Since I began this blog on May 15, 2007 the markets have been all over the board. Over all the stocks I have portrayed on Market Anomalies have been successful, up almost 9%. Some of the leaders are Under Armor (UA) up 38.32%, Apple (AAPL) up 15.40%, Whole Foods Market (WFMI) up 10.65%, Lifetime Fitness (LTM) up 11.14%, and Wynn (WYNN) up 31.29%. I still like all these stocks and think they will go even higher under the right conditions.

With the good comes the bad and I have covered some losers like IMH (a real estate REIT) down 62.53% and FIG down 39.7%. Both of these stocks have been beaten down with either bad news or sector collapses.

The housing market is weak and is going to take a long time to repair, so if you are a long term investor there are some great buys out there. If you are looking at picking up some housing or lending stocks I would go with the big players like Countrywide, KB Homes, or DR Horton. All have been beaten down and although they could still go lower they look pretty cheap right now. Financials also have taken a hit this past month. In a downward trending market I like to buy the biggest of the bunch, so Goldman Sachs, Bank of America, and JPMorgan Chase are the financials I like right now. To see a big rate of return on most of these companies you are going to have to hold them for at least 6 months to a year. In the short term here are three stocks I am looking at right now that have momentum:

1. ADBE – Adobe has some great products out on the market right now and has the PDF market covered. Trading around $42 currently I have been buying this stock in the high 30’s and I think it has potential to go higher.
2. PEP – Pepsi is a great stock to own in a rollercoaster market like we have been experiencing lately. You will not see huge fluctuations in this stock which can help you sleep at night in today's market.
3. CHK – I like Chesapeake Energy in the natural gas sector and think it could move much higher.

So there you have it a little recap of the past few months and a look toward the future. I will be looking at some new stocks coming up soon, so check back often.

Get out your soldering iron!

It appears someone figured out how to unlock the iPhone from AT&T, but it requires soldering and software modifications. Apple should take the hint! Imagine if Apple sold the iPhone on all networks. The main reason I don't buy an iPhone is everyone I know is on Sprint. If I came off Sprint I would loose my mobile to mobile ability. Take the hint apple!

Huge Day!

Today is going to be a huge day for the market! Big Ben is going to speak, hopefully relieving some concerns over the recent credit crunch. Ben has to make a statement today in order to keep the bears at bay. The fed needs to calm investors and restore some confidence in the domestic market. The dollar is week and credit is shot, but Ben needs to reassure investors that this is just a temporary setback and the worst is over.

On lighter news Apple has summoned the press to the Apple compound to reveal something. There has been a lot of speculation on what exactly Steve Jobs is up to, but the consensus is likely an upgrade to the mac. Apple stock rallied yesterday and has a nice start today on anticipation.

Gphone?

What are the folks over at Google (GOOG) up to? It has been rumored that they are in discussions with cell phone service providers and manufactures to produce a gphone (or perhaps a googphone) following in the footprints of the successful iPhone (AAPL) . What is Google planning on doing different? One of the major differentiations would be the service provided. Google may be able to offer free service to consumers who are willing to be berated with advertising. It is no secret that Google is interested in becoming a player in cell phone applications business including Google maps, Google talk, and Gmail. Apple CEO Steve Jobs even approached Google for map applications on the iPhone. Great reads from Webbalert (video blog), Ars Technica , & WSJ.

7.26.2007

The housing market is getting slaughtered today on news that new home sales have decreased substantially. It is said to be the worst downturn in 16 years and the largest one month drop in 5 months. Is this a buying opportunity or a sign of things to come? Housing and mortgage stocks look cheep right now, but is that because they don’t have the financial legs to sustain a turn in the market or has Wall Street accurately valued these stocks? Wall Street loves to find a weakness (subprime) and talk about like it is the end of the world until a report comes out that says the trend has turned. It is very difficult to find the bottom of that curve. The best way to invest in a downward trending industry is to look for quality stocks and invest over a period of time. When you invest in quality stocks you lower your risk of a complete collapse. When you invest over a period of time you are able to lower your cost basis by purchasing on dips. Or option #2 is to buy Apple stock!! up 10 points taday!

