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jeudi 31 mai 2012

THE PLAY OF THE DAY: PYN (Poynt Corporation) TSX Venture

Very interesting tiny corporation and HIGHLY SPECULATIVE.

Yes they have a huge share float (close to 500M) and are the new guy on the block (January 2011) for mobile advertising BUT their user number is increasing rapidly and their total monthly searchs have reach 70M in 9 countries.

What is Poynt? It is a geo-based location advertising search application for all major mobile phone platform that is allowing customers to find the local business for the product they are looking for NOW. It has also been named one of the 50 fast growing companies in Alberta.

There would be a lot more to mention about Poynt like the fact that they are looking to be a profitable business before 2012 year end based on their last revenue guidance. If they were to achieve that, it would be a great accomplishment and a visit to their site is a must:

http://www.poynt.com/


As usual and especially in the secotr of highly speculative companies, DO NOT invest more than you can afford to lose and ALWAYS do your own due diligence before investing in any stock.

Get THE PLAY OF THE DAY on Twitter: @investman2

mercredi 30 mai 2012

UPDATE AC.B

AC.B is now at resistance point. If the 0,90 wall disappears then next stop is 0,99.

Would be nice for a huge down day.

THE PLAY OF THE DAY AC.B (Air Canada)

One reason behind this one: cost of fuel.

Price of fuel has lowered to 90$ from well over 100$ recently and even if they are hedged against cost, this is affecting the bottom line directly as no matter how many customers are on board, the fuel used is the same.

The other thing is in regard of Europe crisis: i do not think that it will affect that much travelers FROM Canada to Europe and almost to the opposite with a Euro being so low, it is now a lot cheaper to visit the old continent.

So at actual price (0,84 to 0,86) i am in and expect a rise in the mid 90ts in a short period of time.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock. 

mardi 29 mai 2012

PLAY OF THE DAY TVI.TO (Tvi Pacific)

This is a very interesting tiny mining company operating in the Phillippines.

They actually have 1 huge problem: the national government has not yet taking the decision to clarify the national mining law. Actually that national government is accepting that local govt ban mining in their region even if totally illegal.

A decision (in my opinion) is going to come very soon and this will fix the main problem that TVI still has out there.

They have the cash on hand and many projects ready to go and if agm presentation is accurate, they should produce (finally) their 43-101 for their bootstrap mining startup in Balabag where they should produce gold at a very good pace.

So if planets align properly i expect TVI to get back to where it should stand rapidly and on the very short term it should be back to 0,065 being more than a double in a short time.

What is most interesting is the lack of interest for the shares and usually it indicates a bottom pending news and unless these news are really bad, TVI could jump pretty rapidly.

As usual do not invest more than you can afford to lose and always do your owwn due diligence before investing in any stock.

Get THE PLAY OF THE DAY on Twitter: @investman2

lundi 28 mai 2012

THE PLAY OF THE DAY BCB.TO (Cott Corporation)

Very interesting company in the beverage segment.

It is actually a bit too high for a short term investment and i would like to wait till the next correction before buying but this is a great play to put on your radar.

It is certain that their 35M$ share repurchase program does have a good influence on the price but a retrace of 0,25 to 0,40 would be great.

The reason behind waiting a bit is their last quarter were profits drop somewhat but it is still one of the largest beverage makers specialized in the private label segment.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @investman2

vendredi 25 mai 2012

THE PLAY OF THE DAY FBP (First BanCorp)

Easy to analyse this bank: undervalued and oversold.

It's trading range has been between 4,01 and 4,40$ and at this level, i am in.

It has suffered a lot from market underperformance  of the last 3 weeks and a rebound is more than obvious.

They are starting to diversify their lines of revenues and profitability is not that far away.

So i am in at this current level and exit price around 4,25$.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock

Get THE PLAY OR THE DAY on Twitter: @investman2

jeudi 24 mai 2012

THE PLAY OF THE DAY INT.TO (Intertainment Media)

One simple word for this startup company:  WOW!.

