What’s wrong with analysts? (HLYS)

An article published today on Forbes reads ” Heelys Shares Rise on Upgrade “
The stock was up yesterday after hours for the cancellation of the 4.5 million shares SEC filing, not after some analyst upgraded it today late morning!!!! What’s wrong with Forbes news reports?
Moreover, I also am not impressed with what Analyst Sujata Shekar from CIBC had to say about the stock. She raised 2007 estimates to $1.79 from $1.49 and introduces a $32 target tag on the stock. That gives Heelys, a company growing very much more than 100%, more than 50% shorted, with a cheap P/E of around 17.5. woooooo What the ‘Analysis’?
My studies and analysis tell my brain that when you upgrade a stock to ’sector outperformer’ from a ’sector performer’…you take into account for default that it’s P/E is going to improve not decrease!!!
But according to ‘Analyst Sujata Shekar’, the stock which was trading on an average P/E of around 18.5, will OUTPERFORM the sector and go down in price valuation ending the year with a P/E of around 17.5.
Does something ring bells in your head? Isn’t something wrong here?

My take on Heelys :

Taking a 25% growth in the next two quarters which every body knows is going to be easily beaten by the company, I value HLYS should be trading currently at 1.31 * 25 = $32.75 . ($1.31 earnings is average of all analysts)

Conversely, I opine they’ll make a minimum $1.8 which puts us at1.8 * 25 = $45, by the year end…and I add $4 for the short covering which should place the stock price around $50 by the year end.

This taking into consideration that they do not throw out new news screwing up the price creating volatility again. If they do that…I decrease the price target by $5. That should put us around $40-$49 a share by year end. A acquisition rumour or a merger news should boost the price then to newer never adventured levels. Heelys gives us the best Profit/Loss ratio to get them into your portfolio.

This is just by taking into consideration that they have a P/E of just 25.

We are increasing our long holding, once the price consolidates.

Comments appreciated.

Good Luck,

Youradu.

Holy COW We got lucky with HEELYS again

Wow I love those Heelys. mmmuah.

We are on another trade spree here.

Bought two bunches on this dip.

One small bunch at $27.3

Another bigger bunch today at $ 24.8

We are up 10% after hours from today’s closing price. The shorts will have a hard time in the coming days. That squeeze should take us much higher. Hold on tight and thank Staffaroni.

Congrats and Good Luck.

*Crime is a BUY!!!!! (CXW)

How abt getting a prison play!!!!!

Corrections Corporation of America owns and operates privatized correctional and detention facilities. It also leases three correction facilities to third party’s.

The company is the fifth largest corrections system in the nation, behind only the federal government and three states.

It has a P/E of 34, and a PEG of 1.8. Its revenues were up over 52% year over year on a revenue gain of 11.5%.

Rated a BUY - ‘A’ at thestreet.com

Rated a Buy ‘1.2/5′ on analyst recomendations

It has 4 ‘Strong Buy’ ratings and 1 ‘Buy’ rating according to Bank of America ratings.

It had a great run. Nearly 90% increase in stock price in the last 12 months.

BUT, But, we have a split coming up this month ending. GO ahead guys get some before the split. We smell another big run up.

Never missed earnings and mostly beat the estimates by a good gap.

Private prison operator Corrections Corp. of America announced a two-for-one stock split for shareholders of record on June 29.

The split, payable July 6, will increase the number of shares outstanding to 123.7 million.

Wait for some consolidation in the market and get into this invisible bomb before 29th June. This will be one of our long term plays…No flipping here This is a growth play…not a spec.

Split was annouced when the price was $63.5. So, we can assume there was no big run up just on the speculation for the split. Looks lie safe here tooo. But just look to get in any where around 63-64.

Good Luck.

Just talked to EVCC investor relations….

We wanted to talk to them on Monday evening if the results were not out by then. But one of our comment’s made us call them today. Thanks and appreciations to srx.
We just talked again to the investor relations at the Environmental Control Corporation.
The answers have been confident and positive again.

