Monday, May 14, 2012

Repetition Breeds Familiarity

Well to get to the point, everything has fallen apart once again. This time around, in year 2012, the market doesn't really care. Yeah we are down a little off the highs, but if the market had really cared it would not have rallied the bears away for the first 4 months of the year. Had Greece really and the Euro really been an issue, it would have never left us at the beginning of the year. The world has far from fallen apart, the VIX has barely moved. The masses, rightly so, are convinced that the United States economy is better. Things are better than they were and we are likely not going to have a double dip recession. The irony of the whole situation lays in the fact that we, the big ole United States, will be able to stand on our own. We are just a giant nation of consumers, our service economy will prevail, because we merely make money off of serving one another. The restaurants will continue to make food, nail places will continue to paint nails and so on. Technology will continue to service the masses and be the place to make monies. If liquidity freezes up again, does it really matter? It's obvious that people aren't buying homes anyways. So the point of my ramblings are simple: we have seen the Greece mess many times before and at this stage in the recovery Uncle Sam will stand fine alone. Even if Greece falls apart Americans will keep doing what they have done for years and likely spend more money. Yes the rest of the world falling apart will slightly hinder our bright future, but it will far from destroy it.


Sunday, May 13, 2012

Sunday Funday: Mother's Day

I usually like to use Sunday Funday as a way to highlight a stock that may not be on every investors radar. This Sunday I am going to switch it up, and rather, make a suggestion for the time you would spend researching said stock. I suggest taking that time you would spend slaving away in front of the computer and use it towards family time. We all work very hard to achieve financial success. On Sundays like this, one must step back and realize why we desire that financial success. We desire this financial success so that we can support those around us, so that we can spend less time working and more time with our family. It may sound cliche, but take a moment to spend some time with family today. I am taking a break from my research to do the same, because at the end of the day family is all you have.

What is Sunday Funday?

Thursday, May 10, 2012

The Game Isn't Over Until It's Over

With all the chaos of the market over the past few days I decided to take a step back for a moment. Sometimes it is best to not get caught up in the news and realize that the positions you hold will work out in the future. Had the end of the world really came I would have likely been in hot water, but that is the case for everyone, so at least I wouldn't have been the only one on the sinking ship. All that I can take from the past few days and the market action, is things aren't over until they are over. That may sound extremely cliche, but just look at the markets over the past few days. Yeah see what I am saying now. The greatest thing about my previous statement is that when it comes to the financial markets, the game is never over. We all will live to fight another day (as long as we take steps to maintain our capital) and hopefully that new day will be better than the next. Just remember last year with the Greece mess, everyone thought the double dip was back, and look at the first quarter 2012, extraordinary. I thought the video from last weekends Kentucky Derby would be a good morning inspiration. Take a watch below and remember that it is not over till it is over.


Sunday, May 6, 2012

Extrapolating The New Tech IPO's Through Zillow

One of the virtues of youth is having a memory that does not falter. Luckily for me, I am young, and pay attention handsomely. I do recall a time, in the distant past, when Zillow was a DOG. This prime candidate for internet success was scorned upon far and wide, and we look at it today, in a new light. Today Zillow is adorned and cherished, while not months ago it was the scum of the earth. Congrats to those who succeeded in the trade, I am not only jealous, but wish I had not been bucked by the negative price move. Now that being said, lets take a look at this new king of the internet space to see whats next for the new internet based tech companies.


The story of Zillow was one shrouded in implausibility. Many asked, how could a company with just an internet site make money? How would they drive users to their site in the depressed housing market? Well it seems that all the critics were put in there place. What one should really take from this is that a few months ago Zillow was not making any money. They were looked at as a joke of a company, with a horrible algorithm for calculating home prices. No one believed in the story, and those who did have just recently profited handsomely.


Yelp and Zynga(to name a few), many are currently questioning there potential. Laughably some are suggesting that these companies are worth half what they are trading at now. The truth on the other hand is obvious. Zillow, the dog of last year, turned their user growth into earnings, just as these companies will do. Last year Zillow was losing money and they turned it around. Just like many of these other technology companies will do. How you must know, how will these new technology companies turn the story around? Simple, traffic equals earnings. The tech bubble of lore is gone. Technology companies can monetize users today, very handsomely at that. The new tech companies will do that, making there shareholders a killing in the process.

Sunday Funday: Smith & Wesson Holding Corporation

One of the oldest traditions of southerners in America, is the one of shooting firearms. I like to take advantage of this right on my weekends, so I see it fitting to take a look at Smith & Wesson for this installment of Sunday Funday. It seems in this time of uncertainty more and more Americans are taking advantage of their right to bear arms. From the looks of it Smith & Wesson will likely benefit. What separates S&W from the competition is not just the quality of there merchandise, but one specific line of handguns. For those not familiar with the handgun market there is a large demand for small, accurate, and easy to use conceal carry class of handguns. S&W has found the perfect mix of firearm essentials in its line of Bodyguard handguns. The Bodyguard 360 has been sold out in many a retail locations and the demand remains high.



I am not uneducated enough to suggest that one product will change the game for a company. What the above bodyguard example lends itself to suggest is that S&W is doing something right, very right. The demand for firearms is high and the choices are various, which in turn means creating a product that sells off the shelves is quite difficult. S&W has created a product that appeases the masses and it will continue to make one of kind products. Looking below at their share price, they are obviously doing something right. So in the spirit of Sunday Funday, let's go shooting.

SWHC 1 year

What is Sunday Funday?