starbucks straddle

Hey

Starbucks might be in for a good three to six month straddle at $27.50. The Bands are closer than they were before their most recent breakout. The volume has dried up. The Average true range has also shrunk. I believe there will be a breakout. I obviously just don't know which way which is why I am suggesting a straddle. A chart is below.

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)

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)

Etrade

It seems the recent ridiculous movement of the stock market has created some decent opportunities to pick up some valuable stock at a decent price.

The one that is screaming out to me is Etrade.

The PE is 11 (very low), the growth in earnings is projected to be in the 20% range, and their exposure to bad loans is little. In fact, the most recent earnings report showed their credit rating rose!

With the volatility rising, more people have traded this month than expected. Couple that with the big boys returning next month to their desks, the company should easily make their earnings estimates.

The stock has been hammered almost 20% since their earnings release.

I recommend taking a look at this stock. I currently do not own shares in Etrade.

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

Pepsi = Green

Hey

Pepsi just announced in a recent article that they will be talking about and offering recycling at the Live Earth concert. I also noticed they have a woman North American president. The article from Yahoo is below. On another Pepsi note, I just received the quarterly dividend from Pepsi. It was 25% more than last quarter. It will go towards purchasing more shares. Thanks for the free stock!

http://biz.yahoo.com/prnews/070705/nyth049.html?.v=101

I have just added the bond ETF AGG to the portfolio. I know that this will probably not garner much added income right away, but I believe that adding another safe income generating instrument to the portfolio continues the base formation of the portfolio. I don't need to get to the top of the mountain now. A few steps at a time. I have started to track the monthly interest and dividend income generated by my investments and will continue to see it grow with this purchase.

The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
Sharebuilder Money 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

Spreading and Creating Wealth

Hey

This past week the University of Chicago (www.uofc.edu) received a donation of 100 million dollars to be used solely for tuition over the next 15 years. The grants are to be given to students whose families make 75,000 dollars or less a year. I feel that this donation will create far more wealth than the 100 million dollars given.

This type of donation will spread wealth by giving parents a break on the task of paying tuition and allow that money to go into investments for retirement or business. It will create wealth by allowing students to go into the workforce with minimal debt. That should allow a more robust saving and investing that will in turn help the economy.

This donor has recognized that the less debt students are able to leave school with, the more financially stable they will be in the future. I hope more affluent individuals realize the overall good this type of donation will create for the economy and society. Having buildings and scholarships in your name are great, but giving others the financial freedom to pursue their dreams at this high level is truly honorable.