Two questions we asked :
1) When are the results of the test supposed to be announced?
Ans) Sir, The result of the test being done was supposed to be out by this week. It can be out any day now. We are waiting on to deliver everybody a good positive news.

2) Why is Michael Mugford, the director of both EVCC and MGM enterprises selling the stock? (We asked this questio long back, and got ‘Personal reasons’ as answer )
Ans) Michael and most other directors have been working with EVCC without any pay. And moreover the number of shares he has sold doesn’t even account up to be a considerable number considering his huge holding in the company. He has been selling for some confidential and personal reasons. Moreover, MGM has just bought a good bunch of the stock. That should indirectly mean he (being a founder of MGM ) has no negative issues with the test, nor the company. Hope I clarified your question.

Srx I hope that clarifies your question tooo. I don’t know whether the test outcome will be positive or negative, but the company sounds confident, positive and the industry is a booming one - remember based in environmental friendly California.

No Profit or Loss untill u SELL

Alphabetically

EVCC has been flat since we recommended. Though we have to note we dropped down a few more cents. We gladly mention that we have backed up the truck for the coming news and hope you did the same.

GOOG our biggest dollar pick has dipped to 500 as we predicted and we bought a bunch at that price….though we are waiting for another small drop down to the 475 level before it takes off through the earnings report on Jul19th. Even if it doesn’t drop we’ll make it a point to the community to buy a bunch at a consolidated price. Seeing a huge run..Will probably trade if it bounces back at that 526 mark.

MS has given our short position a good run. We will get discover for our Long position soon and are very happy for the return we are getting DFS* is trading much better than expected …BOOYAH

TEXG …the biggest short term gainer. We have already flipped it twice since the recommendation. It makes a great trade. The latest news is that the debt acquisition by Westar will be done as soon as 10 days with a dividend payment (equal to the difference between 6.75 and the price of TEXG !!!!). We talked to somebody from the company and it looks to give us more. We are now more than a few grands. Congratulations for all those who rode with us.

More posts on TEXG:

http://youradu.wordpress.com/2007/06/08/

http://youradu.wordpress.com/2007/06/21/

NMX our much newer buy is still lurking at the same levels. Though the speculation of the sale is still not completely priced in. Bought at $138.

We also bought a few ICE on 18th June at $153.4, taking its aggressive growth and prospects into consideration. (Also the NYX NMX ICE speculation!) BUYING ON A CRAZY DAY PAYS.

HEELYS…yep it paid us off. We initiated another short term position on HEELYS yeesterday…. Looks like we were a bit too fast in the market….The 10% run down in a single day didn’t produce a positive next day. We are down 5% today…but hey That’ll be another buying opppurtunity as we bought only a very small position at 27 and change. Looking to get few more on a bit more drop. Our research tells it’ll bounce back once the addition of the 9 million shares pending completes…(increase in the floatation hmmmm)

Special Mention : trades at 26 and 25 were cancelled.
Good Luck.

Where is the BULL hiding?

Here we found one of those big fat bulls every body missed.

This is not falling in love with the stock. This is trading on the charts.

Heelys. yya again Heelys…one stock that is hated by most. One stock that has over 50% short interest.

That has paid off again.

I have now covered more than the drop in my core position by trading this stock.

Guys, Just initiated HLYS again today after trading them the last spike on the SEC filings from the company.

Initiated at 27.19 .

Will buy around the next level supports.

Next level Supports at

26.33

and 25.48.

Have trades placed at 26.4 and 25.6 .

Last trades paid off well.
Last trade - Lasted for 3 sessions
Bought at $28.29
Sold at $31.5
3 sessions - 11.5% Profit.
Core- mid-term position untouched.

Go here to find the SEC filing filed today.

Took MPEL off the streamer and LOL it pops up the alert box saying more than 5% LOSS in one session. hehehehe who cares!!!

Thanks,
www.youradu.wordpress.com

Morgan Stanley Pays off :D

We got Discover on holding stock (core position) and a great run for the short term flip at MS.

