Podcast: Play in new window
The last couple weeks have been really exciting. The Dow and S&P 500 were virtually flat while the Russell 2000 and Nasdaq had a nice uptick.
The indexes ended the month:
• Dow at 11,006.02
• S&P 500 at 1,180.55
• Nasdaq at 2,498.23
• Russell 2000 at 727.01
Today marks the end of the first three-month period that we’ve tracked the Wooger Index. Over the last three months, the index has returned 28.9%, compared to:
• Dow at 9.9%
• S&P 500 at 12.5%
• Nasdaq at 18.2%
• Russell 2000 at 20.8%
This is due in large part to the selection of Deckers (DECK) to add to our portfolio.
Over the last two episodes, we went through the Deckers analysis using readily available analysis tools and tools from Investors.com to arrive at our conclusion. It turned out to be a good decision and great timing.
Angel Martinez, Chairman & CEO of Deckers, was on Mad Money yesterday and Cramer reiterated his bullish outlook on Deckers.
Over the last week the share price of Primedia (PRM) has increased about 25%. I thought it would have some long legs, but I don’t know why the bounce has happed at this time.
I liked ARM Holdings (ARMH) at $17 and now it’s at $18.75. Need to look at that and see if I’m still of the same mind.
I was thinking of getting into Bank of Ireland (IRE) as a speculation play when it was at $1.40 a couple days ago. I didn’t – wanted to do more homework. Now it’s at $1.72 and there is constant news coming out of Ireland, so maybe tonight I can tell whether I want to roll the dice on this one. This penny stock was over $90 at one time. We’ll see what the numbers tell me. I miss a lot of these, because I refuse to get into a stock unless I’m at least comfortable with the current valuation. It’s not only about making money – investing is also about not losing money. I would rather miss out on a 20% gain than to come away with a 50% loss. If you speculate on this or any stock, keep the investment a small part of the portfolio – you don’t want to postpone retirement because you rolled the dice too hard.
Got into InterDigital (IDCC) today at $33.00 and it closed at $33.07. I will follow up with the commentary on the analysis shortly.
News of the day
• Ex-Deloitte partner charged with insider trading
• Bonds rise on Fed purchases and safe haven buying
• Kocherlakota: Fed buys not seen sparking inflation
• Fed’s Kocherlakota says economy ‘decelerated’
• Rumors of a Chinese rate hike followed by a variety of negative Eurozone rumors, including talk of a S&P France downgrade
• Widening periphery spreads are now impacting France and Belgium, with talk of emergency funding at the ECB overnight window, German Landesbanks facing liquidity woes and ECB buying of 5 year Irish bonds adding to a rumor mix.
• The EUR, not surprisingly, has been left battered and bruised.
• We should get a greater focus on USA developments as Home Prices, Chicago PMI and Consumer Confidence are all due for release.
Currency Spot Rate High Low
EUR/USD 1.3019 1.3149 1.2982
USD/JPY 83.85 84.30 83.73
GBPUSD 1.5528 1.5575 1.5509