Sunday, August 30, 2009

Divine calculations and stock picking

I was watching a rerun of the movie the DaVinci code last week with all its many puzzles and calculations that they go through to get to what appears to be the truth. Well it of course made me think about how many times I had bought stocks because it just felt right at the time when the "stars of the market", kinda of the place where everything sat at that moment frozen in time, just seemed to click into alignment to make a certain purchasing decision.
Well , even though Snagglepuss told me to exit stage left, which I did, going to many cash positions, I still have been having these "feelings" about the compelling value of some of the tech stocks here the last couple of weeks. They have done a great job managing their inventories this time around in recession and could turn some earnings around to the bottom line very quickly. These companies are also are showing respectable revenue growth and have good quick ratios (%'s of assets to liabilities on the balance sheet).
So I followed my imaginary "Rose line" and it took me to AT&T Inc. (symbol T). It has a a 6.3 % dividend and plenty of cash to back it up. Current ratio is 1.6 to 1. That beats a half percent at best on sitting cash.
My second pick was to add a high tech/ higher beta tech stock to the IRA account
to add some horsepower to bring life back from the Oct-2007 to June 2009 downside debacle.
That stock is Marvel Technology (symbol MRVL). It has a lot of interesting technologies going forward. It has a 3:1 current ratio. I was lucky enough to buy it two days in front of earnings and guidance, which were good, at 14.25 and it is now up near 15.75 on the announcements. They reported the same day as Dell , so it generated some "daily tech interest".
With that I will warn you that on review in the past I have lost more money in speculative technology stocks than in any other investment category during the old"" days. These two are not speculative investments. Also other disclaimers, I do not have a series 7 license
and am not a professional investment advisor. Just a guy following my "Rose line" where it leads me.

Sincerest regards,


1 comment:

  1. Marvell Profit Handily Beats Forecasts, Boosting Shares
    Published: Thursday, 3 Dec 2009 | 5:19 PM ET Text Size By:
    Marvell Technology reported earnings and revenue that easily beat analysts' expectations, sending its shares nearly 6 percent higher in after-hours trading.

    Excluding one-time items, the Santa Clara, Calif.-based semiconductor company reported a third-quarter profit of 35 cents a share, on sales of $803.1 million.

    Analysts had expected the chipmaker to earn 27 cents a share on $770 million in revenue, according to a consensus estimate compiled by Thomson Reuters.

    One year ago, Marvell reported earnings of 23 cents a share on $791 million in sales.

    Marvell makes chips for a wide variety of products, including Western Digital's [WDC 38.65 -0.25 (-0.64%) ] hard drives and Research in Motion's [RIMM 58.42 -1.39 (-2.32%) ] BlackBerry smartphones. The company said it has seen improved demand across its entire portfolio.

    Current DateTime: 01:37:41 03 Dec 2009
    LinksList Documentid: 34261408
    Technology Predictions: 2010Tech Comes to Holiday Shopping's Rescue?Complete Earnings Coverage
    Marvell forecasts it will earn between 33 cents and 39 cents a share in fourth quarter, excluding one-time items, with sales in range of $820 million to $850 million.

    The company's shares rose above $17 in after-hours trading, after ending the session flat at $16.53 [MRVL 16.53 --- UNCH (0) ]. Click here to get after-hour quotes for Marvell.