This stock has been dropping recently on very thin volume and the update yesterday is proving that INT  especially with ORTSBO has entered the big league.

In a very small lenght of time they had reach 107M users at the end of december and per yesterday release, they are now with 162M users and many many more projects to come for this company.

Here is a link to the update of yesterday:

http://www.broadcastermagazine.com/press-releases/story.aspx?id=1001403120

So at actual share price it seems to me that it is a steal and with all that is coming, i expect another great run up in share price.

You can also have a look at the complete NR analysis done on another article on this blog.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the play of the day on Twitter: @investman2

mercredi 23 mai 2012

INT spin out update.

Here is my take on the latest news release of this morning about 1 hour ago.

This is my opinion only and my comments have been inserted into their own press release. The comments added are based only from past experiences in the business field and about what can be or cannot be disclosed during a blackout period.

TORONTO, CANADA--(Marketwire - May 23, 2012) - Intertainment Media Inc. (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) ("Intertainment" or the "Company") is pleased to provide an update on the spin out of Ortsbo Inc. ("Ortsbo") previously announced on February 28, 2012. The Company continues to receive feedback ( what they have to do before getting approval for a senior listing meaning TSX for INT AND Ortsbo) from Canadian regulators on its proposed financing and senior listing, and during this process, Intertainment has received interest (There are 3 major listings in the US: NASDAQ, AMEX and naturally NYSE. All 3 are striving actually to get new company listed and NASDAQ is still by far the least expensive to get listed on than the other 2 exchanges. With what just happened with Facebook, I would not be surprised if Nasdaq would be offering some kind of special deal. Also very important to note that you need either underwriter or approval to become an ADR (I am not even sure it is possible for a Canadian Company to become an ADR) meaning also many market makers are demonstrating a large interest to work with INT and ORTSBO) from US investment banking firms for listing both Intertainment and Ortsbo on senior US exchanges. (That does not include OTCQX as it is not considered senior exchange)  The Company has spent time with firms in New York, Chicago and Los Angeles ( banks, mutual funds private investors and underwriters) discussing the opportunity and feels that the interest is significant enough to consider pursuing such opportunities further and report its findings to shareholders. (A good monetary deal is most probably on the table from MANY of the already mentioned institutions.)

Ortsbo's initial focus (it seems that this focus now include something else more advance and profitable) has been to create social engagement and commercially leverage US entertainment and pop culture markets on a global basis and work with leaders in the industry to effectively create multi-language business opportunities. (licensing opportunities) To date, Ortsbo has successfully run events with Disney, Dreamworks, Marvel, KISS, IndyCar, Clear Channel, Variety, Fox, Yahoo!, MSN and other major brand partners. Given the strong US interest for Ortsbo's and Intertainment's investment portfolio companies, (Not only ORTSBO is targeted but the WHOLE investment portfolio) management feels, in consultation with its lead financial advisor, M Partners, Inc., that the value proposition of a US listing may potentially provide greater value for all stakeholders.

Ortsbo now has over 162 Million unique monthly users (What??? Another 52% increase in only 90 days…it could mean well above 250M users by end of July. If this is not viral growth I cannot find another way to describe it…I was expecting 125M users…not that big of an increase) , growing by over 55 Million users in the past 90 days and continues to move towards sustainable revenue (that means month after month and also indicate that revenues are increasing to a profitable level)  with defined commercial opportunities in social media, broadcast communications, global customer care and ecommerce programs with major brand partners. (licensing fees are definitely on the radar screen with new US laws and no doubt many are already in talks with INT)

Ortsbo's business development team in the US, Canada and now Europe are working with major brands (how about mobile manufacturers including Nokia that is in great need of a totally different product to revamp their sales) to identify their global opportunities to increase revenues and customer satisfaction experiences with the use of Ortsbo's proprietary services platform. Additionally, recent changes to the US Federal Communications Commission's regulations with respect to accessibility through closed captioning and online intellectual property have opened up a number of opportunities with major entertainment studios. (What can I add here. It is self explanatory…)

