Citi Stock Soaring, $4 Coming Soon

On December 21st, I recommended everyone to invest within CitiGroup (C) based on several assumptions.  I believed that such a large brand could neverdissolve so fast.  Just check out these few basic numbers about CitiGroup.

1. Market Cap $78 Billion

2. Daily trading volume of 3 billion shares

3. Enough shares to give everyone in the world 4 shares, 22.86 billion to be exact

4. Billions of dollars in revenue the past 5 years

5. Stock price hovered around $50 from 06’ to 08’

All these numbers gave me faith in believing that Citi would rally sending the stock much higher.  Well until this week, CitiGroup has largely been a dissapointment doing very little in the past few months.  However this week the spark was finally ignited sending Citi up to a close of $3.96 today.  This was the kind of rally I have been looking for sometime and I don’t believe it will stop anytime soon.  Bearing any catastrophic bad news being released in the next few days I believe Citi will go well over $4.  Citi has made some strategic moves selling off bad assets to many various firms including Apollo Management. Cutting out the waste will only prove more beneficial for Citi in the long-run.  This gives Citi the ability to return to normal operations, which in most cases was very successful for 20 of the past 22 years. A 91% success rate, in my mind that’s all right. Now the key question is what is the government’s exit plan? Currently they hold around 7 billion Citi shares. With the recent surge I believe it would be a smart time to get out and allow Citi to not be beholden to the Government. There’s still a long way to go but I still have faith that Citi will continue to rise higher and higher.

Top Drop Contest Winners

Hey guys so finally the results are ready for the “Stocks On Wall Street / EZGreatLife Drop to the Top Challenge“. We are giving away some great prizes, so stay tuned. I will contact each winner individually to get more information. I want to thank everyone who participated within the concert and to thank John from EZGreatLife for helping out with this whole contest. So now lets release the prizes.

And The Winner is…

Our month long “Stocks On Wall Street / EZGreatLife Drop to the Top” contest came to an end on February 28th. Thanks to all who played along. John and I really appreciate it! We used random.org to pick the following winners:

** Winners please leave a comment in this post and I will contact you with details.

10,000 ec’s
Marg’s Pets

EZGreatLife Blog Review
Redhead Ranting

Stocks On Wall Street Blog Review
Stock Market Today

EZGreatLife 125×125 banner ad
Sparkle Cat

Stocks On Wall Street 125×125 banner ad
Fledgling Blogger

The Future of the Energy Sector comes in the name of the Bloom Box

Just imagine if you could move your house’s energy source into your backyard.  Throw away those unhealthy emissions and simply put in a small little box. The future of the energy sector is here and it comes in the name of Bloom Energy.  Bloom Energy Corporation has come out with a revolutionary device known as the “Bloom Box.”  The idea is to get rid of the power plants and huge power grid the same way the laptop replaced the desktop. Already many Fortune 500 companies such as eBay (EBAY), Google (GOOG), Coca-Cola (KO), and Bank of America (BAC) are using this device.  In fact, Google and eBay have claimed to of saved over $100,000 while using one of the twelve stealth tester boxes. So you might ask what is the Bloom Box? The Bloom Box can provide 100 kilowatts of energy using natural gas or biogas.  The price tag is $700,000 but after federal/state subsidies it costs around $0.09 per kilowatt per hour.  The payback period is around three years for this product.  This technology has been around though Bloom Energy is the first company to take it mainstream.  Their next goal is to make a smaller box for residential use.  Bloom Energy has virtually been in stealth mode for the past seven years not letting anyone in on their new secret new device.  With the release of this revolutionary new energy source however this company should take off.  They’re already getting the backing of many top “A-list” VC firms such as Klein Perkins who’ve already pledged $400 million towards Bloom Energy’s growth.  Kleiner Perkins’ CEO, John Doer, says Bloom Energy could be the next Google.  I say why not?  The U.S. energy sector is a $6 trillion dollar industry much larger than the Internet.  This new innovative “Bloom Box” sounds very similar to the Google’s “Search Bar.”  Don’t want to make any promises, but many believe in a short time Bloom Energy could become a $10 billion+ company. I don’t see why as this “little box” promises the world of opportunities. (Watch the 60 Minutes Clip below to learn more about this revolutionary product)

Slippery Slope Downhill for Blockbuster

2009 and 2010 have been rough years for many business, one in particularly is the video-store rental giant, Blockbuster (BBI).  Blockbuster once dominated the video rental world yet now they are being build out by its main competitors Netflix (NFLX) and Redbox.  With prospects continuing to weaken for Blockbuster I doubt there is little the company can salvage or do to save face.

Lets listen to the bad news first.  US stores sales fell 16% and revenue dipped 18% in the fourth quarter.  The company is in great amount of debt and continues to lose money.  Their reaction, closing down the 500 weakest stores, which is supposedly supposed to reduce expense by roughly $200 million a year.  Adding to this they have cut huge amounts of staff and slashed advertising costs.  The company now is trying to move in a direction of digital downloads and vending kiosks though I think it’s too late.  Netflix and Redbox beat them to the bunch and already own the market share.  That’s why I believe it will be near impossible for Blockbuster to ever become profitable again.  Maybe the best call is a merger with these new market-leaders until then it will be a slippery slope down for Blockbuster.