Trade position:

Buy Date : 06/06/07 at 85.76
Sell Date : 20/06/07 at 90.14

Our long core position remains to ride higher and get Discovery.

http://youradu.wordpress.com/page/4/
http://youradu.wordpress.com/2007/06/07/what-a-sexy-day-at-wall-street/
http://youradu.wordpress.com/2007/06/06/my-latest-stock-play-2/
http://youradu.wordpress.com/2007/06/12/wall-street-house-of-pain/

Boooyaaaaaaaaah

P.S. : This post has been modified on 6/22 to remove the confusion in the wording about the Discovery spin off. Thanks to srx for pointing that out.

GL,

Youradu.

If I were Thain (as of this moment)

I know I’ll call many of my friends here o critisize me with this
post.
Many would say I’m wrong. But just read on.
If I were Thain at this moment. I’ld go ahead and throw a
very competitive bid for NMX and acquire them. Let the market digest
the news, let the shorts ride NYX for the short term. The way NYX is
doing now gives shorts more time, to take the stock lower on the
speculation that we’ll be acquiring ICE/NMX. Why not just do it and
give the shorts less time? Let them take it to lower 70 may be higher
60’s I’m not concerned coz everybody will applaud Thain (me) as soon
as 1st quarter 2008 or a bit later, as soon as NYX realises the
potential of the two huge acquisitions we made. Hope Thain does it asap.

Not freaking out, but I think we are giving shorts time to
gobble our share, just speculating the news, which they’ld relish
until we report a great quarter and tehn give us a big BIG BIGGER
squeeze. I don’t care even if we miss the quarter results owing to the
acquisition costs which should be less, considering that both NMX and
NYX are pretty near, cutting miscelleneous costs (yya I know but
that’s a chunk too)

Moreover, it was good to hear that things with Euronext
are working out quite well as planned and we are not having any
problems there. It’s high time we gobble NYX and change our name to
GLOBAL STOCK EXCHANGE. (Dreaming about the GSE like the World Bank) :-o

Ideal Buy: Buy NYX after the acquisition. Mind you it’ll trade side ways till the next quarter earnings for sure.

Buy NMX and ICE for that upside on the bid. As of now take NMX and buy ICE considering the ICE- CME-BOT deal.

Adarsh owns NMX, ICE and NYX as of today.

*NYMEX is a buy here!!!

yya I’m a little late…three trading sessions late… But NYMEX - NMX can get almost as high as $155-$160, if someone expresses interest in it… and if there is a bid fight the sort of one going on between CME, BOT, and ICE, then we ride higher.

I was just a little suspicious of the rising 10 year (fingers crossed) which may slow down the MA activity, but the market has dropped enough taking off that effect from play now .

Short term : Play it for that 15 -20 Bucks each share.

Today’s closing price : 139.80

Good Luck to ya all.

Adarsh does not hold NMX as of 6/14/07

Plans to get a bunch on 15th, and wait for a RED day, which we at youradu, LOVE.

*Ahead of the Market.

What did Buffett do in his early stages of investing? He went in the direction which very few explored. He did not buy into the current trend. He went after the ‘next play’. Let’s do that now.

Everybody is after Crox. Pushing it higher and higher and will probably dump as soon as it goes and hitz that $100 mark. I love crox too after seeing this run UP to 100 from around 45 in 3 months. hmmm that’s great jump. Now it is at 92 and yya I think it’s a quick buy now…. to be flipped soon. But to do so, you have to be an agile investor. So, lets not touch crox when it’s as hot as new comer almost get burned in that fire now.

SO, let’s search some other in the same sector. yya DICKS Sporting Goods, but that is trading higher too, just around 9% down from it’s 52 week high.

My search takes us to a newer stock, which created a sensation on its debut as the IPO. It is Heelys. yya same old story, it’s trading at paltry dollar amount of around 28. Man, read my previous post on Heelys here. The company posts great quarter after quarter, but announces something or the other at the earnings that drives the stock down. Initially, in it’s very first quarter presentation it did not announce good guidance for the futuredriving the stock down from around 38 to 27.5. Lately, in it’s second conference, it said the insiders would sell a gazillion, again sending the stock from around 38 to 28 now.

