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One of your priorities when trading in the stock market should be to avoid being greedy. It’s tough, and takes alot of discipline. I practice this particularly when a stock is speculative. Rather than sit and constantly watch the market every hour on the hour, I use stop-loss orders.
According to Investopedia.com, a Stop-Loss Order is an order placed with a broker to sell a security when it reaches a certain price…designed to limit an investor’s loss on a security position. A stop-loss order is also referred to as a “stop-market order”. This is because when the stock hits the price you’ve previously set, your stop-loss actually becomes a market order. The stock is sold at the best market price available.
I don’t like to lose more than 10% on any stock purchase I make. To use an example, the Derrich.com welcomed Coach (NYSE: COH) at $51.40/share. As of yesterday’s close (05/15), the stock fell 2.66% to $46.10/share. That’s a loss of 10.31% since we added it to the portfolio. A stop-loss order would have sold COH at or around $46.26/share ($51.40 – $5.14 = $46.26).
Put Me In, Coach!
Despite being down yesterday, Coach is back up about 1.5% today. In my non-financial advisor, stock market aficionado opinion, now is the time to get into the stock if you haven’t already. In a real-life situation, I would not have placed a stop-loss on Coach simply because I like the long-term outlook for the stock. I certainly have my limits, but I’m pretty confident that women all over the country are still eyeing that new Coach bag in the latest catalog.
UPDATE: Coach closed the day (05/16) up $1.36, or 2.95% recovering its previous day’s loss.
Learn and understand more about the stock market at Stock Trading 101.
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Telemarketers can be a pain in the @$$. They always seem to call in the middle of dinner. And when asking you to switch your long-distance carrier, they always have an ace up their sleeve. Luckily, these calls are a thing of the past with the explosion of cell phone usage. I haven’t had to worry about comparing long-distance services for years now. This video, although an exaggeration, is so on the money (by the way, there are a couple of choice words).
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Robert Horry can definitely turn the tide in any series. He’s done it before. But in a negative way? I’ve seen him get frustrated before, but I can’t think of any of this magnitude until last night.
With less than a minute left to play, Big Shot Rob delivered a big shot elbow to Steve Nash, which sent him flying into the scorers table. Not only did he confirm the “dirty Spurs” accusation, but created a conflict within the NBA organization. Did Boris Diaw and Amare Stoudemire react in a way that deserves a one-game suspension? According to the NBA rulebook, yes. But as Charles Barkley suggested in the TNT post-game recap, he felt the rule was put in place to remedy an active situation…one where players leave the bench to add to the altercation. That’s not the end of the “conflict” that the NBA has to analyze.
There’s the Bruce Bowen “stuff” that was enforced with a soft hand slap. Stoudamire and Diaw did nothing physical. Spurs fans may disagree, but I seriously doubt the NBA will suspend either player. Personally, I’d love to see everyone intact on both teams — it would give more meaning to the matchup and make for some exciting basketball.
ESPN’s Marc Stein makes a great observation of the series. Unfortunately, I couldn’t agree more.
If there’s such a thing as a 2-2 lead, it looks like Phoenix has one after this grittier-than-ever comeback. The Suns got stops in the fourth quarter. They had plenty of chances to fold and hung in instead.
We can also blame Pop for sitting Duncan too long after collecting his 5th foul. I had a few choice words for Pop last night. And everyone around the office is up in arms this morning. We had that game in the bag. Now we have to go back to their place. The ball is definitely in the Suns’ court…so to speak.
You can read the rest of Marc Stein’s Spurs/Suns Game 4 analysis at ESPN.com.
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This Saturday, every blogger in the San Antonio area should be the inaugural PodCamp San Antonio. Podcamp San Antonio is an UnConference, which means that it’s a conference organized in an ad-hoc manner for everyone to attend and participate. There are no keynote speakers or rigidly defined schedules. Anyone with something to contribute or with the desire to learn is welcome and invited to join. Discussions will include the latest in Podcasting, Blogging, Vlogging and new Social Media.
Although the event is free, PodCamp San Antonio organizers ask that you RSVP filling out the form on their website, or by sending an email to podcampsanantonio [at] gmail dot com. Include your name, email address, and URL. I’ll do my best to be there.