March to be a Bullish Rally for Energy Sector

To support my article I wrote the other day, Oil Consumption to Rise: Invest in Oil I have some graphs that I came across that will historically help point to why the energy sector is going to thrive within the month of March.  Check out the graphs below:

Looks good for Oil Stocks

Solid projections for Natural Gas

Finally good for Refiners as well

History usually tends to repeat itself and I see no reason why March will not live up to the expectations.  I think the energy stocks will perform well in March so keep invested within this sector.  Leave me a comment on what you think will happen within the energy sector in March.

Oil Consumption to Rise: Invest in Oil

With crude oil climbing back over $80 a barrel in the past several days many investors are speculating where it will head next. I for one have always been a strong promoter of oil stocks and am not going to stop now. Expect crude oil to continue to rise. Why? Well recent OPEC reports stated that energy demand will continue to increase throughout 2010. Global oil consumption could possibly rise to as much as 1.4 millions barrels a day. Crude oil prices will rely heavily on the global economic situation however I am optimistic that we will continue to see improvements within the economy. We have yet to see the surge in oil prices yet I think its coming soon. I believe oil is undervalued and consumption will only continue to rise. I expect demand to greatly increase in BRIC countries around the world. I speculate we will see oil rise in the coming weeks being supported by strong economic data. I think this surge will help lead to higher oil prices throughout 2010. Main point, invest in oil stocks. My favorite are Petrobras (PBR), Noble (NE), and Exxon Mobile (XOM).

Is It Easy to Obtain Cash Advance Loans?

It is inevitable that you may need cash for emergency purposes; however, you have limited income resources. Fortunately, easy payday loans are available to aid you in fulfilling financial obligations that transpire unexpectedly. Easy payday loans are short-term loans that can be repaid until your next payday. These loans can be availed of quickly because the approval period takes only a short time. The process for both application and approval is quick and simple.

If you avail of easy payday loans, you can obtain a loan amount that ranges from $100 to $1000. Most lenders of these types of loans offer larger loan amount to people who have high monthly income. Thus, the loan amount you can avail will be based on your monthly income.

On the other hand, since easy cash advance loans can be availed in no time, most lenders may charge you with high interest rates. This is because lenders want to earn as much interest as they could in a span of 30 days or as soon as you get your pay check. However, you should not worry too much on the high interest rate since no easier way of getting money is available than obtaining such loans. The high interest rates can also be lowered if you are able to find reputable lenders offering reasonable loan packages.

In addition, these loans do not require collateral. Unlike other types of loans necessitating for collateral, these loans only require borrowers to issue a post-dated check in the amount of loan agreed upon plus any other charges that may be incorporated with the loan. The lender will present the post-dated check to your bank and draw the money you have loaned. More so, borrowers with poor credit rating or bad credit history can also avail of these loans. This is because the lenders are secured as the borrowers need to present a post-dated check.

When applying for easy payday loans, you should make sure that you consider several factors. Do not rush to avail these loans. You need to make sure that the check you will issue has adequate funding so that you may not get into any kind of trouble both with the lender and the bank. More so, it is important that you do not avail of any amount of loan beyond your capacity to repay.

You should also compare the rates of interest offered by various lenders. Choose a lender that offers a reasonable rate of interest and loan package. Make sure the one you choose suits you the best. In addition, when availing of any type of loan, you should ensure you can handle your responsibility. It is important that you comply with the terms and conditions provided by the lender. Thus, you should also make sure to read the terms and conditions of the lender thoroughly so that you would not be committed to anything against your preferences. Check if there are any hidden costs or fees and make sure you comply with the agreed schedule of repayment.

How Much the Top CEO’s are Getting Paid?

So today I was reading the usual various articles and came across an interesting chart from Reuters.  The chart is an analysis of the world’s largest 18 banks and how much the CEO’s get paid.  It’s an interesting comparison to see how much these guys are making.  Do you think they deserve so much money to run these billion dollar corporations? Let me hear your thoughts by leaving a comment.

The Top Banking Brand: Buy Goldman Sachs

With banks slowly improving their stature within the financial world we have to look at who has the most recongizble brand and is one of the strongest buys. I say Goldman Sachs (GS) wins hands down and here’s why you should buy. My five reasons to own GS.

1. I feel Goldman is a very attractive opportunity right now and it is undervalued compared to what it should be pegged at. I feel that its 12-month price target should be roughly around $250.

2. Goldman’s business ventures should start to take off. We have started to see a pickup in M&A and IPO activity, which should help strengthen their Equity Capital Markets division. With huge M&A backlogs along with a strong demand for restructuring advice and improved IPO markets Goldman will be a big beneficiary.

3. Expect Goldman’s fixed-income, currencies and commodities business to continue to soar. Analysts say these divisions are up 99% year to date, don’t expect them to slow down anytime soon especially in 2010 where we should see a more upbeat, stable market and improved global economy. Expect for equity markets to rebound and for their fixed income market to open up proving for an improved operating environment for Goldman to capitalize on.

