The Play Of the Day GPR.TO / GPL GSR.TO

Well, those 2 plays are totally different one but they both offer something really interesting.

Ok, let's start with a pure silver play that i like a lot. GPR.TO (GPL on the us side) is a great play on silver and the kind of company that you buy for a long run.

At the current level this is one that you can count on to rebound whenever silver will. They are very profitable, very stable and far from being out of resources.

So at this price you have 2 options: you can buy on the short term to get a good return on investment whenever silver price reverse actual course (that could be very soon) OR you can buy for a long shot and continue accumulating. Actual silver price will not last and many are expecting silver to hit 50$. So, Great Panther being a pure silver play it is easy to figure out the real value of this play.

Now for the speculator in you, GSR.TO  (Goldstrike) located in Yukon just release some preliminary results and needless to say they are simply incredible. Not sure how you can get it out of there but surely Yukon seems to become rapidly THE best gold reserve discovered recently if those essays were to be confirmed by a complete drill program that should start next season (i would guess April or May 2013).

The potential is high and so will be the volatility but it may worth a couple of $ just to be in that play early.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

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The Play of the Day WPX.TO (Western Potash)

Well, after the shocker of a 15M$ PP at 0,48 the stock has been really oversold.

First and fore most it is very good that WPX was able to raise 15M$ in a private placement and at a good price.

Yes it is dilutive to actual shareholder BUT this is a speculative play and the actual share price is not the main important factor to consider.

The real question is: Will they find a partner ?

My answer is that the probability are really high otherwise  who would invest 15M$ in a company where there is simply no chance of success???

One thing is almost sure is that WPX will rebound at least over 0,50 for a close to 15% gain on the short term unless a very bad new comes out of WPX.

So at actual level i am in to add a small position to play the rebound without selling to much of my core investment and at the same time trying to lower my overall share cost.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

 

Play Of the DAY: 1st day of new quarter. Where do we go from here?

Well, it has been a great September and this is the first day of trading in the last quarter of the year.

What should we expect?

I think we will now have to face the reality: corporate profit in manufacturing will have increased slower than originally thought. My actual feeling is that transport sector should be leading the way as of now but it is still not. So caution is need in those 2 sectors

With elections coming, the infamous fiscall cliff still not fixed and Europe creating a roller coaster of stock market emotions, this quarter could be very rocky and bumpy to say the least.

At least one sector is still showing great signs of improvement: the construction sector. More and more houses are build and now they are looking for new land and sign of these times, their price has increased. But if job creation was to stall, this could be the first sector to retreat and lose some of it's steam.

BUT: there is still a fantastic sector that will do very well and it is minings where great operating companies will continue to do well and with metal prices increasing, they will do even better.

And in the same dierection, the JUNIOR exploration companies will perform excessively good as their resources will be valued higher and higher. There were some articles this week-end projecting silver to raise over 50$. Imagine the reaction on the actual producers as their expenses will not increase that much but their gross revenues would skyrocket.

So as of today, my plan is simple. I am overweight in housing until some bad job reports comes in. But as long as job creation will be as is it (about 100K per month) i expect construction sector to perform very well. The last week drop was mainly a profit taking opportunity and it is ready to rebound now.

I will also be overweight in the metal producers and some junior exploration companies for the mentionned reasons above.

Here are my companies for the beginning of this 4th quarter:

Metal producer:     GPR/GPL   Great panther has a great return on investment and would benefit a lot from a silver base price increase. That company is one of the great one on the market and at a very cheap price.

Metal exploration:   GSR   ORT   GCU as they are doing a lot of exploration and first essays results are simply incredible more expecially GSR actually.

Mining speculative:   WPX  and EPO. Potash is a needed one and if one of these 2 was to sign a JV agreement, watch out for share price to sky rocket.

Housing: My usual suspects are BZH   HOV   KBH. With those 3 you are covering US west, central and East.

Enjoy your quarter.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

Play of the Day: EPO.TO WPX.TO

2 very interesting speculative play in the world of Potash.

This element is in great demand and no matter what, it will continue to be in the future.

Now for those 2 companies the question is: will they get the partnership they both need?

If the answer was to be YES before year end, BOTH share price could run sky high and even a minimal type of agreement would definitely send those share price rocketing.

Why?  They both have great opportunities and in regard of the largest possible one WPX is the winner and lately they were still in talk with at least one great possible partner and the company is still trying to have something agreed upon before end of december.

The other question is : Will they need another private placement diluting share price again?

