Harry Newton's In Search of The Perfect Investment
Technology Investor. Harry Newton
AM EDT, Tuesday, September 22, 2009: As the
economy recovers, we begin to use more energy. But it will likely not be the
old energy. It will be the "new" energy. It will be solar and natural
gas. There are two ways to play this. The first is KWT, which invests in solar
The second is United States Natural Gas (UNG) which is an EFT designed to reflect
the price of natural gas:
Cramer is pounding
the table for Wynn Resorts because of its huge ($1.625 billion) upcoming Hong
Kong IPO of its Macau gambling operation.
Wynn Macau, owned
by Wynn Resorts, is a luxury integrated resort in Macau, Peoples Republic
of China, offering casino gaming combined with a deluxe hotel, restaurants,
designer shops, spa, and a choreographed performance lake. It is the first Las
Vegas-style integrated resort in Asia.
This is one of
According to Cramer
last night, Steve Wynn claims this is the best casino hotel he's ever built.
Visit his web site.
All this is happening
in "communist" China. I suspect Wynn's price will rise further as
the IPO gets closer -- now scheduled for October 9.
and Apple will go higher, still.
takeover bids. As the market reacts to dumb takeover bids, there
are opportunities to play the takeover company.
This is what happened
to Kraft after it announced a dumb takeover bid for Cadburys:
on STEC. I'm still out of it. But I still like
its technology and its potential. The lady Wedbush analyst who killed it a few
days ago has, this morning, issued a strongly positive report:
Headline Risk of Increasing Competition Looks Priced in; Sell-Off Creates
Compelling Entry Point Ahead of Likely Q3 Beat and Q4 Raise - Reiterate Outperform
Rating and $39 PT
While the changes
to the competitive landscape in the enterprise server and enterprise storage
SSD markets are slightly ahead of our previous expectations, we don't believe
the evolving competitive landscape warrants the sell off in shares. We believe
investors are overlooking the likely (1) Q3 beat, (2) Q4 raise and (3) STEC's
lead in the enterprise storage SSD market with the only "proven"
enterprise storage SSD. Following our recent round of industry checks, we
are increasing our Q3 and Q4 estimates above the Street due to strong demand
for ZeusIOPs. We believe with investors fully aware that continued changes
to the competitive landscape are on the horizon; additional headline risk
to the stock is unlikely. We reiterate our Outperform rating and $39 price
in our view may be coming slightly ahead of expectations; however, it doesn't
mean Game Over or the STEC story is broken.
STEC's share in enterprise storage SSD market over the coming months to remain
intact due to long and expensive qualification cycles.
Q3 and Q4 estimates as demand for ZeusIOPs continue to surpass our expectations.
creates compelling entry point ahead of likely Q3 beat and Q4 raise. Our $39
price target is based upon 17x our 2010E pro forma EPS estimate of $2.29,
about a 25% discount to blended peer group median multiple (23x).
bank is getting creative.
It hit one of my accounts with a $12 "inactive account fee." But the
account was not "inactive." It had one transaction -- the inactive
account fee. Should I point this "logic" out to my bank, or simply
is not always cheap. An eBay seller was peddling
a Corsair 256 SSD for $849.95. I can buy the same thing on newegg
for $669. Check. Check. Check.
do you feel about Afghanistan? I believe we
can't "win" this war. I believe staying there wastes precious American
lives (the worst part) and money (hence weakening the dollar), and accomplishes
nothing to improve our internal security (since Osama and his crew have moved
to Pakistan). Moreover, our Karzai administration is corrupt, can't deliver
security to its own people and is generally ineffective in every way. No one
from Alexander The Great on has ever "conquered" the Afghanis, who
according to my sources, "love to fight."
President Hamid Karzai stuffed his election ballot boxes. And we let him
I launched www.StopAfghanistan.org.
Please visit it and let me know your thoughts.
recent New Yorker cartoons:
Road Trip. Yes, this will happen to you, too.
While on a road
trip, an elderly couple stopped at a roadside restaurant for lunch. After finishing
their meal, they left the restaurant, and resumed their trip.
After 40 minutes
of driving, the elderly woman remembered she'd left her glasses.
All the way back,
the elderly husband became the classic grouchy old man. He fussed and complained,
and scolded his wife relentlessly. The more he chided her, the more agitated
he became. He wouldn't let up for a single minute.
They finally arrived
at the restaurant. As the woman got out of the car, and hurried inside to retrieve
her glasses, the old geezer yelled to her, "While you're in there, you
might as well get my hat and my credit card."
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, though
some look 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 Michael's
business school tuition. Read more about Google AdSense, click
here and here.