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.

Haven't had a post in a while but during these couple of months I've changed the looks and feel of this site and added a stock watch widget on the right panel. I also got rid of many of my stock holdings these several months because I found that although having bigger stock portfolio is safer, smaller but even more carefully chosen stocks will improve the gain percentages. I am back and will start doing more frequent updates since I am finally done with my masters degree. Work's been busy as well but I think I can still manage. Ken

My Portfolio List

Earning releases for my recommended stocks are updated on the calender. You can see it from Investments and Personal Finance -> Stock Watch List (Earning Release).

Below are stocks that I currently own.  Buy at your own risk but I have done serious research before buying.  I will let you guys know if I plan to sell and of the stocks below.  My portfolio is currently B ranked based on Navilier's Portfolio Grade (free for us to use, see recommended sites section) and is earning a little more than  S&P at the moment.

  Symbol AAPL, ABV, ARMH, BAK, BCPC, BLL, BT, BWA, CF, COST, CPL, EW, GLW, GTAT, IBM, KO, MCRL, MSFT, NOV, NXPI, PAY, PM, ROST, SLW, STV, TDC, THI, TIBX,TSU, VSCP, VZ

$199 Amazon Kindle Fire Tablet Unveiled, is it a steal?

The stock market is a mess this week but there were still exciting news announced in NYC at the Amazon Tablet Event.  The very first Amazon android tablet called Kindle Fire is all over the news, but is it a steal at $199 price tag?

Lets first examine the specs and then compare it to the competitor.

Specifications

•  7-inch IPS panel
• Gorilla Glass coating
•  1GHz TI OMAP dual-core CPU
• 512MB of RAM,
• 8GB of internal storage
•  weighs 14.6 ounces
• Access to Amazon's services (Android Appstore,  Kindle books,  free Amazon Cloud Storage )

Comparisons (taken from geekapolis.fooyoh.com and unplggd.com)

Final Verdict

It is one of the cheapest android tablet given the spec.  All the cheap tablets out there under $200 do not have IPS screen and duo core processor.  However, the lack of camera,  expandable storage, bluetooth, GPS and Google's android market will pull some people's interest away from this tablet.  If you want all that bells and whistles (i.e bluetooth, GPS, front and back camera, USB ports, HDMI ports), you are still better off getting other tablets like Ipad or honeycomb tablet.

If you want a very portable device specifically for reading books, surfing the net, play multimedia, casual gaming, this device is for you.   Also, if you like Amazon services and you shop from amazon often, this tablet is really good for that as well since you can get a month of free amazon prime membership if you pre-order the device now.

By the way, if you are only interested in ebook reading, then you should also consider the new Amazon Kindle and Kindle touch as they are much cheaper.

You can buy this amazing tablet here.

Resources

-Engadget's  liveblog of the Amazon event and Amazon Kindle Fire First impression (Video)

-Cnet's take on the Kindle Fire

-Gizmodo's take on the Kindle Fire