Archive for June, 2004

Not so hot dividend paying stocks

Thursday, June 3rd, 2004

A comment from stocks with dividends for volatile markets:

speaking of dividends, what are your thoughts on:
LYG, MUEL, PTR, PBR, and NHY

LYG reminds me of MCGC but the numbers aren’t as exciting in terms of PEG (1.85 for LYG vs. 0.61 for MCGC. MUEL is a bit scary because the yahoo quote doesn’t show a forward PE. PTR is an oil play but I don’t see oil prices getting much higher than they are now. Same for PBR. The numbers on NHY aren’t very compelling and that’s also exposed to oil/gas which I’m staying away from for now.

How do you choose micro cap stocks?

Thursday, June 3rd, 2004

I was watching an interview on Bloomberg TV with Eric Miller from Heartland Advisors (HRTVX). He talked about two micro caps he likes: OrthoLogic (OLGC) and Alliance Atlantis (AACB).

When I learned that AACB co-produces CSI I thought I might buy some for my wife; CSI is one of her favorite shows. MIller thinks CSI will have such good ratings that AALB will start getting big bonus payments from CBS.

OLGC is placing all its eggs in one basket with a new drug in phase 3 trials. Miller thinks the drug will hit the market and be a success.

I’m not buying. Neither company is profitable, and I already have a few risky plays including Lifeline Biotechnologies, MCGC, and Tyco.

The threat of terrorism

Thursday, June 3rd, 2004

An interesting article about how the market reacted to the terror attack in Spain concludes that selling on news of terrorism and investing where terrorism is unlikely are best ways to protect your investments.

I’m no international security expert, but ti seems that Europe, the Middle East, Southeast Asia, and America are more vulnerable than India. India is more vulnerable than China, Japan, and Korea. Of course Korea has its own issues with North Korea, but I live in Korea and no one seems worried. I hope that’s because we have no reason to be…

Financial stocks and XLF

Thursday, June 3rd, 2004

I have owned XLF (an ETF that tracks financials) for a few months now. I was considering selling it because financial stocks have been going down on interest rate fears. This article, however, says that it’s time to “start building a bullish posiion.” because fears about rates and litigation have led to too much selling.

I might sell anyway, regardless of whether it’s time to be bullish or bearish on financials. A look at the 6 month chart shows that XLF tracks the S & P 500 pretty closely. Why not just buy IVV or SPY (an ETF that tracks the S & P 500) and save a bit on the expenses. XLF has an excellent .27% expense ratio, but SPY has a .12% expense ratio while IVV is .09%. VTI is another possibility designed to track the entire US stock market for .15%.

Sell PLMD?

Wednesday, June 2nd, 2004

After good earnings, PLMD continues to rise. According to the Yahoo! quote, the divident is just over two percent while the PE is over 20.

I first wrote about Polymedica in January, when their PE was under 15. In an April update on PLMD I noted a reason to hold: demand for diabetes products is likely to remain stron. Now though, I’m leaning toward selling. I just have to figure out what I would do if I sold…

IAG, WHT, and merger talk

Wednesday, June 2nd, 2004

Still tracking this gold merger between IAG and WHT which has seen other offers. IAG and WHT have rejected the other offers, but higher bids are possible.

The rich and the poor

Wednesday, June 2nd, 2004

This one won’t help you invest, but it’s very interesting if you’re at all interested in social problems. This one’s about the gap between the rich and the poor. Life expectancy in America is decreasing (Costa Rica beats us). Infant mortality is increasing (Cuba does better than us). This is happening because of the huge number of people who have no health care.