4. With recent protest from investors and Washington, compensation expenses will be lower. Bonuses are not being handed out in the form of stock options rather than cash. This is a rather cheap option at 11 times estimates it will be beneficiary. It is now projected that around 42% of revenues will be handed out as compensation against the 46%, which was originally projected. That 4% difference should be a nice bonus to investors.

5. Goldman has an advantage over its peers due to its high stature. Many analysts consider it to be a premium when valued against its peers due to its operating leverage, global power. Strong client relationships, and healthy balance sheet. The fact that it doesn’t carry as much baggage as the other financial institutions and has a relatively clean balance sheet should prove well and allow it to recover faster than the rest.

Some might claim that Goldman is the root of all evil and fear that Goldman has the game rigged, even if no one can ever prove how, not just because of its political connections but also because of its immense size and power. Think what you want but looking at the fundamentals of it all, Goldman is too good of an investment opportunity to pass up. 12 months from now I believe it will be trading at roughly $250 a share, quite a sizeable return. Enjoy!!!

SuperBowl Ad Winners: Google and Doritos

Watching the Superbowl, I was very pleased to see the New Orleans Saints upset the Indianapolis Colts and take home the championship. Overall it was a great game, commercials were a little lacking but there were still some great ones in the bunch. Here were my two favorite ads:

Google

The commercial is the tale of a romance told by a series of typed-in search entries. It is so effective as you easily follow along with the strong and subtly Google demonstrates all the things that make its search engine so powerful. Google is clearly the market leader and continue to hold their place.

Doritos

This commercial wins for me as not only was it hilariously funny but also virally effective. It was talked about the most on Twitter, Facebook, and other social medias and clearly was worth the big paycheck.

Wall Street 2: Money Never Sleeps

Wall Street 2: Money Never Sleeps is planned to come out in 2010. It is a much anticpated sequel to the classic first Wall Street. The film is set 23 years after the first film, in June 2008, and Gordon Gekko has just been released from prison. Despite his initial attempts to warn Wall Street of the forthcoming economic downturn and stock market crash, no one believes him due to his reduced standing in the financial world. Gekko decides to re-focus his attention on rebuilding his relationship with his estranged daughter, Winnie. Due to their time apart, and the fact that Winnie blames Gekko for her brother Rudy’s suicide, she avoids any contact with him. At the same time, the mentor of young Wall Street trader Jacob unexpectedly dies, and Jacob suspects his hedge fund manager of being involved in the death. Jacob, who is Winnie’s fiance, seeks revenge and agrees to Gekko’s offer of help, in return for which Jacob agrees to help Gekko with Winnie. Should be a classic movie and I personally can’t wait to see it. Here is the sneak peak trailer.

Stocks on Wall Street Back Up and Running

Hey Everyone,

Finally my wrist has gotten to a point where I can acceptably type and Stocks on Wall Street will be back up and running Monday. It’s been a hard transition adjusting to life with a broken wrist but finally I am handling the pain and due to physical therapy getting near the end. Look forward to talking with all you soon. Continue to follow me on both my Facebook Fan Page and Twitter as starting to use those more and more. Probalby the easiest way to talk to me, one on one. Remember always avaliable by email jameshartje@gmail.com.

StocksOnWallStreet / EZGreatLife | Drop To The Top Challenge

I am excited to announce the StocksOnWallStreet / EZGreatLife Drop To The Top Challenge. John from EZGreatLife and I will be giving away some great prizes including 10,000 ec’s, blog reviews and a couple of 125×125 ad slots. This is a super simple contest. Just leave me a comment saying that you are participating, drop on our Entrecard widgets and leave a comment when our posts inspire you. That’s it. What have you got to lose? It really is EZ, just stop, drop, comment and win!

We will be picking the winners around the 1st of March.

Basic Requirements:

1. Leave a comment on this post letting me know you are participating.
2. Drop on EZGreatLife Entrecard widget at least 20 times in February.
3. Drop on StocksOnWallStreet Entrecard widget at least 20 times in February.

This gives you 3 entries in the contest.

Ways to earn additional entries:

**NOTE: The Basic Requirements above must be met first.

• Earn 1 entry for every EC drop over 20 on StocksOnWallStreet (28 drops = 9 entries)
• Earn 1 entry for every EC drop over 20 on EZGreatLife (28 drops = 9 entries)
• Follow EZGreatLife on Twitter = 5 entries
• Follow StocksOnWallStreet on Twitter = 5 entries
• Friend EZGreatLife on Facebook = 5 entries
• Friend StocksOnWallStreet on Facebook = 5 entries
• Quality comments on EZGreatLife posts = 5 entries per comment
• Quality comments on StocksOnWallStreet posts = 5 entries per comment

If you do all of the above (assuming 1 comment on each blog) you would have 48 entries in our contest! We will use random.org to pick a number between 1 and the total number of entries we receive. The first number drawn will win the 1st prize and so on. EZ, right? See example below for more details.

What will I win?

1st Prize: 10,000 EC’s!!!

