Wednesday, July 29, 2009

Stocks for the Gambler

If you are a person who loves to gamble consider buying casino and gaming industry stocks. As you know the "House" always wins. Some of the stocks are healthy investments because there is real estate and other merchandise involved. Instead of feeding your quarters into a machine think about investing in the company.

MGM Mirage has a huge presence in the casino, hotel and entertainment industry in Las Vegas. It also has hotels and casinos in Michigan, Mississippi, and Macau S.A.R. Recently MGM Mirage signed a long term strategic relationship agreement with Dubai World. The company is traded on the New York Stock Exchange under the ticker MGM. The stock sells in the price range of $83.

Boyd Gaming Corp. may not be familiar to you, but the company has a large presence in Las Vegas. It owns and operates 11 properties in and around Las Vegas. It also acquired Coast Casinos in Louisiana and is a wholly owned subsidiary of Boyd Gaming Corp. The stock is sold on the New York Stock Exchange under the ticker BYD. The price is in the $40 range per share. Boyd Gaming Corp. is expected to make steady gains over the next three years.

WPT Enterprises, Inc is a company you may know what it produces but not necessarily that much about the company. WPT Enterprises, Inc produces the World Poker Tour and owns the rights to television broadcasting and products branded under the WPT Enterprises Inc name. It is a joint venture between some notables in the gaming industry and Lakes Entertainment Inc. It is a wholly owned subsidiary of Lakes Entertainment. WPT Enterprises, Inc. is traded on the NASDAQ exchange under the stock ticker WPTE. The stock sells in the $3.50 per share range, but who knows it may be a sure fire bet in the long term. There is a great deal of public interest in the World Poker Tour.

Harrah's Entertainment Inc. is a well known name in the hotel, casino, and resorts industry. It has been in existence for over 60 years. It may be one of the largest influences in Las Vegas business ventures. Recently it moved forward on its plan to build a world class sports arena on the Sunset Strip. Additionally Harrah's is involved in the development of a master development plan for Las Vegas. The stock is sold on the New York Stock Exchange under the symbol HET. The stock sells in the range of $85 per share. One thing for sure, Harrah's will be around for the long ride.

All of these stocks provide an avenue of investment for the gambler. The key is to watch the stocks and determine when you want to buy stocks. Timing is everything in this sector. In addition to casino and resort stocks there are some excellent technology stocks. This is the area of the gambling sector that supports the casinos in developing new technology for the gaming industry. The field of gaming technology is always on the move due to new innovations. Whether the casino is making big money or not, the need for new products is essential to attracting new customers.

Investing in Chinese Companies

China's economy has been soaring for some time. It is possible the growth potential is only at the starting point. During the years of its world seclusion. China as a country amassed trillions of dollars in its coffers. American companies that have relocated some of their operations to China has added even more capital to the China economy. The Chinese are wise investors and do not seem to make a bad deal in any of their financial transactions. China calls the shots in the deal making process.

This year in particular China is going through a massive infra structure and building phase within China to prepare for the 2008 Olympics. This factor has increased China's tremendous building phase in manufacturing aluminum, building trades and the railroad industry. In the area of communication China has stepped up its manufacturing and distribution of products. China also has plans to build a small economy car called the Chery Automobile.

For all the reasons mentioned above and the overall strength of the China economy this could be a good time to buy China stocks. The average American can purchase China stock on the New York Stock Exchange and NASDAQ Exchange. The other avenue available is the mutual fund or spider that is geared to Asian or China investments only. These funds do exist and are doing exceptionally well.

Specific China Stocks:

The need for raw materials and manufacturing of materials is a high priority for China. One particular shining star is Aluminum Corp China. It trades on the New York Stock Exchange under the stock ticker ACH. This is an $8.7 billion dollar market cap company. It has seen tremendous gains in the past two years. The growth spurt almost seems endless due to China's demand for aluminum and other metals. The stock is currently selling in the high $60 range. The major institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman Sachs and other prized investor funds.

In the technology areas Chinese companies have some interesting choices. The web company and software technology and mobile phone application company CDC Corp. is a low cost stock to watch. The stock sells under the stock ticker CHINA. It is currently a $6.40 stock that can easily make its mark at $11 and higher. The Olympic 2008 event in Beijing is expected to boost their technologies.