Ortsbo has now been engaged in pilot programs for proof of commercial concept with several global brands. Some of these programs are expected to be made public in the near future and will potentially provide the Company with sustainable revenue programs from which to grow its overall commercial business platform. (I can only think about the real $$$ potential of ORTSBO. Read carefully as it is mentioned ‘’SEVERAL global brands and some will be made public in near future…By itself it sounds like a deal is signed if performance is there…)

As the Company currently awaits final approval for circulation of its materials to hold a special meeting of shareholders and has publicly disseminated a proposed date of June 14, 2012 for such meeting, the Company will move ahead, at this time, with a presentation to shareholders, providing an interactive forum to present and discuss the Company's progress with interested parties and allow parties to engage with management.

The meeting on June 14, 2012 will be held at:

/T/

Hilton Toronto/Markham Conference Centre

8500 Warden Avenue

Markham, ON

L6G 1A5

Markham Ballroom

Meeting time: 9:30am - 11:30am

Read more:
http://www.digitaljournal.com/pr/722853#ixzz1vhSws2P8


 
That news release is the most explosive one from INT since a long time ago and could propel the share price in a very short period of time.


As we have already seen today over 1,3M shares have been traded in only a bit more than 1 hour with an increase over 25%.


Disclosure: I am long on INT and own a good chunk of shares. I have no intention to sell in the coming weeks and could add to my position. Please read this update as my sole opinion and in no case does it represent an advice to buy or sell. Always do your own due diligence before investing in any stock and consult your financial advisor to be sure any investment fits into your strategy.

THE PLAY OF THE DAY F (Ford)

With yesterday news about quality rating for Ford, i absolutely have to get back to this one.

At the current level it is almost impossible that Ford stays where it is and i expect a very nice reboud toward the 11$ mark and even at 11$ it will still look cheap.

True that Europe is eating up Ford's lunch because of their losses but North America is still highly profitable to the point that Ford can dock the bullet for at least until end of 2013.

So i expect sales to be relatively stables maybe 1 or 2% increase year over year but shares will get a lift from the investment grade rating.

As usual do not invest more than you can afford to lose and always do your own due  diligence before investing in any stock.

Get THE PLAY OF THE DAY on Twitter: @investman2

mardi 22 mai 2012

INT ??? Time to panic or not???

For the last couple of weeks, INT shares have been trading lower and lower and lower on very low volume. I must insist on this fact LOW VOLUME.

If it continues like that, soon INT shares will be worth the same price as the dividend WITHOUT taking into account the value of Ortsbo that will be retained by INT.

This simply does not make any sense. Could it be shorters?

Interestingly many will say NO because the reports are indicating less than 1 Million share shorted. But wait a second: that is the qty shorted at the report date. I do believe that shorters are smarter than leaving their position open for that long...(15 days between reports) as they know like everyone of us that news could be at the corner so the name of the game is short than cover asap.

With the low ask and bid that we have now, it is easy to short and cover very rapidly. When you short let's say 35K shares as long as they are prudent and read correctly the ask, they can cover very very rapidly and pocket a good shunk of money each time. If you end up doing a 3 cetns spread, you just earned 1,000$.

So what is to do: 2 possibilities:

1) You have done your due diligence and you believe in the future of INT and Ortsbo: nothing to do. Take the opportunity to average down your position if you have enough profit on the side from other stocks.

2) You do not believe in Orstbo and INT: go back to item 1 and redo your own due diligence. If you still do not believe in INT why where you invested in anyways???

There will be some more weeks of turbulence ahead of us (the longs) and some time it is best to forget looking at the stock value day after day or even worst at every minute. If you did an investment for a year, then come back in 12 months...If you made an investment for a week: to bad you are acting like a trader and must suffer a trading loss ON PAPER until the real game starts.

Just for the math lover in you: 1% of stock traded in 1 day = 4M shares (or close to that number).

So do you really think that if a major problem had arise for INT that volume would be that low??? If there was a real material event it would have to trigger 25M to 40M shares to be traded in 1 single day and shares would be worthless.

