Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM EST, Tuesday, May 8: "Whatever
I do makes money. Whatever I don't do makes money. How long will this last?
Another day? Another month? Another year?" This is my best hedge fund manager
on the phone yesterday evening, sounding genuinely perplexed. Fortunately he
buys value, not momentum. And he doesn't buy on margin. Please...
If you buy, don't borrow. When this turns, nothing will put you into the poor
house faster than buying on margin.
Don't chase whims, tips and stuff you hear on CNBC or read in the financial
press or this column. Research your own stuff. I bet there are many people who
like Philips. See below. But it seems dicey to me, despite some great products
and my son's willingness to spend my money on them.
+ Keep cash on
hand. I'm earning 5.22% with my CD at Sovereign Bank. That's about a quarter
of what I'm earning in my hedge fund; it's less than half what my Vanguard index
funds are doing. But it's there. It's psychologically reassuring. Of course,
I can still sell my stocks and my index funds.
Stockpickr Guide to Uranium: There is huge interest in uranium. Heads
of state in Australia, France, the U.S. (Yes, George Bush) and others are talking
about nuclear plants as pretty well the only solution to global warming
and energy demand growth. I agree with them. We'll definitely be building more
nukes. But it won't be soon. Hence most of the run-up in uranium and uranium
stocks is pure speculation. James Altucher of TheStreet.com wrote a piece he
Stockpickr Guide to Uranium:
market has been on fire over the past year. The spot price has risen from
$20 to $113 since 2004. And now, with uranium futures available to trade on
the Nymex starting today (that was yesterday), the speculators will join in,
as well as the uranium producers who are looking to hedge. It's important
to take a look at the stocks that might be affected, and how.
On the April
13 broadcast of CNBC's "Mad Money," Jim Cramer said there are two
plays that can take advantage of the fact that Wall Street had not yet priced
in uranium's cost at over $100, and the expense of producing it at $50 per
pound if you extract it from phosphate. Check them out at Cramer's
Stealthy Uranium Plays.
Of the two,
Cramer said he likes Mosaic Company (MOS) better than CF Industries Holdings.(CF).
"Mosaic is the largest producer of phosphate on earth," Cramer said.
"Mosaic has got the phosphate, and phosphate has got the uranium."
On the down
side, Barron's on April 17 wrote about how supply disruptions and dwindling
inventories have severely hurt companies like Exelon (EXC), which have to
in regulated electricity markets probably will be allowed to recover the higher
costs of uranium via higher rates for customers," Barron's wrote. "But
nuclear operators in competitive markets, like Exelon, Entergy (ETR), FPL
Group (FPL) and Dominion Resources (D) will see higher fuel costs deplete
play which Altucher didn't mention is Uranium Resources (URRE). It's up handsomely
in the last few months.
uranium madness has gone on in Australia, which, I believe, has more of the
stuff than any other country in the world. Uranium madness continues there.
As a reflection, here's a list of Australian resources companies that are coming
up for public listing. Australians called them "floats." We call them
IPOs. It's an amazing collection. Some of the names are priceless.
I got this chart from the Australian
Securities Exchange. They have good information on Australian stocks.
More on Australian uranium stocks tomorrow.
Australian mining stocks are flying: These
are the ones I own: BHP, Rio Tinto (RIO), Kagara Zinc (KZL), Zinifex (ZFX),
Minara Resources (MRE), Oxiana (OXR), Apex Minerals (AXM) and Western Areas
(WSA). Australian stocks will do even better between now and June 30 as Australians
dump more money into the stockmarket -- because of their tax loophole. (I've
written about this before.)
with subcontractors: Everything custom I've
tried to buy recently has arrived or been completed late -- months late. To
wit : A skylight company took my 50% deposit in November, 2006, but still needs
another month. Our roofer is 18 month late. I kid you not. Etc. etc.
problem is simple: Everyone is taking on too much work because they're read
all the reports that the economy is slowing. Everyone is fearful that there
won't be any work tomorrow.
you can get a penalty clause for being late, do it now before you sign any new
and Hewlett Packard do well: I had recommended
Apple when it was $86. It's now $103.92 and climbing strongly, but will go higher.
Now comes word from ComputerWorld magazine:
I agree with cramer.
HP will report a blow out quarter next week.
May 08, 2007
(Computerworld) -- The portion of people surfing the Web using a Mac has doubled
in the past eight months, an Internet metrics analyst said today, and represents
an audience that can't be ignored by Web application developers.
story since last summer has been how well the Mac is doing," said Geoff
Johnston, an analyst at WebSideStory Inc. in San Diego. "For the longest
time, Mac hung around 3% of the operating systems using the Web. But it picked
up around last summer, and has nearly doubled its market share."
from WebSideStory and rival Net Applications of Aliso Viejo, Calif., put Apple
Inc.'s Mac OS X at close to or just over 6% of all machines in the U.S. that
connected to the Web last month.
first time since 1999, when we started tracking, the Mac has really made a
major push," said Johnston. Since August, the percentage of online Macs
running Apple's operating system has climbed from the long-flat 3% to 5.6%,
he said. Net Applications data, which splits the Mac's share between computers
running the PowerPC version of Mac OS and those with an Intel edition of the
operating system, pegged the total share at 6.2% for April.
almost doubled," Johnston said, "so you know they're selling a butt
load." (I think he means boat load.)