Additional Prizes:

1. Blog review from John @ EZGreatLife
2. Blog review from James @ Stocks On Wall Street
3. One week 125×125 ad on EZGreatLife
4. One week 125×125 ad on Stocks On Wall Street

Example: Mr. X
Drops 28 on EZ = 9
Drops 28 on SWS = 9
Follows EZ on Twitter = 5
Follows SWS on Twitter = 5
Friends EZ on Facebook = 5
Friends SWS on Facebook =5
4 Comments on EZ = 20
4 Comments on SWS = 20
———————————————
TOTAL = 78
So Mr. X has 78 entries

That’s it in a nutshell! It really is EZ, just stop, drop, comment and win! We will take care of figuring out all the entries earned. AND if you are already following one or both of us on Twitter or Facebook, that will count too! So leave me a comment and then keep doing what you’re already doing everyday and you may walk away with a cool 10,000 ec’s or another awesome prize. Good luck!

If you have any questions, please email me: jameshartje@gmail.com

Diversify Savings into Other Currencies & Overseas Assets

With an unprecedented increase in federal spending, a record number of newly printed dollars entering the system, and the shrinking tax base, time is running out for savers, earners and investors who still have all their savings, salaries, homes and their investments denominated in U.S. dollars.  The U.S. economy looks grim…multi-billion dollar bailouts at taxpayer expense…billions of dollars in stock value evaporating overnight…dried up credit…collapsing mutual funds…disappearing retirement accounts.

Couple this inflation threat with the 100% certainty of higher taxes in the future. If you earn $62,068 or more, you already pay 80% of everything collected by the IRS.  But at the other end of the scale, about 50% of adult Americans don’t pay any taxes whatsoever.  This shrinking tax base will force Washington to collect more of the tax take from those who already shoulder most of the tax burden.  Anything else would be political suicide.

• Smart investors have already positioned themselves for the inevitable when the dollar fails.  They’ve diversified into non-dollar denominated investments, and there are a lot of them to choose from.  Stocksonwallstreet.net regularly discusses equity investments overseas and in emerging markets, so I won’t dwell on that here.

• Invest in foreign currencies directly.  Currency investing can be tricky and volatile, but in countries like Japan and Hong Kong, financially savvy housewives are heavy day traders of currencies.  There’s no reason Americans cannot do the same.  Just beware and educate yourself well before diving in.

• Another strategy is to invest in real estate that’s bought and sold in a currency other than the dollar.  For example, Brazilian real estate is traded in the Brazilian Real, a currency that’s very strong and will probably get stronger as the dollar declines.  However, overseas property investments can be fraught with scams and fraud, so buyers beware!  A lot of foreign investors have been burned in places like the overheated Shanghai property market.  Given the pitfalls, this is not an investment option I’m not particularly keen on.

• The erosion of the dollar can also make the value of the currency part of the equation in determining where to retire.  In many places around the world, you can enjoy an upscale but low-cost retirement…a wonderful high-quality lifestyle for a fraction of what it costs at home.  There’s never been a smarter time to explore.  There are already 7 million Americans abroad for whom the American Dream has simply been priced out of reach.

There are places you can still own your own home or beach house and enjoy appreciation of 20-60% per year…where world-class health care won’t send you to the poorhouse…where the government doesn’t involve itself in every aspect of your personal life…and won’t even charge you taxes.  A house on the beach, a mountain villa, or a super-modern city condo can cost 50-75% less than it might at home.  Same goes for the overall cost of living.  A week’s worth of groceries, dinner at a fine restaurant, a night at the symphony, even full-time household help – like a maid or a gardener – can cost pennies on the dollar.

Sharisax.com: How to Handle the Web Like Our SuperKids

After break I got to catch up with my social media expert and neighbor Shari Weiss and she interviewed me which led to an interview and publicized article on her Sharisax.com. Here is her work:

How many of us can truthfully say:

“I like how life’s going”

That’s what my 19-year-old neighbor James Hartje said to me last time he dropped by to swap Internet stories.

I had just posted my article Three “F’s” to Achieve Your 2010 Goalswhich began with the advice to “Follow a Friend, who is also a role model.”

James is definitely a role model: an Arizona State sophomore majoring in Finance, he began a website stocksonwallstreet.net which has proven to be very profitable.

James was 13 when he first stepped onto Wall Street. He’d accumulated some McDonald’s stock over the years and decided to cash out. With the help of his parents,  he opened a brokerage account and purchased Google at $250. It wasn’t long before James scrapped his dream of working in sports for a career in finance.

“I’ve been learning this industry step by step with both successes and failures, but it’s been my losses — not the winning trades — that have made me the trader I am today.”

Arizona State offers a world of opportunities

Along with Finance, James is minoring in Political Science and studying for certificates in Small Business Entrepreneurship and International Business. In spring of 2009, James was selected to participate in the highly competitive Investment Banking Industry Scholars program featured in Business Week.

“My goal is to start my career on Wall Street and later move into both politics and the world of Hedge Funds.”

Advice for young investors [and older ones as well]

• Get interested early: investing is all about a time game. Each year you delay could cost you millions down the road.
• Make sure to read an array of sources, and keep an open mind. Remember investing is a decision in which you have to feel confident. Second guessing yourself only throws up roadblocks.
• Assume risk: you are young and at a prime age where you still have time to make up from losses.
• Invest smartly by diversifying and considering less risky assets as well.