So is this what we are looking at now? NO WAY. This is exactly what happen when there is simply no bids.

Need an example: UUU (tsx) on last friday suffered a sale of over 1M shares at market price and the drop was so significant that it did trigger the one stock circuit breaker for about 6 minutes (drop was over 10% on 1 single trade). Guess where UUU was trading today??? Come on do your due diligence and have a look by yourself. You will find it interesting.

The lesson to be learned is easy: All companies MUST report in due time any material change or situation that would affect either positively or negatively the value of their stock. This MUST BE DONE in a timely manner.

So no news: no problem. Delays: well it could be as they need approval of TSX to trade on their index instead of the Venture and there are many rules that they have to obey to.

As for myself, i am still long and will most probably use that trading time to add to my position. I have not sold any of INT since a long time (well abovce the 0,60) and still own a good chunk of they available shares. (Unfortunately i cannot give you the exact number here...)

I have also seen on some BB many posters trying to foresee the future for INT as being so negative that you should sell them all and go away licking your wounds...Come on, who are these guys: angels of shareholder protection ? Mystery people that want to protect YOU at all price? Gurus that have nothing to do except educate people AFTER they would have made a bad investment???

No.. These people are in only for one reason: profit from the weak hands and get cheap shares. If that was  not the case, do you honestly believe that they would spend the time writing negative reports on companies they do not want to own and only to protect the small retail investors?

That kind of people do exist like Santa Clauss and The Easter Bunny.

Have a good trading time.  

THE PLAY OF THE DAY UUU (Uranium One)

Even if UUU has re-affirmed 2012 and 2013 production results, it has been hammered a lot recently especially on last friday when a 1M shares pulled the "one stock circuit breaker"

We do not see that too often on the TSX and UUU had no news to report. So, even if it must be approached with great care, UUU has now entered in the oversold territory and should rebound greatly unless bad news were to come.

I will be in at current level and expect an exit price around 2,50$

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get THE PLAY OF THE DAY on Twitter: @investman2

lundi 21 mai 2012

THE PLAY OF THE DAY AAPL (Apple)

A P/E of 12 for Apple???

By far oversold and could be because of Facebook IPO where some could have pocket the gains to enter the world of FB.

But at this current level, it is a bargain for everyone that think Apple will continue to deliver great results.

I expect a rebound over 575$ rapidly unless naturally the world continues to fall apart.

I would wait a bit this morning before committing to a buy as futures are indicating a nice pop at opening but we have been ticked many times in the last 3 weeks where market did not hold the gains and closed lower. So be careful here.

As usual do not invest more than you can afford to lose and always do your due diligence before investing in any stock.

Get TEH PLAY OF THE DAY  on Twitter: @investman2 

vendredi 18 mai 2012

PLAY OF THE DAY KBH (Kb Home)

This is another one that is suffering from the overall market fears but that should not. It is now well oversold and should rebound nicely today.

I am in at current level and expect a  move near 7,75$ rapidly.

As usual do not invest more than you can afford to lose and always do your due diligence before investing in any stock.

Get the play of the day on Twitter: @investman2 

jeudi 17 mai 2012

PLAY OF THE DAY LB (Laurentian Bank)

Veryunusual pick for trading but Laurentian Bank shares are now at a very very attractive price. This is the 6th largest bank in Canada and a very profitable one including a great dividend that has been raised twice since a year. (from 0,39 march 31st 2011 to 0,45 now).

One good point is that their collective agreement has been accepted by employees for a 6 years period. (this is one of the rare bank to be unionized))

Another very interesting factor is the PE number. This is the ONLY bank in Canada that has a P/E ratio under 9 (actually 8,9) where all other major banks are near 11 and above. So there is a huge potential for an impressive increase in share price and this very rapidly.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @investman2

mercredi 16 mai 2012

INT What's going on?

This is very interesting to see INT shares going down and down and down again day after day when it should be the complete opposite.

INT just had a fantastic event last week end with Ortsbo, their flagship product, that allows instant translation in 50 languages at the same time.

