These were the words out of Rick Wagoner‘s mouth when addressing the Senate Banking Committee (SBC) tonight. It was based on this thought that my initial [ignorant] stance was to give these guys the money with some conditions primarily to preserve jobs that would otherwise be eliminated if these companies go down the drain. After listening to about 2 hours of this hearing, I was reminded of how companies tend to dance around pressing and pertinent issues. When asking for $25 billion, it’s probably a good idea to have some answers.

These companies are bleeding money. That was plainly evident after hearing about the billions of dollars per month (about $3B or so if I heard correctly) spent by each of these companies. And when the executive panel was questioned about the seemingly arbitrary $25 BILLION need, the responses were less then erudite. One of the SBC members (I forget which) immediately jumped on that by reminding the execs of their position in the company suggesting they should know these things…how they arrived at that figure. In defense of the executive panel, there were definitely a few questions posed by the SBC that were a little too detail-oriented.

Finally, Christopher Dodd (D-SEN) brought up executive compensation and accountability. And that sucked the remaining wind out of the auto execs’ sails. At that point, it almost didn’t matter if they offered to work for free. The SBC as a whole was quite skeptical toward the strategy of the companies suggesting they’d be back for more money. But after something like 4 hours of questioning, the execs were on the defensive.

What about the alternative? Yesterday in the New York Times, Andrew Ross Sorkin recounted prepackaged bankruptcy, which provide some (for the lack of a better word) tactless options for the automakers.

Bankruptcy would give G.M. enormous leverage with its debt holders — and, perhaps more important, with the U.A.W., whose gold-plated benefits are one reason G.M. is no longer competitive. A bankruptcy filing would also give G.M. the cover to close plants, rid itself of unprofitable brands and shed dealerships. In fact, unless G.M. files for bankruptcy, state laws would make it prohibitively expensive to shut dealerships.

Tactless. But probably necessary.

No related posts.

It’s tax time! According to data from IRS.gov, the average return for a single person in tax year 2005 was $4,983 (estimate based on all income levels for taxable returns). Obviously everyone’s situation is different; however, whether or not I suck at math, I’m going to assume a majority of you will get some sort of tax return. And don’t forget those Economic Stimulus payments we are supposed to be getting in May. In most cases, these rebates will range from $300 to $600 for individuals.

So, what do you plan on doing with this money? Many believe it’s your patriotic duty to put that money right back into the economy. However, I’ve got 7 ideas to consider that are sure to add stimulus to your life.

