Monday, September 29, 2008

Sunday, September 28, 2008

Emergency Economic Stabilization Act of 2008

I am more interested in the Bears/Eagles game tonight, but I just downloaded a PDF of the Emergency Economic Stabilization Act of 2008. It is surprisingly detailed (110 page PDF) for being thrown together over the weekend. Here is the purpose of the act as stated in Section 2:

The purposes of this Act are—
(1) to immediately provide authority and facilities that the Secretary of the Treasury can use to restore liquidity and stability to the financial system of the United States; and
(2) to ensure that such authority and such facilities are used in a manner that—
(A) protects home values, college funds, re-
tirement accounts, and life savings;
(B) preserves homeownership and pro-
motes jobs and economic growth;
(C) maximizes overall returns to the tax-
payers of the United States; and
(D) provides public accountability for the
exercise of such authority.

Some of the more interesting language comes in the first Section 101 "Purchase of Troubled Assets." Within this section they setup a Trouble Asset Relief Program known as TARP and gives the President authority to appoint an Assistant Secretary of the Treasury who will head up the Office of Financial Stability. The bill appears pretty strong with required transparency and accountability, but we will se how it is executed.


People tend to cut back during a recessionary time. No extravagant vacations, new jewelry, golf clubs, wardrobe updates, or new shoes for your tricked out ride. Most industries will begin to slow as consumers tighten their wallets. But a few industries will continue to see profits rise because consumers need these products to survive. Pharmaceuticals have been one of the few industries to hold strong during this slow down in the economy. Here are a few pharmaceuticals that everyone should consider adding.

Pfizer (PFE) - Pfizer, Inc. engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals worldwide. Lipitor, Viagra, Lyrica, Zoloft, and Celebrex are a few of their better known products. The stock is near a 52 week low, so this could be a great entry point. PFE is sitting on a lot of cash (26.1B), so look for them to be buying up smaller competitors in the near future.

Eli Lilly & Co. (LLY) - About half the size of Pfizer, but just as profitable. Federal health regulators delayed a decision on a blood thinner from Eli Lilly for a second time Friday, raising concerns on Wall Street about the potential blockbuster medication. The drug, called prasugrel, is considered crucial to Indianapolis-based Lilly, which faces a wave of patent expirations in the next few years. If passed, LLY will see a considerable jump in the stock price, but it is a gamble at this point.

Johnson & Johnson (JNJ) - Seen as a more stable competitor due to a more diverse operating base. Pharmaceuticals account for about 41% of total sales, with medical/diagnostic products at 35% and consumer personal care products at 24%. The stock has acted better than most, but it has made little net progress in the last six years.

Wednesday, September 24, 2008

Recession Proof Stocks - Tech

The market is in shambles, financials are crumbling, and everyone is calling for Armageddon. So where do you put your money? I think tech is a great alternative for nervous investors and you can get a steal if you know where to look. Here are my top five tech stocks that look safe in this stumbling economy and have great upside.

1. Adobe (ADBE) - I have been long this stock for a very long time and believe it has a ton of potential. They have some of the best software products on the market. They have successfully cornered markets in consumer and industry. Great buy below $35!

2. Apple (AAPL) - Do I really have to explain this one?

3. Texas Instruments (TXN) - One of my all time favorite stocks that is super cheap right now. I have never lost money trading TXN and don't plan on starting now. TXN is trading slightly above it's 53 week high and is ready to head back north.

4. McAfee (MFE) - As long as people keep buying PC's MFE will continue to make money.

5. Electronic Arts Inc. (ERTS) - I don't play video games very much, but come on they make Madden. I have been following ERTS for a while and believe it has a bit more of a downside, but I think this is a great long term buy.

Banana Chasing a Gorilla = Jail Time

Two students pulled a hilarious and relatively harmless prank during a Flower Mound Texas High School football game on Friday night. One dressed as a banana and the other as a gorilla and, shockingly, the banana chased the gorilla across the football field. The police didn't think it was very funny and arrested the teens. The charges were later dropped after backlash from citizens who felt the punishment was to strict.