The event was phenomenal as when watching you were able to switch language at any time and continue to received translation in the selected language. That was simply amazing.

INT also announced that they will soon be adding voice translation to Ortsbo creating an unique product.

INT also announce that they will spin off Ortsbo from INT at a date that will be announce at the next AGM.

INT also indicated that they want to be trading on the TSX NOT the venture market anymore.

INT had at the end of December over 107M unique visitors and honestly that number should have risen to more than 140M already.

INT will be translating live feed from Cannes Festival and this by itself will sky rocket the user numbers.

So where is the problem, is it revenues??? NO...Surprisingly enough in the media world the most important factor is not the revenues during the first couple of year but the user numbers. The more people use a product, the more companies will be interested in to advertise or pay for that product. Interesting to point out that Ortsbo revenue stream is not only based upon ads that users click on but could very well be from licensing the product to others corporation that need a 50+ languages instant translator: tv shows, movies, events transalation, chatting rooms, mobile phones application etc. The list is too long and the applications are endless. Imagine a product that would eliminate the language barriers. That product is here now and it is called Ortsbo.

So why is it still not going up like crazy: volume and number of transactions.

INT actually is in talk with many funds manager and other private investors for the Ortsbo spin off coming soon and i  am convinced that those players CANNOT buy INT at the same time that they are having a tour at INT strategy and results as they would become insiders.

I think that when Q1 results will be released around end of May, this could very well be the signal for a major volume increase not because of the results but because that will be the end of black out period for all insiders, major investors and fund managers. Remember that all corporations have a blackout period where they are NOT allow to trade on their securities for legal reasons. Even during that blackout period the company generally speaking is not allow to issue options to insiders. I should also point oout that at this time INT cannot promote it's products and are very limited in what they can say about INT as a whole. They are dealing with TSX and their rules cannot be override. When that process is over, we will know for sure how well INT and Ortsbo are doing and from ther, we will most probably get back to the usual news released about results in a timely manner. Expect a lot of advertising about Ortsbo and INT right after TSX approbation for the proxy documents and listing of INT on the major exchange.

So is INT goin down forever? No, at the present time it is the retail investor who is keeping INT at the level where it is and the day traders that avoid major ups or down. Retail investors are getting really nervous and many do not fully understand what they are buying. Then at first sign of weakness they leave the ship. As for the day traders, well they will flip the stock for a couple of pennies each time they can do it. 20,000 shares flipped for 3 cents profit is 600$ and for most retail day trader, it is a good profit for 1 or 2 day of trades.

INT and Ortsbo will have their day soon. Get ready for it. Still not the time to buy the champaign, but you can at least start to select which one you will drink that day !

DISCLOSURE: I am long on INT and own a large number of shares. I do not have any intentions to sell any of those in the short or medium term but i could add to my position if stock continues to dip.

As usual do not invest more than you can afford to lose and always do your own due diligence before buying any stock. 

ALERT DRL

Doral Financial released their Q1 results yesterday and this was interesting to say the least.

They received over 110M$ in tax credit and they decided to apply that amount to a loan loss reserve.

Even if the move was a very prudent one, i think it has deceived the market a bit as many were expecting a gain or 0,79 per share and instead they did about 0,01.

Looking only at profit per share it coul dmean an incredible miss but i think that the move was very prudent when we look at the actual situation.

What we should still consider is the fact that a loan loss reserve is a reserve...not a loss in itself and if situation in Puerto Rico start to recover, DRL could easily reduce that reserve and turn in into profit.

I am curious on one mention about the new land and home evaluation that they received. If the decrease is as large as mentionned, what would the other Puerto Rico banks do? Do they use the same evaluation and if not will they have to?

If the situation means that they will have to re-evaluate their portfolio, it could mean larger losses for BPOP as they are the biggest lender in Puerto Rico. So be careful with the latest one.

TVI PACIFIC Ray of light

Q1 results have been as expected with only 1 shipment but with recent changes in the number of shipments for the balance of the year (going to 2 per quarter) and a lesser penalty for quality of copper, this could be seen as a ray of light coming.