1. Eliminate Credit Card Debt. This might be the obvious choice for most. Some financial advisors may suggest that you cush up the retirement accounts first. Hey. Credit cards are among the highest interest rates you pay. If yours are high, this should be your first priority with your extra funds. Not only will you save on interest and elminate balances, but you’ll likely increase your FICO score. Get your current score at myFICO.com
2. Stuff Tax-Free Savings Accounts. Let’s say you’ve got your debts under control. Why not pad your retirement accounts to their limits. Each of these types of accounts has its own benefit. The bottom line is that you’re thinking about your future instead of blowing the cash on a big screen or some other unnecessary “toy”. Read this article. It explains everything you need to know about retirement accounts.
3. Start a 529 Account. With tuition costs rising (certainly outpacing inflation), this is a great way for you to help your children save now rather than having to worry about it later. Student loans are no fun and financial aid doesn’t always cover all of the expenses. Maybe your child will be like mine and become an elite athlete. =P
   There are many advantages to using a 529 college savings plan versus a traditional savings account or other savings vehicles. Earnings on a 529 aren’t taxed. If your kiddo gets a scholarship, any unused funds can be withdrawn without penalty. However, you must still pay income tax on the amount. As the account owner, only you have control of or access to the account. For most 529 plans, there is no age limit for the end user. If you decide you want to head back to grad school someday, you can use the 529 to do that. You also have the option of transfering the account to another family member.
   Be sure to check out sites like Upromise to see how you can save money with everyday purchases. To learn more about 529 Plans in greater detail, the SEC (sec.gov) has a great Introduction to 529 Plans.
4. Home Improvement. Upgrading the bathroom or kitchen might be the most important when it comes to adding value to your home, but they tend to be costly. If we’re talking about 1,000 bucks or so, consider upgrading the master bedroom or living room. Think about it. Some nice beefy 4-5/8″W crown molding is around $40-$80 per 12′ plank depending on the type of wood. Two gallons of paint (~$60), a couple of brushes/rollers (~$15), and drop cloth (~$10). That’s an affordable upgrade. You’ll have some left…change the drapes (or add some) or bed covering…or both. If you’re feeling “green”, consider upgrading appliances. The U.S. Department of Energy has a great Consumer’s Guide to Energy Efficiency that you can check out for ideas on how to save on energy bills.
5. Open a Stock Trading Account. So you’re not versed in the trading of equities. Cool. It’s never to late to start learning. I would highly recommend that “rookies” pay attention to guys like Jim Cramer. He makes investing seem like less of a task, and more of a pastime. Get that check. Open a brokerage account (I use Scottrade). And buy some stock. The most important thing in all of this is that you do your due diligence. “Pulling the trigger” is perhaps the hardest part of buying stocks. But it can really be alot of fun, and it is definitely a learning experience!
6. Get The F*(& Outta Dodge. So you’re all set with the debts and the retirement funds and the investments…yada yada. Fine. Take a frikken vacation then. If we’re talkin’ rebate check amounts, you’re not going very far. But a bed & breakfast, a nearby body of water, or some camping or hiking should do the trick. Nothin’ like a little stress relief.
7. Donate It To Charity. I only put this one last because doing this won’t directly benefit you. But if you think someone can use the cash more than you can, by all means…donate to charity. There are tons of local and national charities you can give to. I usually lean toward helping disadvantaged children or life saving organizations.

One of these seven ideas is bound to make you feel like you did the right thing with your dough. Be smart about picking the right one for you.

Related posts:

1. Upromise® and Saving Money for College
2. Blog Money — August 2007
3. 7 Ways To Take Advantage of Social Marketing

I realize “sure thing” is a bit idealistic; but if you take a closer look at the variables behind the agriculture boom and why it could be long-term, you just might reap the benefits (the pun potential for this article is bountiful…sorry).

BRIC & M
BRIC is an acronym that stands for Brazil, Russia, India, China. Recently, Mexico has been added to this list of emerging economies…forming BRIMC. Jim O’Neill, global economist at Goldman Sachs, has theorized the idea that the BRIMC economies as a whole could be larger than the G6 in U.S. dollar terms by 2050. Just watch this BRIC video presentation. This ain’t no ostensible theory.

Along with this economic growth comes a larger middle class population and an improved quality of life. And that means higher demand for quality foods.

Stocks Du Jour
So where can you park your money? There are a few ways to take advantage of the boom. One way, of course, is to invest in Agricultural Chemical companies. Two of these that stick out as long-term winners are Monsanto (NYSE:MON) and Mosaic (NYSE:MOS). Both specialize in technology to help farmers produce healthier foods and better animal feed ingredients. These stocks are up 154% and 456% in the last 12 months, respectively (as of market close, 01/14/2008). See Mosaic’s 52-wk chart below.

Mosaic’s second quarter earnings rose nearly 6 times…44% revenue growth.

Farmers need tractors to help foster this anticipated growth. Deere & Co (NYSE:DE) is reaping the rewards of the ag boom. In the company’s fourth quarter 2007 report, Chairman & CEO, Robert W. Lane, advocates that “Deere is well-positioned to continue benefiting from powerful global economic trends such as growing affluence and increasing demand for food, feed and biofuels”. Worldwide sales of John Deere agricultural equipment are expected to increase by about 17 percent for full-year 2008.

