Future of digital paper tablets?

The response of the tablet to the stylus is a bit laggy judging from the videos but the concept is still great.  I think the future is bright for note taking specific notepads that has long battery life, large storage, and fast stylus response.  I am hoping that they will sell the standard grade of this device for less than 100 dollars, which is quite doable.  They could sell a higher grade device with more and better features (i.e. faster CPU, better screen resolution, better stylus...) for a higher price.  If they are able do all of these mentioned, Sony will be back in the game since every student and working professionals probably will buy at least one of them (it saves time and money, long term, including paper and pencil costs).  Another thing they should do is to make the GUI more intuitive for sharing data wirelessly.  In addition, it would be cool if it can be charged wirelessly as well.




Other blogs talking about this device:

• http://news.cnet.com/8301-17938_105-57585367-1/13.3-inch-sony-tablet-is-like-etch-a-sketch-on-steroids/
• http://techcrunch.com/2013/05/13/sonys-got-a-13-3-inch-e-reader-with-pen-input-which-is-sort-of-like-a-dodo-with-antlers/
• http://www.geek.com/tablets/sonys-13-3-inch-digital-paper-prototype-lets-you-scribble-on-e-books-1554888/

I will follow up with more updates about this device in the future.  Stay tuned

Update: Moved MTGE back to stock watchlist. Two stocks to watch more closely (SCTY and TSLA)

MTGE is now a hold stock considering that it would only gain 5-15% including dividend.  There is not much room in the upside.  Also, considering the downside risk of holding onto MTGE, I feel at the moment it's not that great of a buy.  I chose to take it off my portflio because I've decided to invest in something more exciting (still researching).  You can still choose to hold it for receiving a solid dividend return.  Either way would be fine.


Stocks to Watch More Closely (SCTY and TSLA)

As most of people interested in stocks knows about the great run that SCTY and TSLA had recently, and there were many debates about the stock in regards to their relatively high valuation (~10 B now).  From fundamental point of view, both of the stocks mentioned is vastly overvalued.  However, if you look at it long term, it could be like investing in Apple when it just first started getting profits when they had a big slump.  You could also say that this stock is similar to Netflix, LinkedIn, and Amazon, where they had very high valuations and still going strong.  Those stocks had some correction but eventually back to the same projectory as before.  The long term price for SCTY and TSLA will last unless really bad news came out which causes insititution to sell off their holding in those stocks.

The reasons why SCTY and TSLA's valuation is this high were due to many factors.  The main reason due to the battle between Ellon Musk and the Naysayers (short sellers).  Without this many short's covering, the stock price wouldn't have this high.  However, even without the short sellers, Tesla Motors indeed executed well this year with good customer service, sales (first time profit), and the innovation of the cars as well as the car charing infrastructure plan, and thus created a sense of "hype".

No one can predict the future.  Intially I had doubts about SCTY and TSLA's profitability in the short term, but I am starting to believe this so called "hype" will last for a while as long as TSLA continues to innovate and improve their sales and margin, and as long as peopel are still buying and loving Tesla cars.  Innovation is what we need right now to improve the sentiment of this beaten down economy and I feel we do need more companies like SCTY and TSLA in the US.  Therefore, regardless of investing in the stock or not, I will be rooting for them.

I did put a small position in TSLA with long term thinking in mind but it's more of a gamble then higher percentage bets.  I don't consider I am really investing in this stock considering the amount I put into TSLA stock is only small percentage of my portfolio.  However, if the stock happens to go down due to correction, I would be watching closely to add some position for short term gain.  On the other hand, I might exit some positions if I think I gained enough from the stock if it did go up in price and will put in more later if opportunities arise.

Updates:  

-To replace MTGE with a more intereting stock, I found a promising small CAP company worth investing in. This company is Amberalla Inc. (AMBA).  This stock has a sound fundamental and is a niche chip maker with good IP in HD video and image processing SOCs.  I am not sure how well this company will do long term but it definitely still has room to grow.

-In addtion, I've also decided to add Yahoo (YHOO) in my portfoloio considering the recent buying pressure and their new bets.  It's worth the risk considering it's low P/E ratio and long term earning growth potential.  

-Another good buy that I've added in my portfolio is Synaptics(SYNA), it's the market leader for touch panel solution.  They seems to do fairly well recently with design wins and the buying pressure is there.

- Added Intuitive Surgical (ISRG), LinkedIn (LNKD), and Sina (SINA) to the stock watchlist.  

