Lear How to Trade Stocks

Markets at Peak

2009-09-16T20:20:00.001-07:00

The current market is at alarming levels. Seems like people are over reacting to the data. There would be a real down trend for correction going forward. Lets watch out.

Caution is the Key!

2009-04-23T19:41:00.000-07:00

Its been quite a rally for last few weeks. Hope this is the end week for all the rallies. We might face big down turn testing our prior lows in the forthcoming days. The real reason being the stocks have had real nice run without pulling back. There should be some stop somewhere to have it controlled and steady. The problems are not solved. They were actually being delayed. Housing Market shows some sign of relief after pumping in Billions and Trillions of Dollars. The actual recovery should come within which is not happening at this point.

This is the time to be very cautious. The analysts have forecasted very low on profits which in the sense made most of the companies to beat their targets. Now its gonna change.. People will expect pretty more from the companies wherein government cannot support too long. There might be thoughts of Nationalization few months back. Now, situations were changing and people started thinking Banks are gonna run on their own. But we may not be so sure on that until the problem is resolved. Hiding the issue doesnt mean the issue is resolved. Mark to Market rules have facilitated the people from hiding the losses from the markets. But if things are not working as expected there we will see a big slide again later this year.

Employment issues were growing day by day. General Motors is still hanging and trying to survive under Government Aids. But it cannot continue for long as we expect. Things are not so good at this moment. Time to be Cautious.

Sign of Relief --?

2009-04-08T22:19:00.000-07:00

After a very bad february, we had a nice little run during march. Dow has bounced more than 25% during this month alone. Not to mention that most of the financial stocks have regained their lost kingdoms. After the fears of nationalization during February and unclear statements by Treasury secretary, investors went wild and keep selling throughout the month. Thanks to Bernanke and Obama to comeout with 800 billion stimulus bill and made it through congress. Also, the most awaited Mark to Market rule which helps to keep the hope of financial recovery by 2010.

But still the challenging part is raising unemployment and increasing layoffs. Recent results from Alcoa is not so good and its kind of difficult to predict whats in store for April. Till now market is hanging around 8k benchmark and try to find some direction going forward. April used to be the deciding month for most of the stocks. As the earnings keep coming out we might see some reactions in the market.

Thanks to RIMM to bring back the energy and confidence in tech sector. Recent talks of IBM with Sun has created a possitive note in tech side but unfortunately the deal hasnt been struck which is not good for both the companies. Also, still the fears of deepening recession is not out of question. Addng to that SEC is also trying to bring back the Uptick rule which went out during 2006 and other regulations for the hedge funds.

Will all this help the market... we need to wait and see.

Comedy or Serious?

2009-03-14T16:03:00.001-07:00

The recent debates / clashes / fights between John Stewart / Jim Crammer and CNBC was getting hot and finaly Jim came out to John's show and accepted the fact that he has no forecasting of what he really said. All the news said was what he heard from the CEOs and COOs. But there are too many good videos which supports John to bring up the nice point in a bad way. But is it comedy... No I don't think so.. It makes perfect sense that these news channels are supposed to do investigations on what they really telecasting. The group of people sitting and analyzing and advising come back and apologize that "sorry we made a bad call" is not gonna get the poor investors money.. Its already gone and never coming back. So, either stop promoting those words of CEO s and stop advising or start doing an introspection before giving any advice to others.

Check the Full Daily Show Episodes:

John Stewart on CNBC

John Stewart Head to Head with Crammer

Find some interesting videos on You tube about these issues.

The Bear Market Raily!!

2009-03-12T23:51:00.001-07:00

As I mentioned few days back, the rally is here.. This may not last for long .. Most of the bear markets there would be short rallies which brings in the new investors and squeeze them out and make them run away from the markets. This is very common in every bear market. Just like how we get few down days in Bull Market. Here its gonna be bouncing for few days.. Thanks to Citibank to end the hammering of their stocks by saying they are profitable last few months.. Still there are questions on how they interpreted their profits. We need to really wait for some more time to see whether its the real truth or just for convincing the stock holders and moving the markets. Unfortunately many of the CEOs of those banks which have already vanished like Bear Sterns, LehMan Brothers, Wamu, Wachovia, Merril lynch were also saying we are good and well capitalized till the time they are bankrupt. There is no criminal actions or law suits against those people who manipulates their stocks by giving false message to markets.

There should be some severe penalty and punishments for those who gave info to the markets without solid background informations. Lets see ..

Last few days there is a huge rally without any really great change in the economic and housing conditions. The housing data is still bad and unemployment is still raising and nothing really changed. The simple reason for this run is nothing but the quarter ending. All these institutions want to book profits by manipulating the stocks and creating a short term up trend. Its one way good so the market will continue to make some money without loosing big on a day. Also, it brings in the money that were lying on the side due to fear. This rallies bring in those fresh investments in to the market and digest them.

Also the rumour on mark to market and Uptick rule fuelled up the rally. For those edge funds to make money they want stocks which are fat so that they could make money by shorting them down. Now they all covered and waiting for the poor investors money to come in to market and buy those stocks. Later these big players again short them down.

Not the first time we are witnessing this. We have seen the same happend to citi when it broke 5$ barrier. So, the history repeats itself. This recession is not over and this rally is not gonna last long :(. If you are smart enough make money or cover your shorts in this run..

Whats Wrong with WellsFargo?

2009-03-04T23:43:00.001-08:00

"Wells Fargo" is being one of the very conservative banks which doesnt take any serious risks in order to make big profits. Their one and only move in the recent financial crisis is to buy Wachovia for a bigger price than that of what Citi offered. Everyone said this move make Wells Fargo a better bank and made it among the top 3 financial institutions in America.

Fortunately or Unfortunately they have also borrowed money from Treasury on TARP funds. This made them to answer the congress for every moves they make from now on which is good for the investors to know what they are upto... The real questions are not answered yet. How much is the loss Wellsforgo is currently holding due to the merger with Wachovia. How much cost cutting measures they are going to take in the coming days. How they are gonna mitigate risks and how they protect their dividends.

Recently JP Morgon made a smart move for cutting their dividends 80% in order to have more cash to protect and safeguard themselves and promising investors on long term stability. But Wells havent announced any cut in their dividend payouts. Everyone is surprised to see wells 10% yield and still stocks are going lower. Sounds like the losses due to merger of Wachovia are taking toll on WFC's stocks.

We might need to stay close and watch whats going on in the near future. Will it join C and BAC?

Finally Bounce Back Time!!

2009-03-04T23:26:00.000-08:00

Its not even 2 weeks, when we wrote about DOW at 7800 is very dangerous.. As suspected, it went well below 7000 and started to bounce back today after a massive downward run. I think this is the short term bottom. We could see a nice run up for around 10% from here which might get DOW back to 7600 range by next two weeks. Its kind of setting up for the Quarter ending. Also the institutions want to hold up the market for few more weeks prior to the next worst earnings coming up in April. Its second quarter after the official recession. Everyone knows very well the numbers are gonna be bad. They dont want to push the stocks too bad. So, we will be seeing a run up for 10-15% from here and then decision will be made after April first two weeks and then market can go to retest their Feb lows again. Just like what happened in October. This is a very typical recession market. Its clear that things are not going to recover soon as expected.

Everyone started realizing that the Change may not happen quick enough. It takes its own time. We could say its been too much of expectation from the historical president at this time. He is trying to do what he could ( may be he could have done it better). Still we need to wait and see how this stimulus is gonna work out and effect of budget which everyone is unhappy with.

Whatever may be the conditions and whatever may be the reality.. we are gonna bounce back for next few weeks. Happy Short Bull run in the bear market.

Fears are growing that SPY might retest 500 levels if things are not going to recover by June.. Next quarter is gonna look pretty ugly. June is gonna be bad. Lets be ready for that... :(

Dow 7800 - > Cat on the Wall?

2009-02-10T23:35:00.000-08:00

As we were discussing about the worst might happen if the bailout II which is the one final hope for the financial crisis and economic turnaround. Treasury Secretary announced the bailout early today on which the markets reacted very badly as expected. The reason being there is no clear statement of what they were going to do for resolving the problem. In the speech, every word the stress is on we were working on a plan which bring private and public sector together which will help to bring the bad assets out of the banks etc etc.. There is no new plan as such has been announced except its kind of marketing a plan which doesn't exist. The next worrying issue is the amount of constraints that were put forth for those banks requesting the money. Its more likely the funds will remain with government itself as the constraints are more severe that most of the banks may not want to participate and go through a stress test. For the equity holders of financial institutions its a big risk that they might get wiped out.

As the bailout money lenders are going to washington to face congress questions tommorow, the markets are at very critical levels below the previous bottom and the lowest for 2009. If things are not working well or not turn around we might witness another wide sell off till it finds the next Dow bottom around 7000+ levels which is not so good. Things might look very ugly and it takes even more time if it touches below 7k anytime. We might need to add another bad year if that happens to the market.

Already few investors jumped in after the last low levels in october last year.. We may not expect the same thing to happen this time as people were very cautious in proceeding forward. Considering the global economic down turn and stimulus delay and mounting unemployment number which keeps increasing everyday globally, its gonna be very bad in the near future and it might take more than what everyone were thinking to recover.

Its all with how and what the new administration is going to do with bailout fund and Stimulus fund. How they are going to make it work instead of adding to the already high deficits. Lets wait and see...

Bailout Plan II - >Financial Massacre?

2009-02-09T22:54:00.000-08:00

Whats gonna happen tommorow when Geitner the New Treasury secretary announces the plan for the Bailout II. Will it be a Bullish sign for all the banks or massacre for all the financial stocks . As we all know the new administration was clearly putting tough terms for the financial companies who requires TARP need to follow lots of regulations. We may not get new surprise other than putting more complex rules for getting the money..

But here we are missing something.. the idea of TARP is to increase the flow of money in the financial systems and not to put blocks in it. It should be such that the money is clearly flowing through the system through the banks to all the parts of economy. This issue is very delicate and may or maynot work. Though we are little far from getting the banks nationalized but still we maynot guarantee the bank stocks will remain above zero..

Markets Looking for Direction !!

2009-01-23T21:54:00.000-08:00

After brutal attack on Bank of America and Citibank and every other finacial last week, the news is its not over. This week was one of the most oscillating week. Everyone in the market were very much anticipating a rally for the new democratic government headed by Obama. But the reactions were exact opposite from what was expected. All the indexes were thrased to retest their support levels just few minutes after president elect became Mr.President. Its a drama in the wall street welcoming the president with a alarm.

Later the markets recovered well from the losses. Thanks to IBM for getting a better than expected results and Apple for a blowout earnings. Not to forget the bad news during the long weekend in Europe banks were facing more troubles. The fear is clearly visible on the eyes of the investors.

Where this is gonna end. When the finacials will stop asking more money for their troubles are some questions which are still not answered by anyone. One other thing is the New president is not in favour of bailing out banks without penalty. There is a clear message that each penny recieved from tax payers were accounted and the recievers are supposed to pay them back with pain.

Later in the week, the Tech Titan and Software giant Microsoft gave worse than expected result and poor forecast followed by GM. Thanks to Google to keep the hope and the nerves of the investors.

Next week is gonna be more interesting and we could get some clear indication where the markets are heading. Are they gonna find the nexxt lower support around DOW 6800 and SPY 680 or moving forward back to above 9000 range till further bad news are recieved. We have to watch. The current levels are alarming and cannot be withstood as there is no support.

Lets wait and watch !!

Bank of America - the Next Citibank?

2009-01-14T20:17:00.001-08:00

After the massive slide of Citibank shares, finally the news came out regarding their bad mortage bets have become worse during the fourth quarter last year. We are all aware of the stories how Citi and Fed made a deal and what happened to the stock price and the dividends etc.

But in the recent days, Bank Of America stocks are sliding little rapidly than other financials. This makes us to think whether Citi pattern is repeating on Bank of america as well? More than 10% yield in the dividend as of the current BOA stock price doesnt attract the investors and they keep selling it ... Definitely there is something cooking underneath. May be we need to see in the future weeks whats gonna happen to BOA. Better to stay away and watch instead of getting in ..

Also note that the problems with Citi is not over yet. Recently they announced the deal to sell off their profit making brokerage unit to Morgan Standly (which makes morgan as the number one brokerage overtaking Bank of america). Citi started to shrik itself into a small banking company rather than the giant financial institution.

