinking of writing covered call. I bought CMED, CTSH and BRCM on thanksgiving day. Both CMED and CTSH are sold for profit. Time will tell whether BRCM is going to give me a profit or loss.

Friday, December 23, 2005

Samachar

I used to read Samachar.com to get news related to India. Now, these guys put spyware in your PC everytime you visit that site. Disgusting.. Can't they make enough money already with all the ads scattered all over the page?! Anyway, solution to this nuisance is:

http://inwww.rediff.com/newshound/

This site from rediff is good. I think they use AJAX (or whatever it's called!) technology, visit them once, you may like it.

New Home Sales

Sales of new homes plunged in November by the largest amount in nearly 12 years! It's another evidence that the red hot housing market over the last five years is starting to cool down. New single-family homes were sold at a seasonally adjusted annual rate of 1.245 million units last month, a drop of 11.3 percent from October, when sales had surged to an all-time high.

If you are looking for a house, wait for some more time. I think that the prices are going to go down. It may not go down dramatically. You won't get a 750k house inCA for 450k. However I think that 750k house may go down to 600+. Even then I won't pay 600k for a 3BR house in Fremont. It's really annoying to see the price tag of these houses.

Sunday, December 18, 2005

Apple, Google and AOL

Apple Dec $55/$50 Bull put spread worked out good. Apple closed at $71+.

Google jumped $8 because Google is close to completing deal with AOL. Microsoft lost this deal. It's funny to see how so many companies are trying to buy stake in AOL.

First of all, AOL is the worst ISP. Recently my cable internet provider screwed up, so I popped in the 90-day trial AOL CD and signed up for it. I used AOL for past two weeks. I don't see why so many people subscribed to this stupid service. AOL software ate up my PC's memory and slowed down the entire system. AOL threw in so many ads that I lost interest in surfing. I can write on and on about AOL. In short, AOL doesn't deserve all the attention it gets.

Saturday, December 10, 2005

Attractive Mutual Funds

I find the following mutual funds attractive.

Bjurman, Barry Micro-Cap Growth (BMCFX)
Royce Low-Priced Stock Inv (RYLPX)
Julius Baer International Equity A (BJBIX)

If your 401k offer these funds, it's a wise idea to invest in these funds. Even otherwise, it's still a smart idea to invest in taxable accounts. It'a always better to diversify your investments. BJBIX is a good place to invest in european markets.

Disclaimer: I am not a financial advisor. I write my opinions in this blog, it's not financial advice. Do your research before trading any stock or options.

Friday, December 09, 2005

Update as of Dec 9, 2005

I bought Apple shares @ 73.80 and sold Dec $75 covered calls for $1.05. Either these options will be called out or I will get to keep the premium. I am ok either way.

MVCO broke out of cup and handle. Too bad, I just closed my trade few days ago! I am not going to get back in, I have money tied up in other trades.

CTSH and BRCM trades are doing ok. Mr. Google is up and running, just keep the momentum going until I buy back the puts!

Tuesday, December 06, 2005

Trades update

I sold CMED at 37 (bought at 34.44) and MVCO at 11.50 (bought at 11.10).

Still keeping CTSH and BRCM. They are going to red and black on and off.

AAPL Dec $55/$50 bull put spread is doing ok.

Google is giving me little headache. I think lot of insiders are selling the stock.

I will post more updates by friday.

Saturday, November 26, 2005

Thanksgiving day shopping

I don't normally shop on friday after thanksgiving. Just for giggles, I went to Fry's yesterday morning @ 7:30. There was a traffic jam all over the place especially near Fry's. The guy going in front of me stopped suddenly. That was not a good sign, I almost hit him. Few minutes later, I got the privilege to get into Fry's parking lot. Just then I noticed a lady messing up with traffic lights, she stopped right in the middle of the intersection. She wanted to go fast into Fry's parking lot, so she jumped some cars but got stuck in the middle of the intersection.

