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Blog Archives

Practicing Patience Pays

December 19, 2011
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It’s hard to remember now, but there was a time when a rainy day presented an actual challenge to parents. The assumption was that on sunny days, children would be outside, playing in a kind of Norman Rockwell wonderland, no matter what the season. But when the sun disappeared and the rain fell, kids were cooped up indoors, bored, grouchy and itching to let off steam in the kind of activity that often resulted in raised voices, frayed nerves and broken lamps. There were even activity books, called “rainy day books” that prudent parents kept in reserve against their...

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A Blip on a Dismal Chart

December 15, 2011
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I want to say a quick word about stocks that experience big price increases in daily trading. I can usually predict that I’ll get a couple of questions about any emerging markets stock that throws a double-digit percentage rise in a day. That kind of jump is just catnip to investors who are tired of a market grinding downtrend and hunger for some upside. My example is SinoHub (SIHI), a Chinese supply chain manager and order fulfillment service for cell-phone components that has suffered through a precipitous drop since it came public in August 2009. The stock hit its...

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Game On! In China

December 2, 2011
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My stock pick for today is a Chinese Red Chip stock that has all the hallmarks of a big winner, but whose chart says a little more patience is necessary. The company is NetEase.com (NTES) a Chinese Web portal that offers a standard menu of Yahoo-like services, including news, blogs, search, matchmaking, social gathering spaces and so on. But what sets NetEase apart from other Chinese Web giants like Sina.com (SINA) and Baidu (BIDU) is that it derives 85% of its revenue from online gaming operations. The hot items among the company’s massively multiplayer online role-playing games are Fantasy...

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Simple Rules for Stock Investing?

December 1, 2011
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Investing in stocks involves a huge number of variables, so many, in fact, that the whole system simply defies complete analysis. Think about it. Even the most sophisticated organizations (mutual fund houses and hedge funds), with battalions of analysts and rooms full of computers, can’t get the business of making money by investing in stocks down to a science. That’s why most stock investment strategies are exercises in simplifying, seeking to gain an edge on the market by reducing decisions on buying and selling to a manageable system. And the essence of most systems is that there are only...

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Buying the Mouse

November 17, 2011
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My stock pick today is Walt Disney Company (DIS), a media giant that has its fingers in every corner of the entertainment business. Disney owns ABC TV, ESPN, A&E, theme parks and resorts, produces movies through its Disney Studios and Pixar divisions, owns comicbook giant Marvel and licenses its products for toys, clothing and every other product that can have a picture of a princess affixed to it. Disney is a formidable presence in the media business, generally growing revenue in the single digits (revenue growth was positive in eight of the last nine years) and paying a small...

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