Stock Watch — 08/01/2007

Ok. So, it has been a couple of months since I’ve posted my thoughts on the stock market. For those of you that have been following the stock market closely, there have been a number of opportunities to buy and many shifts in focus with regard to industry. Technology stocks are back. Great. I’m glad I started my IRA in a Technology-specific fund right before the sector’s steep decline. Lesson learned. I’m ready to play again; more on that later.

The chart below is the Derrich.com portfolio as I left it since the last Stock Watch on May 21, 2007. As you can tell alot has happened since then.

With so many changes in the prices of the stocks above, we’ll get rid of a few and add others in their place. Out with MOT, SIX, SIFY, and FMS. In come the following.

*Last Trade as of market close on 08/01/2007. Past performance does not guarantee future results.

Moral of this story? Don’t leave your portfolio unattended. This is why many people opt to use a stock broker or financial advisor. If you can’t commit to the time necessary to do our due diligence, get some help from an expert. For me personally, opening Retox Bar in addition to my “day job” and my blogging has caused me to neglect the Stock Watch…to do the necessary research to make a worthwhile analysis.

Sun On The Horizon
Sun Microsystems (NASDAQ: SUNW) was one of the dogs of the Technology sector since the stock peaked back in September 1, 2000 when it closed at $128.63. Now at just over $5 per share, it is being hailed by some as a steal. Sun has reported 3 straight quarters of profit and a stronger Balance Sheet despite an increase in long-term debt. And Sun plans to use $3 billion of its nearly $6 billion in cash to repurchase stock over the next few years. Perhaps we’ll find out more on Sept 5th in New York when the company holds its financial analyst meeting. As Jim Cramer so lucidly explains in the following video, Sun has accomplished its new found “green” by being a better manager of its operating costs…because it sure isn’t a significant increase in revenues. And don’t just pay attention to Erin Burnett. Listen to what Sun Microsystems CEO, Jonathan Schwartz, has to say about why his company is a good candidate for your portfolio. Think…international exposure.

Gotta love the Jim Cramer strongarm interrogation to get the answers when you need em. I’ve always wondered why he doesn’t “push # on your keypad to ask a question” during the call.

Despite uncertainties with regard to what Sun will do with its cash, and whether or not the company will grow its revenues more considerably, I’m putting all my chips on Sun. If you want to do your own research, check out this list of tech stock sectors for recent performance. You can drill down into each specific sector for a list of stocks. As always, I’m open to your picks as well, and will consider including those in future analyses.

Popularity: 11% [?]

Related posts:

1. Stock Watch — 04/06/2007
2. Stock Watch – 04/16/2007
3. Stock Watch — 04/27/2007
4. Stock Watch — 05/07/2007
5. Stock Watch — 05/21/2007