Investor vs. Labor

There is a big elephant in the economic room right now. It is the topic of finding a good return for investors while demanding a livable wage for workers. Finding a general middle ground on this issue is going to be paramount if the global economy is going to run smoothly. One optimistic view is that there are many in the global economy that are on both sides of the issue. It is this group that are both workers and are also investors that can lead the economy into both a prosperous and livable wage earning future.

Future posts will focus on how different entities are affecting this process. They include corporations, labor groups, lobbyists for both corporations and labor groups, the financial industry, government, and retirement plans. If there are any other groups not mentioned in this post or future posts, please feel free to comment.

This thread hopefully will get the conversation moving in a direction that allows for a decent return on investments as well as a livable wage for all who participate in this economy.  

arbitrary coherence

I started reading Daniel Ariely's Predictably Irrational, and the topic of Arbitrary Coherence was brought up. In the book's words, "Although initial prices can be "arbitrary," once those prices are established in our minds, they will shape not only present prices but also future ones (thus making them "coherent"). " With this being said, I am looking at stock prices a little more carfully with the focus being on the relationship between a company's stock price and its true value. If there is a significant difference, is arbitrary coherence a reason? Can understanding the topic of Arbitrary Coherence make a person a better investor or trader? I think so.

Comments welcome.

Commissions

Recently, one of my brokers lowered its commissions rates by . This is important as I use this account for trading and will plan to make 25+ trades in the coming year.

Commissions do affect how you invest. You must include those costs when figuring out your returns.

Cumulative Advantage

Hey

I have recently started reading the book "SuperFreakonomics." I came across the term "Cumulative Advantage."

To me, this term has the same level of importance as compound interest. As I write this I am realizing this is a very strong way to become very wealthy. For example, when my savings hits a mark, a percentage gets pulled out and used for other investments. I believe this cycle will eventually lead my wealth creation to high levels. I will have a strong savings base that will grow and assist newer businesses flourish which will in turn do the same.

I recommend this book (I've only read two chapters) and recommend looking into the ideal of using the cumulative advantage to become wealthy!

Good Luck

Happy New Year Wealth

Happy New Year!

Last year was a good one even through all the turmoil. There are a lot of opportunities for wealth this year whether they be taken in stocks, real estate, or any other investment idea.

I have helped start a call selling account which saw a few trades occur with varying results. You can see a blog on that account at www.wikicallselling.blogspot.com. This year will be focused on developing this account.

I am still seeing many real estate investment opportunities. If wealth develops in other investment areas, real estate will be on the table.

Keep saving and saving some more. The compound interest will be enjoyed.

Don't forget to give and donate time and fortune. Only then will you find true wealth.

Frito Lay Leads the Way

Hey

Even though I am not happy about some of the products that Pepsi and Frito Lay produce, their continuous stamp on the environmental cause is undeniable.

A Frito Lay plant has just earned a spot in the EPA's green leadership program. The text is below.

http://biz.yahoo.com/prnews/070830/lath025.html?.v=101

I believe their continued execution in advancing the environmental cause while making money will help Pepsi in the long run. With this market as it is, the companies with long run outlooks are the ones to be in.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Solid Companies with Green actions

Hey



I have been thinking about the boon in "green" investments. I am going to be looking for companies that have solid business models while still finding ways to cut energy output and increase conservation.



This is one of the reasons I have chosen to invest in Pepsi. They are extremely innovative within the beverage/food sector. They have recently decided to purchase over 1 billion dollars worth of energy credits over the next three years.

My next stock purchase (at the end of the summer) will probably be either Goldman Sachs or JP Morgan. Both financial institutions are at the top of their game when it comes to their business model. But both companies are also taking large smart steps towards assisting energy usage and conservation.

You can find more detailed information at www.gs.com and www.jpmorgan.com or by going to yahoo finance (link in side bar).

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Checkpoint bucks trend today

Hey

Checkpoint seemed to buck the trend on heavy volume closing the day up 2% while the rest of the market was clearly down. There was no news so I am unclear as to why there was such heavy buying. Stay tuned.

The Fed Chairman Bernanke came out with remarks about the economy suggesting that it will increase in the next six months. This brought some selling into the market as the thought of lower interest rates has gone away for a while. This might hurt some of the housing stocks going into the summer. The service sector jump seems to indicate some upcoming employment in the tech sector furthering the maturation of the internet economy.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

If you have any more questions or comments, you can also email keanemd@gmail.com

Continued Greening

Hey

For anyone wondering whether or not the green movement can be a profitable venture, please pick up this month's copy of SFO magazine. It has about ten different articles on green businesses and shows examples of both profitable green investments and losing money green investments. The cover article is on the CEO of Patagonia. The link is www.sfomag.com.