This year Heelys Tops BusinessWeek’s Annual List of 100 ‘Hot Growth Companies’.

My take:

Wait for the market sentiment to change and jump in, before this takes off again. Get in anywhere below 28.5 and sell most once it hits that 34 and ride the rest.

Good Luck.

*Wall Street - House of Pain

For one of our friend’s who asked about the recent drop, and how we have to play it now.Also can be a good read for another believer who asked, “How to start off, if I don’t have any background of where the market is now?”Read on…

Is the bull market over? Do we have to start learning to short stocks in order to gain money now? Why hasn’t the market recovered since the last week’s sell off? Why is everything RED in my portfolio? Is there anybody who is still making money out there? How to play these times? Is Mr. Bear hungry?

aaaaaaahh Lot of questions! Lots and lots of questions! Sad faces glaring at the plasma screens at the exchanges. People selling in panic, people taking profits, people loading up the trucks in order to bring their averages down. Moreover, importantly everybody is trying to keep themselves as diversified as possible.

Why the market is down?

Because of rising yields and the fear that there won’t be any cuts in the interest rates in the near future, housing concerns, treasuries being sold, heightened concerns over inflation, decreased M/A activity, all, are one way or the other responsible for the recent drop. Most of these are inter-related. Concerns on inflation, decreasing the possibility of cutting interest rates. Treasuries selling adding to rise in the yields, are driving investors from stocks to bonds. yyaaa there are a lot of reasons, and I’m sure educated financiers, or money managers can write books on current situation.

What to do now?

Very SIMPLE, play it safe. Do not fill your basket with just apples! Do not buy unless you know for sure this short term trend, that is prevailing in the market now, will not effect the stock you are going to buy.

Play stocks which have some good news coming up (Our Morgan Stanley Play, with Discovery coming up) Wait until these gusts settle down. I don’t think this is the end of the Bull market. Just see the way companies are still reporting increased profits quarter after quarter, and year after year. That speaks for the bull market. Unless the S&P posts some loss when compared to the last quarter the bull market is not done. Let the gusts blow over.What do we do if the yield rise do not stop and we don’t have a cut in the interest rates and rather see an interest rate rise as Ben just clued after the last meeting? oh Just keep your portfolio into stocks that get hit less on that news. Keep away from the financial plays if this environment prevails even after the earnings season for financials.I’ll keep trying to find out those picks that will make you some MAAADD MONEY.

BTW: Did you but some TEXG in that beautiful drop down. I didn’t have enough cash to cash onto that drop I think we missed that boat. But I like it anywhere below 2.5. These are the kind of plays you can play now.

EVCC is also on a dip. If you can dare, add some. But mind you add only on your speculation that the test results would be positive.

Play things responsibly. Don’t worry about the drop in the market.

Cramer was bullish on AAPL yesterday, I don’t know, but my gut doesn’t allow me to buy it now. Just wait for that drop when we have it released. I feel we may get it on sale.

And how about getting some GOOG just around here at 500!!!!!Good luck to ya all

*We eat profit for Dinner :o)

This is an update of our recent picks and how they are doing!!!

Google, our costliest in terms on dollar amount pick

Picked on June 5th at 520. Price Target was 500. It still is showing some resilient support around that 513 level. I still reiterate my buying aound 500 or below, but NOT higher.

If you shorted you’ld be making money by now!!! Did you have the guts to short it as I said?!!!

MS : Picked on June 5th at 85.65 Wanted to buy it around 84 - 85 We got that entry on 6th.

Did you buy it around $84.5???
Todays high around $89 (5.3% profit in 4 sessions!!!)

Curent price $88.5 (around 5% profit)

If I were you I won’t dare take profits and play it back again. You may miss the boat that way. Just hold on for the Discover on 20th.

This one is a great winner.

EVCC: This one has dipped. But do we care about the dip? We only care about the news to be released right? We forget this untill we get the news. We have a strategy of taking profits as soon as the news hits the wire at the top price!!!!! Hold on guys.