In comparison, Bank Of America aquired two of the very badly affected companies last year namely Countrywide and Merrill Lynch. Have they made the right choice in choosing Merrill is another big question. Its very evident that Merril is not better than Lehman in any chance as they did similar wrong bets. On taking over Meril, BOA has did a big bad move.. is another question. As they announced recently that they will be cutting as much as 35k jobs and getting money from Federal government doesnt show any good .. Also another point to be noted is, whether Bank of america dividend is safe? From the current price and the happenings it is very evident that they are going to slash their dividends just like Citi which would have bad effect on the stocks. Its better to watch rather buy.

Time to take a bite in Apple

2009-01-14T19:54:00.000-08:00

After few months of mounting rumors on health of Steve Jobs, a letter has been published last week about his health and it also states that its just a hormonal imbalance caused that weight loss and Jobs is working on the recover and continue to be CEO.

Just a week later, it was mentioned today that he is taking a medical leave for 6 months for recovering from the more than anticipated problems in his health.

During last years presentation when steve appeared thin on stage he mentioned its due to a common bug.

More than the health concerns, now the problem is on reliability of the news that were being published from apple side about the condition. Already Apple stocks were near the year lows and the retail sales are going down from worse to worst.

Its truly evident that the recession is going to stay for long wherein the gadget sales and costly laptops may not be on the priority for the buyers in this year. Considering these facts sounds like apple may take another hit to go back to its price during 3 year back which is around mid 60s.

We never be certain how market takes the news. Better be prepared for the downturns.

Ready for Another Slide ?

2009-01-04T22:46:00.000-08:00

After a rough 2008 we are here at 2009. Every optimistic person in wall street want to wipe out the losses in 2008 and start moving to profitable side in 2009>

But how far are we from moving up ? This question is really tough ask at this time. May be in few more months we could come up with a estimated timeline. As a new government need to come in few more days. Its not easy to say they will turn around everything. Its not possible without the time factor. It takes time to heal the wounds.

Most likely would be seeing another bad quarter from all financials and other sectors witnessed by the recession and reaction from wallstreet with another big slide retesting the lowest of the previous lows is quite possible. We need to wait and watch. If you have cash, please save it for some more time. Lets wait before investing. Once markets started its movement in proper direction everyone can make money. Until then everyone would loose. Very few makes money at those conditions.

Santa Rally 2008!!

2008-12-25T12:13:00.000-08:00

We are at the end of another bad year for the stock markets. As everyone agreed at this point that US is in recession, we are in the edge of another worst year in stock where major indexes slide more than 30 % in the last 52 weeks.

2007 was gloomy than expected and everyone were expecting the bottom of housing prices in 2008 mid or end. But it never happened. Now all the eyes of focussing on 2009 June as the end of housing problems. Now the focus has turned on to various other issues not the housing as it made server impact to financial system in US and Global markets. Most of the renowned banks were collapsed in 2008 and marked another bad year for banking. But it created a whole lot of vaccum in the job markets which is compelling another recession for US. Actually this recession could be a severe one compared to what we witnessed in 2001. The reasons being simple. 2001 is pure technology and aggrevated by sep 11 attacks. Here Housing attacks are 100 time more worse than sep 11.

What to expect in 2009? Will everything be over at 2009 and markets start rally at the end of 2009? These are some of the most difficult questions to answer. But we need to understand a simple theory. I already mentioned about Dow hitting 7500 and it does happened few days ago. In every recession the indexes goes down and moves up due to support from new investors or people with money who think the market is at bottom. But the reality is little different. We need to see few months of silence after the actual bottom is reached.

Most of the time we will witness a deep cut in the chart and then little low volumes for few weeks prior to the actual recovery. The above facts are true for recession but depression is little different wherein the pattern repeats again and again.
As we have some possitive happenings this time with government pushing lots of money and bailing out companies and pushing stimulus plans, the recovery may be little faster but side effects still remain.

Regarding the santa rally, we are actually witnessing the rally as the markets are not going down though there is real bad things happening. No negative is possitive. We were in the rally past 2 weeks and may extend for the next few days. We might keep hold of 8500 to 9000 range in dow for next few days. But once 2009 opens, things may change. We might witness bad slumps and falls in early few days and then we need to see fourth quarter earnings and proceed forward.

Hope everyone have nice christmas and new year. Lets wait for the 2009 to resolve the issues and new presidency to bring light to the economy!!

Whos the killer? Iphone Vs Storm

2008-11-24T07:25:00.000-08:00

Storm has came out in the market during the economic storm taking on US. It gave very nice pop to RIMM stocks in the recent trading days. Rimm kept staying above 40$ a share. Analysts are very possitive that Rimm will sure give an edge to its sales during the tough economic conditions. Another good point analysts see is the device upgrades from corporate world without increasing the monthly payment. As corporate customer got their data plan paid by the companies themselves it definitely helps blackberry's storm.

On comparing the features, storm has came up with a little different touch screen which is not so sensitive as iphone and it feels the touch. Storm senses the touch and press in the screen rather iphone feels the touch, tap and slide movements.

The browsing speed is better in storm especially with vz's 3G is much better and has more coverage than ATT.

Storm beats iphone big in the emailing service. As they already entered to corporate emailing and calendar synch up, definitely they have an edge over iphone. With much wider screens in place business customers can view their emails in full and can send back better and lengthier emails.

But storm lacks the ipod and the power of itunes and the most stunning apps provided by apple stores. Actualy appstores are moving iphone sales much better than expected. The apps in iphone is really cool. Storm is kind of bluish in appearance which make us feel its phone wherein iphone gives the pc kind of experience.

Overall these two are really good products and getting some better experience and innovative ideas on plate. By getting storm to market RIMM made sure to keep their corporate share of their phone intact though it may not get newer retail customer base from iphone.

In this tough economy wherein things are getting worser everyday..we need to really think how many might move in to blackberry storm or iphone. I am pretty sure these measures might help them to get through the competition not making more profits.

So from stocks point, I am not seeing any upside in both these companies.If they try to maintain their price at the current levels through next few months it would be a great achievement for them.

Check the video for better comparision.

Just to demonstrate how iphone apps have grown and how the developers taken advantage of this device. Check this smule app which makes iphone into a musical instrument.

The New Face of America!

2008-11-08T12:41:00.001-08:00

On November 4th 11 PM EST., everyone in United States of America witnessed a historic moment seeing the first ever African American President being elected as a new face of America.

Its not an easy journey to get elected as president of United states. He made a campaign which has overtaken many of the records. He came across a tough opponents to get the Democratic nominee. Irrespective of all the negativity, Obama finally pulled out an amazing victory in the elections.

Now, its not a easy task to be an American President, he need to do lots of hardwork to get things back on track. Its a very tough conditons out there in financial sectors, insurance and automobile as well. In this economic conditions, we need someone who take quick and agressive decisions to get USA on top of the world.

Lets hope he could do it. The speech after being elected as president by Obama was inspiring. He has refelected the real issues that were facing the country and also clarified its not gonna be that simple to get back to normal conditions.

Under his leadership with democrats having majority in both houses, we could see something happening to turnaround the conditions soon. Lets hope the best.
We believe "YES, He Can change America's Future!!"

What a Ride?

2008-10-17T19:40:00.000-07:00

After huge gains following the G7 and plans for stabilizing and guaranteeing the interbank lending, the wall street gave a huge cheer at the start of the week. Dow seen a massive bounce after many years and very next day where it retested it 5 year lows. What has really changed here in this market? The answer is nothing really changed. Thing were the same as they are in the last week. The reason for the huge record sell off last week is simply "Fear!! Fear!! Fear!!".

Investors are not finding proper directions and many institutions have no clue on whats gonna happen next? They have really given up the hope that some change would happen to resolve this crisis. The one other and the main reason for the sell off was margin calls which has forced many investors to liquidate their portfolios forcibly. Not to forget the many 401k based funds are forced to sell their investments as many people moved their funds to fixed income from other funds which has exposure to stock markets.

Last week, near the end of the session many new people who had their cash sidelines moved in to the market and many shorts covered their positions prior to the weekend. On Monday after the announcement by the Fed for making sure of the banks lending intact and 250 billion investment by Treasury in the top 10 financial institutions has given the momentum on Monday which made Dow to climb an historic 960 point move.

Soon after that things were started to price in the nearly confirmed recession which is not far away. So, good news is depression is almost avoided but recession is nearly confirmed.

Here I would like say the words of Warren Buffet here "You know, I always say you should get greedy when others are fearful and fearful when others are greedy. But that's too much to expect. Of course, you shouldn't get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that."

Bankruptcy - Unleashed!!

2008-10-10T00:40:00.000-07:00

"BANKRUPTCY" has been discussed so much in the recent times in most of the Channels and news papers. Even many people were talking about it. But, I was wondering how many of us really know what bankruptcy really means. I have got an email recently which clearly explains bankruptcy in layman terms and its also clearly explaining the formation of bubble. Thought of sharing it here.

Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.

1) There were 3 citizens living on this island country. A owned the land. B
and C each owned 1 dollar.

2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1
dollar each while B owned a piece of land that is worth 1 dollar.

* The net asset of the country now = 3 dollars.

3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.

*A has a loan to C of 1 dollar, so his net asset is 1 dollar.
* B sold his land and got 2 dollars, so his net asset is 2 dollars.
* C owned the piece of land worth 2 dollars but with his 1 dollar debt to A,his net residual asset is 1 dollar.
* Thus, the net asset of the country = 4 dollars.

4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C. As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.

* B loaned 2 dollars to A. So his net asset is 2 dollars.
* C now has the 2 coins. His net asset is also 2 dollars.
* The net asset of the country = 5 dollars. A bubble is building up.

(5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2 dollars from C, and cancellation of his 2 dollars loan to A.

* As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.
* B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.
* C loaned 2 dollars to B, so his net asset is 2 dollars.
* The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.

(6) Everybody has made money and everybody felt happy and prosperous.

(7) One day an evil wind blew, and an evil thought came to C's mind. "Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more."

(8) A also thought the same way.

(9) Nobody wanted to buy land anymore.

* So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.
* B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.
* C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.
* The net asset of the country = 3 dollars again.

(10) So, who has stolen the 3 dollars from the country ? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper. B's net asset is still 2 dollars, his heart is palpitating.

(11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.

* A owns the 2 coins, his net asset is 2 dollars.
* B is bankrupt, his net asset is 0 dollar. ( he lost everything )
* C got no choice but end up with a land worth only 1 dollar
* The net asset of the country = 3 dollars.

************ **End of the story; BUT ************ ********* ******

There is however a redistribution of wealth.

A is the winner, B is the loser, C is lucky that he is spared.

A few points worth noting -

(1) When a bubble is building up, the debt of individuals to one another in
a country is also building up.

(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island's own currency. Hence, there is no net loss.

(3) An over-damped system is assumed when the bubble burst, meaning the land's value did not go down to below 1 dollar.

(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.

(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game, he will neither win nor lose. But he will see the value of his money or land go up and down like a see saw.

(6) When the bubble was in the growing phase, everybody made money.

(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A ) and take part in the game. But you must know when you should change everything back to cash.

(8) As in the case of land, the above phenomenon applies to stocks as well.

(9) The actual worth of land or stocks depend largely on psychology

Falling Knife !! Who want to catch it?

2008-10-09T14:21:00.000-07:00

After back to back drops at wall street, we are slowly beating the records of declines the world has ever seen. Every body in the street has one Mantra "SELL!! SELL!! SELL!!". On any potential bounce people were rushing to sell their portfolios for much much cheaper than they worth.

Everybody needs CASH!! As I mentioned before more people realizing the fact. The fact is "Cash is King". If you are in credit or anyway related to credit "Just run away! Make sure you have enough money in cash to survive the recession if there is any!"

Nobody knows when it would end or where it would end! What needs to be done is keep watching and keep analyzing. Invest only the money you wont need it in near future.

Never overdo or overreact on this markets. We could see a huge gain in the next few days.. Who knows starting tomorrow there might be a rally in the market. "Dow may come back to 10000's with in another few days. Mark my words it "MAY" comeback. The probability is high!"

There are people with cash hanging out somewhere who could come and invest at this levels. Having said this another warning "Don't think it is the end of the tunnel!" Still more to come more losses to be taken.