Based upon market price these days, it would seem that market has decided that WPX will need another round of financing and if that was to be the case it would be around 50 cents a share and would start another dip to around 40 cents.

So these 2 stocks are still highly speculative and they are not the place to be all in BUT expect a great price run up to over 1$ if a partner was to be signed and for EPO expect a 0,50 if a partner was to even only show interest.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2
  

The Play Of the Day: GSR.TO (This is speculative picks week)

Yukon: what a nice place.

Interestingly this area is filled with gold and without a doubt GSR.TO is making discoveries one after the other.

In the last week only, they reported two very interesting discoveries: the first one last week in their grab samples where they found 8,18 ounces of gold per ton and today they announced that their samples taken from their Lucky Strike property revealed (after a fire essay) a good 3,2 grams gold per tonne.

This is still in the first preliminary sampling and they are not at full scale drilling yet BUT these numbers seem more than enough to go ahead and explore a lot more even if those samples are very selective by nature.

We must understand that it is Yukon and getting the ore drilled into production is another story that will be known after a feasibility study is completed.

But at this time results are really encouraging and at the 0, 65 cents per share it is a good speculative buy as i expect that more and more discoveries will be announced in the coming months.

If those results were to be as positive i would not be surprised to see that company share price goes well over 2$ for a very nice return on the investment.

But remember that this is speculative in the sense that even if resources are there, nothing has been produced so far and no profit has ever been generated. To get into production it will most probably have to get into some kind of financing deal that will dilute the actual share count.

But, as a speculative stock, if it is played properly, there is good chunk of money to be made there and you could accumulate tons of share at cost near 0.

So at this price, it is worth a try.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day: DIP DIP DIP

NO...........do not look up for a company with a ticker symbol DIP....

I am looking for a dip in the construction sector for the following companies:  BZH   HOV   KBH

All of those 3 companies are now in overbought territory and could correct  a 3-6% opening the door to another very good trend up.

Those 3 companies are to continue they strech for another 10-15% due to the very agressive move from Bernanke and if it is combined with some very good results and great outlook on the coming earning releases, i can't see what would stop them from another leg up for 15-20% , if not more, before year end depending of market overall condition.

At this stage, i would even think that construction stocks are now a defensive play and that they will continue to perform relatively nicely even if market was to correct severely trying to re-test the 1400 level on the S&P.

So i will take another bit of profit today if those companies stay above friday level where they closed at about 3% lower than their actual high of Friday. I will now supposed that the level they could reach, before correcting, is their last friday high.

For BZH  it would be 3,92$

For HOV it would be 4,02$

For KBH it would be  13,63 as they closed at their highest level of the day being an exception.

So anything above these levels is a signal to take in some more profit awaiting the dip. Remember that if you have for example 2000 shares of BZH and you sell them at 3,95$ to buy them back at 3,85$ you just made 200$ in profit and could be re-invested in more shares of BZH awaiting the next up cycle to increase your profit.

To protect your investment, do not play with all your shares...keep a core (so this way if your thinking was wrong and shares continue to climb you will still make more profit) and then sell some to buy back later trying to time a bit the market and lower your overall investment cost. Whenever you do that, make sure that the company fundamentals have not changed as otherwise you could end up trying to catch a falling knife and most of the time you lose.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

 

The Play of the Day :Take some profit

Oh boy was i wrong yesterday when i mentionned that the reaction to Bernanke report would mean a sell off...

The QE3 is something really agressive in MBS at a rate 40B$ a month UNTIL such time needed.

WOW. That was a game changer and still is today.

So from here we will now be navigating into uncharted territory where we have a chance to see construction sector climb higher very rapidly, were gold and silver should follow due to inflation worries but if plan works, it mean job created rapidly and so on.

So ALL sectors will be touched.

BUT being prudent also means that sometimes we have to take some profit (not all but some) and put it asides in case of a correction and for sure we will have one. Will it be Monday, next week, next month? Well based on my yesterday comment, i will not predict when but it will come a day where the profit you took off the table will be needed to buy back some of those high flyer companies.

 ''When everybody is buying, this is the right time to sell'' and the opposite is true.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

 

The Play of the Day: The Fed decision

It will be very interesting to see the market reaction today after the decision at 12:15.

My guess is market will be down no matter what. We have been on a strong rally recently and this will most probably be a sell on the news and definitely a nice time to go shop for a nice discount.

Any one of those at a 5-10% dip would be more interesting:

GPL:  under 1,90$ is a heck of a deal especially with the recent news

UUU.TO : Anything under 2,40 is a very good deal.