Last, but certainly not least are Exchange Traded Funds (ETFs). Perhaps the most popular Ag-related ETF is the Van Eck Agribusiness ETF. Actually, I just like the ticker — MOO. MOO currently represents 37 companies worldwide that are engaged in the agriculture business. To earn a spot on the MOO fund, a company must possess the following characteristics:

• Have a market cap exceeding $150 million
• Have a worldwide daily average trading volume of at least $1 million during the past six months, and over each of the past two months
• Have maintained a monthly trading volume of 250,000 shares over the past six months
• Trade on global exchanges

For those that appreciate the idea of portfolio diversity, MOO will do.

I’m no financial advisor, but this might be a time to throw out the idea of “buy low, sell high” and adopt a “buy now” attitude. This is one boat you don’t want to miss.

Related posts:

1. What To Do When The Stock Market Is Closed
2. Stock Picking Contest @ Stock Trading 101
3. Stock Watch — 08/01/2007

Despite the decrease in posts, blogging revenues remained relatively unchanged. Here are my blogging revenues for August 2007:

So, a decrease from July 2007 blogging revenue, but expected. I only did four paid reviews through PayPerPost in August; PPP is clearly my biggest revenue generator. AdSense did increase by about a buck. I’m a little discouraged that I have not sold more Text Link Ads. I lost one advertiser, but quickly gained another. Credit Solutions provides debt consolidation services and a learning center to assist those concerned with managing their debt. Thanks to them for advertising on Derrich.com. I’ve also stopped advertising on Brohans.com. I don’t think they are updating anymore, so they’ve also stopped taking money out of my PayPal account. I did get a free link to Sweethacks.com. The blog has 8 free backlinks since I last checked. Wander over and grab a spot.

And big thanks to all of you that contribute your thoughts and comments. I just remembered halfway through the month that my Top Commenters counter is set to 7 days, which means it resets itself sooner than I thought. I’ve fixed that to go for the full month. Cheers to a successful month of blogging for everyone…and if you’re not a blogger, then cheers to your pursuit of success.

Related posts:

1. Blog Money — June 2007
2. Blog Money — July 2007
3. Blog Money — May 2007

TheBuyList.com contains unique data extraction and cleansing processes that gather incremental stock transaction data by top mutual funds. What this means is that someone researching stocks can query its database and to see which funds and fund families recently bought or sold a particular stock. Looks like Sun Microsystems (NASDAQ: SUNW) has been a hot buy as of late. Good thing. I included it the Derrich.com Stock Portfolio on August 1. Check it out for yourself.

This is a Sponsored Post.

Related posts:

1. Stock Watch — 08/01/2007
2. VIDEO: Mississippi Braves Manager Meltdown

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.

Related posts:

1. Stock Watch — 04/06/2007
2. Stock Watch – 04/16/2007
3. Stock Watch — 05/07/2007

As a promotion to launch the program, PAYjr Visa Buxx has also created a Teen Credit Card design competition. The grand prize winner will receive an Apple laptop; second place will take home an Apple Video iPod; and third place wins an Apple iPod Nano. Winning designs will be used in PAYjr’s gallery so that others may purchase them. Vote for your favorites and stay updated on which design has the most votes. Once you submit your design, PAYjr will send you code that you can add to your blog or MySpace, to help gain votes for your design.

This is a Sponsored Post.

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1. Determine An Amount
According to FinAid.org, college costs increase at about twice the inflation rate. Current increases have averaged 5% to 8%. Go ahead…use their College Cost Projector and see for yourself.

Based on trends in college pricing by The College Board (the 2006-2007 average total costs including tuition and fees, room and board, books and supplies, transportation and other expenses were $16,357 for students attending four-year public colleges and universities), here is what the estimated cost of sending my 4-year-old son to school will be according to the College Cost Projector:

Tuition inflation rate of 7.00% with each year adjusted after matriculation

Using the same metrics for a four-year private college or university at the current average per year of $33,301, the total projected cost is $381,247.99.