Correction

The risk of running with the bulls!

Today’s correction was no surprise to most of us, but AT&T coming out and saying the iPhone’s first weekend of activations was less then anticipated was very surprising.

AT&T Inc. -- the sole provider of the new product -- said it activated 146,000 iPhones, while analysts had expected at least 200,000 during the first weekend.

The most important word in this report is “activated.” The iPhone is selling, but what analysts underestimated is the number of people who bought the iPhone and either sold it on e-bay or using it as an iPod. From what I have read the iPhone is not the easiest phone to activate, so a delay in activations is not a deal breaker. This may hurt Apples bottom line in the long run (due to contracts with AT&T) but the iPhone has definitely not been a disappointment.

Sub prime is continuing to take a huge hit, but is likely just the shorts trying to tear down anything they can. The demand for housing is not going to stop especially with the population growth. Countrywide (CFC) is one of the largest mortgage companies so it is likely a safe bet. With unemployment at all time lows, who is not paying there mortgage? Maybe everyone is buying the iPhone! Estimate- September 1 CFC is trading at $40

Disclosure: Long Apple & Countrywide

Photo link

Bernanke the Bear

Bernanke told congress today that overall economic growth this year will be lower than expected. Of course the markets overreact, but this appears to be only a temporary slip as the bulls still looks very strong.

Bought some JP Morgan Chase (JPM) today on stellar earnings report, beating estimates by .12 cents. The stock dropped however due to future expected losses in home equity defaults. Buying opportunities everywhere.

Unilever

Unilever (UN) produces many of the products that you may use everyday. Slim Fast, Vaseline, Dove, Hellmann’s, Axe, Country Crock, Wishbone, Lipton, Surf, and Ponds are just a few of the product lines that Unilever produces. Here is Unilever’s profile provided by Yahoo.

Rumor has it that Colgate (CL) is interested in acquiring Unilever. This rumor does not make a lot of sense, due to the fact that Unilever’s market cap is nearly three times that of Colgate’s. Colgate would have to team up with a private equity firm to make this deal happen or purchase just a section of the company (personal care business estimated at $35b).

Unilever appears to be a strong company with many attractive and appealing brands in its arsenal.

Disclosure: buying UN long on dips

$$ Top 5 Summer Money Reads $$

This summer when you are lounging by the pool or on the beach with SPF 45 smeared all over you pale body pick up one of these books. They may not help with that sunburn but they will help your stock picking. Some are classics that deserve another look, while others are new this year.
1. The World is Flat, Thomas L. Friedman
As suggested in the title this book analysis the effect that technology has had on the globalization of business. Technology has created an even playing field for the entire world, allowing workers in India to compete for US jobs and vise versa. The World is Flat is a great read for anyone wanting a global economic outlook from a fresh perspective.

2. The Brand Gap, Marty Neumeier
“A book you can finish in a short plane ride,” is the author’s accurate description of this short but effective book. Having a recognizable and identifiable brand is essential to the success of any business. The Brand Gap is a quick and entertaining read that will leave you with a different perspective on what a brand really is.

3. The Richest Man in Babylon, George S. Clason
A classic every serious investor should read.

4. The Warren Buffett Way, Robert G. Hadstrom
Although I am not a Warren Buffett enthusiast or fanatic, I do admire his overwhelming success. His conservatism on investing is different from my approach, but I do have an appreciation for his thoroughness and analytic abilities. I am currently reading this book myself and really enjoying it. There are a ton of Warren Buffett books out there, but The Warren Buffett Way differentiates itself by taking a broad look at not only his success but also his mentors.

5. Freakonomics, Steven D. Levitt & Stephen J. Dubner
Very interesting looks at how data can be misunderstood and misrepresented do to inadequate analysis. Written by a New York Times journalist and a young MIT economist, the blend of intellectual energy spills on to the pages. Freakonomics questions and analysis many taboo subjects including abortion and the Ku Klux Klan. This is a great book to read in a group because you will want to discuss it in detail when you are done.

This list is just a few of my personal favorites, if you think I have overlooked any great pieces of literature or you have read anything recently that should join the list please feel free to add a comment.