A great information and search engine company is Baidu. It trades under the stock ticker BIDU. For whatever reason the brains on Wall Street love this stock. It sells in the $200 plus range, but it rivals the likes of Google. It is a stock to watch.

Mutual Funds:

The investor looking to invest in China and Asian Markets should definitely consider the mutual funds offered by various family of funds. Nearly all of the large fund companies have a fund that is designed for for exposure to the growth in China. Alger China Growth, Thornburg Global Opportunities, Evergreen Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds with good returns.

If you are interested in China stocks discuss it with your advisor or ask one of the funds mentioned above to send you a prospectus.

Should The Stock Investor Subscribe to a Business Publication?

Should The Stock Investor Subscribe to a Business Publication?
In the world of stock investing, the more you know, the better you are. Most investors subscribe to at least one business journal and others subscribe to investor newsletters. The costs of subscriptions are reasonable compared to other specialized reading services. Many of the news journal also contain daily news stories and expert commentary. Most of the business news services and advisory newsletters are accessible on the Internet or in paper format.

Journals and Magazines:

The Wall Street Journal has been a familiar source of reliable stock market information for decades. It is owned by the Dow Jones family of business related publication. Dow Jones appears to headed for an acquisition by News Corporation with extensive a multi media entertainment holdings. The proposed merger should go through in the fourth quarter of 2007.

The Wall Street Journal has excellent stock market information. The format is easy to read and it is organized well for quick reference or for enjoyable reading about the stock market. The writers are exceptional with experience in the business world. There is a section to watch your own portfolio and to research company history and financial information that is easy to locate. It is a value at $79 for 54 weeks of reading either in paper or on-line. A subscriber can get both the on-line and paper version for a total of $99 for 52 weeks and some free weeks.

Barron's is another publication that is owned by Dow Jones & Company. This publication is sold as a separate subscription. It is a weekly magazine format that is foremost in quality research and in depth reporting about the U.S. Market and around the world. Barron's can be purchased on-line and in paper format.

Investor's Business Daily has similar content to the Wall Street Journal. It has a remarkably good analysis of daily stocks and a good on-line educational tutorial. The publication may be read on-line or on a paper format. The publication is $295 per year for the paper version or $235 for the on-line version.

Newsletters:

There are numerous financial newsletters available on-line and in paper format. Of the ones I have reviewed there are only two that I would recommend for their value in stock investing. The Morningstar Stock Reporter is a monthly publication that has great research on stocks. The information is easy to digest and the format is easy to read. The subscription is about $89 per year.

The Street dot com stock advisory is unique. It is produced by Jim Cramer who has decades of experience in investing in the ups, downs and in between times on the stock market. He has a charitable trust that he keeps tabs on and invests. Due to a variety of reasons he is not an active trader of hedge funds or other investments.

He is a financial whiz in the market who appears on TV and writes books. His famous book Mad Money is now a half-hour TV show. He answers questions posed by telephone callers to the show. He also provides stock analysis.

The Jim Cramer Street dot com stock analysis subscription allows the investor to trade along side with him. He sends out advisories on stocks by e-mail. He also allows the investor to see his portfolio. In addition for every subscription sold he sends the subscriber a free copy of his book. This advisory service is worth a free trial run and then decide if it is worth the cost of the subscription. Jim Cramer has made himself and a whole lot of people very rich.

What is the NASDAQ Exchange?

The NASDAQ Exchange is a limited liability company and a corporation that provides a means for traders to execute stock orders for stock brokers, institutional investors and on-line stock purchasers. The NASDAQ Exchange was formed in 1971 by the National Association of Securities Dealer to fill a need for reporting stocks that were not a good fit in the regular stock exchange. The NASDAQ reports on over the counter stocks for thousands of stocks not listed on the other exchanges. By the 1990s NASDAQ surpassed in terms of listings the AMEX Exchange.