2. Set Up A 529 Account
There are many advantages to using a 529 college savings plan versus a traditional savings account or other savings vehicles.

• Earnings on a 529 account are not taxed.
• If your kiddo gets a scholarship, any unused funds can be withdrawn without penalty. However, you must still pay tax on the amount.
• Your child does not have control of or access to the account. Only the account owner (usually the parent or guardian) has access.
• Most 529 plans do not have an age limit for the end user. If you decide you want to head back to grad school someday, you can use the 529 to do that.
• In the event your kiddo wants to “skip a semester”, you have the option of transfering the account to another family member.

Be sure to check out Upromise to see how you can save money with everyday purchases. Our family currently uses it, and we’ve saved a bunch. The trick is to get as many people involved.

To learn more about 529 Plans in greater detail, the SEC (sec.gov) has a great Introduction to 529 Plans.

3. Don’t Ignore Your Own Financial Situation
It is easy to overlook your own finances, specifically with regard to retirement planning. Revise your budget often. Stash some away for your own retirement, especially if you can take advantage of a company-matching 401(k). Pay down debts. This is the method I use personally when determining the amount I save in Lil D’s 529. Why? Keep in mind that student loans have been and (probably) always will be among the least expensive borrowing tools. Worst case scenario — let them pay for it with student loans. They’re cheaper than your 11.9% interest rate credit card and your 6.2% mortgage.

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1. Upromise® and Saving Money for College
2. Yahoo! CEO Terry Semel Steps Down, Jerry Yang! Steps Up
3. College Football [Un]Explained — A Fluke Or Parity?

After months of criticism regarding the ongoing battle with Google for online ad supremacy, Yahoo! Inc. CEO Terry Semel steps down taking a back seat to Yahoo! (Yet Another Hierarchical Officious Oracle) co-founder Jerry Yang. As John Shinal of MarketWatch explains in the following video, technology will be the focus with Jerry Yang at the helm. Well…it might be.

The company is in good hands…I felt like it was time for me to move more into a coach’s role than a player’s role.

Hey, Jerry. Isn’t that what a CEO is supposed to do? Coach? As you heard in the video, during Semel’s tenure, traffic increased and the stock price rose…but Google has slowly taken control of the online advertising market. Check out this timeline below. What it won’t show is Semel’s addition to Jim Cramer’s Wall of Shame.

Table supplied by MSNBC.msn.com. Information courtesy of Associated Press.

Ok…So Do I Buy Or Sell Yahoo!?
According to the May 2007 comScore Media Metrix, Yahoo! is still the most visited site in the U.S. And according to the same report, Yahoo! leaped into the #2 spot of sites ranked by Ad Focus…5 spots higher than Google…which evaluates the actual and potential reach of ad sales networks and their channels or categories. So, if this is true, why has the company struggled to jumpstart Panama? As I’ve mentioned before, Panama hasn’t had enough time to realize its true potential. I still believe that. Others have a less flattering opinion…and these estimations aren’t unlikely either. No doubt, Yahoo! management has their work cut out for them. But at least they’re not over compensating anymore. A little time for reflection and a chance to woo a worthy mate. So, my buy/sell opinion? Sell it now. Watch it fall and bounce a few times because it will. Don’t mess with the uncertainty…don’t even short it. If you have no fear, then by all means keep it. While it was already a pretty speculative play, it is now at the extreme end.

Read All About It!!!

• I Was Never Very Impressed By Terry — The Secret Diary of Steve Jobs
• Yahoo’s Big Mistake — BuzzMachine.com
• Open Letter To Jerry Yang — Traffick.com
• Yahoo! CEO Semel resigning – Liveblogging the webcast — Melly Alazraki, BloggingStocks.com

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1. Yahoo! Stock Price Falls on Flattering Expectations
2. Yahoo! Sports Thinks Robert Horry Is Too Old
3. Can Yahoo! Really Give Google A Run For Its Money?

