SubscribeRediff.com is Ripe
July 17, 2007
As Charles Dickens said: “Ain’t I volatile?”.
Rediff.com (REDF) has been as moving with a vengeance over the past few weeks. Starting from an amazing earnings report in May, and then following the usual course of buyout and merger rumors, it has moved from a consolidation range ($16-19) to $27 during July 2007. Why?
How to Value a Stock - Price Targets 101
July 14, 2007
From Chapter 3 - The Disciplined Investor (pre-order now)
Price Targets
Possibly the most overlooked aspect of fundamental analysis is the setting of appropriate price targets for both purchases and sales. As a disciplined investor, you can appreciate the importance of guidelines inside your investment plan to reduce risk. This will help your portfolio, as well as your emotions, to have less fluctuation(s).
Obviously, the first element in developing an appropriate price target is to gather information on the company in question. You need to understand what its forward-looking strategy is, as well as the overall economic environment in which it operates. Take as an example a company in the semiconductor industry.
It is a good idea for the owner of the company to understand the competition. Since you are planning on owning a piece of the company, here are a few sample questions you may want Read more
TDI Podcast 18: Live from Copenhagen
July 11, 2007
Review of the latest European trends, the electronics scene and retail. Do they still like American products in Europe??? YES SIR!
CROC’s (CROX) are being copied left and right - and can be had for 1/3 the price. Nokia (NOK) is everywhere in this region, no Apples (AAPL) in Russia or Starbucks (SBUX) . BUT, the Nokia N95 is in hot demand in Europe.
The next frontier is sure to be Read more
Apple: Here is what comes next for the stock
July 1, 2007
Well, Apple (AAPL) did it. They managed to create hype of epic proportions with the new iPhone. It is almost unbelievable that they were able to hypnotize people into waiting in line for a product that was unproven which admittedly has less functionality than many of its competitors.
In the spirit of full disclosure, let me tell you that it is now 45 minutes past Zulu (6:45) on Friday and I have no idea what the reports are from initial iPhone owners. Since I am on another international flight, I am writing this blind to what is going on at ground level. The truth is, riots could have broken out and countries could have gone to war over the iPhone and I am oblivious to it. Here is where it gets weird(er) though: I am asking the flight crew to see if the Captain Read more
Apple Options idea after iPhone Launch
July 1, 2007
Options are a great way to control a large number of shares of a stock for little money. There is also a great deal of risk in buying put options, as there is time limit. In other words, they eventually expire and if you are not able to meet the strike price you expect by the time of expiration…. you loose.
As explained in the previous post, it makes sense to take a risk of buying put options into the weekend on Apple (AAPL) . These will profit if the share price goes down. The idea is to buy a heap of options out of the money as the volatility is now helping the call premiums. That being the case, there is very few that are buying the puts and this means that the intrinsic value of the puts are trading cheap.
In layman’s terms, this means that the population for investors believes that the stock I headed higher, much higher. Only the mega-contrarian will loom to Read more
TDI Podcast RSS
-