In order to trade on the NASDAQ the trader and members must be certified and agree to the by laws of NASDAQ Inc. In 1999 NASDAQ merged with AMEX to form the NASDAQ-Amex Group. By 2000 the National Association of Securities Dealers sold their interest in NASDAQ to private investors. See: NASDAQ Corporate Filings.

NASDAQ operates similarly to all corporations, it has Articles of Incorporation, Corporate Officers, By Laws and holds meetings. The NASDAQ LLC. has a governing board and in turn has rules and regulations it operates under. Given the quasi-governmental status of NASDAQ the Securities and Exchange Commission has a role in making sure NASDAQ operates according to good practices and regulations. If a company engages in inside trading, fraudulent reporting of corporate earnings and assets or the many areas of bad practices governed by the Securities Act of 1934, the Commission can provide sanctions and remedies for these acts. Likewise, state attorney generals and the U.S. Attorney may bring actions in court to cease and desist these bad acts and also provide for criminal sanctions.


What notable stocks are traded on NASDAQ?

As an investor you may invest in NASDAQ, it is listed under the ticker QQQQ. The stock value goes up and down depending on the overall health of the NASDAQ Top 100 Trust Funds. Currently NASDAQ QQQ, traded under ticker QQQQ is priced at around $48 a share. It has a market capitalization of $19 billion dollars and over the past three years has a 11.56 percent return on investments. The top holdings in QQQQ are: Apple, Cisco, Comcast, Gilead Sciences, Google, Intel, Microsoft, Oracle, Qualcomm, and Research in Motion. A impressive group to be associated with in one stock. There are however, some stocks among the fund that are not as illustrious in their performance. The fund is weighted heavily in the hardware sector. The others sectors with a significant impact are software, business services, customer service and healthcare.

NASDAQ provides soup to nuts in investment opportunities:

NASDAQ offers literally thousands of opportunities to invest in individuals stocks, indexes, real estate investment trusts, options and other means to make an investment. The investor has an cornucopia of types of stocks choose among from semiconductors, energy, finance, components, retail, in all 3113 components make up NASDAQ. Each company listed must meet capitalization and reporting standards. The investor has the opportunity to review each quarters reported earnings and debts. A company is required to report any significant issues that may effect the investor and the company. There are news services and financial advisor services who actively stay in top of company news. All in all it is surprising why a company would even try to fool investors or governmental watch dogs.

NASDAQ notables:

Apple Inc. is the darling of NASDAQ. It trades under the stock ticker AAPL. If you have been living on a remote island somewhere in a cave, Apple is the designer, manufacturer and marketer of iMAC computers, software, iphones and through its subsidiaries a range of products that support Apple main line of products. In September, 2005 Apple shares were in the vicinity of $48. As of the close of business on August 31, Apple is worth in the range of $138 a share. The unique aspect of Apple is just when you think it has topped out and is dawdling it comes up with some surprise and it is off and running again. It is a darling because it has resilience and innovation.

Never to be forgotten is Miscrosoft. It trades under the stock ticker MSFT. What can you say about a company that brought information and technology to middle America, Africa, South America and the world. It is a stock that sells currently in the $28 range. It has controversy in all corners particularly with law suits challenging this grand daddy of the Internet, but it is a tried and true long performer. It is the company that people love and hate. If there is innovation out there, Microsoft will find it.

A personal favorite of mine is Intel. In part because it is a work horse in the technology sector and in part because I read and enjoyed Tom Wolfe's book on the company structure in Hooking Up. It was not a biography, but it did parallel the formation of this egalitarian work place. The stock sells in the range of $25 and sells under the ticker INTC.

Investing in Stocks Direct From the Company

There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.

The Direct Stock Plan operates differently than buying stock through a broker. There is no commission charged for these stock plans, but there can be a small fee. The other difference is that the company buys and sells the stock at a given time. The investor cannot sell or trade stocks at will. The investor may turn the stocks over to a broker to sell, but the broker cannot charge a commission. You may be charged a fee by the company. It depends on your agreement.

If you have a favorite company, like the Walt Disney Company, Coca Cola or other brand names in the United State you may be able to implement a Direct Stock Plan to purchase stocks on a regular basis. You can review the list of stocks in your local library or check out the company you are interested in by accessing the company web site.