James answers the nine “2010 planning questions”

A – What do I want to finish?

Finalize Stocks On Wall Street LLC — and finish my sophomore year with good grades

B – What do I want to change?

Need to change some habits: get more exercise like playing more football and basketball — and read more financial books for a better grasp of markets

C – What do I want to refine?

Improve the way I study by focusing better and spending more time at the library

D – What do I want to maintain?

Retain and build the success of my website, maintain my social life, keep up good grades, and continue to live life to the fullest

E – What do I want to stop doing?

Stop procrastinating is Number One. Don’t waste time being unproductive. Stop watching junk TV and spending unnecessary time on Facebook

F – What do I want to go back to?

Not really anything to revisit. I like how life’s going

G – What can I throw away?

Not exactly “throw away,” but I can spend time with the people who will support my activities more than others

H – What have I learned in 2009 that will empower me in 2010?

I always learn from my mistakes, especially trying some things and discovering what works and what doesn’t

I – What do I NEED to do?

Stay focused on my ultimate goal to work on Wall Street by graduation

Check out James’ site and let me know what you think. AND if you know any SuperKids who are also doing great things online, please feel free to share their stories.

Exciting Ideas Planned for 2010

Hey Everyone,

Sorry for the delay with posting, have been delayed by both my fractured wrist and the start of school. Stocks on Wall Street will be back to normal up and running next Monday. Get my cast taken off tomorrow so excited to be able to start to type with two hands again. Excited for all I have planned for this year and what I can offer. Be ready for exciting year.

Thanks,

James

Google.com Vs. Google.cn: The Difference Chinese Censorship Makes

Today reading John Chow’s blog I came across a really interesting article that I thought would interest you all here it is:

Google.com Vs. Google.cn

“With Google’s decision to no longer censor search results at Google China, I thought it’ll be interesting to show how big of a difference a result can be between Google.com and Google.cn. While many are praising Google for standing up for free speech and stuff, my feeling is this is more of business decision than a moral one. Unlike in the rest of the world, Google is not the number one search engine in China. They place a distant second behind Baidu. While Google China operations did generate $600 million in revenue, Google’s cost of doing business in China could be just as high if not higher. Google stated that losing the China market wouldn’t make a dent in their profit margin. My take on this – Google had no way of beating Baidu in China and decided to get out with some goodwill marketing back home by playing the anti-censorship card. It seem to have work too judging by all the “Good job Google!” posts all over the Web. So just how different are the search results between Google.com and Google.cn? Below is the imagine results I got from Google.com for the term “tiananmen.”

And this is the results I got for the same term on Google.cn.

You have until the end of this month to enjoy the old Google.cn. Next month, you’ll see results similar to Google.com. And you’ll probably see Google being escorted out of China under armed guards.

On a side note, anyone interested I am looking for someone who wants to be a guest writer on anything about politics, business, finance, trading, etc. This will only be a 2-4 week stint. Your blog will get great credit and traffic and could eventually turn into a weekly segment. I just need help filling in some posts as I recover and go through physical therapy.

New Years Resolutions: Top 10s for 2010

So was reading an article the other day that you should write out all your resolutions, as a result here are mine. Plus below are all the sites I currently read along with books I plan on reading in 2010.

Personal Goals

1. Land Finance Related Summer 2010 Internship
2. Get a 3.5 GPA both semesters
3. Grow Stocks on Wall Street to over 25,000 visits per month
4. Grow RandomChatter to over 30,000 posts
5. Network with 3 Contacts on Wall Street Per Week
6. Get elected position on Arizona State Student Government
7. Gain annual return of 50% on Brokerage Account
8. Have a less stressful, fun-filled year
9. Heal my wrist back to full-strength
10. Land internship on Wall Street for Summer 2011 (Preferably: Goldman Sachs, Citi, Citadel, J.P. Morgan, or HSBC)

Finance Books

1. Racing Towards Excellence
2. Liars Poker
3. Barbarian’s of the Gate
4. Inside the House of Money
5. When Genius Failed
6. Traders, Guns, and Money
7. The Great Crash of 1929
8. Extraordinary Popular Delusions and the Madness of Crowds
9. The Market Wizards series
10. An Engine, Not a Camera: How Financial Models Shape Markets

Finance Blogs

1. Infectious Greed http://paul.kedrosky.com/
2. FT Alphaville http://ftalphaville.ft.com/
3. Portfolio http://www.portfolio.com/
4. Macro Man http://macro-man.blogspot.com/
5. Naked Capitalism http://www.nakedcapitalism.com/
6. Seeking Alpha http://seekingalpha.com/
7. Information Arbitrage http://www.informationarbitrage.com/index.html
8. The Big Picture http://www.ritholtz.com/blog/
9. Deal Book  http://dealbook.blogs.nytimes.com/
10. Freakonomics http://freakonomics.blogs.nytimes.com/