Save Your Life: Last Saturday, my son, Michael took an all day adult
CPR, AED (Automated External Defibrillator), and first aid course from the New
York Chapter of the American Red Cross. He's guest columnist today. He had two
+ Everyone must
take this course (including me and his mother)
+ We should install AEDs (automatic external defibrillators) in both of our
houses, but especially our remote country home in upstate New York.
1. Take This
Course: The Red Crosss Adult CPR and First Aid course teaches how
to handle both every day accidents (cuts, broken bones, insect bites) and serious
life-threatening emergencies (car accidents, heart attacks, electrocutions).
While common sense may seem to be enough for most of these situations, much
of what Michael learned specifically debunked widespread misconceptions that
can cause greater injury and/or death to both the victim and the rescuer. In
addition, learning how to properly conduct CPR and the Heimlich maneuver can
genuinely save someones life. Better yet, it can save you from feeling
powerless and unprepared when confronted with an emergency.
2. AEDs Make
Serious Sense: According to the Red Cross, the national resuscitation rate
for people who have suffered a cardiac event (such as a heart attack) and received
CPR is a measly 2%-4% if they are not reached my emergency personnel within
10 minutes. Contrary to popular belief, CPR alone will not save someones
life. It will only prolong the time before brain damage and death occur. Having
access to an AED in those initial 10 minutes dramatically boost ones chances
of survival to 40%-50%.
AEDs work just
like the fancy devices that emergency personnel carry, only they are idiot-proof.
Attach two soft adhesive panels to the victims chest, plug in the wires,
stand back (this is key), and turn on the device. The machine will automatically
analyze the victims heart activity and, if appropriate, delivery a series
of shocks to get heart back in rhythm. Everyone has seen a dramatization of
this on ER or other hospital television shows.
Red Cross instructor as well as numerous websites recommend the Philips
Home Heart Start Defibrillator. It isnt cheap - about $1,150 from
but seems like a good investment to me. This is especially true when
the expected emergency response time to a location is greater than 10 minutes
(as is the case in our country house). Remember, heart disease and heart-related
problems are the number one killer of both men and women in America.
Even if your family isnt at high risk (i.e. you exercise, dont smoke,
eat decently), I bet you have friends and family who are. Citibank has conveniently
installed AEDs in all of its bank branches in New York City. Other businesses
are following suit.
For more information
on Red Cross courses and AEDs, visit the follow websites.
Red Cross: ; Red
Crosss AED site: and Philips
Home Heart Start Defibrillator: Ask for the promotional packet and watch
In fact, I recently
found another great product from them (this is Michael talking), but I cannot
talk about it yet its a Mothers Day surprise. Reports on
the product and my mother's reaction on Monday. Keep your fingers-crossed.
Philips stock has done OK recently: [DAD ENTER INFO HERE].
Earnings are up,
though sales are down.
are suffering from price competition in flat panel LCDs. It seems to be an increasingly
well-run broad end-product (largely consumer) electronics company. P/E is high.
And Michael's favorite Philips products are but a tiny niche of the overall
sales of $37 billion a year. Numbers are from The Wall Street Journal's
admit a failing. I love ballet dancers: This
is Aesha Ash is a member of Alonzo Kings Lines Ballet, a San Francisco
company. She was in the corps of New York City Ballet but left in 2003, sadly.
I have never seen her dance, but I will. Look at grace, style and beauty in
this photo. She's gotta be incredible.
problem with being a tree hugger.
A woman from Los Angeles , who was a tree hugger and an anti-hunter,
purchased a piece of timberland, near Grants Pass, OR. There was a large tree
on one of the highest points in the tract. She wanted a good view of the natural
splendor of her land so she started to climb the big tree. As she neared the
top she encountered a spotted owl that attacked her. In her haste to escape,
the woman slid down the tree to the ground and got many splinters in her crotch.
pain, she hurried to the nearest doctor. She told him she was an environmentalist
and an anti-hunter and how she came to get all the splinters. The doctor listened
to her story with great patience and then told her to go into the examining
room and he would see if he could help her. She sat and waited three hours before
the doctor reappeared. The angry woman demanded, "What took you so long?"
He smiled and
then told her, "Well, I had to get permits from the Environmental Protection
Agency, the Forest Service and the Bureau of Land Management before I could
remove old-growth timber from a recreational area.
I'm sorry, but
they turned me down."
I was testing the children in my Sunday school class to see if they
understood the concept of getting to heaven. I asked them, "If I sold my
house and my car, had a big garage sale, and gave all my money to the church,
would that get me into Heaven?"
"NO!" the children answered.
"If I cleaned the church every day, mowed the yard, and kept everything
neat and tidy, would that get me into Heaven?"
Again, the answer was, "NO!"
By now I was starting to smile. Hey, this was fun!
"Well, then, if I was kind to animals and gave candy to all the children,
and loved my husband, would that get me into Heaven?"
I asked them again.
Again, they all answered, "NO!"
I was just bursting
with pride for them. Well, I continued, "then how can I get into Heaven?"
boy shouted out, "YOU GOTTA BE DEAD."
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 .
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