Lets wait for now and keep watching the falling knife!. It hurts everyone who tries catch it. Stay Away!

Apples On Sale!!

2008-10-04T14:22:00.000-07:00

Few months back we have seen apple trading near to 190. With no bad news, this stock was cut in half. Its beaten up very much to its year lows. All the price given for the magical iPhone and redefined ipods, Macs were all taken away from its valuation. What could be the real reason?

On Friday, a rumour on Steve Job's heart attack has brought the stock below the rock solid 100$ price mark and it couldnt get back to 100.

On analyzing the facts, the company has very stable markets for its products. There is a separate segment of people who loves their products and on top they have one of the best CEO's in the business. The potential threat on apple is how many people will buy iPhones and iPods in this slowing economy. As the trend predicts there wont be a rich christmas in many families this year, the question is how Apple is going to answer and whats their forecast for 2008 holidays season and 2009. In any case, if they lowered their forecast (which apple generaly do as they are conservative) below the analyst expectations, dont be surprised to see another 30% hair cut.

Also, the management or board needs to be clear on the success policy for the top post. Investors were looking closely on this company and their new innovations. In between the list of iPhone killers keep extending including smart touch phones like Rimm Touch,Nokia 5800(multi touch), LG Instinct, HTC G1 phone and so many others.

Lets wait and see who wins and how apple answers investor's questions. Right now lets have some cheap Apple Juice!

How to cut apple to Half? Watch the video !

Tighten Your Seat Belts!!

2008-10-04T12:04:00.000-07:00

After seeing another trumbling week finaly the Bailout bill is passed by congress during the second attempt. Everyone were expecting a huge rally on this report but Market's message was clear. It is WE ARE NOT DONE YET!

Friday market was a classic example or a preview for what is gonna happen in next few months in the markets. After the news of "Wachovia chooses its second partner Wells Fargo" and congress agreed to vote on bailout, there is another worst employment report in the year came out. Still markets held its gains till congress finished their voting and agreed to push the bailout plan. Then market reacted for the employment report.

The point to understand here is whatever you can do with 700 Billion, the recession is nearly unavodiable. We need to pay the price for the Trillions of dollars that were lost. If FED and Treasury comes up with the right medicine for the financial problem it can stop the bleeding but still it will take time for the healing. During that time we will be in recession. Many politicians,financialist,investors warned "we will be in a deep recession if this bill is not passed", but noone assured that there wont be a recession when bailout is approved.

Government has lots of work to do for building the base for the next few years.During this years how we could say the companies will make profit. The maximmum they could do is to make arrangements for their survival. But investors need some future growths year by year. As long as there is no confirm signal on how many years its gonna take to turn this economy around we will be in uncertainity and witness the markets keep going down.

The best bet would be we may end at the worst levels around 50% from the highs for DOW which is around 7000+. To be precise we could see the bottom at around 7600 in Dow. If we are fortunate, we could recover prior to that. It depends on how this 700 Billion is being utilized by Fed and Treasury and how peoples confident would be recovered.

We have the best medicine "TIME" which is the answer for any issues in this world. "Time Will Heal" this wound.

Time Will Heal Lyrics

Is this Right time to Enter or Exit?

2008-09-29T20:08:00.000-07:00

Today 9/29/08, we witnessed another worst slide in indicies next to 9/11 disaster with Dow falling around 7% and Nasdaq around 10% and S&P around 9%.

Most of the 401k Funds falls with atleast 6% loss today which leads to more people to move away from Mutual funds to Safer places like money markets funds.

"All stocks on sale .. AAPL 100$ RIMM 60$ MA 150$ Is it the right time to buy?"

The best answer is "STAY COOL AND WATCH OUT!".

The reason being we just broke the worst ever loss in all three indices today. Now it can go either way. We need to think through this. Is there any change in enviornment or any hope for the market to recover from here. Did we solved any big issues after falling down more than 6% in all indices. The answer is "NO". Stay calm and watch with patience where we are heading to. No one here at wall street is sure of the near future. If you are a loong term investor the best advice would be "Start your investment in a company which is good in fundamental and which you think will stay through this economy".

If you are already in the market "Make cautious reassesment of your investments and think through whether your investments has value for what you have paid for". If you feel I am still good then you are in good shape otherwise dilute those investments which you felt were bad today and stay in cash to get the right stock for a better price.

The truth is "Market is in PANIC mode! This is not the right time to Enter or Exit. This is time to introspect your investment and watch the trend. Who knows this can be just the start of a big crash ever ! "

Lets watch closely for the coming days where we are heading to.. Hope Congress will pass some bill which could help both Mainstreet and Wallstreet without pushing US to a big recession.

Bailout - Bailed out !!

2008-09-29T12:32:00.000-07:00

Breaking News!! House has voted against the proposed 700 Billion Dollar Bailout plan..
The worst news is market is going to see the worst one day crash for this year today!

Markets will recover as they realize the bailout is not a real remedy for the problem. This gives chance for the Economists/policy makers to rethink their approach for this mortgage problem. We should think of lighting candles to remove darkness instead of trying to move darkness out of the room by buying it.

Finally, Tax payers won !!

Wachovia Vanished !!

2008-09-29T07:36:00.001-07:00

As we are waiting on the baliout Vote in the house, one more well known names "Wachovia Corporation"(NYSE:WB) vanished from the markets. Similar to Washington Mutual which vanished just 2 days ago, Wachovia followed the similar steps. FDIC forced a deal to be made between Citigroup to take over the assets and banking operations from Wachovia and Share holder might again be wiped out of the deal.

Now Citi become the largest US bank in terms of total deposits and raised their presence all across the country.

From the text statement of Citigroup it was mentioned:
"Under this agreements,Citi will pay Wachovia approximately $2.16 billion in stock and assume Wachovia senior and subordinated debt, totaling approximately $53 billion.

Citi will acquire more than $700 billion of assets of Wachovia’s banking subsidiaries, and related liabilities. The Federal Deposit Insurance Corporation (FDIC) has agreed to provide loss protection in connection with approximately $312 billion of mortgage-related and other Wachovia assets. Citi is responsible for the first $30 billion of losses on this portfolio, and expects to record these expected losses under purchase accounting upon closing of the transaction. Citi is also responsible for the next $12 billion in losses up to a maximum of $4 billion per year for the next three years. Citi has also agreed to issue to the FDIC preferred stock and warrants with a combined value of approximately $12 billion. The FDIC has agreed to be responsible for any further losses on this portfolio."

Now citi is expected to raise more funds and cutting its dividend to half. Though its sounds like a killer deal it might potentialy become a killer to the Citibank share holders where they got half of their dividends lost. As per the analyst, this is a statergic step for Citigroup on a long term basis.

But at the end of the day one more bank "Wachovia Corporations" is out of the books..

Video Streaming Business - Who is winning?

2008-09-28T09:51:00.000-07:00

Leaving behind the economic worries, financial crisis and the expected recession, entertainment still hold its share.

During the last one year or so, we have been seeing there has been lot of focus on video streaming and its becoming a very good market or channel for business. Starting from youtube, a known success wherein users could create their own channels to broadcast their own homemade videos, many other companies have started pushing video contents instead of having it as news articles. We could see video reviews of the products, video articles (CNBC, WSJ, FOX, Yahoo TechTicker,Street.com TV,Market watch and many others) and we are seeing many of the big companies focused on entertainment were coming up with streaming via internet. Video streaming is slowly becoming the next popular business in news, media and entertainment industry.

As of now High definition TVs delivering super quality videos were becoming common and we couldnt find those CRT Tvs in any retail stores. Now the competition for set top boxes and video on demand services have started. Sooner or later we maynot have DVD players instead we get streaming content from internet in High Definition directly to your Television. With the great progress in optical fiber based video and internet with high bandwidth its gona be very simple to make a move towards internet based video streaming.

After great success in music industry, Apple came up with Streaming videos starting from most popular Tv episodes to recent movies. They came with a product to support their videos on TV called Apple TV (one of the unsuccessful product from apple.They are trying to fix it and make it popular though) which would stream videos from itunes store in high definition to your TV. This works on rental basis wherein customers can rent a movie for a fixed price and it available for viewing only for fixed time once its started.

Netflix came with more than 5000 movies available for live streaming and its totaly free for the subscribers. They also came up with a settop box Roku which is specifically designed to support streaming from Netflix alone. This has been some success for them as they target to move beyond DVD rentals and save some money in postage and handling Dvd subscriptions. But not every movies are available for live streaming though. But its a good start for moving towards internet based streaming.
They also had some tie up with LG to bring in a settop box. I am Not sure what happend to that initiative. Also got some news about a blue ray player along with the settop box.

Most recently amazon jumped into the same video streaming market with Amazon Video on Demand service to bring in the Tv episodes and Movies to the customers. We already known they came with mp3 stores which kind of directly competing against itunes and they had support from google android phone to have amazon mp3 stores inbuilt with it. As they move on to push kindle device to most of their book lovers now they might target to push their video service with it.

Apart from the streaming services, set top boxes were also bringing up so many boxes to the already loaded entertainment set. Adding up to Apple TV, Netflix Roku,Tivo, Sony came up with bravia adapter for streaming videos from yahoo,aol,fearnet,cbs,youtube and the recent amzon videos but it works only with sony TV. They had talks with popular cable companies like Time Warner, Comcast, Cox , Charter , Cablevision and Bright House Networks to have this set top box inbuilt in TV itself. Not sure how the profitablity for those cable compaines would be compromised with it and other TV makers would be forced to have such similar technology in their TVs.

Microsoft also trying to bring in their Xbox to serve the purpose of browsing internet videos through their gaming box. They had partnership with Netflix to bring in the videos to TVs.

What is the impact of this video based contents, movie streamings getting popular is many of this Theatre chains may go out of business sooner or later. As we already know crowd to movie theatres are shrinking, they may feel the real heat of this soon.

With more enhanced internet capable mobile phones with wider screens, better internet bandwiths.. Who knows, in the near future we could see movies getting released in theatres and Video on Demand on the same day. We could expect it very soon!

Mossberg Review on Amazon
Mossberg on settop boxes

Cash is King!

2008-09-26T08:07:00.001-07:00

Very common questions that were repeatedly asked in this market...
What is the good statergy in this market? What is my next stop? Did we reached bottom? Is this the right time to buy? Is this a bear market?

There are lots of screams all around wall street. If you are already in the market and you are not certain about the futre of your portfolio in short term, inject more cash and stay calm. If you are long term share holder and want to stay long no problem.. You should be in a position to get the money you invested with a reasonable returns in the coming years. Nobody can assure how many years we need to wait to get the money back.. But for sure you will be getting it. Keep averaging you best picks for a cheaper rate as the market shrinks and wait for another oppurtunity to buy with your cash. Now if the market turns around you will be profitable sooner than actual market recovery.

Good companies with strong business models and vision will not go out of business under any circumstances or market conditions. Keep folowing your portfolio, analyze the fundamentals of your top stock picks and ask you a question "Does the company has changed its basis or business model from the day I made my initial investment. is it still a good investment?" Once you ask this question and find the answer as "Yes" just wait for the oppurtunity to buy it again.

Here the fundamentals are not being traded in the wall street. Its speculation and the near future was priced with a huge premium on the stocks. If you stay long and have enough cash (liquidity) you are the king of investments. Most of the people get carried away with emotions and forget the market dynamics and act weirdly. This applies to many experienced investors too.. Lets stay long with cash and beat the markets!

AAPL - Will it Blend?

2008-09-26T07:10:00.000-07:00

After Research in Motion has announced poor outlook for the next quarter,its been rammed down to the year lows. The trend shows it might retest high 60's. But how about Apple's iphone magic. Will it work well in this economy.

As I have written in my prior blogs iphone is not only the selling point for appl. It has been gaining market share in its mac books quite well recently. Iphone has helped AAPL to popularize its other products among the common users. It made the normal person to step into Apple stores which makes them to rethink about PC.

There is no question that Apple Inc was doing great in music industry with its popular itunes. And well known iphone 3G has definitely taken the market share from most of other smart phones in the industry. The iphone sdk has once again proven that Apple somehow understands selling the product alone will not make a sustained revenue but selling the day to day applications will give them substantial revenue or platform for long term gains. They have already announced about millions of applications have been sold through iphone App Store.