Social Media, Blogging Tips

1. Online Social Networking http://online-social-networking.com/
2. Quick Sprout http://www.quicksprout.com/
3. Entrepreneurs Journey http://www.entrepreneurs-journey.com/
4. Shoemoney http://www.shoemoney.com/
5. John Chow http://www.johnchow.com/
6. Pro Blogger http://www.problogger.net/
7. Sharisax is Out There http://sharisax.com/
8. Zac Johnson http://zacjohnson.com/
9. Digital Point http://forums.digitalpoint.com/
10. Dosh Dosh http://www.doshdosh.com/

Sports Websites

1. ESPN http://espn.go.com/
2. SF Giants http://sanfrancisco.giants.mlb.com/index.jsp?c_id=sf
3. Bleacher Report http://bleacherreport.com/
4. Rotoworld http://www.rotoworld.com/
5. ProsportsDaily http://www.prosportsdaily.com/
6. Foti Sports http://fotisports.com/
7. Bay Area Sport Blog http://www.bayareasportblog.com/
8. Rivals http://www.rivals.com/
9. Dan Patrick http://sportsillustrated.cnn.com/danpatrick/index.html
10. Peter King http://sportsillustrated.cnn.com/writers/peter_king/archive/index.html

News Websites

1. Wall Street Journal http://online.wsj.com/home-page
2. Financial Times http://www.ft.com/home/us
3. Bloomberg http://www.bloomberg.com/
4. Yahoo http://m.www.yahoo.com/
5. Google Finance http://www.google.com/finance
6. Huffington Post http://www.huffingtonpost.com/
7. Fox News http://www.foxnews.com/
8. USA Today http://www.usatoday.com/
9. Associated Press http://www.ap.org/
10. Drudge Report http://www.drudgereport.com/

Social Medias

1. Twitter http://twitter.com/iamwallstreet
2. LinkedIn http://www.linkedin.com/in/jameshartje
3. Facebook http://www.facebook.com/JamesHartje
4. Facebook Fan Page http://www.facebook.com/pages/Stocks-on-Wall-Street
5. FriendFeed http://friendfeed.com/jameshartje
6. Digg http://digg.com/users/JHartje
7. StumpleUpon http://www.stumbleupon.com/stumbler/JamesHartje/
8. Diigo http://www.diigo.com/user/jameshartje
9. Reddit http://www.reddit.com/user/jameshartje/
10. Technorati http://technorati.com/blogs/stocksonwallstreet.net

On a personal note, yesterday I did undergo surgery to fix a fractured wrist. My fracture was rare and as a result a metal plate had to be put in my arm that will be permanent, upside is faster recovery, no cast, since it didn’t impact my wrist joint or growth plates.  My Dr. thinks there should be minimal after effects later on.  Have a follow-up 1 week after surgery with a hand ortho in Arizona. No cast needed and should be back to normal in 2-4 weeks. Bear with me posting wise, will try to keep it on a regular pattern the best I can.

Thanks

James

Why Nike Should Buy Under Armour Soon

After researching both Nike (NKE) and Under Armour (UA) recently I think Nike needs to start realizing the benefits to be had if they were to purchase Under Armour. This would be a big acquisition and I believe it could help secure Nike’s dominance for the next decade or so.

Why Nike Should be Interested?

As of right now, Nike has tried to duplicate many of Under Armour’s top products such as Cold Gear and Heat Gear. So far they have had very little success in taking away any form of market share against these products. Adding to the concerns to Nike Investors, Under Armour has been dominating the younger generations, 25 years below. Another recent concern was the release of Under Armour’s running shoes and cleats. This has to be a threat to the long-term value of Nike. Right now this isn’t a concern to Nike, however with the younger consumers wearing Under Armour’s brand the momentum is in their favor to one day steal a large piece of the pie.

What Nike would have to do?

For Nike to have any chance at buying Under Armour, the deal would need to happen soon. Under Armour is still several years away from being a major threat to Nike, however by that time it will be to late for Nike to make any form of move. Right now Nike is sitting on roughly $3 billion in cash. This could be used to acquire Under Armour even at their current depressed price. As long as Nike could offer a premium price to entice shareholders to sell all would be set. Currently, insiders own less than 7% of the company. That would make it difficult for Under Armour’s CEO Kevin Plank to put up much of a fight against Nike. He would need to have a killer speech to explain to shareholders why Under Armour will be better off not selling. Going against both the uncertainties of the economy and the retail sector, this would be a hard sell. Plus with the current cash problems Under Armour is having, sale would make sense.

Nike Needs to Act Fast

Nike needs to take advantage of the depressed consumer spending market to acquire Under Armour. Currently, they are an iconic global brand and have both the management and the balance sheet to make such a move. Nike could help introduce Under Armour to the developing nations, a sector Nike has had recent success in. Purchasing Under Armour right away will give Nike time to introduce the brand and help decrease competition. Obviously, we know over time Nike could beat Under Armour but instead they should acquire them at a discounted price and use the brand as an asset. This would also ensure Nike keeps growing. Currently I am holding neither company. However, Nike should definitely take a serious look at this acquisition before they are fighting head to head against Under Armour for sales.