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.

Related posts:

1. I’ve Got Your Stock Picks Right Here!
2. Stock Watch — 04/06/2007
3. Stock Watch — 04/27/2007

I’ve been picking stocks all year. Blain Reinkensmeyer at Stock Trading 101 is running a short term stock trading contest in which I have agreed to participate. The idea is to get some participation in the contest from a variety of reader groups and have some fun. Maybe you guys can give me some short-term ideas for my CNBC contest.

Play By The Rules

1. Entries will be accepted until Sunday, April 8, 2007, 9:00 PM EST.
2. Readers are invited to provide two estimates:
   • One stock (represented by a ticker symbol) that you think will provide a high return for the week (stock picks must be over $1 per share).
   • Predict the value at which you think the Nasdaq will close at on Friday the 13th.
3. To participate, just add a comment to this post (Blain will track your picks from here) mentioning the two items listed above.
4. The contest runs (your predictions and stocks will be tracked) officially from Monday April 9 until Friday April 13, 2007.

There are three ways to win: having the top stock pick, closest Nasdaq close, or best overall community pick average.

The Other Blogs

• Stock Trading 101
• Wall Street Fighter
• Frugal Trader
• Clever Dude
• Investoid
• GolbGuru

So, let’s see what ind of skillz the Derrich.com readers have (yes, that’s a “z”). And for those non-stock savy folks…don’t be afraid to pick a ticker symbol out of thin air just because you like the way it sounds or because it happens to match your initials. In case you need to do a little research, my two favorite sites are MarketWatch.com and Yahoo! Finance. Now, get to commenting!

Related posts:

1. I’ve Got Your Stock Picks Right Here!
2. Track, Analyze, and Evaluate Your Trading Activity With Marketocracy
3. Cut Your Stock Losses With Stop-Loss Orders

Sedo will sell your domain on a commission-based schedule…not much different from other domain brokers. So, on the $60 offer, I would have actually made $54 considering that by simply parking my domains, I’ve already recouped all of the expenses associated with buying the domains by parking them for free with Sedo. Anyway, for most non-foreign domains the commission is 10% when you park your domain with Sedo. Gregg Hawkins wrote an excellent article about how to park your domains with Sedo. Check it out.

Buying domains can be highly-speculative, but if you stay on top of those domains changing hands, or of new trends and new sites, you can really benefit from investing in online real estate. About half of my domains are typos, and those are also my most profitable with regard to domain parking. Sadly enough, my menshealth[dot]com typos were getting more pageviews than Derrich.com in its first two months of existence. But after a few push-ups and crunches, Derrich.com prevailed.

Get In On This Trend
The growth in domain values for CO.UK domains has surpassed that of .COM domains for the first time. According to an article written in DomainNews.com,

Annual statistics for 2006 compiled by domain marketplace Sedo and DNJournal, the domain industry trade magazine, reveal a surge of 153% in the value of all published .CO.UK domain sales worldwide, in comparison to a growth of 79% in 2005.

Well, that got me started looking. And I recently bought 7 new CO.UK domains, one of which was trialbyjury.co.uk. In 3 days, it had already received over 30 hits. The average is just under 9 hits a day right now. I also tried buying yourhealth.co.uk, but due to an error, the order was not processed. Anyway if you’re interested, catch the rest of the article at DomainNews.com about the growth in .CO.UK domains.

How To Catch The Next Trend
Recently, I’ve subscribed to the DomainNews.com and to the DNJournal.com newsletter. I also subscribe to the Sedo newsletter to stay on top of aftermarket domain sales. Sedo realized the greatest amount of market share for aftermarket domain sales for 2006.

Feel free to add your suggestions to get the latest domain news.