After saying all this, now there is not a single doubt that apple will beat the expectation in terms of revenue and forecast in the last quarter. But the question is how its forecast is going to be.

As we already know, "its not the current profits or the past profits which determines any stock's value. Its the future profitability and revenue growth which makes the stocks more attractive and valuable".

In this markets, where economy wherein financial companies are burstingout everyday, bailout on question, Steve Job's health conditions doesnt look good and near to certain recession its gonna be really tough days for AAPL stocks!!

Lets play with the apple gadgets for now.. Let the market decides on Apple..

Bye Bye WAMU!!

2008-09-25T20:11:00.001-07:00

After last week's bailout plan initiatives, now we got the news a little early for this weekend. "WaMu shut down by OTS, sold to JPMorgan Chase" is the hot news in the market in the late hours of today. Share holders were wiped out and Assets and loans were taken up by JPM for a "Fire Sale" price.

This is the second jackpot for JPM in a row. JPM offered more than 8$ to WAMU just few months back. Within the few months, things were changed drastically. Now its in deep mess. With bailout plan pushed to further discussions and going unhealthy its another bad news for the markets...

As of now, another bank vanished from the markets..

Bye Bye Wamu ...!!

Can Rimm Hold its Marathon Run?

2008-09-24T23:47:00.000-07:00

Very few stocks pay a hefty return back to the investors. RIMM without a question one of the few stocks that gave very healthy returns for the investors. Blackberry is such a wonderful device till now for the corporate world. It keeps things moving in many organizations. Many of the managers were adicted to checking emails and sending sms with their black berries. Without a question it made a diffence to the cellphone usage.

After saying all this, 2007 is not a real pleasant year for research in motion. The reason was the much anticipated iphone was in the market. Surprisingly it had won the best product of the year and without a question its elagant look and ease of use made it real popular. But RIMM doesnt got hurt by iphone till now due to the fact iphone is for those apple fancy people till last july. Now it stepped into direct competition with blackberry by moving into the corporate markets where RIMM is leading.

Still there are open issues to be debated with iphone like carrier dependencies keyboard absence and lot more. Adding to the pain, now TMobile release the first google powered Android phone for a affordable cost. Need to see how people are reacting to it.

Now the question is "In this sluggish economy and growing competition, will RIMM be able to retain its profitability? Will Rimm release a real iPhone killer by partnering with Verizon?"

if RIMM beats and gave good forecast tommorow it retests its highs. Otherwise dont get surprised to see year low within few days!

Bush is trying to push Bailout!!

2008-09-24T21:12:00.000-07:00

After few days of hot and furious discussions, questions, pauses, blinks, uncertainity today Bush came out and sent a message to congress and tax payers that Bailout is a Must Try. Paulson gave a brief and strong message to congress that this is the last and final try to bring the finacial stability for US. If we miss this and not act fast and efficiently now, we might end up in a deep recession.

Given the fact this 700 Billion may go without use, still its the last hope we have for trying out something and see whether it works.. I remember the movie "DEEP IMPACT" where a comet of several kilo miles hit the earth and Mr.President set up a mission to prevent it from moving to earth etc.. This reminds me of the similar situation wherein its the last hope and nobody has any other solution to resolve this.

Bush is clear in the fact tax payers are screwed anyways either bailout is done or not. He is not confident of finacial market's future will be stable without bailout.Also, one more critical point is he is sure of a deep recession. (We havent got any real sign of recession yet!).

He is planning for a meeting with future american president(OBAMA/MACCAIN) who wil be leading a messy and uncertain economic conditions and discuss this plan tommorow.
Another interesting news is CEO of companies which participates in bailout may get a big pay cut in their package.

Lets see whats gonna be Congress stand after this. I bet this bill would be approved in Congress!!

Bush Address Nation on Bailout Plan

700 Billion enough for Credit Crisis?

2008-09-23T19:10:00.000-07:00

There are lots of discussions going around about the Fed and Treasury's proposed Historic 700 Billion Dollar Bailout plan. Each of the tax payer in America would pay 6000 of his tax to this mortage mess. Why such a huge penalty for the American tax payer when they are not really involved in any of the profits enjoyed by these greedy institutions that were currently failing.

Greedy may be a little tough word but we need to use it. These corporate giants know what they were dealing with by giving loans to un reputed people and selling their crazy ideas out to the market. Now Fed is stepping in and paying for their fault. How come any american would accept this plan.

Argument from Paulson and Bernanke is not very clear on how they would distribute the money into the market. They were not really confident on from whom they will buy this assets and how they will resolve the real issue by buying the toxic stock for higher price. If the institutions want to sell their assets let them do it on their own why Federal government need to take their loss.

Fed is not a institution making profit from tax payers money. US has faced lots of turmoils prior why cant fed steps in those days. We faced the worst recession in 2001 when the dot com bubble burst occured. Lots of people lost their jobs and many technology companies went bankrupt. Why Fed havent funded them that time ? Not bailing out those people. How come they realized it suddenly at this point when goldman and morgan were losing their market caps.

SEC was very patiently looking at Bear Sterns, Frannie, Freddie, Countrywide, Lehman, AIG and others going down. How come suddenly a special interest came in for Goldman and Morgan Stanley. We know Goldman announced last august the state of housing is bad and we are holding short positions on this vulnerable securities or so called toxic securities. Now these people came back and started to complain on short selling on their stocks.

Being in the market so long how come one investment bank could complain SEC that they were being shorted and been brought down to floor. If they have everything clear on their balance sheet why cant they come to the investors and show up their actual balance sheet with facts and fundamentals. Why cant they show some future for thier company for making everyone of their stock holders happy.

These people were enjoying profits and seeing others going down and now when it pay back they are hiding behind FED and SEC for their security and now each of the tax payer needs to pay off their problems.

My take here is Congress should not agree for this 700 Billion proposal until there is a clear picture on whats going to happen with that.

Lets Bank with Goldman and Morgan!

2008-09-22T21:40:00.000-07:00

Breaking news for the share markets on Sunday once the Two left out public investment bankers want to call themselves as Bank Holding companies instead of well known independent investment firms.

By doing the same they could hide under FDIC regulations which in turn could save them from the fears on market conditions but would put them into less profits and more capital requirements on a long term.

Seeing Billions and Billions on profits and doing some bold decisions may not be the trend for Goldman anymore. Its very unlikely to see such a decision from a Giant Financial Firm in US. As of today, there is now public investment banker in the US market.

Its a indisputable truth that these two giants felt the heat of Lehman bankruptcy and Merlynch merger with BAC. Now the open question is how they are going to hold to Feds regulation to be a Bank. As we all know Morgan is in deep talks with Wachovia to get a merger deal which could save their future. Goldman hasnt disclosed their future plans as of today. Lets wait and see whats gonna be the future of these giants.

Bears won again!!

2008-09-22T20:12:00.000-07:00

As we mentioned in the earlier article on Friday, the markets couldn't stay with the substantial gain. The reason being simple, you cannot resist such a huge rally without seeing a sell off.

Fed's rescue plan and SEC's short selling rule put together some pressure on the market to move higher. But at the end reality won. We cant really pretend and fake the underlying truth that there is a substantial mess that was created by the last five to 7 years of Housing bubble. Its not that easy to clear everything on a single plan. But yes the Feds move is a life saver. It cant help the market to run back to its highs. What is actually expected is that it gives some stability and give some oxygen to the markets so it could help it to stay alive instead of dying.

So, we are not gonna die but will stay alive and keep the hopes high. Sometime in next five years we could start running... But the story is Bears have WON the battle!!

Will this rally holds up?

2008-09-19T08:42:00.001-07:00

Now the question on future of US Economy and Stock Market is on plate. Now after doing some regulations to short selling tiil October 2nd people are bit relaxed. I have seen major retail brokerage websites are hanging due to heavy load. Most of the people were login to their portfolio and calling their brokers to know whats going on..

Will Congress allow a trillion dollar plan to rescue the financial institutions. Already they have gave more than trillions for Freddie Fanie and AIG recovery. Will they put the tax payers money and SSN funds for the sake of holding up the economy.

Is this plan is for economy or the upcoming elections? What would happen if congress reject this bill? These are all the questions that were still unanswered. Hope we will get an answer soon.

If you predict it prior to monday be a Bull or bear and do your trades accordingly. Even if you do bothsides I am sure u gain the premium.

-ST

Fireworks in WallStreet!!

2008-09-19T08:42:00.000-07:00

At the end of the dramatic week, there are fireworks in wall street. After collapsing more than 1000 points Dow Jones Industrial Average claimed back to its initial value. This was due to extreme measures taken by SEC to ban the shorts from banging the Financials, the markets exploded on Friday!

Especially the Financial stocks starting from Washington Mutual, Citibank, Bank Of America, Goldman Sachs, Morgan Standley, Wachovia, AIG to Technology Stocks like AAPL,RIMM,GOOG rallied up 30% from yesterdays value.

Dow is souring more than 400 points. My prediction is it close above 500 point gain today.

Happy Option Expiry!!

The FED Magic!!

2008-09-18T21:59:00.002-07:00

The Drama started two weeks back! Freddie and Fannie shares were taken to the deep ocean! Everybody was betting on Fed will come for rescue and bail them out of the trouble! What actually happend is Fed came and wiped out the shareholders!!

Wall street welcomed Feds bold rescue of the Mortage Titans. But soon after that, sell off started again with news of Lehman brothers. All financials were literally crushed to half of the market value. All their market cap evoporated in few hours. After Feds control over short selling on financials and other regulations to stop illegal devaluations of reputed organizations, still there is a blood bath.

Soon after the week Lehman couldnt find a suitable buyer and went bankrupt. Few hours prior to lehman, Merilynch was handed over to Bank of america at a fire sale price. Again there is a huge sell of on that news.

Sooner or later we got another blow from AIG as it needs liquidations to sustain its operations. Everyone was thinking it might go bankrupt. Fed stood still and gave a bridge loan to help the Insuarance Giant to have a breather.

But the sell off went to peak this week. Goldman posted a worst quarterly results which made the markets panic along with Morgan standley seeking for a merger partnership with Wachovia. Fire caught up on wall street last two days.

Today it was confirmed that there is no way these financial companies could recover anytime. Sooner after the sell off was at its peak Treasury's Paulson came and released a news on Feds plan to rescue the infected financial institutions.

After the news everyone who shorted started to cover!! S&P booked a wild 8% swing in a tense day.

Where is LehMan?

2008-09-18T21:59:00.001-07:00

I was just wondering how things quickly could change. Its really amazing how time change so quickly. Just a year back, Lehman brothers was one of the leading investment bank in US. It has spread all across the world with lots of investment partners. Just a week before its all gone. How quick things were turning around.. I couldnt believe myself.

How such a giant company go bankrupt in few months. A history of more than 150 years?

From the Lehman website :
"Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world"

The reason behind is very very simple. Its Greed... Nothing else..

When housing is going in slump this investment bank keep investing in buying the loans assuming that they are golden. But things get worser when you dont realize the mistake you were doing.. Especially when we know there is something going wrong, the rule is " GET OUT OF IT ASAP". Dont try to be strong with wrong beliefs.. Accept that u made mistake and take the consequence of that mistake as soon as u can.

If the same company were able to realize their mistakes when Bear Sterns went down and bailed out by Fed, they should have made smart moves to clear off those bad loans. But they announced there are healthy without issues. It saved only that day but now they are in deep mess. No one was ready to help them in this crisis. Fed may not be worried about or take tax payers money for all the mistakes of these private banks.

The consequence is Lehman filing chapter 11!!

Lessons learnt .. Dont be greedy! Accept your mistakes and face the consequence. You cant hide the truth!!

Google All Set for a Big Move again!!

2008-08-30T16:46:00.000-07:00

GOOGLE the big word in the internet is now started move towards 450 mark.
The time is all favourable for a big move as android going to come live in mobile phones. Everyone already so excited about the iphone sdk applications and there are millions and billions of apps being sold by apple through its app stores. Android is going to be a big hit.

Knowing the innovations of google it wont be a surprise to bring something new with this android platform. Prior to next earnings, google might touch its 600 mark.

Lets google !!

Happy 1st Birthday to Housing Meltdown!!

2008-08-30T14:04:00.000-07:00

We are just more than a year old from last year when the Housing / Home prices started to create panic in the US Stock Markets. We were been told that US can withstand all this. We were been saying "Things will recover Soon".. Last year everybody in the markets were looking on to FED and blaming prior FED officials for holding interest rates high for long term etc..