Tuesday, September 23, 2008

Chrysler Electric Options

Chrysler plans on introducing their first electric auto in 2010. The concept cars look pretty sweet, but they always look much cooler in concept. The Zeo posts 250 miles per charge with a 0-60 in less than 6 seconds. Here is a detailed description on each model from MSN.

Chrysler ecoVoyager

The elliptically shaped ecoVoyager features a panoramic glass roof with a center spine, short body overhangs and a boat-tail back end.

Doors open up to 90 degrees and the rear doors are hinged at the rear with no B-pillar for easy access.

Four individual chairs are contoured and a recessed area in the headliner between the two skylights contains the “Direct Sound” function that directs the music choice to each individual without the need for headphones.

This concept has an electric motor that develops 200 kilowatts (268 horsepower) with a 40-mile, 16 kilowatt-hour lithium-ion battery module. Driving range can be extended to 300 miles when coupled with the advanced hydrogen fuel-cell range extender.

To assist in charging the battery, a regenerative braking system captures energy that would normally be lost and returns it to the battery. The entire propulsion system is located below the ecoVoyager’s floor to maximize interior space.

Jeep Renegade

The Renegade is designed to go just about anywhere and it can do it for a long time.

The battery pack provides a 40 mile range and a 1.5-liter three-cylinder BLUETEC diesel engine acts as a range extender for a total range of 400 miles. Lightweight aluminum and regenerative braking help improve overall efficiency.

The propulsion system features dual electric 200-kilowatt (268 horsepower) motors, one for each axle for true off-road capability complete with low range and locking differentials.

Aggressively styled with oversized wheels and tires, the Renegade is decked out with rubber-clad headlights and taillights for a rugged look. In Detroit, the concept was equipped with a lid to store two water scooters for scuba divers.

Inside, the Renegade has one-piece molded, soy-based foam seats and doors, a one-piece co-molded instrument panel with a urethane skin and an aluminum/silicone steering wheel.

Dodge ZEO

Named for Zero Emissions Operation, the Dodge ZEO is a four-passenger, all-electric 2+2 sport wagon.

Riding on a rear-wheel-drive platform, the ZEO is powered by a 200-kilowatt (268 horsepower) single-electric motor combined with a 64 kilowatt-hour lithium-ion battery pack that has of a range of at least 250 miles. Chrysler claims zero to 60 mph acceleration in less than 6 seconds.

The windshield glass continues nearly to the rear of the car and all four doors are “scissor” doors with the rear doors pivoting at the rear. The crosshair Dodge grille is lit with LED lights.

The interior is blended into a whole by a broad, sloping, fabric-wrapped surface in front of the driver that curves into the door and around the back panel to the other side with strips of LED accent lighting adding to the effect.

A slim center console slopes down from the windshield of the Dodge ZEO, creating a dual-cockpit effect, and the steering wheel, column and instruments are treated as a single freestanding design element.

Sunday, September 21, 2008

Best VLOG on the Web

Mad Science

Will $700 billion dollars save this market? Treasury Secretary Henry Paulson thinks so, as he is urging congress to act fast on this bail out. I agree that it is necessary to save financials, but it is not the taxpayers responsibility to burden the debt of poor decisions made by greedy bankers. Obviously, regulations need to be put into place to insure that this never happens again. Hopefully some of this debt that we (as taxpayers) are about to own will turn into a profitable investment down the road.

Sunday, September 14, 2008

My Last Sarah Palin Post

Here is the last Sarah Palin post for a while. Back to stocks on Monday.

See more funny videos at Funny or Die

BofA to buy Merrill Lynch

Surprising news that should boost BofA at the open. BofA is taking advantage of this sale on financials. After picking up Countrywide they are making a play for a huge full service brokerage in Merrill Lynch. Soon anyone working in the financial industry will be employeed by BofA. From this early stage it looks like a good move for BofA. Here is the headline on Yahoo Finance....

Bank of America Corp. will reportedly buy Merrill Lynch & Co. for about $44 billion

NEW YORK (AP) -- Bank of America Corp. has agreed to buy Merrill Lynch & Co. for about $44 billion, or around $29 a share, according to The Wall Street Journal. A deal between the two big financial companies would lift the uncertainty that has shrouded Merrill Lynch since the start of the credit crisis a year ago.