Banking and buying!

October 31, 2006 edition of Smart Money for the Small Investor. The Dow was down, the Nasdaq was up, and the S&P was flat. Trust Co Bank (TRST) looks to be a good deal at its current level. It's dividend right now is at 5.8%, and because of that I don't think it will drop any farther, and is really poised for a big jump. I see 3-4 up, 1 down. Jones Soda (JSDA) is up and coming, has just broken into profitability, and carries very little debt. JSDA could double within 12 months... 10 up, 3 down.



Holdings disclosure: TRST

Biotech could be big

There are two relatively young biotech companies that I think could be poised for a big move when they report earnings at the end of the week. These are Cerus (CERS) a company in the cancer drug business, and Cepheid (CPHD) a company that makes genetic testing equipment.

I also advise to take some of the profits off the table with Riverbed (RVBD) which missed it's earnings estimates if it gets to $25, and SAIC (SAI) which has made a nice little run if it gets to $21.25.



Holdings Disclosure: SAI and RVBD

I need your help!!!

Generating stock tips is hard... especially when you are trying to come up with 1 or 2 ideas per day. If you have a stock that you would like me to check out, let me know and I'll go over it.

If you would like ot collaborate, send me an email!

Cheers,

Dr. Cam

Market Stumbles before Weekend.

It looked like our buddy profits took off early for the weekend, letting declines take over for the day. The DJIA, Nasdaq, and S&P 500 all gave up about 1/2 of their gains one the last day of trading.

Good News: The Fed decided to keep rates steady at 5.25% for the overnight lending rate. However, inflation is a little high while GDP growth is starting to stagnate at 1.6%... This is goign to put the hurt on Bernanke.



Disclosure: Holdings in Microsoft (MSFT) and General Electric (GE).

3 little guys and 3 biggies

October 26th had big oil reporting, and they came in with stratospheric numbers... however, today we're going to focus on 3 small caps and 3 large caps that you could score big with over the next quarter.



Disclosure: Holdings in RVBD, SAI, ARNA, MSFT, GE, and PFE...

Big Oil = Big Money

Big oil is starting post their profits. BP had nearly 6.8 Billion, ConocoPhillips (COP) had 3.38 Billion, and we're still waiting on Exxon Mobil (XOM), Chevron (CVX), and Shell (RDS)... and then there's the independents! Apache (APA), Devon (DVN), and Anadarko (APC). Predictions? Apache jumps, Conoco jumps, and Anadarko drops!



Disclosure: Holdings in APA (Big time holdings) and XOM...

Toot-toot! Riding the rails to profit...

That's right, Norfolk Souther Railway (NSC)comes out with earnings tomorrow, and I anticipate good numbers... you heard it here first: NSC will beat earnings by .02 tomorrow. I put my money where my mouth is, and bought big time today at an intraday low, but don't worry, it's not to late for you to make some Smart Money on it.



Disclosure: Holdings in Norfolk Southern (NSC)

Recent IPO action - Big Movers

After a surprisingly weak IPO market for the first half of the year, we have seen some good companies coming public in the last few months. Stocks covered in this episode include: SXE (up 25%), SAI (up 22%), RVBD (up 50%), EHTH (up 63%), and APKT (up 67%) from what there IPO target numbers were listed as.



Disclosure: Holdings in SAI and RVBD.

Making money off CAT!

Caterpillar (CAT) just got hammered on Friday! It was down nearly 15% and I think that we can really make some money when this company bounces.

Conclusion: I think long-term call options will be best on this front, but don't buy until you're sure we have hit a real bottom... so, keep your eye on things and when we see all the analyst downgrade it, start buying!



Disclosure: No holdings in CAT.

Portfolio diversification

Portfolio diversification can be difficult for the small investor. Often, we can't take down enough shares to make any real money unless we throw everything we have behind a couple of positions. This webisode focuses on how to diversify when the funds are tight.

Conclusion: Diversification doesn't make you money, it keeps you from losing your money! It's about damage control and limiting risk, and is very important! Diversify with Mutual Funds then make money with stock picking! You should have three pools of money:

1. Retirement: Very diversified - Do not mange it yourself!!!
2. Discretionary: Moderately diversified - This is where you make your money!!!
3. Cash: You'll need it to take down positions when your discretionary fund is all tied up.

Disclosure: Holdings in Microsoft (MSFT), Riverbed (RVBD), and General Electric (GE)

Google and Raytheon

These are two companies that I think we could really make some money off of.

Raytheon (RTN): I think Raytheon is 10-15 up over the next 6 months and 2-3 down. This company is really on fire.

Google (GOOG): It could be possible to make money on both sides of this trade if you have the capital... it's a $460/share, and I think to get in on any stock you need to buy at least 10 shares ($4600 investment). I think we can ride this up to $525-550/share and then use puts to make money if it falters... Be careful on this one though!



Disclosure: Holdings in Raytheon.

Welcome!

Welcome to Smart Money for the Small Investor! This blog is designed to give you a few of my best hunches on the stock market. However, please note, I am not a stock analyst, I am not a financial advisor, I'm just a guy that tries to do his research and put his money where his mouth is...

When most people here commentary on the stock market, it's from people who get paid to do it, and often by people who have the ability to buy thousands of shares and sit and wait for several months. What I realized is that these people are extremely out of touch with their audience. Most of us that want or need to make extra money in the market, have much less buying power! As a matter of fact, we often get beaten up by the fact that even with paltry commissions ($7 at scottrade) that you often have to see a jump of 3-5% to break even! That is why stock picking is even more important for small investors!

Small investors have special needs, and I hope to give you stock picks that are suitable for the small investor. This means I'll never advice you to short a stock or buy on margin, although I will advice long-term puts or calls.

All of my advice will be in the form of video, with some supplemental text.

Good luck and Happy Trading!