Related posts:

1. Domain Names Can Translate Into Big Bucks

Keep Your Eye On The Ball
The “ball” being fundamentals. Making this suggestion to investors is usually pretty ineffectual. Reading the headlines may translate into…how do you say…thinking too much. Yeah. That. Don’t do that. When I say fundamantals, I mean know the company’s financial condition, be aware of the industry they are in (competition is a stock killer), and determine the company’s value without being concerned about its price. Bottom line: due diligence.

Don’t Panic
Someone like Jim Cramer might say “don’t hesitate”. He’s definitely a “pull the trigger” type of guy (but he has rules…read one of his books), and I like that. Back to the suggestion at hand…don’t panic. Don’t fall into the fast-paced whirlwind that is the stock market. Stay calm, do your due diligence, and pull the trigger. Ok. There I said. All this subprime news caused a huge sell off. To everyone that sold: thanks. Think of this as a stock sale. Many stocks are more valueable than their prices indicate…for now. Many investors are able to buy stocks at the bid right now primarily because they believe the bid is below the market value of that stock. No need to be greedy. Just pay the price it deserves…in today’s market. I’ve heard Warren Buffet analogize buying stocks to paying $20 for a steak one night, and then returning to the restaurant to find out the steak is $15 now. Who complains about that?

Fed Agrees with Derrich.com
Well, not officially, but Fed Chariman, Ben Bernanke, has downplayed the subprime issue from the get go. And rightly so. Look, investors shouldn’t be frightened away from the market. Just guesstimating, there’s no way more than 5% of all mortgages made were subprime loans. I’d bet more than 95% of the mortgages made still boast positive equity. The crappy part is that there is likely to be an increase in lending standards hurting future borrowers to which banks will lend money. (There you go, bears. Are you happy?)

So, get out there and buy some stocks. I suggested a few stocks under $10 last week. I’m just plating seeds here. I’m no licensed investment advisor, but I’ve got some experience and wish to share it. Do with it as you wish…and good luck.

Related posts:

1. Stocks Under $10 To Consider For Your Portfolio
2. Stocks To Watch
3. I’ve Got Your Stock Picks Right Here!

I was reading an article yesterday on The Motley Fool by Brian D. Pacampara titled “5 Low-Priced, High-Star Stocks” and it got me thinking…I’ve had success with low-priced stocks in the past. Why not share those with you.

Brian and I both share the parameter for “low-priced stocks”: $10 per share or less…but no less than $1. He adds that

…nothing trounces Mr. Market quite like a $1 stock that moves into double digits over just a short period of time. Unfortunately, because of the numerous risks that low-priced stocks carry, these mega-multibagger returns don’t occur as frequently as one would hope.

Right-o. But I’ve got a pretty good track record if I must say. It’s really important to do your own due diligence when it comes to picking low-priced stocks. Really important. That should include industry and economy in addition to company-specific technicals or financial statements. And keep in mind that Brian runs his stocks through the Motley Fool CAPS “intelligence database” for a star rating as well.

Get To It Already: The Picks
One of the stocks Brian mentions is SIFY [Nasdaq]. SIFY (Sify Limited) is a company in India offers corporate network/data, Internet access, and online portal services. Two magic words here: India and Internet. “India” covers the “don’t put all your eggs in one [country] basket” (i.e., U.S.-only stocks). “Internet”, however, is the most magical word in my non-financial advisor opinion. According to a comScore Networks, the worldwide Internet audience has grown 10% (Jan 2006 to Jan 2007). India’s audience has grown 33%. I guarantee you Sify loves that number. I bought SIFY back in July 2006 with the anticipation that it would benefit from the improving Indian economy and infrastructure. As you can see in the chart below, I’ve lost some money. But I have faith…and it just barely busted my “don’t be a greedy pig” policy. For stocks under $10 per share, that means I generally sell them [1] when I’ve lost 15% or [2] when I gain 20%, unless they pay a dividend. And, of course, there are exceptions.

I don’t know alot about Brian’s other suggestions, so I won’t comment on them. But you can bet I’m going to take a look at them tonight. Here are a few others I’ve done well with and that I am considering as future investments. And like Brian, I’ll pawn them off as “ideas”…not recommendations.

