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Thursday, August 2, 2012

8x8, Inc. (EGHT) Quitely Rising

8x8, Inc. (EGHT) has been trading in the $4 range since February of this year.  Share price has moved so little that most people probably have forgotten about it.  However recently the stock has quietly rose up and is now trading at $5.48 per share.  The technical chart shows the stock is on a breakout with both 50 day MA and 200 day MA rising.  We may see some pull back to the moving average but this could mean great buying opportunity.

Tuesday, December 27, 2011

Time to Buy Kratos Defense & Security Solutions (KTOS)

After losing more than two third of its value for the year, shares of defense contractor  Kratos Defense & Security Solutions (KTOS) may about to begin a bullish cycle.  The company yesterday received three year contract worth $13 million and a week before received contract for US missile program worth $11 million.  

The stock is off the 52 week low of $4.61 per share and is on an uptrend trading at $6.1 per share.  The stock is trading right at 50 day moving average for a week and should the stock break the 50 day moving average it could see $8 in the coming quarter.

Wednesday, October 5, 2011

The Recovery of Solar: JKS, TSL, YGE

The whole Chinese Solar sector has been abandoned by investors for a long long time as reduction of government subsidy provides no future for the solar companies.  With investors expecting consolidation of the whole sector and some companies even going bankruptcy, it is not surprising to see these Chinese Solar stocks that used to be traded in double digits are now all at or near penny stock status.  

However for the last two trading sessions bargain hunters seemed to see opportunity and began to push solar stocks up with double digits gains.  Let's take a look at these Chinese Solar stocks and see if they are worth buying:

  • JinkoSolar Holding (JKS): the company actually is still seeing continuous revenue growth quarter by quarter and is still making money.  With P/E standing at 0.83, this should be a steal at $6.36 per share as the stock used to be over $40 a year ago.
  • Trina Solar Limited (TSL): although net income has dropped quite a bit the company managed to earned $11 million in the last quarter.  With P/E at 1.99 and current price of $7.53, this is a good time to get in for potential 100% gain as the stock used to be over $30 just 6 month ago.  
  • Yingli Green Energy Hold. (YGE): the company generates the most revenue among the Chinese Solar companies and is still making $375 million in the latest quarter.  With P/E at 2.2 and stock price at $3.73, this stock could easily double within a year.

Sunday, September 25, 2011

Hedging Against Plunging Commodity

The market has been in turmoil as US and European countries are facing rising debt.  Last week major indices tanked as Fed Chief Bernanke's new move failed to comfort the anxious investors.  While investors are fleeing most equities, some investors are actually making money in the down market by spreading their nested eggs into a special family of ETFs - the Ultra Short ETFs.  These special ETFs bet against the market by shorting so the worse the market the better these ETFs perform.  For instance last week ProShares UltraShort Silver (ZSL), which bet against the price of silver, surged 28.76% on Friday and almost 54% in two days as price of silver plunged.  By allocating part of the portfolio with such ETF could not only reduce the loss but could also beat the broad market.  So next time when the mood of the market is going negative again, start looking at these ETFs for hedging.

Thursday, August 25, 2011

Warren Buffett To Invest Bank Of America Corp (BAC)

The Oracle of Omaha makes his move again!

Earlier today Bank of America Corporation(BAC) announced today that it reached an $5 billion agreement to sell 50,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share to Berkshire Hathaway, Inc. in a private offering.  In addition, Berkshire Hathaway will also receive warrants to purchase 700,000,000 shares of Bank of America common stock at an exercise price of $7.14 per share.  This move by Warren Buffett, the so called Oracle of Omaha, establishes a strong floor for the collapsing price of BAC stock and may give the investment master a potential 100% return in years to come.

Last time Warren Buffett made such a move was during the peak of the financial tsunami when he invested $5 billion at Goldman Sachs.  Within a year the stock went up more than 50%.  This time with economy is on the edge of a double dip recession and banking stocks are on the verge of collapsing, it makes total sense for value investment guru like Warren Buffet to grab quality big bank like Bank of American as its shares are trading near two years low of $7.7 per share.  

This may be a perfect time to follow the master and buy some shares of BAC.  If the price keep falling?  Don't worry someone already promised to buy 700 million shares at $7.14 per share.

Wednesday, August 3, 2011

Market Sell Off - Where is Dow Jones Industrial Average Heading

 Nine straight days sell off in all major indices.  So are they going to fall further?  Dow has already broke the significant 200 day average line of 12,000 and is currently trading at 11,735, testing the next support.  If it break further we could fall another 700 points before we see any possible buyers.

Thursday, July 28, 2011

Chinese Hunger for Meat - Zhongpin Inc.

The Chinese demand for meat has been growing rapidly as individual income have been growing.  Therefore it is worthwhile to look at company like Zhongpin Inc. (Nasdaq: HOGS), a meat and food processing and distribution company with over 390 meat products.  As the sixth largest meat producer, the company serves customers like Wal-Mart, KFC and McDonalds and even export it's meat products to Europe, Hong Kong, Japan, and South Korea.  

Both the company's revenue has been growing rapidly from $291 million in 2007, $539 million in 2008, $726 million in 2009 to $946 at the end of 2010.  However the company's stock has not been doing well this year, losing about 50% already at the moment from little over $20 per share in January to $10.15 at the moment.  Based on recent heavy volume it's a good indication that smart money recognized the value of the company and began to snatch up shares at a discount.