QTM:  if it was to dip under 1,50$  Great buy

AC.B.TO: under 1,05$ this is a great one

FBP: get ready under 3,90$. Please remember that the US government is still owning tons of shares that they could sell at any time.

DRL: around 1,07$ is still a good deal but be careful here

MPEL: under 12,25 is a very good deal

So as you can see, i will be watching a lot of them today hoping for a break as i still think that those one are totally undervalued and could give you a fast and nice return on investment and still a good price to accumulate some more especially the one in bold. WAIT FOR THE FED DECISION.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play Of the Day RSH UUU.TO INT EPO.TO

Another day where market direction is uncertain and i am still looking for some dips in the above companies:


RSH       : any dip under 2,60$ and exit price 2,86$

UUU.TO: to dip near 2,44$ and exit price 2,57$

INT.TO  :  A small dip or a major increase in bids. Would not be surprise to hit 0.18 and exit price 0,205

EPO.TO : Highly speculative and unpredictable. Any dip at 0,22 and exit price 0,24 

I still expect market to correct a bit themselves after the last week rally. May not be the right time to be ALL IN. Good time to have some liquidity on the side to profit from a sudden dip.
 
As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2


 

The Play of the Day: BZH HOV GPL PXLW FBP QTM INT.TO

These are the stock that i am watching today for the next interesting dip allowing to accumulate some more. Expect a market lacking direction until thursday after the last week great run. This is fantastic for short term traders.

BZH:  nice run recently. Watching for it to break 2,95 then hope for 2,80$

HOV: What a great run. Watching for it to break 3,00$ but it could be too agressive.

GPL: That's a good return on investment in a very small length of time...Now HOPING for a small dip around 2,00$ but seems far from being achieved. That one is not done yet adn i am ready to accumulate way more.

PXLW: Welcome back to this new kid. Will they finally get profitable? The market thinks that it is highly possible. Be careful as not to liquid as volume is low but as in the case of FBP, expect rapid price changes. I will get back in on the next dip.

FBP: Very large moves last week. When it hit's 3,69 it then went back up well over 4$. Now watching for it to dip again in the 3,69$ area.

QTM: I would like it to break under 1,55. It is a nice longer term move but should be very profitable.

INT: Watch for a break under 0,19. If it does, be careful but i am still under the impression, as last week, that it should be climbing back around 0,23- 0,25 for a 25% return from last week. Do not forget to take some profit and then wait for the next dip. DO NOT SELL PART OF YOUR CORE HOLDING. I expect at this time to see INT moving from it's lower trading range (0,19) to it's upper range of (0,24-0,25). If it breaks 0,25 WAIT FOR THE 0,29 BEFORE TAKING TOO MUCH PROFIT. Actually INT is tricky to trade but could be profitable for any short term trader or to lower original cost by buying at the lower band and selling at upper band.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2


 

The Play of the Day: PROFIT DAY

Well, it has been a pretty good short week and very profitable on most of the plays this week and it is time now to NOT be too greedy.

It is always a good idea to get some profit off the table when you see weeks like that. That does not mean to sell them all but hey, get some back and get ready for opportunities next week. Nobody has ever been in trouble by making a profit.

There is nothing worst than seeing a great deal goes by and being unable to profit due to a lack of $$$

When there is fear get greedy but when everybody get's greedy, start to fear !! (this is not from me )

Have a great week-end

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day TO:WPX (Western Potash

After hitting a many months low of 0,60 recently, it looks like it could have bottomed out and ready to start a good rally.

When they issue yesterday the NR in regard with talks still under way with Indian Rashtriya Chemicals, it seem that they may have revived the bids for this company.

What they want is a solid partner to build a 2,8M tonnes a year potash mining site by 2016 and they will need 2,5B$ in investments.

I would not be surprise that talks lead to a major investment in it and not a take over as Canadian regulation could make it difficult for any foreign country to do so.

So i am still accumulating with a stop losse at 0,58 and i expect WPX to get back over 0,80 before end of october as their feasibility study is due in late november and that speculations will be high.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

 Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day TO.MB (Mega Brands Inc)

It is very surprising how that company has turned itself around in the last year. When many counted it for dead, they found the right way to get back on track and can now work on increasing sales and footage at many retailers.

MB share price saw a nice run recently (a bit over 1$ gain) and i think that it is now the time to get back in on any possible dip. Even at actual price, it seems a good price.