But we are one year old. The issues are still there.. Last year same time analysts were saying about the mortage problems will be worst later 2007 and it moves on till mid of 2008. Now this year we still hearing "its not bottom yet" .. Where is the bottom..

My Question is "Are we really need to worry about the bottom?" The fact is the housing prices decline is not new to anyone. It happens to every country and every economy at any point of time fromm the stone ages..

So, what is the real cause.. its not the decline of price or the interst rate hikes.
Its the greed of banks and other lending institutions who kept giving loans to non reliable people and who never thought about the future of the economy or the buying power of the people.

Slowly, more and more people started foreclosing and more and more lossess quarter to quarter. WE have seen more than a TRILLION dollar vanished all of the sudden. This is nothing but the investors money. It started to hurt the spending of the people. Most of american people spends based on their asset value and thinking of the future of the jobs.

This is the real good medicine to swallow for the US banking institutions as well as people who were betting too much on their future income.

WE have seen many major institutions slottered during this last one year.. Bear Sterns, Indi Mac, Washington Mutual,Citibank, Bank of America, LehMan brother, Ambac, Freddie and Fannie, Wachovia,etc etc...The list continues..

Is this the right time to invest big hard earned money on to this institutions. The economy slows down and we might end in a deep recession.. Now as the other parts of the world have started feeling the US issues, we could seen some light at the end of the road..

One thing for sure is we may not be celebrating another birthday for the Meltdown. I will be writting another blog after the recovery starts in the next quarter.

Till then lets keep watching.

BIDU AND FSLR

2008-04-27T22:13:00.001-07:00

Baidu is a chinese search engine which recently went intto Japan. FSLR is First solar which relies on Solar Panel manufacture for producting energy from Solar. These two companies are good in basics.. Still they are way overpriced.. There are lots of reasons for them to be overpriced..

If you consider BAIDU as such.. THis is in the hands of people who really do day trading or trading for very short term.. THis stock is overbought many times and oversold.. But on the whole it is more than tripled last year.. But if you consider is this gonna stay for long.. I would say its a false assumptions..

Mainly if a company like google who came with a unique innovative search paradigm couldnot sustain the presssures in the global economy.. How come a chinese based company with very ordinary management could cope up all these future troubles is a big Question. Have 140 P/E is like buying a car for millions of dollar. All I would say is think on short term on this stock. Never go long it can come to your buy price anytime soon..

Same applies to FSLR.. Solar energy is the best source of non conventional energy.. At the same time we couldnt say there wont be any alternatives.. As long as this company is selling and meeting targets it could sustain the current price levels.. But one time .. Only one time if they miss their estimates or market expectation, this is going to retest its lows..

If you are investing on a long term dont go for these stocks.. Consider them like a short or very short term perspective

Current Market is Bear in Bull costume!!

2008-04-27T22:03:00.000-07:00

The current US markets are going green due to the earnings thrust.. THis is not gonna be for long term.. As we do have problems fully recovered.. WE still have lots of things to be taken into account..

Growing Un employment rate, Mortage crisis, Peaking Inflation, Unstability on future, Continuing War, Oil Price hikes, Recession fears and lot more...

This earnings are not real growth factors.. As long as America doesnt deliver any great inventions or plans in the recent future.. it wont come out of this mess..

All this bullish signals we see now are similar to what we had during August, September times.. This is the time you could book your losses and be ready with cash.. I wont suggest the right way to trade is to go for the short side or anyother stuff.

THe best way could be to wait for further bottoms or if you already in red and still ready to hold those positions.. Do a detailed analysis on the positions and reiterate your decisiion to hold them or sell them and book a reasonable loss.

In case, if you still have faith with those securities then keep them wait for a good time to buy another lot of the same. Current indicators shows there is gonna be flat or uncertain market condition upto 3 years from now.. If you are a short term trader predict the wave and sail along .. u make hell lot of money.. the same wave could pull you inside.. keep that in mind..

Bull we see here are not the real bulls.. They are Bears with Bull COver..

Is this the start of Bear Market?

2008-01-11T15:26:00.000-08:00

After today's market conditions.. Things are getting scary.. After Fed's Ben Uncle said there will be appropriate actions would be taken to counter the losses in the current credit markets, after BofA announced a deal to save Countrywide and after a green day after 10 red days.. here again there is blood in the street..

Considering the current happenings in the street, it sounds like a shaky new year 2008. Bad signs for a new year.. I doubt whether its the beginning of Bear Markets. For beginners like me its a new experience. I faced the similar conditions during August last year. But that time somehow Ben's call had an effect and markets rebound and ran back to highs before falling down.

Now Bull have ran, Profits have ran, House prices ran, Credibility ran, Hope is the only driving force. Dont know when the hope will ran. If that happens we can see a massive 1000 point crash in DOW and we will be seeing a big fall in stock prices sooner.

My Hard feeling is it should not happen but unfortunately its alarming that it may happen anytime ...

Next week its gonna be tough.. There is Macworld one corner. JPM earnings, Citi Earnings and Intel earning on the other corner. Whose gonna win. Whats Fed's stand?
There are open questions for now.

Again considering the wealth and depth and confidence of US economy, I believe its a short term Bear dance. I may need to write another blog soon saying "Bulls are Back in the street". Lets hope its gonna be soon!!

Will Apple Split?

2008-01-09T23:31:00.000-08:00

This is been a quesetion for last one year or even more.. Last known apple split is during 2005 Feb when value of stock is trading at around 80. Apple used to have its stock price on and around 40's. But last year is a bit different everyone expected a split anytime but it never happend. Now the question is Apple beyond 200 becomes a bit expensive for everyone to buy. Will there be a 3:1 split. The answer is "We Dont Know ?"

What a split is going to do is nothing but dilution of the stock. One good thing is small investors could buy this stock and better chancce of running back to its high again as it does in last few years.

Apple's has done 2:1 split during February of 2005, on June 21st, 2000, and on May 15, 1987. May be this time its Feb 2008? Need to really wait and see

Few Investment Lessons!

2008-01-09T23:19:00.000-08:00

Wallstreet is in the free fall for quite long period. Now today its seems like a sudden trend reversal. What really happens..? Where are the fears on slowing economy and recession.. Do we still need to belive or try to understand what really going on.. The simple answer is "NO". Dont worry on different aspects of why there is blood bath or why the markets are running lower every day.. Is there a recession taking place.. etc..

Believe in the companies. For tht one need to really understand about the company's basics and what they sell what they do with the revenue and what really matters for that company.. If you own such stock for investment purpose dont worry on markt conditions..

But if you do trading and you want to really think on reasons why market is swinging.. Again the answer is "Dont try to understand the market ". Try to act with it.. If you own or invested in stocks buy puts to save your profits.
If you have lot of news coming up on a stock but market may be bad for a while sell covered calls and make your money with loosing premiums.

You dont have money to buy stocks but you bought some really in the money calls at the wrong time where the markts are falling.. Try hedging your calls if you still havent lost the premium fully or try to buy some puts equivalent andd sell them when the markts recover.. The message is if you own some calls on a company you are betting against the time.. It doesnt really matter how good the company is.. if the markets goes down obviously stock price will go down or stay in that level.. In these conditions its very tough to recover the losses. The best thing would be if you just started trading options.. know your limits meaning know how much loss you can take.. Be sure on what you are doing.. Dont try to follow some rumours or some events that may trigger a stock momentum.

All you need is to believe your analysis on that stock and market. .Options players need to know exact market conditions on a given day.. Limit your profits and losses. If you are too greedy you may end up in a huge loss one day. SO better accept nominal losses and comeout and wait for the next good day.

Never go against your own statergy. Means if you bought some calls for a stock dont try to short the same stock if the market goes down. Better statergy is to comeout of that with decent loss or stay with your earlier judgement and accept the losses. Never go beyond 30% of you investment on options if you have just started to do options trading. Its too risky for beginners and it need lots of nerves. Short success stories may lead to looong never healing losses..

Street on the Move!!

2008-01-07T12:04:00.000-08:00

Stocks are bumped and dumped !! Bad News Vs Good News!! Technology stocks on the hit..
Today its being battle between the bull and bear! In between option gamblers are panic. They are not sure which way its going to fall.. How many more days like this..

January Option expiry would be thrilling.. All know many awaiting events are going to happen. Housing Sale - Everybody knows its not gonna be a big news still people act on that. Possibility of down turn is not avoidable until there is a confident report on rate cut again.

All the technology sector is rocked starting with intel's Stock iteration to sell. Google / Apple / Cisco / Rimm / Bidu / Amzn etc are awaiting for the results to be announced. But will it take back against the odds or fears of recession.

Analyst say if recession is on the run we cant have any hope on consumer goods and retail sectors. We cant help them going further down. Only the companies that blows out their earnings can see a decent price that too a temporaray one. How much they may loose before their actual announcements is again a big questions.

Todays shorts are very much delighted and they started to short more or less every stock in tech and finance. We dont know some surprise announcement might come in the few days which can reverse the trend to a temporary bull market as we seen in the last few weeks of december.

Its a Game for who predicts it first. No one else knows. This time is really hard to predict the markets. Lets wait for tommorow.

Stocks on Sale

2008-01-04T22:50:00.000-08:00

This is the another worst decline in US Stock Markets. Its just the beginning of another Bull Markets. All the stocks are at the best cheap rpice. If someone want to get into the markets for good investments this is it. Its gonna be over soon. We will see another bull market.

APPLE !! So Sweeeeeeeet!!

2007-12-26T14:56:00.000-08:00

As I always said and will continue to say.. Apple Inc is one of the very few companies loved by people not only US / Europe.. but everywhere. They keep testing their worth and come out as best. They lead the tech sector with their appealing product line with innovations and elegance. Not to forget there is a extra premium one needs to pay for apple products though.

The same way, this Apple stock is equivalently sweet for the investors. You can bravely bet on apple. They proved it, proving it and will continue to prove..

Holiday seasons reports clearly signaling the top rated consumer products belongs to Apple. Amazon mentioned 5 of the 10 gifts for this season is Apple product. What else an investor would like to know. You invested on a company which proves its worth it.
They have topped their own estimation on iphone sales which is an addon to their existing ipod and mac product lines. Don't forget the statergy apple deployed for those people who liked touch screen ipod but not the phone by adding ipod touch as another product and also new video ipod nano is one of the excellent gadget to own.

After penetrating to European markets, their growth is exponential on iphone side. Rumours on Jobs keynote during Mac world and about ultra thin flash Mac etc.. Adding too much expectations on this Sweet Apple.

Curious to know what else is going to rock in 2008 from apple. 2007 best innovations appears like iphone. It did changed the way people look their phone. Not to forget google is coming out with ideas on the similar lines.

Lets wait for the new year and lets see Apple can retain its taste!

Rimm Did it again

2007-12-26T14:51:00.000-08:00

As I mentioned pre results, RIMM with its excellent sales and improved partnership with cellphone providers it proved its worth once again. RIMM is ringing.. The only disappointment is there is not much excitement on the new RIMM Touch. I could say people are still awaiting for a bounce on that. Heard some news that it wont be in market till late may. May be RIMM will wait for apple's next gen iphone is targetting business customers or not. If so, they will come with an answer for that too. Its all business secrets.

As far as RIMM at current levels it can bounce at anytime and retest its year high. We need to wait till the dawn of the new year. Also, we need to see the Subprime crisis impact on wall street and not to forget the inflation fears and weak dollar.

Lets check it out again on new year !

Be Ready for the SQUEEZE!

2007-12-20T08:01:00.001-08:00

RIMM is been pushed down for a while and here comes the earnings.. Its gonna beat the street by big margin.. This stock is very famous for squeeze out after earnings.. Every time its announcing its earning it bounces a lot.. This time too we could expect the same..

If they beat well its going back to all time high for the year.. Otherwise we can see a 30% downside..

GoldMan Sacs - The Leader

2007-12-14T08:30:00.000-08:00

Goldman has been a tremendous success story in the investment and finance sector. When every one is wounded up with the subprime crisis, at the corner of new york these people quietly started to short all mortage backed securties.

They are wise and very flexible and quick in making decisions.. With companies like Country wide, citi are loosing their presence itself, there are few rock solid compaines also in the wall street.

