Harry Newton's In Search of The Perfect Investment, Technology Investor. Harry Newton
AM ET, Friday, December 11, 2009: My biggest
and best hedge fund manager "fired" me because he wanted -- shame
on him -- to retire. His goal is to invest his money in high dividend-paying
stocks and go traveling, or something. I'm dubious about high yielders, since
that means high risk. But he says, "So spread your portfolio."
a first shot at some interesting high yielders. The chart is current as of last
with our inviolate 15% Stop Loss Rule.
is great. I've been pushing it for some time. CNBC is reporting from
at a juncture. Two companies send out daily
charts with a tinge of information and a plea to subscribe (i.e. pay money).
Here's the latest: and their comments:
For some perspective
on the current state of the stock market, today's chart presents the long-term
trend of the Russell 2000 (small-cap stocks). As the chart illustrates, from
late 2002 into 2007 the Russell 2000 traded within the confines of an upward
sloping trend channel. However, since mid-2007, the trend has been down. Fears
of an outright collapse of the financial sector resulted in support (green
dashed line) of an already fairly steep downtrend to be breached. As it became
apparent that the financial sector would survive, stock prices rose with the
Russell 2000 moving back into its original downtrend channel. Currently, the
Russell 2000 is testing resistance (red dashed line) of its two-year downtrend
channel for the second time since the financial crisis.
think the market will continue to slowly edge up.
went public yesterday.
When AOL announced
it was buying Time Warner ten days into 2000, the two companies had a $350 billion
market value. Today their combined value is just $50 billion, a decline of 86
percent -- much worse than the Nasdaqs 45 percent decline.
Personally I think
AOL is a great short -- except you can't yet. From Breakingviews.com:
The going will
be tough for Mr. Armstrong (AOL''s CEO). Breakingviews.com suggests. He wants
to convert the company into a content and advertising company, but according
to RBC Capital Markets, as much as a fifth of AOLs traffic comes
from dial-up Internet subscribers checking e-mail and such. So the continued
decline of AOLs access business five million subscribers
today compared with 26 million in 2002 does more than pressure
overall company cash flow. It threatens the companys transformation
to a pure content business,
to AOLs apparently cheap valuation. Its enterprise value of $2.4 billion
is just five times projected free cash flow for 2010. But much of that cash
comes from the declining access business. There may be opportunity to improve
advertising profit margins in line with peers. Thats what management
is seeking, though they concede it will take at least a few years.
is essentially in a race against time, He must reinvest much of the cash from
the access business into content to get the wider Internet audience to re-engage
with his site. AOL managed to survive this choppy decade, but may not endure
Today's lead story
on AOL is "Tiger Woods, Sex Addict?" The story contains:
A week after
details of Woods' extramarital affairs began to emerge, the Woods mistress
count includes two porn stars, a lingerie model and a host of waitresses.
L.A.'s Sexual Recovery Institute's Robert Weiss told CBS' "The
Early Show" that living very different public and private lives -- keeping
covered a "hot bubble of secrets" -- is classic sex addict behavior.
great web site. You can't get to the top of
Google by paying the most. You must also have a great web site. Check out
Paul Bond Boots for a gorgeous web site.
starts tonight at sundown. It known as the Festival of Lights. It
is an eight-day Jewish holiday commemorating the rededication of the Holy Temple
in Jerusalem at the time of the Maccabean Revolt of the 2nd century BCE. Hanukkah
is observed for eight nights.
Each night a candle
(or light) is lit on a special candelabrum, the nine-branched Menorah or Hanukiah.
An extra light called a shamash (Hebrew: "guard" or "servant")
is also lit each night for the purpose of lighting the others, and is given
a distinct location, usually above or below the rest.
bought this while out in Portland, OR. It's Patagonia's Micro Puff
vest. It has three pluses. It's superlightweight. It fits me snugly. It kept
me warm in cold Portland. I look sexy in it.
It's not easy to buy. Try Moosejaw.
Woods problems. Scuttlebut around the tennis
club is that Tiger got in trouble not because he cheated on his wife, but because
he cheated on his mistress.
Dear Neil, remember
what the Rabbis say:
A modern Orthodox
Jewish couple, preparing for a religious wedding meets with their rabbi for
The man asks,
"Rabbi, we realize it's tradition for men to dance with men, and women
to dance with women at the reception.But, we'd like your permission to dance
together,like the rest of the world."
not," says the rabbi. "It's immodest. Men and women always dance
the ceremonyI can't even dance with my own wife?"
answered the rabbi."It's forbidden."
okay," says the man,"What about sex? Can we finally have sex?"
replies the rabbi."Sex is a mitzvah, a good thing within marriage, to
different positions?"asks the man?
says the rabbi"It's a mitzvah!"
on top?" the man asks.
says the rabbi."Go for it! It's a mitzvah!"
do it on rubber sheets with a bottle of hot oil, a couple of vibrators,a leather
harness,a bucket of honey and a porno video?"
indeed. It's all a mitzvah!"
do it standing up?"
says the rabbi."
asks the man.
lead to dancing!"
This column is about my personal search
for the perfect investment. I don't give investment advice. For that you have
to be registered with regulatory authorities, which I am not. I am a reporter
and an investor. I make my daily column -- Monday through Friday -- freely available
for three reasons: Writing is good for sorting things out in my brain. Second,
the column is research for a book I'm writing called "In Search of the
Perfect Investment." Third, I encourage my readers to send me their
ideas, concerns and experiences. That way we can all learn together. My email
address is .
You can't click on my email address. You have to re-type it . This protects
me from software scanning the Internet for email addresses to spam. I have no
role in choosing the Google ads on this site. Thus I cannot endorse any, though
some look interesting. If you click on a link, Google may send me money. Please
note I'm not suggesting you do. Read more about Google AdSense,
here and here.