GS: We called this one on 8th June. We hold on this one until the earnings report due this 14th. And play this out after the earnings ride. GL

TEXG: Our winner. Hope you get some of these before 21st June. The day when Westar is going to consider your holding to mint you MAD MONEY!!! Aaaahhhh What a day ..A great dip for us to get into. Get in before this resumes the ride before 15th. Does it really sensibly matter whether you get it at 2.4 or 2.2 when you are going to get almost 1/3 the price Westar gets?(min of about $3.5 to max of $6.75)

Good Luck to ya all !!

*I don’t like computers in Walmart !

Dell and Walmart have been in news combinedly for some time now. You know what? Dell wants Walmart to sell computers for them. I don’t like this . Cramer likes Walmart now coz they are expanding to Asia. People on Fast money like Walmart too…I love walmart though it doesn’t really make fast money. But this deal does not speak good of Dell. This would hurt them more than it would benefit!!! Ouch

People assume ‘Walmart’ as the Poor Man’s ‘Target’ with their everyday low prices tag. It is kind of like JC Penny for Macy’s. Kinda wierd comparision but almost near I guess. Would you like to go to Target or Walmart when your girl friend asks you somethign? These days kids do not want to go to Walmart, they love to go to Target. I know computers are not too much with kids, but why is dell going to a retailer?? Walmart is great, they have great deals they are like the biggest diversified super market, but doesn’t really impress me with computers. Dell could have gone to some Computer guys, Best buy , Circuit city, office depot, Fry’s, oh man there are so many!!!!!!! This deal is just going to STOMP DELL with a tag - cheap brand.

Once Dell gets that poor man’s brand sticker on it, no body would want to put them in their living rooms!!!!!!! What would you prefer showing a Kia Rio to your neighbour or a 2008 Mustang/Corvette? It’s the same here. It’s all the brand name and the tag you attach to it. may be they’ll increase their revenue initially, but later on this is going to effect them big. This is my thinking. Appreciate your comments.

* Hooo laaa laaa hoooo laaaa laaaa This is WHAT I call is Research

This is what I call research. yaahooooooooo…Another bumper hit…… A trade most of you might not approve of ….. But this has now turned into a gem. yya A REAL GEM. It has suddenly turned down the blood, the last three days have put on my portfolio. I wish I had more of this one. I will be buying more of this even after this one is xxx% more today than it was yesterday. yya guess what’s in that blankxxx. Don’t open your mouth. IT IS 100% . Boooooooooooyaaaaaaaahhhhhhh

I am talking about a small company, a micro stock. I do not remember what provoked me to research on it about five months ago. I remember I was in Houston on a business trip. I was at Transocean, talking to a couple of IT project managers and Transocean management guys. Ironically after the IT meeting we were talking about stocks and companies. We talked about Westar coming public. You know what now. Don’t you?? How will I stop reading about some company that is about to come public which has made a good impression on the management of Transocean (RIG on NYSE), a pioneer and the best pick of that sector. One research page led to the other ..company fundamentals, operations, etc etc took me to a page which talked about the wells, how they work, what happens once they stop working, how costs rise and how companies struggle thereafter, and that took me to a page that talked about my pick. I’m going to show you how this made me thousands, and how it is going to make you thousands now. Yya I like transocean, I love Westar, but I want to marry TEXG.OB (only until the end of this month LOL) yya it is a ob - a otcb stock. Sorry to pick an OB. But, yya that’s what has made me about few thousands in 5 months, and it still has a lot of energy left.

My research on TEXG.OB found that the company had some wells that were almost closed or not working as of then, back in Jan. What is the reason? Company had no money to repair rigs !!!! What the heck? Why is Adarsh wasting my time talking about a company that doesn’t have money to repair it’s operations?? yya that’s what drew me near this bitch and it showed me what to do.

The company owns blocks of oil and gas leases, one covering approximately 11,200 gross acres in the aggregate in close proximity to each other in Erath County, Texas, and one covering a block of approximately 17,200 gross acres in the aggregate in close proximity located in Comanche County, Texas, both of which permit the Company to drill and develop the Barnett Shale formation underlying the lease acreage. On May 31, 2005, the Company entered into a share purchase agreement with Holywell Technological Investments Ltd. and First Finance Limited, pursuant to which the Company acquired Erath Energy Inc. (EEI). EEI’s assets include of approximately 30 oil and gas leasehold interests, which are located in the Erath County, Texas.