My expectations for the rest of the year is to see MB break the 10$ barrier and before year end. Remember that Q3 is the best quarter of the year due to inventory build up for Xmas time.

So it is now time to accumulate again at a slow but steady pace.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play Of the Day FB (Facebook)

Ok ok ok. I am a contrarian and i think FB is ready to go higher.

Why???

Everybody is trying to put a bottom price on FB and looking at indicators we may well have reach it.

Indicators are pointing now to an oversold condition and last trading day was not really nice when it gap down from 18,70 to close at 18,06 and to me it did look like some capitulation.

Volume was high especially at last minute where almost 2M shares were traded to bring down price.

So what is to be expected?

Some kind of short term rally where price should move over the 19$ and this, rapidly.

The problem is that Facebook is not providing enough details on how they will start monetizing mobile customers and until such a time, they will have problems getting back to their IPO price.

Will they ? Yes they will but the road will be bumpy unless they can show investors interesting results and a good plan for future earnings growth.

I feel that at this price the loss potential if far less than the upside potential and even if i would not get all in on this play, it may well be a good time to start accumulating and taking some profit off the table whenever the occasion arise.

This is a social media play and should be played in consequence. A bit at the time and most buying done on the dip and especially NOT CHASING the share price. If it goes up rapidly: great you made some profit then sell some. Again DO NOT CHASE this one as it could be the ideal way to lose money.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2
 

The Play of The Day Bernanke Speach

No matter which company you own, want to own or sell, this morning speach will have a ripple effect on the stock market.

Looking at actual futures there is no way we will not feel the consequences of the speach and what it could reveal.

Also important that dollar index is showing a declining US dollar toward Canadian $ by almost half a cent and this is large by all means.

No matter what happen at it's 10am speach, you will be able to monitor in direct the impact of it by looking at actual Dow and S&P charts. Minutes by minutes the impact of whatever he will say will be reflected in terms of gains or losses on those indexs.

But what really matter is the kind of moves we will be able to do during this day and if a little bit of luck is added to the speach, well it will be fantastic for the usual stocks that i follow as they are more often highly volatile.

Whoever has some powder on the side ready to invest will have a great day if the fingers are as fast as Lucky Luke was shooting.

So my list of suspects for today is:

BZH  (Another nice run and ready to get back to 3,37)    

HOV (Huge run this year and ready to shoot higher or get hammered if bad news on the horizon)

RSH (Whatever good news customers can get to spend more (or less) will affect RSH highly) 

FBP( getting back on track to achieve the lowest side of my trading range)

Have a fantastic trading day and a nice long week-end

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day: RSH RAD FBP HOV BZH

Today i am simply watching for buying signs on the above stocks at these entry point:

RHS            2,45

RAD            1,21

FBP             3,65

HOV            2,64

BZH             2,89

Any move under these prices will signal me to accumulate some more.¸But be careful as Bernanke speech could change the game completely.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

Investor trust

In the past when you were interested in buying some company stocks you had to call your broker (the one you trusted the most) and have your order goes through him over the phone.

Now, retail investors are facing many many more challenges.

We are actually getting access at the speed of light to news that are happening almost in real time. We are faced with high speed transaction and many sites where you can get information or dis-information.

So how can a retail investor trust the market?

The market by itself has not changed a lot: the companies that are making the most profit OR the one that can generate that profit will be rewarded with an increase in share price and the one lagging behind will get hammered. And with the internet or social media ones, profit is no longer a requirement during the first years but users is the new norm.

Nothing has changed. Well, almost nothing BUT

Rapidly growing is a bunch of individual currently named the pumpers and the bashers.

Those 2 categories are using bull board and social media to either destroy (or try to) a company and sending its shares to very low price or the opposite by trying to give attributes to a company that does not deserve it and propping the share value to some high levels.

I have even seen co-ordinates attack on companies with only 1 goal in mind: either profit by ‘dumping’ stock or profit by buying cheaply price stocks.

You can also get emails stating black on white which companies they will target and very often these are penny or sub pennies stocks.

The problem is that in both case the retail investor does get penalized and ripped of it's own money by either selling at a panic price or buying at an inflated price.

To complicate the problem, sometimes these people are associated with a broker or work in group to profit from those bad trades: by sending share prices very low, they can buy in at these levels and make a nice profit on the way back up OR by inflating prices, they can sell (dump) their shares at the high level and let the retail investor suffer the loss when share price goes back down.

There is multiple organisations that supervise or control such conduct and they are keeping their eyes open with their mandate to investigate any complaint they receive.