I wanted to bring up the topic of recent purchases of public companies by private equity firms. I am young to the business and would like some knowledge as to the pros and cons of this type of venture. Is this a reaction to Sarbaines-Oxley legislation?


The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

gap filled

Hey

The gap from Checkpoint has been filled with today's trading. I am not impressed with the volume but it did break the bollinger bands to the downside. That is telling me that the June call is very unlikely to produce a profit. I will be holding this call because my R loss (amount of total loss known or allowed) was the total call anyway.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

graph for checkpoint

Hey

The following graph indicates that there is a good chance that there will be a move very soon. The last time the bands were this close (within 1.15 points), it popped 1 1/2 points. I am thinking it will happen again.

The Wikiwealth portfolio consists of the following:Pepsi Stock (www.pepsi.com)Checkpoint June 25 Call (www.checkpoint.com)

Sharebuilder Money Market (www.sharebuilder.com)

Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

checkpoint

Hey

I have been keeping close track of my checkpoint call and I am thinking that with options, there needs to be a longer time frame for if you are the purchaser. I will have to amend my rules to make sure that happens.

For those that don't know, I currently have a June 25 call. I still think that it will be profitable after this week's option expiration. But I could have managed the trade better.

I have been learning a lot since I started cataloging these trades and using the diary and my blog. I understand Fibonacci movements well and now am studying Gann movements (They seem a little tricky).

Oh, before I forget, Pepsi hit a new high today!

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

Checkpoint

Hey

I just purchased a June call option on Checkpoint. The stock just finished a retracement and the candlestick formation seems to confirm this. It broke out of its top band and the MACD is bullish. The trend lines are also heading up. As always, a stop (hopefully) has been correctly placed.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

Pepsi raised dividend

Hey

Pepsi today announced that they are raising their dividend by 25% and that they will buy back another 8 billion dollars in shares once the current buyback is finished. They will basically take one billion dollars of shares off the market this year alone. News stories are below.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070502:MTFH36275_2007-05-02_12-35-31_WNAS9135&type=comktNews&rpc=44

http://biz.yahoo.com/ap/070502/pepsico_dividend.html?.v=1


This reminds me of a blog I did earlier about compound interest. I added dividends to the mix into the story. Any time a company wants to give you money for investing in their stock is wonderful. This is a principle to becoming wealthy.

Pepsi's energy buy

Hey

This is big news. Pepsi plans to purchase over 1 billion dollars worth of energy credits over 3 years. This is a leader. The article is below.

http://biz.yahoo.com/ap/070430/pepsico_renewable_energy.html?.v=1


The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

retirement effect on market

Hey

With babyboomers starting to retire, I am wondering what effect that will have on the market. Are there stocks that will be heavily hit by mandatory 401K sales in the next decade? Is there enough capital from younger generations to support the level of investment made by the boomers?

If anyone has thoughts or direction on this, please pass it along.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

SFO

Hey

I wanted to write to let you know of a magazine that is worth its weight in gold. The magazine I speak of is SFO (short for stocks, futures, options).

This magazine covers most of what any investor needs. It is based on futures, but stock traders and investors can get a wealth of information from this magazine. I recommend you check it out and get a free copy.

The website is www.sfomag.com.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.

Pepsi's earnings

Hey

Here are some stories that explain the earnings for this past quarter.

http://www.businessweek.com/investor/content/apr2007/pi20070425_529061.htm?campaign_id=yhoo

http://www.thestreet.com/_yahoo/newsanalysis/food/10352721.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

As for my GE trade, I think I was the last person to sell. I really sold at the bottom! Crazy, but it happens. Like I said before, on to the next trade.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.

stopped out

Hey

For all my and brilliance on the June 35 call, I was stopped out and sold. As much as I didn't want to be stopped out and hold on, the facts are the facts. The call reached the price, and I sold. On to the next trade.

Earnings for Pepsi come out tomorrow. I would assume they will match or beat by a penny as is customary for this company.

Cheers!

New High

Hey

It looks like the Dow has exploded! I read a bit about the lack of supply recently from Cramer at www.thestreet.com.

I just purchased a June GE 35 call. I feel comfortable that it falls within my parameters. It is right at the money. It is at a support. The trend lines (200,50,20) have all converged at 35. The earnings were solid.

There seems to be plenty of volatility coming alive. Options might be a way to exploit it. But be smart.

Oh, Pepsi hit a new high! Yeah for retirement.

Cheers
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
GE June 35 Call (www.ge.com)

Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.