It’s acquisition on EEI showed that the company was trying hard to do something, to come out of problems, do something and get the attention of people. After a week or so, I got onto the train. But soon found out that the company was planning a REVERSE SPLIT. Now come on, A REVERSE SPLIT IS NOT GOOD, NOT GOOD AT ALL. My radars went mad, all dials went crazzy. They were blinking, beeping doing all kind of signals. What now? I was down about 25% since I bought. That made me look into what for were they doing this reverse split a big one infact A 1:20 split. I owned around 10,000 then. That would put me with a meagre of 500. The price tanked after the split. People started to sell and run as soon as the split finished. Why were they so mad? What to do now? I’m not a loser. I’m not selling this one on which I spent hours reading. Actually, this one taught me more about management on the oil sector, how it works. This is my teacher. I’m not betraying my teacher! ! ! I called TEXG’s Investment Services to find out what’s wrong with the company. Asked them I thought you guys said “We are reverse splitting to get the attention of the bigger markets, bigger financial sectors, to enable us to market our fields and equipment better” and that sounded to me like you wanted to offer yourselves for sale. He affirmed his stance but did not directly say we are open for sale. He said that they were looking for oppurtunities to work with bigger companies and prove their mettle. What does that mean? Booyaaaah that’s what boosts your stock price. OK then you better prove your mettle soon and make me some MAD MONEY. Kewl satisfied, actually self satisfied on my research I hung up to find an announcment in a few days.

On April 3, 2007, Terax received a notice from the Erath County sheriff’s Department that the 266th District Court of the State of Texas has issued a Writ of Execution directing the Sheriff’s office to recover the judgment amount and any other charges that have been awarded. The total amount of the judgment due is $545,065.94. That is just wonderful. They just increased their marketing arena , and now they have money to repair their equipment and start operations. That is like adding sugar coated icing on a super sweet cake. I love that!! SLURP. That drove the price crazy and I remember selling my little bunch for a profit of about 50%. Now did you see the price action last couple of months? I bought on that dip at around 1.5 and today morning woke up to find the news from Westar. I don’t want to write down the whole news. It’s here take a look. http://biz.yahoo.com/iw/070608/0263705.html

I didn’t have time to read the whole news. Just sold my bunch at around $3.5 How much profit is that?? about $2 a share on and investmen of $1.5 a share yaaahooooooo.

So what do I do now taking the news into consideration that Westar is willing to pay till $6.75 a share for those of record on 21st of this month?? I am buying more , more and more as soon as I get some money into my brokerage account. But before everybody digests the news. I will for sure not let the time pass Monday before I get hold of a huge bunch. I am willing to pay about $2.5 or more.

Good luck to ya alll…yya I know it is a bit long blog ..But this one is our WINNER so why not show some gratitude?

SM: Hope this one tries to offset the losses MPEL has brought me.

*What a sexy day at Wall Street !

Blood Blood Blood, ubiquitous!

What a day? Everybody hates the last three days. I love that. Thanks to uncle Ben , Morgan Stanley’s 14% sell off the next few months and the bonds issue, we got almost 3% fat off Dow Jones!

So what do we have here? Our three picks in the last three days are doing ok. That makes me more bullish on them. I’m still waiting on Google to shed some more off it. Morgan stanley was a good buy both yesterday and today. But if you are greedy and if you want it a bit lower why not wait tomorrow…weekend usually invites more sellers than people who initiate positions. As planned get MS early next week before it takes off like it tried today in the wee hours of the market. The market was selling off one end and MS was such a bull ride for an hour and then people felt the pressure and gave way to the bears. Love the target price rise from Bank of America on our friend Morgan Stanley.

So, why did I say today was a sexy day? I love crammer and his methodologies. That is why I love this week. it’s been a bears run, shorts laughing on bulls. My dad always used to say, ” When an elephant walks on the road, dogs keep barking from the side of the roads” Guys just let them bark and take the weak minded off the train.