But I would say the value is not cashed in their stock price. Somehow everyone in wallstreet is feared of all financial stocks. I would rather say Goldman is a oppurtunistic company which take advantage of any news in wallstreet and try to cash it.

They are the pioneers on investment markets. They started investing in foreign and eastern part of the universe well before a decade. They have made sure their invesments or assets are not only based on US. Neverthless to say Citi also did the same. But here the smart moves differ. Goldman is always smart in moving the coins around and tossing them when needed.

With all the bashing on their stocks last earnings.. which made that stock to climb all the way down from 170s to 250s this time there is a high chance of getting it on and around 300 by next few months.

Rimm Started to Ring

2007-12-14T08:22:00.000-08:00

RIMM (Reasearch in Motion) has been sliding past few weeks and halted its run last week after the stock reiterations and target price reductions etc..

After iphone,voyager etc .. still RIMM has its elegance in the corporate world. There is no real competition for this Blackberry yet. It has started to explore the growing economies in asia like China, India etc.. With so many corporates still relying on laptops over that part of the world and the internet technology is still not available for more than half of those countries.. the potential growth possiblity is very high over years to come.

With RIMM awaiting its results late next week.. Will it make the mark again with tripling its revenue this time also.. With the holiday sales already accounted with RIMM, more of outside market people started liking or having pride in owning blackberry perl etc.. Can they make it to happen again..

Also, there is one more rumour or news floating around the street about the RIMM Touch. Though voyager is not a real competition to iPhone due to the hurry up in making its debut in holiday.. Can RIMM, the master of smart phone technologies and created the thumb rule for typing can come up with a most awaited touch screen technology for its Blackberry called as "RIMM Touch"..

Will there be an announcement or a hint in the coming earnings call.. If these things happen .. We can pretty well say there would be another 3:1 split for this stock sooner than march..

Lets wait for it..

Another Great Drama at Wall Street..

2007-12-11T21:43:00.000-08:00

As everyone expected.. The market makers are on full flow..

All they want is a broad market upstream or a downstream.. Not really the credit worries are issues.. Here the issue is uncontrolled and unstable market conditions..

Majority of the market shares are owned and managed by institutions.. But the markets fluctuations are controlled by the Hedge Funds.. These are the factors makes trading not a easy job for any investors..

They scare even the most optimistic person who is very clear on his investments and the companies he has invested.. They just bring down the entire markets down to earth.. Its very hard to believe how the companies that really do well are suffering and the investors who have put their money on the well doing companies are slotted in between..

Here is the answer.. Market fluctuates.. It can go green or red all the way .. But on the whole they may be a gain or loss.. If there is no variation in the price .. there is no meaning for the term trading..

Here today.. After Feds chairman announced on the Rate cut.. Market went down all the way down.. I am sure even if there is no Rate cut, the market would not have went down more than this. On the otherhand, if we get a 50 basis points cut.. it may hold the markets for a few days only.. Any way, they will bring it back down again.. ITs like the ladder game..

Lets enjoy the play.. I am sure the US Economy is still holding its value and it can take major losses without any problem.. Its strong in its core..

I still believe we can make up 14k in DJIA by year end.

Enjoy the Drama!!

INDIAN STOCK MARKET- Can Crash ANytime

2007-12-10T23:47:00.000-08:00

Its been a great year for Indian stock market I would say.. Its been more than 30% growth in a single year.. Its crossing the 20000 levels second time this year.. Means there are lots of investments and growth are happening right now..

Due to inflow of large foreign captital to Indian markets and robust growth in technology and manufacturing industry has brought the boom we are currently seeing in India. BSE Index is going green most of the last three months.. The reason being very simple.. high expectations and good productivity and lots of investments from abroad.

Still I have a feeling its overhyped at the current scenario.. Is it really that much of a growth we see in reality.. Stock market is not reflecting the actual conditions or the growth right now.. I could see a major correction in Indian stock market very soon. It may happen sometime before january 2008. I feel then only the growth is sustainable.

Without corrections any index cannot grow substantially. It needs a correction. I may not wonder if it correct more than 20% by next 3 months.. People are so greedy and keep buying stocks for too much of price. Its not the inflations alone.. Its due to more and more people abroad or in Indian IT firms started investing and multi level marketings by the Mutual fund companies and Banks creating this hype.

Someday we all could see a major correction.. I will write another article on the same topic in 3 months..

RIMM - Halted its run for now?

2007-12-10T23:36:00.000-08:00

RIMM was ringing loud and clear all through this year.. I think now its the time for its consolidations.. Its been bumping high.. Analyst were upgrading and downgrading this stock for a while. But still the company has its movements well and good..

It keeps on moving ahead and with solid earning and new devices being introduced and new markets being explored every day. With increasing competition in the mobile world in the recent past from AAPL and GOOG coming up with new technologies and softwares ...Its been a compulsion for RIMM to stand up and focus on its goals and to meet the expectation of the market..

Its been doing well and stocks were flying higher.. Now, its on the bad run being pulled back considerably past few days.. Is this a good time to buy this stocks? Its again a tough call.. But the thing to note here is .. its well priced at these levels.. Its a buy at current price and if it goes down still its a strong buy..

Black berry has been the favourite for many many young to old enterpreneurs and its been widely accepted corporate mobile device. More & More corporates are keep on implementing blackberry service in their enterprises. Though Google and apple are coming up pretty fast their core value is not to target Rimm..

Apple has been targetting the high class society who needs a real gadget in their pockets.. And ultimately apple want everyone to carry a ipod with iphone. Not to avoid or remove blackberry atleast for now.

Google is coming up with software where they could sell their web ads. Their target is not business customers.. So market for Blackberry is still there and continues to increase da;y by day...

Rimm at current levels seems so attractive..

Santa Claus Rally is Here???

2007-12-10T23:30:00.000-08:00

Hey Guys... Its Christmas all the way.. SantaClaus is here.. Everybody expecting a usual year end rally... Bush initiated some plans for freezing the threatening foreclosures causing the subprime mortage meltdown.. Already many finacials have shaken a lot.. Some companies lost more than 60% of their value.. Even Giants like Citibank have been crushed with these issues..

Billions of writedowns.. Inflation Fears.. Fears on recessions.. Decreasing dollar value.. Increasing Oil Prices.. Weak retail earning report.. etc etc...

Out of all... still we are moving forward in the stock market.. Dow is up for the year.. Nearing 14k and Bernanke may announce another .50 percent Rate Cut tommorow.. Everybody is awaiting for the Final Fed meeting for year 2007..

Whatever may be the economic condition.. US has the strength to face it and digest it..
No US president want to see a recession at the time of elections.. Hopefully, some political involvements will make the proceeding steady for the year 2008 atleast till elections..

Lets hope santa is already here and on his ride...!!

Merry Christmas!

Time to Buy Long Calls on Financial Stocks??

2007-11-07T14:20:00.000-08:00

For options players.. I believe this is the good time to start buying stocks or loong calls after 2009 with worst affected companies by mortage but with good basics..
We should be aware of the risks we might face in between..

But, I strongly believe this so called mortage crisis is very temproary and cannot stay for another quarter or so... By next june all these companies start moving upwards reaching their year highs...

I would say COF, C, AXP(noway related to mortage), BAC, CFC, LEND,BSC are very good buys.. The time to buy depends on how you understand the makets.. If you can enter right now.. i would say its not a bad decision.. or else if you would like to see when we start moving up again and buy that time is also good.

Have Fun!!

Stock Markets Volatality and Gamblers!!

2007-11-07T14:06:00.001-08:00

Quite a few days we see lots and lots of activities in the US stock markets..

Subprime concerns are big.. Accepted.. Still, the way people hypes it is way beyond natural.. Literally every company in the financial sector is trashed during this season.. All shorts have their day bright and clear...

But inspite the economic indicators are looking good.. FED took actions on mortage issues by cutting 75 basis point ytd.. Its something welcome.. Actually FED has taken some risk in cutting the rates.. They are not sure on inflation still they cut the rates.. Still our market players needs more and more cuts.. Which is quite impossible...

Now.. Coming back to the market game.. DOW / NASDAQ / S&P take any index.. Its going red all day.. and ending green at end.. Same way Green during start Red at the end..
All the way from +150 to -100 ... +100 to -200 its very common in sight recent trading sessions..

What actually is going around is .. these people (Hedgefunds, Financials etc..)are playing mind game with FED to argue for more rate cuts .. All these companies are writting down billions of dollars in Mortage losses.. Everyone know why they are writting down.. Its just due to the greedy loans they offered to unknown unreliable people during the early part of this decade.. Its natural to pay the penalty sooner or later.. How come this will have impact on the US economy..

Those who profitted needs to loose at somepoint.. But some real good performers are being scape boats for this scene is not acceptable.. There are few companies non financial are squeezed out for this market scenes.. This is just because of the gamblers in the wall street.. They just create hypes and bubble stocks and gettinng them down literally ..

Few of the bubbles are BIDU (still need to burst) this stock is moving in 5% always up or down depends on the day.. No news needed..
BRLC, SOHU, RIMM, CTSH and many other stocks ... Even Goldman is being in the hands of gamblers...

SEC has to really take some cautious steps to avoid these people from playing major role in hyping or increasing prices of stocks .. Real investors will be running away from stock markets if these trends continues..

Google Phone - Still a Dream !!

2007-11-07T13:49:00.000-08:00

Its been more than 7 years I have first heard of the word Google ...

This Name changed the whole meaning of internet.. Even people who never know and want to know about computers have started liking internet.. Just because of its popularity and nevertheless to say its by GOOGLE..

No wonder to add a new word "googled" in the dictionaries.. Everybody understands it..

This Great Company definitely brought it the whole new set of user community start to use internet the better way.. It made things searchable.. Search is the "Mantra" or "BuzzWord" for this company..

You can literally search anything you want in the world.. Google brings it right next to you.. Its the technology they made which helps everyone in the world..

Creativity is another Buzzword these peoples have.. They changed the way a map look like. Email in the form of conversations..

Literally anything they bring in is a huge success. .. Do you believe this.. If you have invested 5k with google ipo u would have made more than 15 times of its worth by now.. Still its going higher..

Now, they are trying to look at their next arena the cell phone industry...

After the huge success of APPLE.. Yes I should say its huge success.. Coming up with new technology and ideas into a most competitive market is not easy.. This company made it and succeeded it.. Now GOOGLE phone has got its priority.. When people started murmering on the phone from google.. Nobody believed and even the company had no comments..

When they announced earnings last year.. No comments.. But now after everything... We are hearing officially about googles involvement in the cellphone industry with software for phones...

I am sure sometime or other we might hear something like phone from google.. But more than the phone.. the concept of bringing internet much closer to people is what google is trying to push..

US telcom providers are known for greedy not service oriented mentality.. The question is how google will convince these people to make phone that really helps the consumers ...

One more thing we heard on the street is .. regarding the voip calls from google phone.. You dont really need a phone.. all are through internet.. And no more sms its all a instant messages.. This concept is something which sounds like working.. but who is ready to take the risk of loosing their market share to others.. Especially telcom is most competitive industry.. Nobody is making huge profits yet.. we know stories on vonage..All these companies were trashed by the wall street for no cause.

Now google is awaiting for two important things..one is double click deal and other is network spectrum auction.. If they get both..

There is nobody to STOP GOOGLE>>>>>>>>>

-ST

Presidential Elections and Stock Markets

2007-08-13T07:15:00.001-07:00

Fed injected Billions of dollars on friday in order to make sure the markets are steady.. They are possibly thinking about a rate cut in september..

why there is sudden interest on Stock Market to FED? Some articles i read are saying there is a pressure on the US Government to keep things steady till the presidential elections atleast..

In that case, if its true, we wont be witnessing any major slides till next October :)

Even this subprime mortage and credit worries kicks the down stream FED will start pushing the upstream..

Lets wait and pray for a bull market ..!!

-ST

Another Killer Trading Session in Wall Street

2007-08-10T08:09:00.000-07:00

Latest update..

Dow is down again 200 + points.. No idea about where things are moving..

This season in wall street, last two weeks is real panic seasons in latest years after the major crash in 2001..

Why?? The answer is not found yet!!

No body knows and no body says exactly before it happens..

We need to find a satelite which tell market forecast :)

Bull or Bear?