Cytokinetics (CYTK): Bullish Pharmaceutical Play

Hey guys so this is my second attempt at posting with a fractured wrist. Pretty difficult I must say but I’m struggling through. I go to the doctor today for the final read and after that should know the full details of my recovery. As a result, I am cutting my posting down to three times a week, Monday, Wednesday, and Friday. Since everything takes so much longer especially typing with one hand I need to allocate more times to both the site and my studies. Luckily recovery time is usually only six weeks so soon enough the site should be back at full-strength. Moving on I have been following the markets extensively and have come up on a risky pharmaceutical play I like. Here it is:

Cytokinetics (CYTK)

CYTK is a biopharmaceutical company focused on the discovery and development of small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. The Company’s research and development programs are extensive and if completed will be quite revolutionary for the world of medicine. Click on this link to read further into all the details about the different clinical trials. CYTK is a very effectively run company. Just check out these numbers.

Profitability

Profit Margin (ttm): 31.34%

Operating Margin (ttm): 32.65%

Management Effectiveness

Return on Assets (ttm): 14.58%

Return on Equity (ttm): 30.91%

PEG Ratio (5 yr expected): 0.53

Price/Sales (ttm): 2.27

Price/Book (mrq): 1.69

All these numbers are outstanding in my opinion. Moving on I expect CYTK to only improve its efficiency by cutting wasted expenditures and improving revenue numbers. Read the following report from J.P. Morgan:

“Our $8 target price on CYTK is based on discounted probability-weighted sum-of-the parts analysis. The major sources of cash flows for CYTK are (1) its CK-452 drug for heart failure, (2) CK-357 for skeletal muscle related indications, and (3) marketable cash and securities. We value CK-452 at $5.57 per share and CK-357 at $1.49 per share, and cash and marketable securities at $1.42 which sums to approximately $8. For CK-452, we separately value the IV formulation, which will be used in the acute hospital setting, and the oral formulation which will be used in the outpatient setting. Our calculations are based on a 36% probability of success on the Phase II IV formulation trial for CK-452, and 33% for the oral formulation. We use a cost of equity (discount rate) of 10.6%.”

Final Say

I love this company for the main reason it has a huge potential upside. Mainly I have a positive view on CYTK’s pipeline of opportunities. The areas of medicine in which they are pursuing are in large areas of unmet need. This means that if these ventures are successful this stock will soar. Right now the market cap is roughly $200 million. If one of the three projects proves successful expect this company to soar to around $700 million. If all prove well we are talking about the billions. My 12-month target price for CYTK is $6.50 based on its current value, efficient operations, and growing potential.

(Bear with me posts will get better as I get more accustomed to typing one-handed)

Broken Wrist: Way to Start the New Year!!!

Sorry everyone for the delay and not posting last week. I was snowboarding in Lake Tahoe and unfortunately on my last day there I managed to fracture my wrist\while going down a Black Diamond. Despite the immense amount of pain, I am now limited to one hand which makes typing very awkward and difficult. On monday I am scheduled to go to the Orthopedic to get the hard cast put on. At that time I should know how long it will take to recover and how much use I will have of my left hand. Don’t worry I will not be stopping Stocks on Wall Street, however I will just have to become more creative with how I run it. This could incorporate the use of personal made videos, voice writing software, etc. Who knows? Will keep you updated on my progress.

Top 5 Safe Stock Bets in 2010

Here are 5 safe stock picks for 2010 and five reasons to own them.

Goldman Sachs (GS) Current Price: $168.80 12-month target: $250

1. Pickup in M&A and IPO activity will launch the rest of Goldman’s business ventures
2. Lower compensation expenses due to protests.
3. Goldman’s fixed-income, currencies, and commodities business should soar.
4. Healthy balance sheet and advantage over its peers due to its premium brand name.
5. Goldman is a very attractive opportunity right now and it is undervalued compared to what it should be pegged at.

Read the full stock report on Goldman Sachs.

PetroBras (PBR) Current Price: $47.68 12-month target: $80

1. PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years.
2. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery.
3. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited.
4. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020.
5. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.

Read the full stock report on PetroBras.

Under Armour (UA) Current Price: $27.27 12-month target: $37

1. I see potential in opportunities for new product adjacencies, and expanding distribution worldwide.
2. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009.
3. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%.
4. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand.
5. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.

Read the full stock report on Under Armour.

Fluor (FLR) Current Price: $45.04 12-month target: $65

1. Large growth opportunities with huge worldwide infrastructure expansions in China, Brazil, U.S., etc.
2. I expect demand to increase in 2010 backed by more oil and gas projects, government spending worldwide on construction projects.
3. FLR has over $31 billion in future project backlogs adding value if the economic crisis were to continue longer than expected.
4. FLR has a strong balance sheet with a solid ROA, strong profit margins, and little debt.
5. I think PE ratios and earnings estimates will improve in the New Year. In 2009, earnings dropped due to the large amount of cancellations as a result of the credit crunch. With banks getting healthy and more willing to lend we can expect for infrastructure projects to start up again.

Read the full stock report on Fluor.

The Buckle (BKE) Current Price: $29.28 12-month target: $42

1. I like BKE due to their strong brand management and overall sales appeal
2. Per store sales have gone up from $1.32 million to $2.19 million in the last 7 years, a net growth rate of 66%.
3. Long-term growth prospects are bullish heading into 2010 as I expect sales double-digit sales for a third consecutive year followed by strong earnings estimates.
4. Currently they have $3 a share in cash, zero debt, and a current ratio of 3.70.
5. Moving on they have a PEG of 0.98, which is a bullish indicator. Adding to this they have strong ROE and ROA of 31% and 23%. Plus Buckle insiders hold 43% of the company showing they have believe in its long-term growth potential.