There were atleast 5 police cars just outside Fry's. One cop gave the ticket to this lady, I assume that cost her atleast $200. Hmm..She wanted to save $50 may be $100, now she is in the red (literally!) for $200. Penny wise, pound foolish.

I went into the entrance of the parking lot, that's the maximum I could go. There was lot of crowd, I saw many people (atleast 70) were waiting in line to get in the store. I just couldn't wait that long to get into the store. I took the u-turn and went to McD to get egg muffin. That was my thanksgiving day shopping!

When I got back home, I decided to do some shopping in Nasdaq. Loaded up some shares in CTSH, BRCM and CMED.

Wednesday, November 23, 2005

Trades this week

I sold puts in QSII. I did bull-put spread in AAPL. Both are doing ok.

Few weeks ago, I bought FSHOX (Fidelity select construction and housing fund). It's not bad, but I shouldn't have bought that fund. I think there is not much upside to it, especially after disappointing outlook from Toll brothers and other related building companies. This fund doesn't have investment in builders. But, it has investment in Home depot (HD) and the like. So far, I have only $15 loss in this fund, I am going to wait and see what happens with this fund.

On the other side, one of my holdings HFTFX (Hennessy Focus 30 Fund) is doing very well. These guys are really "focused"!

Tuesday, November 22, 2005

The power of stop loss

Sandisk keeps going lower and lower. It's trading at $46+ now. More and more bad news for Sandisk. Overall, it's still a good company. But, investors are not aggressive to buy this stock any more. They want to sell it.

First bomb came from Tristan Gerra on 11/7. He said that flash memory prices could drop. That means that Sandisk's profit will drop. I put the stop loss as soon as I heard this guy. My stop loss was hit next day @ $60. I am glad that I got out in time although I had to take $250 loss.

Check the SNDK chart here http://finance.yahoo.com/q/bc?s=SNDK

Sandisk may come right back to $60 range in few months, nobody knows. But, I don't want to keep "hoping" for that. For now, SNDK is out of my mind.

Friday, November 18, 2005

Sandisk - a failed trade

I closed SNDK position, took the loss of $250. :-( I bought back the covered call and sold the shares. Covered call premium limited the loss in shares. There is always a risk in going with the momentum. When the momentum turns to the reverse direction, things could get real ugly. I could have waited for SNDK to come back up. I don't want to hold up my money in SNDK and do prayers everyday. There are always other opportunities.

Monday, November 14, 2005

My Watchlist

I am watching following stocks closely, when the opportunity presents I am going to jump in.. Hopefully won't lose the shirt...

AAPL
EBAY
CELG
ESRX
BBBY

Friday, November 11, 2005

MVCO, ORCT

I bought MVCO @ 11 few days ago. MVCO is in construction, all real estate stocks were punished after Toll brothers' earnings disappointment. MVCO came out with nice profits. For the near term, this stock would be little volatile.

I am also keeping an eye on ORCT. It is a good company, but they have very few clients. I am very careful getting into communication sector. "Triple-play" (voice,data and video) company may click. I am not sure...

Thursday, November 10, 2005

Google and Whole Foods

If you are watching the market right now, you know what happened to whole foods. It didn't meet all the expectations, it's being punished right now. This is what will happen to all the high-flying stocks someday...Whole foods is a good company run by smart people. But, they can't keep satisfying investors' high expectations all the time. I suspect that someday the same thing would happen to Google too. I own Google shares, hopefully it won't happen in the near future!

I bought back the google put on 11/8 @ $2. For some reasons, Google got pounded yesterday and dropped $10+. Wonder what's going to happen today. If it goes to $350 level, it will get more interesting. I may even buy calls.

Disclaimer: I am not a financial adviser. I express my opinions in this blog. Do your own research before you buy/sell shares or options. Do not just follow what I write here.

Sunday, November 06, 2005

Recent Trades

I couldn't buy Google shares at all. It was just going beyond my reach. I sold Dec 2005, $340 put for $9.30. It's going for $3 now. I bought Sandisk shares and sold covered call on it on 11/3. It's working out nicely. Same thing happened with DNA shares.