There is still some hope for the retail investor and it is called: due diligence.

ANYBODY that want to buy shares of ANY company MUST do some research by himself to confirm the value in the company he wants to acquire. DO NOT LISTEN to anybody giving you advices to buy or either sell. Buying AND selling is a personal decision and by relying on those individual to commit some of your money in a company recommended by them is almost suicidal.

Those bull boards are for entertainment only and can give you hints on how the company is performing. Many posters on those bull boards will have valid arguments as to why they think the company is performing or not BUT a lot of them will not.

These guys are easy to identify: no arguments either way. Only comments like 'This company will be a 5 bagger' or 'Game over for this company' and much much much ALWAYS without giving the reasons behind their advice.

Why would someone post on those bull boards (bashing or pumping) if they have no financial reasons to be there??? That does not make any sense.

They will try to tell you that they know the market; they want to save you money (or make sure you will make tons of money) and they all look like a scam.

Imagine that you would place an ad in the local newspaper stating’ How to make 1M$ by investing only in 1 company’ would you do that?

Would you sell your house on a so called friend that was telling you that the street where you bought your the house will be valued at 0 without any further explanation?

So why would you listen to those without arguments?

And what do you do if they are arguing about things and always finding the negative side of any good news or the best side of any bad news?

RESEARCH ON YOUR OWN.

Don’t try to be an expert on all companies you will be investing into but at least, go into reliable data sources, do some reading and when comfortable with it, hit the buy or sell button.

NOW: if you ever encounter what looks like a group of individual working together to bash or pump a stock and if you feel something is going on: FILE A COMPLAINT to the appropriate organization. Don’t accept these games and report them.

There are many scams over the internet and some of these posting groups can be linked to that.

Over the years, I have reported many of them and will do it again when I think it is needed.

Do not let those groups waste your time and your money. Investing in the stock market is STILL by far the best way to get some reasonable return on your money BUT you have to be careful. A lot more than before.

 

The Play of the Day TO:CHR.B (Chorus Aviation)

In the airline industry, sometime small is beautiful...

Chorus aviation (operating under Jazz) and affiliated with Air Canada is a small but very profitable regional airliner.

This is an undervalued company with a PE of only 5 and when you compare to others in the same industry, it could 'fly' a lot higher.

An when you include a 15 cents dividend (16% annually) it become an easy one to pick...

It has had a good run recently and a small pull back is possible. Originally i was trading it between 2,80$ and 3,30$ but the recents quarter results have made me change the range in which i will be trading it.

I will be in under 3,50$ and out over 3,80 for a close to 9% profit on each trade and at the same time capturing some time a very juicy dividend.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2
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The Play of the Day QTM (Quantum Corp)

Cloud services and safe backup is the coming reality. Anybody that is trying to do backup on other secure media has faced the same problem: how do i get it back when needed? Do you do your backups on dvd's and are limited to a 4,7G storage?

Ever had a computer crash where you very important data had to be recovered?

If so, you know that it is absolutely a today's necessity to have a protected copy 'somewhere' that you can access rapidly.

This is what Quantum is offering and with their new technology, at a very low cost affordable to anybody.

Yes their shares have been hammered and they have trended lower for a good period of time but i suspect that with this new product, it is time for a trend reversal with an expected price target of 1,99$ before year end.

So i will start accumulating at this level slowly and gradually hoping for some dips along the road.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day RSH (Radio Shack)

Radio Shack has been in a very narrow trading range recently and the question is:

How bad can it goes???

It would be very difficult to understand that a company like that would have another very bad quarter after the last 2. That would mean that management is unable to fix the problem and return to the good old times profitability speaking.

The whole sector has been in a very difficult position for the last 12 months but we have to remember that this is a pure US play (including some stores in Puerto Rico) and their problems is to fix the competition problem.

Margins are lower, cell phones profitability is gone so they are left competing against all other electronic retailers including internet based discount sellers.

Radio Shack has established themselve as being the 'convenience store' in electronics and customer service was their best card toward the other players. Have they lost it?

I do not believe so and i also think that they have in their share price a good pourcentage removed due to investors being excessively nervous about retail in general.

When you look at some fundamentals their share price to book value is simply incredibly low: 0,35. This means that actual book value is about 7,60$ and that expectations from the market is another 50% cut in their overall value. I don't buy that.

We should also remember that at this price Radio Shack could be a target for a take over.

So at this level, i am in and will add to my existing position. My expected target price before year-end is 6$.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2