2007-08-09T23:09:00.000-07:00

Today the markets sees the blood again..!! Its pathetic.. !!

DOW loses 2nd time sorry 3rd time the same year for more than 350 points. Its sliding to the max!!

What really is the issue? Why this is happening?

What A Trader should do ?

Very few days back I am blogging about the recent swings in the market.. This is again the roller coster is in down stream..

Tommorow may be it closes +300 Points..

Whos gaining.. ? Many investors are panic and they dont know what to do>> They cant resist selling to make atleast the money they invest . Though they are eroded all their profits by the down wave !

Poor Investors who dont really know about the company they invested and dont really know or resist the fall sell their portfolios for cheaper rates.. The Hedge Funds.. They make you sit on the edge of the chair always.. These guys are major players.. They borrow money from many investors.. They go beyond the rules to find all the best place to attack these poor investors and take away all their profits..

Not to forget the Electronic Trading facility. These are very convinient way to book orders and sell and buy electronically.. But the worst thing is this makes things even worser than what it is..

The fact being.. lot of complicated orders have been placed by institutions and major mutual funds.. They basically dont wanna loose their profits and want to make sure they are not really affected by the market conditions.. This is just to make the investors of that MFs happy.. So they have stop loss orders.. These orders get triggered when the stock price reaches certain levels. When the market is so bad and stock reach a level it triggers a stop loss and it triggers another institutions stop loss ... its goes on..

By the time these people want to stop the order.. things are already out of control.. The entire market started selling..

Not to forget the Margin call problems.. Those who already have their positions have margin buying power (this is nothing but the loan given by many brokerage institutions on top of the equities they own. All the equities are not 100% eligible for margin purchase power.. Note the fact that there is a very high interest for the money borrowed. ) would have bought few risky stocks or would have invested in some high yield stocks. These are the people who are worst affected. Due to the fall in stock prices, their equity values goes down which in turn makes their margin purchase below the value of stock they own. When it reaches below certain level they will be given a margin call. Means the brokerage firm will liquidate thier portfolio to make the money they have lent to the customr.

This again increase the selling...

Overall all these factors constitutes for a huge fall!!!

Anyway, being a investor without nerves is too horrible in this market. Not many can withstand their value of investments dropping down all in one day!!!

One strong point to be noted is.. Nothing is going to happen by selling.. Just withstand these hits... If you believe your company you put ur money.. keep invested.. you will get your returns.. There might be delay but returns are for sure!!

Keep investing.. Keep enjoying!!

Lets wait for the bull to run forward.. Awaiting to see 14k on board in another month.

Happy Another Black Thursday!!

Corporate Earnings and Swinging Markets!! Whats going on??

2007-08-05T21:50:00.000-07:00

Its been quite sometime I havent been writting ... I thought this is the nice time to break !!

Last 2 weeks its been earning reports and market reports hand in hand..

Here comes the news.. Apple made 73% more than last year..Earning news... Apple shares are trading 10% down.. This is Market news..

Shares are swinging.. Jumping 150 points for 2 continuous days and dropping 300 points the third day..

Whats Going ON!!??

Sell or Buy or Hold or Wait??

Millions of questions..

Lets take a quick look on earning of Master Card,BAIDU,GOOGLE,STAR BUCKS,APPLE,SUN Microsystems, Akamai Tech and Amazon..

Master card posts the results with a bad news that they havent met the expectations of Wall Street as well as the stock movers..!! The worst thing is the results came when the markets is in its down swing in the roller coster ride.. Result... Master card is down to earth all the way from 180s to 120s..

Baidu.. As usual High Expectations.. And surprisingly they beat the expectations well with good margin.. This stock which always glides high after good earning report.. this time jumped and came back.. Markets are shaky!!

Google.. realized the real stock market.. This has been the prestigious stock for looong time.. No more.. Now this time it got a good hit on the head.. Its good for gogle to get a hit so it can move cautious now on.. No more buying junk companies and throwing money on useless projects..

Amazon.. Tripled its profits.. Amazing.. It did it again...Stocks started a march to the everest.. suddenly there is a rock slide.. Markets moved this stock back to the start.. No body know this slide is temporary or its going to be a volcanic erruption..

Sun.. Finally it raises on the time.. But unfortunately its not enough for wall street.. It climbed after hours.. Good for the guys who sold that time.. After that.. its coming back to its high 4's. This company has a looong way to go..

Star Bucks.. Quite good earnings compared with last one.. Increased price.. Very good forecast for next year.. Still no use.. Things are not just enough.. Result.. going down...

Akamai.. The only successful company in the domain.. Caching.. Still not able to meet the huge expectations.. Result.. Stocks were blown down to very low levels.. Very good attractive price.. Lets see whether there is still some more fall remaining.

So what to do in this kind of market conditions... Only one good way..

forget about everything.. Watch this Video..

Lets the divine power helps you to control the nerves!!

BAIDU - A Dilemma!!

2007-07-24T00:01:00.000-07:00

Chinese market, as always been huge in numbers.. By having more than 70% of the stake in chinese search markets.. Baidu literally takes over the control of the entire chinese internet.

Reports says the internet usage pattern in china is increasing everyday. With its rapid development and improving technologies, china still have lots and lots of room for great growth in internet sector. Lots of websites are being created and hosted all across...

They are catching up very fast with the US market as well as the world markets in technology. With offshoring in US now started looking at china as a possible alternative for India.. we are looking forward for a IT breakout in the near future.

In addition, Baidu recently launched its japanese search website which adds up to its existing strength and linguistic skills.

Reports say BAIDU search capability is much faster than compared to the world leader Google.

With all this, being the leader BAIDU has high chance of meeting its forecast coming wednesday..

Still ....

Baidu has a tendency to go up and down in the stock price.. We could clearly see from its history. With google not performing to the expectations, high chances for baidu to repeat it... though both are operating at different corners of the world.

This stock is too highly priced and already double than the price of last quarter.
More than amazon, this stock is highly unpredictable. If we could see the 5 minute charts for BAiDU we can clearly see the volatality of this. Still the volume of trades are huge..

Only the reaction can be seen on the Earning Day!! Lets dont have any dilema on Buy or Sell or Sell short.. Lets hold our nerves for now and be ready to react right after the bell!!

-ST

Will Amazon Magic work again?

2007-07-23T23:53:00.001-07:00

With all the hypes and continuous bull run of Amazon, the next quarter is nearing by... Still the shorted stocks are very high!! Even after burning their hands during last quarter, shorts are still awaiting to pull this stock down to earth.

This time again the expectations are mixed in case of amazon. Amazons new thinking on webservices has never been released. Either a success or failure.. nothing is known yet. Nothing great happened last quarter from a market watcher perspective. The hopes are still high and it holds the stock in the same price.

Now, will amazon pull it out again? With google missing its target by few cents.. we have seen the street has overreacted and pulled down the stock by massive 8 percentage on the same day. If the same happens with amazon, its going to have a roller coaster ride way back to its 5os.

High expectations are always dangerous!!

Lets see the possitive stuff.. online sales have never declined this quarter. With selling music increased with its new partnership, Harry porter's hitting the market with many many millions of it got sold.. etc.. we have a edge the amzon may just pull it out..

Still, the stock is already on a way high than anybody would have expected, the fall of gravity is going to be very high in case if it misses!! Also, the market might also tremble a bit!!

Let wait for the D-day..

-ST

Apple Going to touch Mount Everest!!

2007-07-23T23:41:00.000-07:00

Apple fever caught everybody in the wall street!!

With iPhone claimed as the most successful cellphone ever invented, a lots of hype is sorrounding apple stock recent past.

Recent news of AT&T giving 200 per iPhone sale and 2$ every month for each subscriptions made peoples eyes wide open.

With Leopard going to launch in few more months, Mac sales are improving day by day along with lovers of iPods.

Now, few more news with the apples patents are coming up. iPhone Nano is one of them. A low priced iPhone in the range of 200-250 is going to hit by the year end is the latest news.

Adding to it, apples is trying to attach small business sector with SalesForce. Salesforce is trying to update iphone softwares to make it compatible with their websites. This enhances iPhones reach towards the business audience. Also, one more possibility is to make iPhone to a full phone (No more iPod and other stuff). Making it look like phone with internet capabilities. Internet capabilities to be used for the business purpose.

Right now, analysts are seeing atleast 5 different varieties of iphone coming up. With earnings of iphones releasing soon, we can expect some news during the con call of Apple earnings!!

Also, the iphone sales during the oopening weekend will be counted for the current month. With Microsoft report of increased sale in the Laptops, high possibility of gettting the Mac Sales much higher than previous quarter.

Above all, talks for entering to Europe and other world markets are seriously going on for iphone. Another news is apple is coming up with another new product very soon... From the D5 we can see Steve started something on " we are working on some new product" its highly possible to get a news soon!!

Here comes the bad news together.. iPhone is still not reaching the non apple friends. Not seen in 1 in 100ths of people around.. It has few known issues of cost and people trying to hack have got some success too.. RIMM is coming up with a wonderful smart phone during september with Wifi access. This might also hit apples iphone..

Whether apple will beat the street on wednesday? If it beats, its going to touch 200 at rocket speed!!

Lets wait for the D day.

-ST

High Value of ISRG

2007-07-23T07:23:00.000-07:00

Recently this Surgical company hitting its highs.. You know why? They are leading the competitors by a great difference. The revenue is increasing every quarter and so as the profits.

This company has increased its profits about 32% compared to the last year.
Intuitive Surgical Inc. (ISRG) late Thursday reported second-quarter net earnings of $30.7 million, or 79 cents a share, up 84% from $16.7 million, or 44 cents a share, during the year-ago period.

This company is known for medical equipments. It has a strong fundamentals and earning profits it the recent days. This intuitive company started its run from late 2005 and continues to hit new highs. The reason behind is their instruments are loved by surgeons.

There are people around the corner says its another technical breakouts. May be.. Lets see how its going to do!!

-ST

Voyage of Vonage

2007-07-22T22:59:00.000-07:00

When I heard about vonage for the first time during 2005, I am really amazed. What 25 bucks unlimited national calls with high sophisticated, voice emails call forwarding etc etc etc. THe same package in any other leading companies is far more than 40$.

Vonage really created the real competition with his intuitive approach with VOIP.

Now, the boat has a hole.. Its voayge is on trouble.

Those competitors of vonage like verizon kind.. they cant stand on techniques. So they put a law suit. The verizon elephant is trying to crush the Vonage ant.

The patent issues are mounting on many companies these days. Just think on RIMM. How the patent has created a big issue.

Now RIMM is ringing. The same way, vonage the pioneer and leader of VOIP Technology will be coming out of the hurdles and soon we can see a good improved on this stock.

I am sure Vonage will survive this war.

The factors are simple.
The company has a very good business model. No 1 voip provider in US. High quality customer service.
It has the basics right.

Moreover, many many many people have shorted this stock. There is high possiblity of short squeeze awaited. It may go back to 15s. The question is when the curve is going to turn back..

Some people say Sprint is going to buy it. The question is this company has the infrastructure and basics for running the business. Its just having the tough time right now.

Lets see.. Whether Vonage is going for a big voyage!!

-ST

An Apple a day !! Keeps your debts Away!!

2007-07-21T11:04:00.000-07:00

"An Apple a day Keeps the Doctor Away" is no more a valid quote!!

The things were changing rapidly!! Even every second..

I mentioned about "Sweet Apple" during May.. Now its very SWEET!! Its riping to a damn good taste for the investors.. Its Rocking continuess andd will continue!!

I wrote about iphone and apple but things are very different from what we expect.. People accepted iphone !! a Huge Success for the cell phone industrY!!

Why I told this? Now the thinking of cell phone industry changed.. THey now start thinking more on other aspects of cell phone!! Thanks to Apple.

Blackberry with WIFI is getting introduced soon.. THough these companies have different audiences a slight fear in the mind keep them alert and give revolutionary products!

Afterall this is the thought keep all businesses alive and keep the consumers at their best levels. THanks for all the competitors!!

Coming back, Apple is growing strong each day.. Every Trading Day is a success story keep overtaking itself.. (Other hand, RIMM is doing the same.. we can talk about it in detail soon).

This company believe in its strength and their vision and keep adding values to it by hard work and innovation. The earing sesson has started and people are so much excited. As google failed of huge expectations.. Now all eyes (highs) are on APPLE!!

