Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
AM EST Friday, December 8, 2006: I bought my dictionary back. Today's
I'll own it again -- after a 7-year stint in the wilderness. I'd sold it along
with the rest of publishing business in 1997, when techy things were boiling
hot, and way overpriced. What goes around ultimately comes around. Nice feeling
of ownership and control again.
The worst part of being an entrepreneur proffering free advice to sundry friends
and managements of your investments is that no one (and I mean no
one) listens. Everyone has their own agenda. It's always better to keep
your advice to yourself, to your own business, to your own life. It also works
better there. You can follow it through with action.
in tiny biotechs:
Ziopharm (ZIOP) and InSite Vision (ISV) are
moving up. They will go higher. Two tiny biotechs that haven't moved (except
downwards) are Vioquest Pharmaceuticals (VQPH) and Point Therapeutics (POTP).
I like small biotechs but only for the long-term and only if I feel confident
about their drugs. I do about these two. The keys to biotech success are:
You must have a several-year vision. Patience is the key.
2. Buy low-cap companies with good drugs awaiting clinical trials and FDA approval.
3. Own a bunch, i.e. spread your risks.
4. Wait for a movement. You'll get a bounce. Take your original money out. Play
with the bank's money.
Hickey is predicting a major consumer recession:
Fred Hickey writes a respected newsletter called "The High-Tech Strategist."
He tends to be bearish. It's useful to read the other side. He writes, "If/when
consumer spending buckles, corporate spending will follow. I remain in maximum
defensive position. I hold no tech longs. Huge amounts of leverage, a giant
disconnect between Wall Street and Main Street (where Hickey lives) and incredible
complacency leave me concerned that when Wall Street finally wises up, the result
could be spectacular, as everyone rushes for the exits at once."
positions are in precious metals. "With the dollar's recent troubles, gold
and silver have begun another sharp leg up. I continue to hold a very large
position in the gold ETF (GLD), as well a physical gold. I continue to hold
a very large Newmont Mining position (the only disappointment this year in my
precious metals portfolio). ... I continue to hold Pan American Silver stock
and the silver ETF (SLV).
His put options
currently account for 3 1/2% of my total portfolio. His put options cover: Best
Buy (BBY), CDW (CDWC), SanDisk (SNDK), Texas Instruments (TXN), Lam Research
(LRCX), KLA Tencor (KLAC), Nvidia (NVDA), Research in Motion (R IMM), NetLogic
Microsystems (NETL), Apple Computer (AAPL), Intel (INTC), Microchip Technology
(MCHP), STMicroelectronics (STM), Amazon (AMZN), Google (GOOG), International
Rectifier (IRF), Blue Coat Systems (BCSI), Motorola (MOT), Dell, Xilinx (XLNX),
Applied Materials (AMAT) and Novellus (NVLS)
As a hedge against
stocks you own long, it's not unreasonable to pick the most overpriced of the
bunch above and buy a few put options. I'll put together a chart on the week,
looking at P/Es, growth rates and some subjective view on the industry's short-term
future. It should highlight two or three eggregiously overpriced. Stay away
from shorting Google.
is happiness? Yesterday's column hit a chord.
here. Many people are striking out, trying something new. Sample email
from Michael Guardabascio:
An old philosophy
of mine: The best thing you can do for the poor is not to be one of them.
recently started piano lessons at the tender age of sixty eight (and yes,
youngsters do learn quicker and easier). These are the words to a simple tune
Money can't make you a king
Money may not bring success
Money can't buy happiness
But of one thing I am sure
Money doesn't make you poor
Money doesn't make you sad
Money can't be all that bad
Turning us on VistaPrint. Reader Matt Bridier writes,
I can't thank you enough for turning us onto VistaPrint. We've now used them
several times over on business cards and also for a few other printing jobs
we've needed fast for the company. This year we are also going to use them
for our holiday card, you just upload a nice photo into their templates and
BOOM its done. Its nearly idiot proof, which is great for me. Very reasonable
prices too and their runnings tons of holidays specials, we got 1000 bus cards
for $25 delivered.
and happy holidays!
money can buy -- happiness and ...
A Jewish grandmother and her 14-year old grandson check into a large, expensive
Miami Beach hotel. The bellman brings in 14 suitcases and asks if there's anything
else he can do?
she says, "Would you please lift my grandson out of the car and bring him
up to my room?"
says the bellman, "I'm very sorry. I didn't realize he couldn't walk."
"Oh, he can
walk fine," says the grandmother. "But, thank God, he doesn't have
can't always win
Sheldon tells his best friend, "Every girl I bring home, my mother doesn't
like. I can't please her."
His friend replies,
"Keep looking until you find a girl who looks just like your mother. Then
she can't find fault with her."
Three months later, Sheldon meets his friend and says, "I did what you
said. I finally found a girl just like my mother -- same heigh, same hair, same
personality. She was exactly like my mother."
"My father hated her."
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. Thus I cannot endorse any, though some look
mighty interesting. If you click on a link, Google may send me money. Please
note I'm not suggesting you do. That money, if there is any, may help pay Claire's
law school tuition. Read more about Google AdSense, click
here and here.