When the market is flickering & you don't know what to do? Only 2 choices...

Finally I write again some of my investing ideas... I know its a while ago.. but in the meantime I became happy father of my Flying Twins Leo & Lucas... yep... 4 months already...

Back to business, what to do when :
1/ you don't believe in a rocket economical recovery
2/ You think risk is high in the stock market...
3/ you don't want to trade daily...

I have 2 solutions for you....
1/ You take profit & go back to cash... Of course, you know what you have & won't participate in any improvement in the stock market... Also you will be protected for any downside... & be ready to use your dry powder for the near future...
2/ Or you still want to stay invested like me.... Then, you better have a more defensive approach and invest in ETF or stock with High Yields...
Some ideas: I own personally some MLP (pipelines companies) such as LINE, OKS, ETP... They provide me with a Div. of +/-6-7%.
In the 5-6% range, you also have: PFF S&P Preferred share, T (AT&T), EXC (Excelon).

I also recently added some financial stocks as I believe that they will start to increase again their dividend... USB &JPM, or a less known one ORIT (3,3% div.!!! nic etechnical rebound since some days/weeks).
I also like the Brazilian market and therefore CPL (CPFL Energia) with a +/-8% div.!!!

IMHO, I think that those shares & ETF will weather better the uncertain times ahead...


Ah, last but not least, you could play a 3rd game... the currencies.. if you believe that, for example, the Euro will continue its fall (EUO) or The Yen will weaken (YCS)... 

Ok, these were some Investing thoughts live from Seoul.
Feel free to send me a message or leave me a comments...

Stay safe & wish you already a prosperous  2011 year...

Joel Gans

ET oui, j'étais un fan dans les années '80.. j'y reviens... 30 ans plus tard...

What a week... Always look ahead...

Waouah, this was a week.
Monday Obama revealed extra stimulus... Market greet him with a "Thumbs Up"... 2 days...

Mid week, the Market was nervous about the Job report of Friday...

Friday, All seemed to be said... and priced in...

Off course, Europe and its Greece saga was also in the eye of the investors...

I personally found some great deal inside.. even I admit, I'd prefer to see what's next...

We arrive at great support for some stocks like the gold miners. & for this I set a Buy to "GDX" ETF.
Also, I re-inforced my position in Tompson Creek, a Molybdenum play with great potential.. It's in a range of 10&15 now...
I was stopped out on DAC (a greek shipping company)...

And if you wanna play the "South American" matket, I really suggest to add on "BRF" (Domestic Brazilian ETF).. There is some upside potential there... certainly around the 40 level...

If you don't feel well investing in this correction, then I'd suggest you wait till your "dream" stock is closing again above "for example" it's 10 days Moving Average...

Good luck to all & don't hesitate to post a comment.

Joel, live from Taipei, ready for some paragliding in Saichia...southern Taiwan...

Security, Surveillance unfortunately everywhere in this world..

You're in your hotel room, just woke up... and ready to go just for a little breakfast... A good start of the day...
Did you know that, on this normal day, normal behavior, you become A MOVIE STAR.... more famous then Brad Pitt, for the surveillance system of our Morld... !!

Imagine, you just wear your jacket, go to the elevator... click... a little surveillance camera is watching your first movements of the day..
You pass through the reception & the security people of the hotel..
You're just out of the hotel, that... not only, the camera of the street corner is again watching you.. bur Biiiig Brother Satellite is there to send some photos of the street you're in...
And you just enter the grocery store or any Fast food chain... & there again, a little camera is making out of you the MOST FOLLOWED MOVIE STAR...

Is this normal? is this just the world in which we have to leave nowadays with all the potential terrorist threats, etc...

So, how to take advantage of this... to enhance your wealth...

What about, have a look to some companies who are providing all this technology...

1/ Satellite photos: GEOY, DGI... Did you know that Google Earth is using their pics to show you our planet...
2/ Satellite, RF & Wireless transmission: think CMTL or TSYS...
3/ Camera & others: CSR, CPBY... (99% china play)

So, which one whould you consider in your portfolio... Is there not an security ETF?... Not that I'm aware of. Any particular country? China?... Personally, I admit that I have positions in all of them (apart from DGI)

But, recently, I added CPBY (click here). Why?

Fundamentally:
NO LONG TERM debt, reasonable PE around 10. Revenue increase for 2010: +20%. So, attractive PEG too...

Technically: in a consolidation around the 6 level... Any short term popup above 6.25 could be a BUY signal for another upleg...

Price Target:
Short term: 2010 EPS should be around 0,78US/share. So, a short term target of 7,8 shouldn't be unreallistic, as it would just be a PE of 10... with a PEG of 0,5!!!
Long term: as long as globally, the security remains an issue, as long as the company revenue increase... The limit is "an orbit to the sky"... But I'd take some of my money out if it goes too high, too fast...

I really suggest you also to have a look to CSR with a slighly lower PE... &/or add DGI and CMTL (since it positive earnings) which all seem to confirm a technical uptrend move...

Good luck all & behave yourself under the invisible spotlight of the cameras...

Joël, live from Seoul...

Economy Recovery? Export recovery? then you need Shipping companies. I.e. DAC

If the economy comes back, Shipping should have some tailwind too in this market... no?

In the shipping industry, one I'd suggest is: DANAOS Corp.

Why?
Technically:
1/ refusing to descend below the 50DMA (around 4.5US$). It tried several times to rally, but was refused to do it, due to the economy & political uncertainty.
2/ Volume on the upside always higher.. See its attempt in September 2009.

Fundamentaly:
1/ Making money
2/ Market Cap well below its enterprise value, with a book value per share of 6+.
3/ I like the insiders ratio (80% ), and a low Institutionals ratio at 5% (which avoids to have too much manipulation "on the downside" for the stocks...).

General sentiment:
ALL depends the DRY BALTIC INDEX... & this all depends about the Economy recovery & Market sentiment...

I'd suggest to build up some position at these prices: 4.7, 4,6 & 4,5...

ARIAD Pharmaceuticals & CDII (china magnesium play)

This Drug company has just a piepeline with Stage 3 drug that you shouldn't miss.
Technically it's on a nice recovery.
I bought today @2.31...
Short term objectif/resistance: @2.6US$
Look @the chart: ARIAD Pharmaceuticals, Inc. Share Price Chart | ARIA - Yahoo! Finance

Also, I had to cover up my short TWM, as the market just want to go up for the new year...
I admit it was a mistake to buy at a period where Santa Claus Rally & Beginning of the Year is usually giving more power to the Bulls...
Having said that, I might come back if the market shows sign of weakness...

Another Fast winner this morning was: CDII who announce that they will make 10Million US$ or Net revenue... Knowing that outstanding shares are 26+millions... Easy calculation made me buy it in early trade @1.3... and tried a doubling at 1.25, but was just too late...
hort term objectif and resistance: 2US$. (but I admit that this is still too low for its 2010 EPS)

Also, I'd recommend to have a look on High Yield plays such as: GAIN, GOOD & TAXI & PHB (Bond play)... All have a Yield of 9+%.. Not too bad if you want to your "cash" to make some return.

One more time, let me wish you a Healthy, Happy & Wealthy 2010...

Joël