Overheard from street that iphone sales for the first weekend will be added to the revenue of this quarter.. Withe increased laptop sales overall and with MAC's share in laptop and popularity of apple by its revvoultionary consumer electronic products iPoD, iphone and iTV etc.. people thinking of having apple solutions!!

Whether all these factors give Apple a special taste during the Earning on July 25!!

Lets see how it tastes ? Sweet or Sour !! Catch you after July 25!!

-ST

Somebody stop me (GOOGLE)!!

2007-07-21T10:48:00.002-07:00

GOOGLE !! A new word added to the dictionaries..

Googling is very common with most of the people in the world.

They started saying " My hobbies include Googling on differnt things!!"

This is the impact a company can make with the people in their world. From the day one of the IPO released on Google its on the run. This company which relies on Page Ranking technology for the search which is the heart of their business..

Google always beat the forecast!! Analysts started to set the bars very high!! For the first time in the recent past (Google always beat the estimates by wide margins) Mr.Google fall short a hairy distance even very negligible..~~

What happend to google!! This is what the reaction from everybody. This company went sick due to the high expectations of his stake holders and walstreet boys!!

Google went down crazy after the Earning call mentioned we are slightly lower than the estimates.. Man! this stock hit the bottom after hours!! People went scared (too much) for nothing..

There are always a big group waiting to pull the legs of Google. Now this is the chance. I remember the people who said Google reaching 600 started saying " I know this is going to happen" kind of ..

What really went wrong here?? A million dollar question !!
The answer for this question is "NOTHING". All are normal and usual.

The only part google needs to do here is "Sit back and think what is the core value of the company?" Donnt go crazy to acquire some junky startups putting millions and billions in nothing. Google is now a bit disturbed on their focus and core stuff which is INNOVATION and SMARTNESS.

When you plan to grow in a day from a 3 year to 16 year old guy.. Its not doable.. It should be day to day growth. U cant take the food for dinner along with your breakfast..

All Google needs is refocus on the core values and strengthen it gradually.. Dont get carried away by the hype and fantasy.

For our dear googlers r google loverrs, dont be panic.. its going to be alright soon. Actually its good to happen at the right time .. Now google realize its potential and come back with a vengence !!

Somebody Stop HIM!!

-ST

Yahoo!! Where are you going ??

2007-07-17T07:54:00.001-07:00

I still remember my first email!! I remember the first group in yahoo!! Undoubtedly Yahoo is the wonderful pioneer of internet world!! They started everything... Photo sharing, emails, games, movies, music, finance, groups, etc etc... I cant say everything here as I dont have enough space !!

Here comes Google.. After google started out few years ago, yahoo started vanishing by the innovations and technological breakouts provided by the Google. They have started adding a world called "GOOGLING" in everywhere. When i go to internet all i know is type it in google.. He gets it for you..

The world is changing and will continue to change..

Is this the end of Yahoo!! How its going to comeback to this game.. Partnering with somebody or acquisitioned by somebody or merging with somebody..??? Some say apple is buying yahoo.. some google buys yahoo and some more microsoft buying yahoo>>>

Where is the truth?>

Honestly speaking, its yahoo who needs to realize its values and potentials and start thinking differently and push things forward to face the future with confidence!!

Lets wait for the earning and see what yahoo will do!!

-ST

Want a Cup of Coffee!!!

2007-07-04T09:02:00.000-07:00

When I say coffee in US... Every body says one single word "STAR BUCKS"!!
Its so common most of the people go to a nearby starbucks for a cup of coffee..

Leaving aside the taste of the coffee what comes in front is the service. Every starbucks have cute little students serving the coffee with a free Wifi network and a pleasant music. These guys have changed the meaning of Coffee drinking!!

They made taking coffee a pleasant experience.

Inspite of all these, the company is facing some serious problems after the last quarter earnings announcements and recent announcement about the cost of Milk is high and we are not making the profits margin as expected from the top management of this coffee company..

The stock prices of this Giant coffee is hitting the floor already it touched the year low figures recently. Its trembling over there for sometime ..

What can help this company is their market share across the globe.. Its a interesting fact that 80% of these giant coffee chain gets its revenue from US Markets. It has a scope to grow across the globe!! Especially Europe and Asia markets are big and we could find lot of coffee lovers over there!!

As the spending habits over asian people are increasing high chance of grabbing the market shares out there in China / India / Singapore etc..

Lets see how my Mocha works!!

BRLC - a Double Bet??

2007-07-04T08:57:00.000-07:00

BRLC is one of the stock symbols I am seeing in many of the message boards all along yahoo!! Any clue>>

The answer is its a US based TV making company. The line of products are branded as Olevia.. Seems like these High Definition Televisions are having superiour quality on par with those that are available in market and having reasonable price.

The Syntax Brillian corporation is the companys name. This company is facing some manergical problems though they have some good products. The CEO is not upto the mark and its having lot of debts.. This are some of the bad aspects for this companys growth.

More over the TV generation is going to end soon.. These companies should focus on making new stuff instead of trying to capture the market that is going down.. and having some giants like Sony, Philips, Samsung etc..

Lets wait and see whether its going to double or feeble!!

Latest update : BRLC is delisted from NASDAQ.

iPhone hits the market high time!!!

2007-07-04T08:48:00.000-07:00

I have mentioned in my previous blog about iPhone. Now the iPhone is into the market.. Honestly speaking its another revoultionary product in the industry... Thanks to Mr. Steve to bring this machine to our hands!!

I have been watching videos and clips on iphone for last 1 week and got to see this phone and got a chance to use it too!! Man its wonderful!! It is wonderful!!

It does what it has been told that it will do... Battery is good and look is attractive and tempting everybody to buy one for him!!

This is the reason we have 10000s of people standing on the grand release of this innovative device on June 29th.. I went to a nearby apple stores.. the line went to more than a mile!! Its very different scene in the downtown.

Job once again proved his abilities to penetrate the market with some astronishing products like this !! The sale report is coming with different numbers though.

But one thing for sure.. Apple would have sold every iPhone they have made .. It should be a million atleast. Shocking news is Apple is able to make more than 50% of profit from each of this device!! innovation pays for them!!

An Apple a day kees the debts away!!

As long as Steve is not caught by any of these scandals and inquires which were forced on him.. Apple is one of the few companies which are growing very rapidly and tremendously!!

-ST

Short Squeeze!!!!

2007-07-04T08:43:00.000-07:00

This is the most common term in stock trading. We call it has wrong bet !!
The phenomena is some traders bet on a stock saying it might go down after a period of time. Everybody start betting on a stock. They sell the stock short (without having the actual stock they sell it on a high price). If the stock goes lower and lowers its good for the trader who sold in high price. Once it reaches some threshold, he can buy the same number of stock from the market for a much lower price to cover for the stocks and the difference will be credited back to him.

This is how the shorting work .. what is squeeze. Now, if the prediction went wrong and the price is going higher and higher.. the guy who shorted the stock will get to loose more and more money.. at some point he can tolerate the losses and start buying back the stock to cover for the shorts. This creates a big demand for the stock and the price still increases.. this process will be repeated further and further the prices climb moutains...

This phenomena is short squeeze!!!

-ST

Betting on BAIDU !!

2007-07-04T08:37:00.001-07:00

BAIDU!! Your guess is right!! As the name says its a chineese firm.
Its a search engine with more than 55% of market cap in chinese (world biggest ) markets. BAIDU doubled its profits last quarter. Then on everybody focus is on it..

Currently the stock prices are very high with a P/E more than 100+ still increasing.. The Earnings are nearing by.. people are hoping it will break the targets again to reach new highs.. But frankly speaking no one knows...

This chinese firm is growing well.. Some analyst say its chinese 'GOOGLE'.
But google is managed and focusing on various things.. we can directly compare these two though. Question is how fast the stocks of BAIDU is moving is amazing. Is it due to the shorts or the real development.. Frankly speaking no body knows...

Lets Bet on it and wait !!

-ST

I want iPhone!!

2007-06-08T11:06:00.000-07:00

Its been a hot topic quite sometime!! As we are all nearing the launch of iPhone.
As Steve anounced June 29th as iPhone's official launch in all Apple stores and AT&T (renamed from Cingular) stores all around US.

The specifications look awesome.. The phone looks beautiful. Features are great !!
It plays music, surf net, amazing maps, WiFi, full touch screen, smart scrolls.. etc etc etc ....

As the List is growing big... there is a open question...

Price : 499 to 599 ???? Is it affordable by everyone..
Contract: You need to sign 2 year contract with AT&T..
Dependency: you cant get out of iPhone and AT&T another 5 years.Heard they have blocked iphone for 5years..
Battery Life : not so great..
Call Quality : not sure..

So, if I dont have AT&T nearby my place.. I use iphone as a very good toy or like a iPOD.

I cant use it anymore than a fancy equipment...

But as we all know about Jobs... He always knows the Negatives and act smart even before it breaks out..

So, strong feeling is he will adress all technical issues .. Sure he may not reduce the price.. He might add more to a revolutionary phone..

iPhone is success or failure is a different topic..

overall, Apple makes a new step in Cell phone industry to make a phone more than a phone...!!

Lets wait and See..

Please read more about iPhones at :

BingBlog
WSF Article-Rival of Iphone
Another WSJ Article on iPhone
Smart Money

Amazing Amazon

2007-05-23T07:59:00.000-07:00

Around the corner, Amazon is moving up and down..

Thanks to those who play gamble with this stock !!

Lots of people shorted on Amazon and prices are really really high!!

But the question is .. will amazon able to cope with expectations !!

Amazon CEO is a broad minded guy and he brings in all kinds of products with a variety of product lines to his large jungle website..

Amazon is no more a book selling website.. It already started selling everything.. In addition they are selling songs without copyrights ... This is a great idea to get more people regularly to the website..

In addition he got Brilliace Audio to add to his song collections !!

Amazon has money !! Its the party time..

I believe strongly that this stock is another Gold Mine !! It will see a slump in another few months before earnings next quarter.. But this is going to reach top !!

Expecting a split too !!

Sweet Apple!!

2007-05-23T07:56:00.000-07:00

All we know about Apple is Win Win Win!!!

Hats off to Mr. Steve jobs for his innovative and creating marketing and product making ideas...

Apple is on the go past week..

Will IPHONE be a Success ???

Stocks are racing on seeing the Iphones features and Leopard release next month!!

No one has any idea about how its going to work !!

Lets wait and See..

In between, there is a plan for Apple to create wide screen LCD Tvs. Where it has everything wireless !!!

Steve is not stoppable !!

Websites about Stock Trading!!

2007-05-22T21:44:00.000-07:00

Guys,
Few of the websites are more attractive to give us info on stocks..
For the best financial data i prefer
finance.yahoo.com
www.wsj.com
www.marketwatcher

For Indian stocks the best is : www.moneycontrol.com
Will update more..

Deals make differences!!

2007-05-22T21:13:00.000-07:00

Yahoo! Finance
Quote for DJ

This is the deal season in US. Companies makes deals to buy another company.. Sameway, people are starting up and building companies to sell it to others...

Last month starts from Dow Jones been bid by a big giant Murdoch -- to Microsofts deal with a online ad giant.. its totally deal that make differences..

Why the deals r so hot in stock market.. A company has very good business idea but they couldnt start things from scratch.. They have their customer base... The customers are moving away from them due to some reason. The reason may be they expect a bit new from the company.. So what happens !!

The company want to provide what the customer wants.. Still they cant build the wheel again.. So, they make deal with another small business owner take over their business model and execute it. So, now the customers are happy and stay..
Other hand, the company get the very high premium for their stocks..

Read further on Wall Street : http://online.wsj.com/article/SB117970386496209003-5ntr_SQi0x37qjtrDjDu73QbXWI_20080522.html?mod=crnewsWSJ Article

Introduction

2007-05-22T21:03:00.000-07:00

Hi Buddies,
This blog is intended to share my personal experiences and lessons of stock trading in US. I started trading very recently in USA. Though I did many trades in India and I made around more than 30% profit by investing in IPOs and Stocks.
Hope this platform would be a nice place to share my thoughts, opinions and vision about the markets in general and to explore new statergies......

Wish many of the people around world will be coming forward to put their thoughts on top and make this site a wonderful place for grooming traders...!!!!!

-ST