My pick of the day is Goldman Sachs GS($220).

Don’t worry about the Fed speach, and the interest rate rises. This one is the best of the breed(Financials). A better play than MS in the long term. If you did not buy MS still. Buy this one. It’s on a dip. They report earnings next week (6/14). Why not play it on earnings? Lets get into GS now and get off board before the Discovery spin off from MS. Howzz that? Great quick flip!!!!

GS - What a stock? I liked it at $230. I love it today on this drop. Uncle Ben’s words have the market take a pit stop after that sprinty lap. I would love to get into GS anywhere below 220. WOW $21.3 earnings per year…giving us a P/E of just around 10 kewl.

If you have the gem already in the portfolio, why not add some tomorrow by mid day. I see another 2$ off and us getting in on with GS.

Good Luck to ya all.

Adarsh.

Note: I ‘m not an authorized/certified money manager or an advisor. This is not an advice or a compulsion asking you or making you to buy the stocks mentioned above. I just give advices. It’s completely under your discretion to buy these stocks. These are just a few picks I’m advising you, decreasing your time to find this from the huge WALL STREET’s ocean. There are many other better plays out there…these are just a few who I like to play as of this moment. I don’t claim to be that kind of guy who beats S & P regularly by some x %. No legal proceedings regarding this can be made, as I never persuade anyone to invest/trade certain stocks.

*My latest stock play - 2

Tell me if my advice helps you in making some money. How about a lunch then? ;) Read on...

HOT SPECULATIVE PLAY:

ENVIRONMENTAL CONTROL CORPORATION:

Environmental Control Corporation: This is a company that makes Emission Control Devices for small Spark Ignition (SI) combustion engines. Typical devices that EVCC deals with are: walk behind rotary mowers, rear engine riding mowers, front engine lawn tractors, riding garden tractors, snow throwers, commercial turf mowers, chainsaws, hand held blowers, backpack blowers, trimmers/brush cutters, mopeds, scooters, snowmobiles, all-terrain vehicles and personal water crafts. They are doing durability testing on the two-stroke, 185cc Rotax engine that began on May 17th, 2007 at Carnot Emission Services (CES). The testing process is expected to take two to four weeks. They did the preliminary tests earlier this year, which were a huge success. That popped the price from $.75 to about $7 a share. I am expecting the news on this test would see a higher pop this time considering that they will be manufacturing them s soon as it gets approved. The only concern till now with this company was financing and monetary support for their invention. Almost forgot to tell you that they hold few patents on the inventory. The finance concerns can be taken off, owing to the latest filings made to SEC and announcements that the company acquired two additional finance prospects summing up to an amount of $75000 and $150,000. The company says it’ll use the financing in the marketing and sales of EVCC's patented catalytic muffler technology and will allow the company to take more aggressive steps in the advancement of its business model.

My Take:

I already own a huge bunch. Looking to grab a few more on any drop. But the good news can be anytime now!!

Ideal buy:

Buy ASAP...may be on a low day like today. Lucky if you can get’em before the news for 1.5. But in my view it shouldn’t matter if you got in at 1.5 or $2 if it pops up to $7 -$10 a share after the news. Good luck to you all !!!!

Note: I 'm not an authorized/certified money manager or an advisor. This is not an advice or a compulsion asking you or making you to buy the stocks mentioned above. I just give advices. It’s completely under your discretion to buy these stocks. These are just a few picks I’m advising you, decreasing your time to find this from the huge WALL STREET’s ocean. There are many other better plays out there...these are just a few who I like to play as of this moment. I don’t claim to be that kind of guy who beats S & P regularly by some x %. No legal proceedings regarding this can be made, as I never persuade anyone to invest/trade certain stocks.

*Time To Buy Morgan Stanley was Today ! $84.5

Tell me if my advice helps you in making some money. How about a lunch then? ;) Read on...

