Today I exited all of my YHOO positions and added a few new stocks. I will keep YHOO in my stock watch list. I did not keep YHOO in my portfolio because currently it's only fairly valued, and I found more interesting stocks to hold than YHOO at the moment. I added the following stocks and will share my 2 cents on this move: MX, MXIM, and ANV.
- MagnaChip Semiconductor Corp (MX) is a small CAP company with low P/E, low short rate, and a potential upside of ~20% within 1 year. It has a relatively steady earning and has a good potential to grow bigger in the long run.
- Maxim Integrated Products(MXIM) is a well known semiconductor company with good balance sheet and lots of good engineering talents. Most importantly, the company is doing well recently and it shows on its stock price. The earning is good, the P/E is fair in my opinion, and the potential upside is in the ball park of ~ 18% within 1 year.
- Allied Nevada Gold Corp(ANV) is a small CAP gold mining company with huge upside (~100%). However, due to my lack of knowledge of the gold industry, I only entered a small position in this stock. This is more of a speculative play by me with short/mid term trading in mind (up to 1 year term). I compared this company with two other gold mining companies (AEM and NGD) with similar valuations and ended up chosing ANV for its relatively fair P/E, fair fundamentals, and huge upside potential. Note that this stock could go down due to the volatile nature of this stock so bear this in mind. I will write an update when I decide to exit my position in this stock. I think I would do something similar to a trailing stop or a stop loss of 5-10%.
As you can see, I am fairly confident in MX and MXIM, not so much in ANV. MX and MXIM are the two stocks to buy now if you want to trade in the tech/semiconductor sector.
Updates on INVN and AMBA
-Good news for Invensense (INVN) regarding to their recent deals with Google (http://www.theflyonthewall.com/permalinks/entry.php/INVN;GOOGid1841885/INVN;GOOG-InvenSense-advances-after-analyst-reports-Google-deal)
- Ambarella (AMBA) will have Q1 FY2014 Earnings Conference Call today (June 4th, 2013). If interested, webcase is available at http://investor.ambarella.com/index.cfm.
- More AMBA news (earning jump, EPS beat, and revenue increases):
- http://blogs.barrons.com/techtraderdaily/2013/06/04/ambarella-jumps-9-fyq1-revenue-eps-beat/?mod=yahoobarrons
- http://finance.yahoo.com/news/ambarella-inc-announces-first-quarter-200500136.html
-Good news. Audience partners up with China Mobile (http://finance.yahoo.com/news/audience-partners-china-mobile-redefine-201855520.html)
Updates on ANV
-Long term gold prices is still more toward the downside so I've decided to exit this posititon for a loss.
Note1: One should never buy a stock without doing research yourself and never invest more money than you are willing to lose. Everyone's strategy is different and there are no right or wrong answers to stock investing, it's about risk tolerance and your current finacial situation - how conservative you are, how much cash you have, and how much you wanted to earn each year.
Note2: Ones strategy could evolve or change through time. So far I've transitioned from conservative to more aggresive stocks and so far I've been doing well. This is due to the fact that the overall stock market trend is up the past year and for aggresive stocks, although more risky, the reward is much larger.
Note3: Another thing is to never invest too much money in a field you are not very familiar of. For example, if you just started learning about the semiconductor market, you should not invest too much of your money in that field. I invested in many technology stocks because I am familiar with this market and know many people who works in the tech industry. For example, Audience(ADNC) is not a very well known company since it's relatively new, but ever since my ex-collegue started working there, she had nothing but good things to say about the company. At the time, its share price price is only 6 dollars and in one year it's more than doubled. So I did the research, had some luck finding this small company, and profitted a little from the stock, but most importantly, I am confident about how the company will do because I am very up to date about the chip industry.
Note4: Stock trading is not for everyone but I hope I can help some people out with what I know from investing in stocks for several years, eventhough my knowledge is still fairly limited compared to the GURUs out there. I think stock trading is fun and exciting. If you feel the same, feel free to to join the ride :)
Note5: Never believe in any good news or bad news right away, but you should always be prepared for bad news.
Note6: It is wise to take some short term gains from time to time and buy back the stocks in your portfolio when the market is taking a breather or have a correction.