Naturally the biggest problem TVI is facing right now is the inability of the Phillippine govt to take action and fix once for all the mining policies that exist or should i say not enforced.

Until such action from the govt is taken, we will have a share price moving sideways between 0,025 and 0,04.

The positive side is that TVI still have many projects on the table getting ready to be officially started like Balabag, Canatuan mine life extension and surely many more.

TVI does have the money to either financ thes start up projects or even make a larger acquisition / join venture to increase shareholder value.

But at this time TVI is still a HOLD until such changes are implemented by the govt.

I do still expect a major rebound whenever this problem is fixed as i still believe that the projects are larger than the actual problems.

The results that will come from the actual quarter will be interesting to look at: 2 copper shipments, lower penalties and 1 zinc shipment.

I would then expect a profit in Q2 by about 2M$.

PLAY OF THE DAY GPL (Great Panther Silver Limited)

Looking for a pure play on silver? This is the one.

I try to buy on the dip at all times and the recent share price drop linked to silver price is great...

That stock has dropped by 20% in only a matter of days even if their results are really good. No doubt that this one is greatly oversold.

I am in at current level ( 1,50$ to 1,65) if silver stabilize and looking for a 2,25$ share price on short term and 3,75$ on a medium term.

As usual never invest more than you can afford to lose and always do your due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @Investman2

mardi 15 mai 2012

PLAY OF THE DAY AA (Alcoa)

This is a question of : What do you believe???

If you think that Europe is going down and that Asia is done then Alcoa is not for you but if you do believe that even if China was to slowdown (...) to 7% and that Europe will be not as bad as expected, then Alcoa could be a great stock pick. Only 6 weeks ago it was well over 10$ and company fundamentals has not changed that much even if Alcoa expect some kind of slowdown for the rest of the year.

Alcao is a major player the world and we have always been told to buy on the dip. Is that dip deep enough or do you think it is only the beginning???

As usual do not invest money you cannot afford to lose and always do your oue due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: "investman2

lundi 14 mai 2012

PLAY OF THE DAY YHOO (Yahoo)

With all the reshuffling going on at this time, i think that it is the right time to get back in Yahoo. They have ousted their current CEO resigning and will replace him with Levinsohn as interim. Based upon his success with Fox digital business and the fact that they have now 3 new directors, the result will definitively increase shareholder value if all management decide to work toward the same direction. Yahoo shares have beeen hammered recently and the possible monetization of Alibaba could create some value for the shares of Yahoo.

At current level i will be in and projected exit price at about 17$.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get THE PLAY OF THE DAY on Twitter: @investman2

vendredi 11 mai 2012

PLAY OF THE DAY FITB (FirthThird Bancorp)

Very nice regional bank that will most probably be hammered early on this morning but this one has nothing to do with JP Morgan and will only suffer short term. It has one of the lowest P/E ratio and is very very profitable.

I will be in around 13,50$ and out over 14,25$

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @Investman2

jeudi 10 mai 2012

THE PLAY OF THE DAY MB.TO (Mega Brands)

This is a fascinating toys company that is now turning the corner toward profitability.

MB just released their Q1 results: sales are increasing and profit is improving. Mega Brand is not out of the woods yet but normally Q1 is not the leading quarter and i expect that Q2 and Q3 will be much much greater especially with their new licensing deal with Mattel where Mega Brand will create products under the Barbie and Hot Wheel brand.

The stock has been hammered this year and i expect a good leg up toward the 8$ mark.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @investman2

mercredi 9 mai 2012

PLAY OF THE DAY DIS (The Walt DisneyCompany)

Well this is not my actual target stock BUT with market being what it is, it is preferable to stick with winners and this is a big one.

If  DIS is able to see share value increase (due to great numbers reported) imagine what it could do in a better market situation...

Take some time to look at their last report. It is very very good.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter :@investman2

mardi 8 mai 2012

PLAY OF THE DAY UWN (Nevada Gold & Casinos)

I have no choice than coming back to this tiny very interesting company because at this level it is a GREAT play.