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In this month’s Blog Money report, I mentioned taking advantage of more sources of revenue. One of those is blog marketing site PayPerPost. I’ve already completed two reviews for about $50. I knew I could make money with PPP, but win prizes? A-List bloggers aren’t the only ones giving away a Nintendo Wii or a Microsoft Zune in exchange for some link love and a review. Every Tuesday this month, PayPerPost, along with the help of Bid4Prizes, are making Tuesdays special for its bloggers by holding “HDTV Tuesday”…a fitting follow-up to its “$1K Tuesdays” in April. Specially-marked opportunities include a variety of Audio and Video equipment including 4 AppleTVs and Sony PlayStation 3s. These special HD Opps will run from noon EST on Tuesday to noon EST Wednesday to give the most people an opportunity to participate. The cool thing is that the prizes are awarded in addition to the revenue earned for taking the opportunity. This Tuesday (May 15), opportunities will include a Slingbox, a Nintendo Wii, a Yamaha Surround Sound System, or a Logitech universal remote…all of which will go great with my Sony 55″ SXRD HDTV. Last week’s winner was Dana in Arizona who won a PS3. I heard she was going to give it me since she probably isn’t going to play it very often. Actually, I just want it for the BlueRay player. Thanks, Dana.
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Last week, I mentioned that I had been watching several stocks to add to the Derrich.com portfolio. Three stick out in my mind as potential winners.
Motorola
Lately Motorola (NYSE: MOT) has been the center of attention on most analysts’ minds…or so it seems. Every other article discusses Carl Icahn’s continuing struggle to obtain a seat at the table (i.e. Motorola’s board); or how improvements in technological infrastructure mean the purchase of Motorola network equipment and software. Last week, Motorola CEO Ed Zander announced plans to unveil its iPhone competitor at the Software 2000 conference in Santa Clara, California. I suppose we’ll have to wait for the unveiling, but don’t wait to hop on board the Motorola train. A bit speculative especially given the current farrago of expectations, forecasts, and obstacles…but don’t forget the dividend yield of 1.10% either.
For the next two, I didn’t have to look too far. Both are based right here in San Antonio and are solid companies with solid management…and solid business models.
Argonaut
Argonaut Group, Inc. (Nasdaq: AGII) underwrite specialty commercial insurance in the property and casualty insurance markets through three segments: Excess and Surplus Lines, Select Markets, and Public Entity. Basically, the company provides insurance to entities that have an otherwise difficult time obtaining policies. It has proven to be a solid niche.
Last Monday (May 7), Argonaut reported that it grew first-quarter earnings by 22% on record first-quarter revenue.
Argonaut’s combined ratio, or rate of losses on policies, for the first quarter of 2007 was 94.2 percent, compared to 95.2 percent in the prior year, meaning Argonaut is paying a lower percentage of its premiums out in claims.
Argonaut also expanded and diversified its reinsurance segment with the announcement that it would merge with Bermuda-based property reinsurer, PXRE Group Ltd. to form the Argo Group. Reinsurance is the insurance companies that insurance companies use to spread out their own risks as a hedge against catastrophic loss. What does that potentially mean for Argonaut? Think Berkshire Hathaway…or Warren Buffet.
Kinetic Concepts
Do great minds think alike or what? I was watching Mad Money on Friday, and Jim Cramer mentions Kinetic Concepts as a speculative buy.
KCI (NYSE: KCI) engages in the design, manufacture, marketing, and service of wound care and therapeutic products. According to a MM recap on TheStreet.com, [Cramer] considers the stock speculative because “it’s not a pastiche. It doesn’t have a variety of product but instead is only levered to the wound-care business.” On Friday, KCI ended the day down on news that a new competitor has strengthened itself in the wound care game. The fear is that Smith & Nephew PLC, said competitor, would have no problems improving its market share…even doubling according to Cowen & Co. analyst Dhulsini de Zoysa. Sorry, Dhulsini. But if it’s good enough for Cramer, it’s good enough for Derrich.com.
Good luck, and make some money! And don’t forget to sharpen your stock trading knowledge at Stock Trading 101.
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Are you kidding me? I just read an article by Jay Glazer over on FOXSports.com that Brett Favre has asked to be traded. In the article, Jay suggests that such a request comes on the heels of the draft…failing to make moves that could help the team.
The shocking request appeared directly related to the team’s inability to trade for WR Randy Moss. On Saturday, Favre railed against the team in an interview with his local Biloxi Sun Herald.
Instead, the Pats picked up Moss for a 4th Round Draft Choice. Favre claims he knew Moss’ asking price. So, I guess this means Favre’s desire to play has adopted a new caveat: only if we sign a Pro Bowl wide receiver to catch my passes. Don’t get me wrong; I’m a huge Brett Favre fan. He’s done a ton in his illustrious career, but it just seems to me he’s holding back the progress of the Green Bay Packers. They’ve got a promising young quarterback, and could have all those other tools with Favre’s salary to fund the cause.
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