Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Monday, November 14, 2005:
Weekend too nice for stock picking. Thinking of trends:
+ Energy prices
now making alternative energy real, e.g. tar sands, solar cells, wind mills.
+ Broadband Internet access means new ways of running businesses, delivering
+ Search engine changing nature of print publishing industry.
+ Huge explosion in new drugs being tested. Today Hana Biosciences (one of mine)
reported positive interim results for Talotrexin.
+ Nanotechnology getting real -- much faster than I originally thought.
Need more research. Idea?
Triple tax-free muni floaters are now paying 2.7%:
That's the equivalent of 4% taxable. Excellent.
reading and thoughts:
+ The Economist loves the airline industry. Says it's
getting it act together and travel is booming. The headline: Governments
should unleash the potential of an amazing recovery in airlines. For more,
The Vatican would ban new priests who "present deeply rooted homosexual
tendencies" but not exclude candidates who overcame any gay "tendencies"
roughly four years before final ordination, according to a new document described
in the Italian newspaper Il Giornale on Friday.
+ Motorists in Australia are unhappy with speed cameras which automatically
catch drivers over the limit; citations are mailed to the registered owner.
In the past year the cameras brought in US$39.6 million, leaving drivers so
unhappy that over the past two years there have been 74 cases of vandalism against
the cameras. The Roads and Traffic Authority has responded by installing surveillance
cameras to watch over the most-vandalized speed cameras. Now, angry motorists
are smashing the security cameras before taking out their frustrations on the
+ I had a haircut with shampoo on Friday. In the old days they shampooed your
hair before they cut it. Now it's after. Which reminds me of trip long
ago to Tokyo. Standing at Japanese urinal, my Japanese friend asked why Americans
always washed after they peed. He thought it was more hygenic to wash
before. That way you wouldn't touch it with dirty hands. Lesson: Always question
things you don't want:
+ For $199 you can buy a rechargeable battery pack that will power
your iPod for 200 hours. Click here.
+ For $350 to $800 you can get a pair of custom-made jeans. Call 212-242-3414.
replacement software: I don't often recommend software. There's so
little decent stuff around. But I do like Microsoft's Task Switcher Powertoy.
Every time you hit Alt-Tab it gives you a large thumbnail of the program you're
about to switch to, viz.
For this free
TiVo? I visited them
on Friday. I wanted to know if I should load up the boat? My thoughts:
+ New management. Good.
+ Unexciting present product offerings. Bad.
+ Limited strategy to replace DirecTV distribution. Bad.
+ Still no ability to communicate why anyone should buy TiVo. Ultra-bad.
+ Web site stinks. Bad.
too much money being spent on G&A. Bad.
For now, I'm not impressed. But I do like this apochryal story:
"Rabbi, I know tonight is Yom Kippur, but tonight the Yankees are in the
playoffs. Rabbi, I'm a life-long Yankees fan. I've got to watch the Yankees
game on TV."
Rabbi Levy replies, "Sidney, that's what TiVo is for."
Sidney is surprised. "You mean I can TiVo Yom Kippur?"
private equity deal. Neat idea. Fast-growing. No patents. Just on
break-even. BUT -- and here's the BIG but, they want $2 million for 20%
of the company. Thus a valuation of $10 million. For a company with no profits,
no patents, nothing proprietary .. you got to be kidding!
Save yourself a visit to your next investment. Ask three simple questions on
1. Any profits?
2. Any patents? Anything proprietary?
3. What's the valuation after the money raise?
Someone will invest
at $10 million. But it won't be me.
Investing in private equity deals is saying NO a lot.
sense of humor. A true story:
My wife and I Were watching "Who Wants To Be A Millionaire"
while we were in bed.
I turned to her and said, "Do you want to have sex?"
"No." She answered.
I then said, "Is that your final answer?"
"Yes." She replied.
Then I said, " I'd like to phone a friend."
That's the last thing I remember.
are the sexual relations?
couple was sitting together, watching their favorite Saturday night TV program.
During one of those commercial breaks, the husband asked his wife: "Whatever
happened to our sexual relations?"
After a long thoughtful silence, the wife replied:"You know, I don't really
know .. I don't even think we got a Christmas card from them this year."
+ Dumb reasons we hold losing stocks. Click
+ How my private equity fund is doing. Click
+ Blackstone private equity funds. Click
+ Manhattan Pharmaceuticals: Click
+ NovaDel Biosciences appeals. Click
+ Hana Biosciences appeals. Click
+ All turned on by biotech. Click
+ Steve Jobs Commencement Address. The text is available:
Click here. The full audio is available. Click
+ The March of the Penguins, an exquisite movie. Click
+ When to sell stocks. Click
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
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