Funny thing, whenever I sold covered call, that call doubles in value. It happened with all my recent trades -- BTU, DNA and SNDK. May be next time, I should just buy a call. :-)

I bought IWO Feb'06 $65 call. Russell 2000 normally goes up in Nov-Dec. Let us see how that works out. I bought that for $5.30, it's going for $4.90 now. I have stop loss at $3, let us see how this works out.

Disclaimer: I am not a financial advisor. I write my personal opinions in this blog. Do not just follow my blog, do your own research before buying/selling shares or options. Options carry substantial risk, you can lose all your money.

Friday, October 28, 2005

Emerging Markets - Update

Emerging market funds are trending down. I think it's mainly because of inflation fear in U.S and expected fed interest rate hikes. I still own emerging market fund. If it gets too ugly, I will get out. Otherwise I am going to be there.

Another update on BTU: I sold it for decent profit on Monday, it went upto $80+, today it came back $73 level. I think it's all due to day-traders. It's tempting to buy BTU at this level. But, I am not going to do it. I bought some DNA shares this week and closely watching GOOG.

Before you post your comments...

I welcome your comments, I really appreciate it. But, there are so many guys posting spam disguised as comment. I check my comments every day, I will simply remove all the spam; so don't waste any time posting spam.

Tuesday, October 25, 2005

BTU

I sold BTU for a nice profit. I still believe in this stock, but day traders make this stock so volatile. I am going to stay clear for now. Looking to enter Google at a fair price. Let us see how that would turn out... Keeping an eye on DNA also. If that close above 50-day average I will take some position.

Disclaimer: I write my opinions in this blog. Do not just follow what I am doing. Do your own research.

Friday, October 21, 2005

Google and Peapod Energy

Google went thru the roof with their surprise. Holding options during earnings announcement is a risky thing, in case of google that's a scary thing. I wonder how high Google would go. Someday this is going to stop, I don't know when. Someday Google would miss all the crazy expectations, I can guess what would happen then. When I was watching GOOG quote this morning in CNBC, JDSU quote was scrolling for $2+. JDSU was like google not long ago. I don't think Google is going to end up like JDSU. But, valuation of Google will be questioned when they miss the expectations. Disclaimer: I own Google shares, bought it last year.

BTU trade worked out nicely. OCT 75 call I wrote is not called out. I may just sell these shares on Monday.

Disclaimer: I just write my personal opinions. I am not a financial advisor. I may or may not own the stocks/options mentioned in this blog.

Wednesday, October 19, 2005

Google put

I got out of Google today. I bought back the puts at 2.75, I sold these at 5.5 two weeks ago. Google is going to announce earnings tomorrow, don't want to hold it during this time period. Anything could happen.

My BTU trade worked out well. After some turbulence yesterday, it's in Green now. I guess that my shares will be called out on Friday.

Tuesday, October 18, 2005

Inflation and BTU earnings

Wholesale prices for September went up by 1.9%. BTU missed earnings expectations by 1 cent. Looks like some nasty day ahead. My BTU shares and call contracts are still in green. Hopefully I could still make some decent profit. Keep you posted.

Sunday, October 16, 2005

Recent Trades

Just a quick note on my recent trades:

Two weeks ago, I sold OCT 300 put of GOOG for $5. At that time GOOG was trading at 315. I thought that it won't go below $300 before OCT expiration date. So much for that thought, GOOG is now $296, OCT 300 put shot up to $9.70. I am still ok, I like the stock -- if I am put, I will just keep it and sell calls later.

Last week, I bought BTU at $75.64, and sold OCT 75 call for $3.25. It's working out nicely. BTU is at $77.78; Call is $4.

Disclaimer: I write my opinions in this blog, it's not financial advice. Do your research before trading any stock or options.