Another method of investing direct in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The good aspect of this type of plan is that instead of receiving the dividends you agree to reinvest the dividends in more stock in the company. It is a regular Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks and mutual funds even if you have a broker.

The advantage is that if the company allows a private investor to purchase stocks directly this would allow you to set up a pay check withdrawal each pay period for the purposes of the stock plan. There are various advisory services that can assist you in locating companies that offer these direct stock purchase plan. I would suggest that you find companies you are interested in a make an inquiry with investor relations.

The advantage to contacting the individual company yourself is that it allows you to use your preferences and then do a small amount of leg work. The company representative will give you the necessary forms and provide you with individual advice on how to set up pay roll deduction. In turn you can contact your banking institution, employer human resources or bill payer and set up the account.

It will astound you the number of very good companies that will allow you to buy stocks direct
by setting up a plan. The range of possibilities include, utility companies, fast food stocks, entertainment and retail stocks.

If you have a solid company that has shown solid performance this may be a good option for investing.
The only thing you have to lose is your time. The time it takes in gathering the information has a big payoff. It will save you commission fees and provide you with a long term relationship with your favorite company.

Investing in the Oil Sector

There is advantages to investing in areas of the stock market that you know or have some personal experience with on a daily basis. Nearly everyone is effected in one way or another by the commodity oil. If you are an individual you take note of prices at the gas pump, heating bill and other uses of oil. If you are a business owner the price of oil is a factor in the operation of your business. For the purposes of this article the two areas that will be covered is oil & gas and oil service stocks. The first area oil & gas covers some of the big oil stocks whose names you may know. The second area is the oil service stocks that support and aid the extraction and distribution of oil.

Big Oil & Gas:

For all the rhetoric and interesting speculation about "green energy," and the alternative fuels like ethanol, biomass, and wind energy the present circumstances places the lion share of energy that moves the world in the lap of the oil industry. Names you not only hear about, but have been around in one shape or another for a century. Chevron, Exxon-Mobil, Conoco-Philips, British Petroleum, Royal Dutch Shell and Hess Corporation. These companies have an individual market capitalization of hundreds of billion of dollars, with the exception of Hess that has a mere 19 billion in market cap. It is hard to imagine a more solid group of stocks with as much clout as this elite club.

All of the stocks mentioned above are involved in exploration, distribution and marketing of oil products around the world. Their influence and their financial worth allows them to invest in costly drilling, manufacturing and distribution of oil in all of its forms. While the rhetoric continues about building and providing alternative sources of energy. These companies presently support a significant percentage of the every day uses of energy. Some of the big oil companies even support blends of biomass fuels and ethanol as a compliment to their own primary purposes.

The cost of purchasing stock in this stock is relatively cheap when you consider the likes of Google selling for in excess of $500 per share. Still other intellectual property stocks on the market and conglomerates sell for in excess of $200 a share. The range of prices in Big Oil is between $61 to $89 per share. What you get is a stock that is capitalized with billions of dollars, has a management team that is beyond exceptional and an underlying product "oil" that is in short supply.

For the moral investor that blames Big Oil for the environmental mess, wars and other maladies the world faces the only American not to blame are the Amish with their horse and buggies. Still, the Amish may leave a smaller foot print, but we all have in one way or another impacted and contributed to the need Big Oil has satisfied and will continue to do so. At present there is small improvements everyone can do, but Big Oil's contribution to a strong economy, and living in a modern society is not going to be replaced any time soon.

The best bet for future stock growth and for pure investment is in oil & gas. Of the Big Oil stocks that are worth looking at Royal Dutch Shell and Conoco-Philips are the two that have some noteable room for short term growth. Another reason to consider Conoco-Philips is that George Soros recently took a position in this company. In investing it is good to follow the leaders. Review the institutional investors in all of the stocks mentioned above and make a decision on which company you think will be a good addition to your portfolio. If in time you make a huge gain take a portion of the profits and contribute to a fledgling "green energy" cooperative.