Vegas baby, Vegas!!!

Classic Swingers!

Vegas Baby! Vegas!!

According to the most recent census bureau release North Las Vegas is the fastest growing city in the country. With continuous multibillion dollar resorts’ going up annually it is no surprise that Vegas tops the bureaus list. Investors have been gambling on the success of Las Vegas stocks for a very long time. Recently gaming stocks have been out performing the market due to strong earning and investor confidence. Should investors double down or walk away with a gain? It’s usually safe to bet on the house, but there are many variables that effect gaming stocks. Let’s take a closer look at a couple of the best gaming stocks sin city has to offer (WYNN & MGM):
Wynn (WYNN) resort and casino is currently the most expensive (2.7 billion) mega resort to be constructed in Vegas. If you are looking for a new Ferrari after hitting it big at the roulette table the Wynn has you covered. The Wynn differentiates itself from the other mega resorts by servicing exclusively to high end gamers and business travels. The Wynn is well equipped with an 18 hole golf course on site, Ferrari & Maserati dealership, high end shopping center, and numerous award winning restaurants. The Wynn does not have a gimmick or a theme like many of the large strip casinos. The Wynn is trying to attract a different type of demographic which obviously does not include families.

Wynn stock has been on a steady rise the past year hitting an all time high of $114 in February. With a p/e ratio of 14 and a profit margin of 39% the Wynn has strong financials. Being the new kid on the block should help the Wynn’s numbers for the next couple years until the next mega resort pops up.
Since the Hilton-Blackstone deal was announced this past week rumors have been flying about our next sin city stock, the MGM Mirage. Here is MGM’s profile provided by yahoo finance:

MGM Mirage, through its subsidiaries, engages in the ownership and operation of casino resorts in the United States. It offers gaming, hotel, dining, entertainment, retail, and other resort amenities. The company operates casino resorts under the names of Las Vegas Strip, Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, Treasure Island, New York-New York, Excalibur, Monte Carlo, and Circus Circus Las Vegas. It also operates other casino resorts under Circus Circus Reno, The Laughlin Properties, Railroad Pass, MGM Grand Detroit, Beau Rivage, Gold Strike-Tunica, Gold Strike- Jean, and Nevada Landing names. In addition, the company has 50% interest in Silver Legacy, Borgata, and Grand Victoria resorts. Further, MGM Mirage owns and operates golf course, Shadow Creek, Fallen Oak, and Primm Valley Golf Club. As of April 13, 2007, the company owned and operated 19 properties located in Nevada, Mississippi, and Michigan. It has strategic alliance with the Mashantucket Pequot Tribal Nation. MGM Mirage, formerly known as MGM Grand, Inc., was founded in 1986. The company is based in Las Vegas, Nevada. MGM Mirage is a subsidiary of Tracinda Corporation.

The MGM has looked strong the past year doubling since last October. Trading at a premium do to buyout speculation, MGM is an excellent gambling stock. Do you feel lucky?

Week in Review

After a week of being out of commission, I am glad to say that I am back up and operating. I lost all the files on my hard drive including my pictures and word documents! Back up your important documents as often as possible, you may be next. I think I am going to take a serious look at a MacBook for my next laptop.

Anyways, the markets looked quiet this past week. Travel and hotel stocks were active with the announcement of Blackstone Group buying Hilton hotels for $26 billon.

Apple also had a great week with reports that the iPhone may live up to the hype. It has been tough not to take some gains off the table, but I am going to hold on a bit longer. Steve Jobs is always full of surprises so this stock is fun to follow.

Alcoa Inc. (AA) will kick off the next wave of quarterly earnings on Monday. Keep a look out for international stocks this week. The dollar has been abnormally week the past quarter which should create strong earnings for international stocks usually underestimated by wall street.

Hard Drive Crashed

Should be back up soon!

A Closer Look At The iPhone

The iPhone will go on sale on the 29th! This should be an exciting week to trade aapl.

Texas Instruments DLP Projection TV: Amazing

The stock is performing pretty amazing to! Trading around $38 TXN is at a 52 week high and has the legs to sustain the growth.