Past performance does not guarantee future results.

Related posts:

1. Get Your Stocks! Stocks For Sale!
2. Stock Watch — 05/21/2007
3. Stocks To Watch

The second blog is called BigBigNews.net. Tyler Haywood, aka. Haywood Jablome, uses an interesting format to blog…videos. Most of his videos are pretty hilarious; I’ve been keeping up since day one, which was January 2nd of this year. Anyway, while I posted about Where to Invest for 2007 as highlighted in SmartMoney Magazine, Haywood featured his own video post about the Top 5 Stock Picks for 2007 by interviewing people on “the street”.

Check these out today when you have a chance. I’ll still be asleep recovering from playing the 24 drinking game. Anyway, if you have your own recommendations, I’d love to hear about them.

…and Happy Birthday, Reverend Dr. Martin Luther King, Jr.

Related posts:

1. Feed Your Stock Market Appetite With Agriculture
2. Stock Picking Contest @ Stock Trading 101
3. Does Your Current Compensation Reflect Your True Market Value?

Since about 1998, I’ve been using Marketocracy to keep track of stock recommendations, tips, etc. They start you off with $1 million in bogus cash with which to shop around (which equals a Net Asset Value [NAV] of $10.00). So, if you read the SmartMoney Mag article about the Where To Invest In 2007, you can pick and choose stocks you would have purchased if you had the money. I managed to get my NAV up to about $22.00 with a portfolio that included 50% solid, bonafide stocks, and the rest with speculative stocks. After abandoning my portfolio for a couple of years, I had to rebuild my account back from just under a $2.00 NAV. Ouch. I’m at about $14.53 now.

Stocks are categorized in a variety of formats including industry, percentage held, and by how they are being traded by other Marketocracy managers. There are also helpful forums to discuss your stock picks or queries. There are over 60,000 users to date and counting.

Membership Benefits include

• Real trading environment (enter trades & watch them fill via our data feeds – the same ones used by the brokerages).
• Timely reports on your portfolio’s performance to help you evaluate & improve. You will also have the chance to upgrade to Premium Tools and take advantage of the tools of investment professionals.
• Full history of your trades.
• Proper calculation of your returns over time to gauge your ability.
• Industry portfolio management rules – the same ones that professional fund managers must follow.

And if you are interested in Premium Membership, you can get additional perks like real-time service and research for as little as $12.50 per month..and they give you 30 days for free to try it out.

Related posts:

1. Stock Picking Contest @ Stock Trading 101
2. Keep Track of Your Personal Finances In One Place
3. I’ve Got Your Stock Picks Right Here!

Well, Jason Knight and Mark Hedlund, co-founders of Wesabe.com, created the interactive website in December of 2005 to “pool our knowledge…to take control of our money to reach our financial goals”. In a nutshell, the site works similarly to something like Microsoft Money where it keeps track of your finances (income, spending, etc) and makes suggestions based on your habits…and on the goals you set. They’ve even got a blog called “Wheaties For Your Wallet” with some tips and news with regard to keeping your finances in order. I could go on and on about the website’s offerings. Take a few minutes to watch the following video about how Wesabe works…and then pay them a visit.

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SmartMoney Magazine recently published an article titled “Where to Invest in 2007″ by Russell Pearlman and Reshma Kapadia. The article visits past economic conditions and how that has played a role in the performance of stocks. Today companies are “generating more growth overseas, immunizing themselves against the swings of the U.S. economy”. Ok. So, where do we put our money? SmartMoney suggests the following industries:

This year’s sectors to watch are Investment Banking, whose deal-making is now global; Chemicals, boosted by cheaper energy; Internet, where ads and retail are here to stay; Insurers, which thrive amid disaster; and Beverages, since alcohol is recession-proof. In Emerging Markets, you can profit from the new global middle class.

