Why Can’t I Find Any Shares to Short-Sell?!
Posted on April 22, 2008 - Filed Under Investing
According to Fool.com, “An investor who sells stock short borrows shares from a brokerage house and sells them to another buyer. Proceeds from the sale go into the shorter’s account. He must buy those shares back (cover) at some point in time and return them to the lender.” I occasionally short-sell stocks in the micro-cap sector. According to Wikipedia, “The term microcap stock (also micro-cap) is used to describe publicly traded companies which have a market capitalization of roughly US$250 million or less. The vast majority of U.S. stocks fall into this category, but they make up only a small fraction of the total stock market value. Most are traded on over the counter exchanges, and their prices are quoted on the OTC Bulletin Board (OTCBB) or the Pink Sheets.
In order to short-sell stocks, there needs to be “borrowable” shares at your investment brokerage house. I use E*Trade as my online discount broker. I have attempted to short two different stocks this week, without any luck of finding available borrowable shares from E*Trade. The two stocks were EDEN and TIGR. The sad thing is that I probably would’ve won on both, depending on timing of the buy & sell.
So, what about some longer term trading? I don’t mean REALLY long, but more like a one-year investment. Is anyone as interested in Apple Inc. (AAPL) as I am? It is currently trading around $160 per share, and is set to release first quarter earnings on Wednesday, April 23rd. I think if they beat the street’s estimate, the stock could increase fairly dramatically. Also, I am looking forward to hear what they say about estimates for the rest of 2008 and 2009 because the new Mac computer is supposed to be awesome. Included on the new Mac is supposedly instant video chat software and the ability for users to watch TV on their Mac, while video chatting with their friends. Check out the Apple Inc. investor relations website here!
Where Should I Seek Out Potential Stock Picks?
Posted on April 22, 2008 - Filed Under Day Trading
Lately, I have been dabbling in some day-trading and swing-trading, primarily with stocks that are under $10 per share. Both day trading and swing trading take a tremendous amount of time and effort, due to the research and analysis involved. There are many websites out there giving free and paid-for advice regarding day trading. Some of them are reputable, and most of them are frauds (doublingstocks.com = fraud). The first step in a certain day trade is to seek out potential stocks to trade. Tim Sykes published his own DVD about Pennystocking, which details how he trades these stocks. Also, at this page on his blog, he summarizes his philosophy regarding finding potential stocks to trade. Remember, Pennystocking isn’t for everyone, as significant risk may be involved. Also, you should consult your financial advisor before making any investing decision, if you are not comfortable trading yourself.
I am thinking about summarizing my monthly results for my trading account on this site. For the rest of the month I am going to decide what and where is the best place to do that. Transparency is key.
MF
Why You Should Listen to Tim Sykes
Posted on April 14, 2008 - Filed Under Investing, Personal Success
Timothy Sykes is like the prototypical Duke University basketball player. I compare him to J.J. Redick, Greg Paulus, or Christian Laettner. Now, I know you are thinking, “what the hell does Tim Sykes have to do with Duke University basketball?” People LOVE to HATE them. That’s right folks, Tim Sykes screaming about how he turned $12,000 of his Bar Mitzvah money into $1.65 mil. is the same as when Greg Paulus slaps the floor seeking out all the nay-sayers. I personally thoroughly enjoy learning more and more about Tim Sykes, and I also am an avid Duke University basketball fan.
It is unbelievable how much negative press Tim Sykes receives, due to the fall-out of his hedge fund, and his “in-your-face” attitude. I actually enjoy it. What people underestimate about Tim is his uncanny ability to see the future. Making his first million was not a fluke. Just as, his incredible marketing sense is going to make him his second million. Currently, Tim is an author, stock trader, and entrepreneur. I recently purchased his book, “An American Hedge Fund,” and if I enjoy that as much as I enjoy his website, I will probably buy his DVD as well. Tim has been featured in the press many times, some good and some bad.
My question to all of you negative Nacy’s, what’s with all the “bull ship?” Tim’s ability to market his story, and his successful branding of himself makes me envious. I think some of you should step back for a moment and think “would I like to be in his shoes?” My answer would be……yes.
MF
CPA Exam Preparation
Posted on April 9, 2008 - Filed Under CPA Exam
I receive many questions regarding CPA Review materials. As most of you know, I utilized the 2007 Becker CD-Rom course materials to pass all four parts of the CPA exam. Below are some of the choices I had before choosing Becker. These are not endorsements, nor are they advertisements for the companies listed below. This is simply a short list of a selection of the many CPA exam review courses that exist.
Becker Cpa Review
One Great Course! Three Distinct
Formats: In Class, Online or CD-Rom
www.Beckercpa.com
Kaplan CPA Review
New CPA Learning
Systems For Your Busy Life
www.kaplancpareview.com
CPA Review
Get Help for the CPA Review
Money Back Guaranteed!
www.exammatrix.com/CPA_Exam_Review
CPA Exam Review Program
www.CPAexcel.com
Gleim’s CPA Exam Review
www.gleim.com/accounting/cpa
CPA Review, 88% Pass Rate
www.YaegerCPAReview.com
Lambers CPA Review
www.lamberscpa.com
Wiley CPA Review
www.wiley.com/cpa
Good luck to all!
MF
Jim Cramer’s Mad Money Stock Homework Worksheet - Goldman Sachs Grp (GS)
Posted on April 7, 2008 - Filed Under Investing
Goldman Sachs Grp (GS) continues to be best-of-breed in the Financials - Investment Brokerage - National sector. Due to the recent pullback in the stock market and the controversial Bear Stears fallout, I decided to do my homework on GS today, to see if now is the time to purchase. As of 11:30 am this morning, GS is up approximately 1.95%, a substantial move for a two-hour window, so I may wait for a pullback before I decide to pull the trigger (if I decide to pull the trigger and buy). Analyst stock price estimates are by no means the end-all be-all, but I thought it was interesting that one analyst set a price target of $262/sh. See below for basic homework completed, including a 1-yr chart, as of today.