Oil Service Stocks:

The oil sector would not be complete without mentioning the drillers who get that precious commodity out of the ground, ocean bed or frozen tundra. The oil drilling stocks are rumored by some financial experts to be waning in appeal or topped out. In order to put this in perspective the long history of the oil drilling companies goes back a century. These tough minded riggers and engineers made the oil industry what it is today. The inventive engineers and scientists found astounding ways to detect and then extract oil from the most harsh environmental challenges. The oil drilling stocks are part and parcel of the oil industry.

Recently two of the biggest players in the drilling industry, Transocean Inc, (RIG) and Global Santa Fe Corp. (GSF) announced merger plans. Individually, RIG sells for around $70 per share and RIG in the neighborhood of $102. These companies are backed by billions of dollars and their institutional investors are stellar. Another drilling company of note is Diamond Drilling. This drilling stock is owned by Fidelity Funds, Vanguard Funds, Loews Corp. and Thornburg Investments to name just a few. The oil drilling stocks merit a good look and watch for buying opportunities if there are dips in the near future. In the alternative you can choose a mutual fund from one of the institutional investors mentioned in this piece that focuses on the oil sector.

This has been a brief overview of the oil sector. Review your investment objectives and seek the advice of licensed estate planner or stock broker. Company prospectives are available on-line and by mail.

Investing in Technology Stocks

The infra structure of technology has not quite reached puberty. The very best is yet to come. In particular I am referencing Internet technology and mobile access to the world wide market place of information and support system that enables total remote access. Additionally, the use of technology in the field of medicine, health care and other related services.

The list of products and services in the pipeline of small, medium and large companies is astounding.
Within the field of technology is the corner stone of all the products is security software and services. The talk on Wall Street is that technology stocks are ripe for investing in todays market. This piece of information is noteworthy, but having watched the exuberance of gross gains in the last decade go blow , not all technology stocks are the same.

The specific areas that appear in my opinion to be situated well for future growth are in health care related stocks, multi-media and graphic software, security software, networking and communication devices and specialized areas of electronics. There are other categories, but these areas of technology are poised for future gains in my opinion.

Health Care Related Stocks:

Imagine the future of delivering health care services. The physician practicing in a remote town in Alaska who can consult with a specialist located at John Hopkins Medical Center. In real time the rural doctor can send and receive vital radiological and metabolic tests and results. Imagine medical scientists, physicians and university medical centers consulting on their data enable mobile phone devices. Some of these technologies exist today, but the future is going to be fantastic.

In the small cap arena several health care delivery stocks are generating interest. Mediware Information Systems is a $7 stock that will likely double in the foreseeable future. It trades under the stock symbol MEDW on the NASDAQ stock exchange. This relatively small company has a huge presence in the hospital services area. MEDW has three components in its software applications all that aid hospitals and physicians to track and modify drug orders, blood management and perioperative functions. These tools are used extensively in the United States and their application is being applied in other countries including African nations.

Another interesting low cost health care information technology stock is HLTH Corp. it trades on the NASDAQ stock exchange under the ticker HLTH. The way most consumers recognize this health technology stock is by its subsidiary WebMD. HLTH Corp. is the data management behind WebMD. The company is diversified in that it has public services as well as private accounts for paid customers like Blue Cross Blue Shield. It also supports a payee and bill service for health care providers. The company is valued at 2.6 billion dollars and employs over 2200 employees. Its current price is $14.60 and the growth potential is solid.

Multi-Media & Graphic Stocks:

The name Konami may not be familiar to most people, but it is the underpinning to virtually all of the video games utilized on all platforms. Konami trades on the NASDAQ exchange under the ticker KNM. Its primary function is the development, distribution, publishing and marketing of video games around the world. It is based in Tokyo and has been virtually unscathed by fluctuations in the Tokyo Exchange.


Recently it announced the development of a mobile platform for its most popular games that will be available on September 8, 2007 through AT& T and other mobile phone carriers. The video game industry is only going to get better. The stock sells for approximately $24 a share. Another stock to watch is Electronic Arts that trades under the ticker ERTS.

There are various ways to invest in the technology area. Some brokerage houses do offer technology index funds that include a cross section of technology companies. The other method is simply to pick stocks from the technology sector that offer sustained growth, good value and potential for the future.