There are some individual stocks they suggest we keep our eye on this coming year…in no particular order, of course.

• Dow (DOW) – With more than 60% of its sales coming from outside the U.S., the chemical giant (and they make plastic stuff too) has offset its increasing productions costs, which consist primarily of oil and natural gas, by increasing its prices. Best of all, insider trading is occurring, which is always a good sign.
• Yahoo! (YHOO) – Aside from the fact that Yahoo! is expected to earn 30% more in revenues, the company’s new paid search system, Panama, is being rolled out now to compete with Google’s already burgeoning ad system. Advertising expected to grow 20% annually for the foreseeable future. According to research discovered Daniele Guerini on seekingalpha.com, Yahoo generates $0.04 per US search vs $0.11 at Google. Panama could definitely help reduce the gap significantly. A reduction of the gap to a more reasonable 30% discount [$0.077 per search] would generate approximately $800M of extra revenues based on the number of searches…revenues generated at no extra cost.
• Diageo (DEO) – First of all, look at this chart…marvel with me. Thanks. Some might say that chart looks good enough to drink. In case you’re not familiar with Diageo, the company engages in the production and distribution of spirits, wines, and beer worldwide. It offers a range of premium brands, including Smirnoff vodka, Guinness stout, Baileys Original Irish Cream liqueur, Captain Morgan rum, and Tanqueray gin. Diageo’s other spirits brands consist of Crown Royal Canadian whisky, Seagram’s 7 Crown American whiskey, Seagram’s VO Canadian whisky; and beer brands comprise Harp Irish lager, Smithwick’s ale (pronounced Smith-icks for you non-beer drinkers), and Red Stripe lager. Last but not least, it also owns the distribution rights for the José Cuervo tequila brands in the United States and other countries. As everyone knows, people drink in both good times and in bad. Diageo has managed to keep its operating margins above 20%, and it offers an attactive 3.1% dividend yield. Even one of coolest mutual funds on the planet, The Vice Fund, includes Diageo in its holdings…#2 in its holdings at 4.36% of its fund (as of 12/14/2006, Morningstar.com). You can read more about The Vice Fund in my previous post. SmartMoney also picked this stock in 2004 and 2005. I wonder if they get free drinks. Even if they didn’t, how could you not pick them?

Read the entire article to see what other stocks the magazine recommends at SmartMoney.com

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1. Stock Watch — 04/06/2007
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• SalaryScout: SalaryScout is an anonymous community of professionals whose purpose is to seek fairness in compensation. It is built around a network of users that offer various salary and compensation data (job title, salary, hierarchy within the organization, etc) to a specific job function. In addition to this interactive feature, SalaryScout offers regular posts with regard to “Career” (50 Common Interview Questions, How to be Ultra Productive) and “Compensation” (63 Salary Negotiation Resources, 10 Ways To Get The Most Pay)…and the service is free.
• PayScale: With the world’s largest database of individual employee compensation profiles, PayScale provides an immediate and precise snapshot of the job market. This service boasts a real-time profiling system, which indexes custom employee attributes (such as industry-specific certifications) and specific job titles for every industry…similar to SalaryScout. PayScale offers two tiers of membership: [1] My PayScale membership, which is free, allows you to create a profile and compare it to up to 3 other profiles of others with similar job titles as well as the ability to view job listings and educational opportunities related to your job. [2] Premium membership costs $19.95 and includes more specific job data comparisons to up to 10 similar profiles…and they offer a money-back guarantee.

The folks over at KnowHR.com make a good point with regard to using these resources:

‘Demanding’ pay and benefits based on [SalaryScout] is a sure-fire way to make yourself look foolish. Sure, have information. Know what you want to make. Get a sense of your value in the workplace. But know that there’s no single number for salary and benefits. And each company pays on a continuum for a given job. You can’t possibly think that you’re as valuable to a company going in as an incumbent with the same background and skills. Just beware.”

…and then there’s always blogging.

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