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Monthly Archives: November 2011

Spotlight Stock: Activision Blizzard (ATVI)

November 3, 2011
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So, what should you buy today? To my friend–the one who wanted to buy Netflix–I suggested the Spotlight Stock from the latest Dick Davis Investment Digest: Activision Blizzard (ATVI). Activision Blizzard owns and publishes three huge video game titles–Starcraft, Call of Duty, and the enormously popular World of Warcraft–in addition to many smaller games. The titles have been popular among gamers for ages: Call of Duty is on its eighth version, and World of Warcraft is the world’s most popular online multi-player role-playing game. But the stock is just being discovered by investors … as attested to by the...

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The Company is Not the Stock

November 2, 2011
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The Company is Not the Stock

Last week, I had the following exchange with a close friend: Him: I think we should buy Netflix stock. Look at how much it went down! Me: Now that’s a terrible thing to say before buying a stock. Him: I have the utmost faith in the company. If you’ve been reading Investment of the Week for a while, you can guess what I said next. Me: The company is not the stock! You’ve probably heard that before–I know I’ve heard my father say or write it hundreds of times–but my friend isn’t an investor, so I had to explain...

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How to Profit from Another Possible U.S. Debt Downgrade

November 1, 2011
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How to Profit from Another Possible U.S. Debt Downgrade

Back on August 5 after the market closed, Standard & Poor’s downgraded the United States debt rating from AAA to AA+. This was an important date for investors because the S&P 500 dropped the following Monday and Tuesday, establishing the lower rail of the trading range we were in from the beginning of August until recently. When the downgrade was announced, politicians were in an uproar. Republicans blamed President Obama and the Democrats for their spending. Meanwhile, the Democrats blamed Republicans and their insistence that taxes not be raised. Let’s face it, both parties are more a part of...

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