It will be really interesting to see what the new acquisition will bring in, profit wise, but in the meantime, it is actually well undervalued and oversold.

I will get in at the current level and out over 1,40$

As usual do not invest more than you can afford to lose and always do your due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @investman2

lundi 7 mai 2012

PLAY OF THE DAY YLO.TO (Yellow Media)

This is a fascinating story but on the wrong side...

This is the story of a 14$ stock (before converting to a regular company from an income fund) that was paying great dividend but crumble under debt and pressure in the printed media business.

Since a year, it has seen it's value decline by almost 99% but it was before one of the most profitable business in Canada.

I would also guess that not that long ago, everybody was under the impression that YLO would disappear BUT in the last quarter it generated a profit of 6 cents per share after a loss of over 2B$ in the previous quarter.

YLO will be releasing the Q1 results tomorrow and based upon the way stock trend actually, momentum is coming back on the 3 different stocks that you can buy:   

Regular stock YLO
preferred YLO.PR.A
preferred YLO.PR.B

The preferred shares can be exchanged, at company discretion, for regular shares.

Personnally i do not think that YLO is done. The transition to an electronic media company from the original printed media has been very difficult but i suspect it is on track to get it done right.

If that is the case, expect a super leg up from YLO effective tomorrow after their results release.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the play of the day on Twitter: @investman2

vendredi 4 mai 2012

PLAY OF THE DAY BAC (Bank of America)

This is a very good time to get into this one as BAC is absolutely undervalued and i think we could see a great rally toward the 9,00$ very rapidly.

It is stitting actually right on the 8,00$ mark (tested with success many times)  but it is under it's 50 days moving average. I will get in now but will add a stop losses at 7,60 because if it breaks down below 7,60$, the next stop would be 7,00$.

Actually this is one of the rare bank valued at less than 50% of the book value and this is odd. Would i consider this one as too big too fail???

No, i would consider this one as too big NOT to succeed.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

Get the PLAY OF THE DAY on Twitter: @investman2   

jeudi 3 mai 2012

ALERT DRL

Finally DRL seems to have bottomed. Since beginning of this week, it has seen it's share price drop from 1,91 to a low 1,63$.

If my forecast is correct, it will be reporting a very good Q1 2012 and it could send back the share into the 2$ range for a very nice profit.

Naturally, any bad results will send back shares into the 1,35 to 1,50$ range. So caution is needed here but the reward potential is huge.

PLAY OF THE DAY GW.TO (Garda World Security)

Very interesting company with good revenues and undervalued with a P/E of only 11.

Not the fastest mover in the stock world actually but lots of potential to be developped especially in Europe. Their business is into security so whenever things are getting challenging for customers, this is where GW gets into the action.

I will get in at around 7,50$.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in any stock.

get the PLAY OF THE DAY on Twitter:  @investman2

mercredi 2 mai 2012

PLAY OF THE DAY KBH (Kb Homes)

Well as confirmed again this morning with Q1 release from Beazer Homes (BZH) sales in the home market are improving a lot. They are still contemplating future with some caution in regard of future growth but still...

KBH is a great example of undervalued company and if lucky enough it could dip to around 8,50$ this morning.

I will be in at 8,50$ and out near 9,25$

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in this stock or any other stock.

Get the play of the day on Twitter:  @investman2

mardi 1 mai 2012

PLAY OF THE DAY BPOP (Banco Popular)

Today will be very interesting  as i expect high volatility for this stock. BPOP has confirmed that it will be doing a reverse stock split 10 to 1 on the last day of May.

As usual the reverse stocks split normally do not work to the favor of the actual shareholders and i suspect that volume will be in the 15M range instead of their usual 8.5M average.

The rational behing the split is correct and value of the stock will correct itself within 30-60 days after the split takes effect but for the coming weeks, it will be very interesting to watch.

I will be in around 1,60 as this would mean largely undervalue for this stock that should be trading near 3$.

As usual do not invest more than you can afford to lose and always do your own due diligence before investing in this stock or any stock.