Short Term:

MORGAN STANLEY:

Morgan Stanley announced the long awaited spin off of its Discover Financial Services unit on June 30 to focus on its more lucrative securities business. The news was around since last December. The spin-off is structured as a tax-free dividend. Morgan Stanley is not keeping any shares. Shareholders will get one share of Discover common stock for every two shares of Morgan Stanley. Regular trading of Discover is scheduled to begin July 2 on the New York Stock Exchange under the stock symbol "DFS". I don’t remember whether it was Citigroup or credit Suisse, but one of their analysts opined last Friday that Discover would fetch about $10-$14 initially on a P/E of around 10 (which has now almost become a norm for financial institutions).

My Take:

Considering $85.65 (as of now) for MS at a P/E of around 10.58 and Forward P/E of around 10.27 with a short ratio of 2.1 does not sound it is too costly. Also remember the 1.5% dividend MS pays. Though, people may argue that Citigroup is a better play out there. The spin off that would earn us some quick money/shares of Discover, and considering Morgan Stanley's return on equity will rise without Discover, a capital-intensive business, I feel MS is a better play as of now. But I’ll wait the market to shrug off Bernanke’s comments on rate cuts (would be better to say rate rise now LOL). Look for a good dip down by the end of this week and get into MS by next Tuesday to receive Discover and add a great financial play to your portfolio. I see those rate rise signals would actually stop the recent run in the financial sector, in fact rather initiate a small drop unless there is some good news from the economic news section this week.

Ideal buy as of now at 84 - 85:

I don’t think it’s going to change much, owing to the good news we have on board now. It won’t fall below 84...unless there is some huge drop with DOW, thanks to Bank Of America's upgrade today.

Note: I 'm not an authorized/certified money manager or an advisor. This is not an advice or a compulsion asking you or making you to buy the stocks mentioned above. I just give advices. It’s completely under your discretion to buy these stocks. These are just a few picks I’m advising you, decreasing your time to find this from the huge WALL STREET’s ocean. There are many other better plays out there...these are just a few who I like to play as of this moment. I don’t claim to be that kind of guy who beats S & P regularly by some x %. No legal proceedings regarding this can be made, as I never persuade anyone to invest/trade certain stocks.

My latest stock play -1

Tell me if my advice helps you in making some money. How about a lunch then? Read on…

GOOGLE: (yya it’s red hot now let it cool just a little)

Google broke that long resisted 513, to mark another green day adding another 2% on huge, real huge volume. All technical indicators as of this moment are pointing higher. Analysts at various investment houses are expecting the quick run to stabilize before the Jul 20 quarter results to be announced. I just took profit at $518.78. I will be looking for another good entry point in the coming sessions. I’m expecting a drop, even if it goes up tomorrow, owing to the options expiry on 15^th. The put volume of more than 70,000 options, i.e. 70,000*100 shares = 7,000,000 between $440 and $550 would be the major catalyst to put the price below or at least around $520(in case of a great bull market). * Most puts shared between $450 and $510.

The call volume of roughly around 100,000 options, i.e. 100,000*100 shares = 10,000,000 between $440 and $550 would be the major catalyst to pop the price up around $520. *Major call positions are shared between 470 and 520.

My Take:

Keep in mind that these two catalysts would be responsible for the price actions until the options expire on 15^th of this month. But get long as soon as the price drops down from the 520 levels. I would look forward to initiate a position in GOOGLE at around $480-$500 myself. Initiate 50% of your position at the drop to $500 and then keep adding on smaller drops (4%-5%)

Ideal buy:

50% at 500

25% at 480

25% at lower if it goes much lower or at 490.

Good luck to you all !!!!

Note: I ‘m not an authorized/certified money manager or an advisor. This is not an advice or a compulsion asking you or making you to buy the stocks mentioned above. I just give advices. It’s completely under your discretion to buy these stocks. These are just a few picks I’m advising you, decreasing your time to find this from the huge WALL STREET’s ocean. There are many other better plays out there…these are just a few who I like to play as of this moment. I don’t claim to be that kind of guy who beats S & P regularly by some x %. No legal proceedings regarding this can be made, as I never persuade anyone to invest/trade certain stocks.