Read the full stock report on The Buckle.

Why You Should Invest?

Want a resolution to add to this list? Well if you don’t already here is one for you, investing. Trust me, it will pay off in the long-run.

Why You Should Invest?

Why you should Invest? Plain and simple, investing is the easiest way to create wealth. Investing is relatively simple and the rewards are great. By Investing

in the Markets it will open up the world to you offering you more money to do what you want. Money gives you opportunities so investing will allow you to explore your opportunities whether they are retiring in a beach house in Mexico, paying for child’s education, or just for traveling the globe. Realistically, unless youhave a top-notch salary, investing in the Stock Market is the only true way to reach financial independence.

Benefits of Investing and Power of Compounding

Lets put it real simple to show you the benefits of investing. Say you put $2,000 of your savings into the stock market and invest within the S&P 500. Well the S&P’s historical average is 10% and would make your 2,000 worth $34,898.80 after 30 years. Now do you see the gain from investing? On the contrary if you put that same amount of money into a savings account your $2,000 would only be worth $3,622.72 30 years later. Quite a difference huh? This number will shock you even more. If you invest $1,000 a year in the S&P 500 after 45 years it will have grown to over one million dollars. Overall you only added $46,000 over the time but compound interest and solid investments did the job for you. Below is a graph that shows the power of investing and why you should put your money in the Stock Market rather than a CD or Bond. Historically overtime CD’s and Government Bonds have averaged around 5%. The Stock Market has averaged 10% over the same period and if you learned how to trade yourself or followed Stocks on Wall Street you could easily achieve 15%-20%.

Growing At

Shocking what a few percentage points can do and why it pays off to take some risk. Remember you are a long-term investor so you’ll go through the bull markets and bear ones but overall your money stays put and grows exponentially.

Time Value of Money

Lets say your parents start you investing when your 15 years old with a simple $100 dollar bill. Look how that simple bill will grow:

Growing At

The Story of Jack and Jill

Delaying making investments in order to launch your career can cost you dearly later on. Smaller investments made between the ages of 18-25 will yield much greater returns than larger investments made later on over a longer period from ages 26-65. Consider the classic parable taught in many basic economic courses:

Jack decided not to go to college. He got a job at 18 and invested $4,000 each year into an IRA. He stopped after eight years after investing a total of $32,000. His sister, Jill, went to medical school, started her medical practice at age 26, at which point she began contributing $4,000 to her IRA. Jill did this for 40 years from 26 to 65. She invested a total of $160,000 and put her money into the same investment as her brother. Jill started investing the same year Jack stopped, and she saved for 40 years compared to just eight years for her brother.

By age 65, whose IRA account do you thing was worth more money?

Assuming both Jack and Jill earned a 10% annual return, Jill accumulated $1,327,778. But Jack had $1,552,739 – $224,961 more than his sister!

Jack’s account grows to a higher value because he started sooner!

+$224,961

Jack stopped investing at age 26 having invested only $32,000 to Jill’s $160,000. But Jack’s money earned interest for eight years longer than his sister. It wasn’t the money that made him successful – it was the time value of money. Jack didn’t put off investing when he first launched his career. By investing sooner than Jill, his account grew larger.

The moral of this story is not to forego a college education and its promise of higher earning potential. No doubt, Jill earned more disposable income during her career. But Jack’s investment head start was far superior, resulting in substantially greater savings.

What you Should not Do?

Do nothing – Obviously nothing in life is a guarantee. There is no guarantee that you will make money investing in the market in your first month or year. However overtime you will as you can see through the charts above. One thing you can guarantee though is if you do nothing you will not be able to retire comfortably.

Start Late – Besides not investing at all this would be your second worse decision. The numbers don’t lie and the graphs above prove my points.

Invest for the short term – The market is not a guarantee so don’t use it as a short fix to pay off bills or debts. The key to investing is by having a long-term perspective. Traders are different as they manipulate the markets to turn a profit. Beware though it takes only the very skilled as 90% of traders lose money.

Take it Easy - If you’re young, most of your investing dollars should be in the stock market. Over time you will be able to weather the dips in the markets and benefit from the rewards of long-term gains.

Risk it All – Never pour all your money into something that could lose it all. Diversify, Diversify, Diversify!!!

Now What?

Hopefully after reading this you realize the true gains from investing and why it is the best decision you could ever make in your life. Next step is to open up a Brokerage Account so follow my next steps to get started. Get going cause remember the clock is always ticking.

Stocks on Wall Street Year End Word Cloud

So was curious in seeing what terms I used in all 262 articles I wrote for Stocks on Wall Street last year, here they are:

Happy New Year from Stocks on Wall Street

Just want to wish everyone a Happy New Year here from Stocks on Wall Street. Enjoy 2010, remember the most important thing in life is honesty, integrity, hardwork, family and never forgetting where we came from.