New Good Buy Alert - added ADNC

Earlier this week I posted update on my watchlist and my good bet list.  I talked about Audience(ADNC) could potentially become one of those dark horses in tech stocks, but was still trying to wait for better pricing as the current prices look about fair value.  However, this is only assuming that there are no good catalyst for the stock.  Yesterday's after hour trading made me curious as to why it's still going up when it seems to be fairly priced.  After some research and I've decided to put this on my good bet list for now.  Here are the 3 main reasons:

1. Signs of heavy insider buying.  Potential buyout?
2. More upsides than downside due to good fundamentals
3. More than usual volume and the stock is trending up

Another factor is that I know some people who worked there who used to be my collegues.  From what I've heard, the company seems to be very enthusiastic about their new products and everyone is working hard.  This is yet another sign of good future prospect.  If you want to invest in a company this small, how much potential a company has is very important.  Ofcourse, management is very important, but we should also look at people who works there.  Are they very optimistic and enthusiatic at what they are working on?  Are they willing to take the challenge and make products that are much better than their competition?  Are there good talents?  It seems to me that answers to all these questions will be reflected on the stock price and I am willing to bet that it's more toward the upside.  If this optimism in the company kept on going, it would also influece the likelyhood that a big company who are looking at acquiring Audiance's to make the deal.

The main bet is that it will get acquired by big company at the much higher valuation.  This seems like a more likely scenario due to Audience's CFO's massive insider buy even at a relatively high stock price.  There's only one major reason why people (especially executives) buy a stock(especially their company's), and you know what it is.

There are many ways to play this more safely by hedging or having a stoploss just in case something went wrong with the company.  As long as you are carefull with each trade.  I don't see a reason not to buy this stock at the current price for it has a potential of going 25-50% sooner or later (if it will happen, it will).

Now, have fun with trading and good luck!!!   :)

Update: JPMorgan Global Technology, Media and Telecom Conference Call May 14, 2013 - http://seekingalpha.com/article/1435551-audience-s-ceo-presents-at-jpmorgan-global-technology-media-and-telecom-conference-transcript?source=yahoo

Updates on Stock List

Sell in May and go away. This is not just a saying. It's accurate up to more than 60-70% of the time. The stock markets hasn't been doing all that well this first half of the year. It wasn't very bad.  It's just that it wasn't very spectacular. So I am going to talk about the stocks that I am watching and the stocks I am betting on.

 Stocks I am Watching

 AAPL GOOG TSLA ADNC AMZN GOOG DDD WMC AGNC

 Most of the stocks I am watching relates to technology and are fairly well known by the industry. TSLA(Tesla Motors) is the leader of electric cars in terms of technology standpoint and could possibly be the next Apple, however, it's balance sheet is still horrible and the price is high for a company that's in debt. DDD(3D Systems) is very expensive right now but I do think 3D printing technology has a future. Google (GOOG), Amazon(AMZN), and Apple(AAPL) are fairly well known and I feel they are fairly price now, however I might snatch some shares if price looked right in the future.  ADNC (Audience) is one of those dark horses I would say that could also be a good bet but it's currently fairly priced.  It used to look really great under 10 dollars but now it's been trading 14-15 dollar range.  If some how market behaves irrationally and oversell it, it could be a good opportunity to grab some of these little gems.   Last but not least, I am into low P/E and high dividend stocks, which AGNC(American Capital Mortgage Investment) and WMC(Western Asset Mortgage) provides. AGNC just reported a disapointing quarter and slid about 7% on Friday, it if slide more this week I might snatch some for short term gain or receiving dividends . As for WMC, it is one of those small cap MREITs that I feel is doing ok but now the price point is just fair, not a good time to buy yet.

Stocks I am Betting on

INVN MTGE

 MTGE is also one of those small cap MREITS that are doing ok but not great. However, it's still one of the most stable stocks that I've owned so far that provide a huge dividend.  The price of MTGE should be in the ballpark of 26-27 dollar range but now it's been sitting at 24-25 dollar range which I believe is cheap for what the stock is worth. It is a grade B stock on Navellier's portfolio grader and was rated well on the street. It is a no brainer buy at the moment. Ofcourse there are much more to MREITs that people have doubts with but I feel that goes with most stocks out there. We cannot forsee the future, but we know at the present, the price is quite good and if we bet the wrong way, we can always stop loss and or wait to receive the 14% dividend.

INVN is the one I am most excited about and is the one that I had been holding, buying, and selling for a while now ever since 2012. It's what I called a rollercoaster stock which could make people dizzy  but some what predictable. It's a low volume small cap stock and the company is the leader in motion sensors. It's major competitor ST Microelectronics had been losing the design wins to them. The chips are in many mobile phones now, primarily in android phones (i.e. Samsun Galaxy S4). But rumors has it that Apple will also start to use their chips in the future. At the moment the price of the stock should be around 13.5-14.5 dollar range if they are just doing about the same. However, the fact that it is possible they can be bought up by bigger companies and that they could partner up with Apple makes this a very good bet at this time. Short term and long term trend are favoring the upside.  All in all, Invensense as a company has a competitive edge against competitors for it's low profile MEMs technology and it's decent fundamentals (no debt and growth is great year over year).

Update:  Add GLW(Corning) and AEM (Agnico Eagle Mines) to the stockwatch list.  Corning has very broad range of technology and is the leader in the glass sector for mobile devices and is used in many mobile devices.  Agnico Eagle Mine could be a bargain since it could be oversold; however, I do not know enough about the gold market right now to make the bet yet.