Tuesday, October 11, 2005

Curing Diabetes in 90 days

There is a site http://www.diabetes-breakthroughs.com/ that claims that it could cure your diabetes without medicines in 90 days. You need to spend your hard-earned money to get their "e-book". Anyone remember snake-oil salesman? It's just so sad and cruel that some people prey on sick people to make money.

This site is run by a guy named Mark Anastasi. He is not a doctor, he is a salesman, check his site http://www.mark-anastasi.com/ to know more about him and his "medical skills". This guy also claims that he could cure AIDS just by selling his e-book. There has to be a law to regulate these kind of sites and frauds. I just wish that this guy gets Diabetes and "cure" the disease using his e-book.

Monday, October 10, 2005

Discount Brokers

I used to trade using Smith Barney in 1998. I remember paying $80 for stock trades, thank god for the internet, we can pay lot less for the same service. I am using Brown & Co., for past 6 years, I think they are the best. Although Brown is good for stock trades, they are not that good for option trades. For example, you can't place option stop loss order with Brown. I use OptionsXpress just for option trades. I have used Fidelity and Schwab in the past. Fidelity is also good, but you can't beat Brown & co. Schwab is the worst discount broker. Schwab's service is the worst and they charge high prices, I wonder why that company is still not bankrupt.

If you want to trade with the best discount brokers, Brown and OptionsXpress are the best choices. If you don't trade options, then Brown alone will do just fine. Recently, E-trade agreed to buy Brown. I just hope that E-trade don't mess up with Brown's price structure and service. If you sign up with optionsxpress, check out their tutorials and paper-trade tools.

Saturday, October 08, 2005

Digital Bhoomi

My friend runs this non-profit site http://www.digitalbhoomi.com. He asked me to review this site in this blog, so here goes...

I am really impressed with the design of this site. Simple, clean, crisp and neat. Even if the designer is not my friend, I still would have loved this site. This is basically a classifieds site, mainly jobs and real estate. There are postings in all categories -- from jobs to personals. I saw a posting from a lady in bangalore looking for one-night stand, where are you anti-kushboo crowd?!

There are so many classifieds sites like Sulekha in India. But all those sites are infested with spam and ads. There are no banner ads, pop-up/pop-down and all those crap in Digital Bhoomi. That's a welcome change. That alone is worth a look.

Monday, October 03, 2005

Emerging Markets

I work in Finance, I can scribble couple of things about Finance. You will find this useful only if you can invest in U.S. markets. Take these as basis for your research, don't buy these stocks or mutual funds just because it's mentioned in this column. Please do your due diligence. Usual Disclaimer: I may or may not own the stocks or mutual funds mentioned in this blog.

I love emerging markets. Emerging market mutual funds returned more than 60% in the last 52 weeks. No one knows whether this trend would continue. If U.S. interest rates keep rising, that would affect the returns from emerging markets. I like the following mutual funds, check these in Yahoo Finance.

TREMX
PRMSX
UMEMX
VEIEX
MEMEX
SSEMX

Thursday, September 29, 2005

Mystery behind Tamil Alphabet

I just read a book "Tamil alphabet and its mystic aspects". Basically what it says that all tamil letters are originated from tamil "O". All important organs in the body is tamil "O" shaped, all siththar positions are "O" shaped, that's how tamil "O" got its shape. Tilt the "O" slightly, you get "a" and so on... Interesting read, but don't know how much of it is true..

Wednesday, September 28, 2005

Iyya..please don't give bribes!

This is what a guy named Ramakrishna Shastri is telling whomever he see.. There is an article in Junior Vikatan 10/2/05 issue (Tamil magazine) about this gentleman. He wants to propagate the message of "no bribe, no caste" to everyone. That's the good thing. But, I found the approach he takes for that is bizzare.

He visits villages and touch the feet of anyone he see and request them not to give bribes. His intention is really good, even noble. But, I think this guy is out of his mind to stage this kind of drama. How many people he can talk to like this? How many feets he can touch and plead? When the approach is crazy even the good message gets lost...