I haven’t done one of these in a while, but I felt compelled to do so given great value I found today. My stock pick for the day is Rock-Tenn Company (RKT) at $101.93. If you have never heard of them, that’s okay. Continue reading
Imagine if I were to give you one million dollars to invest with right now. What would you invest in? As a beginning investor, it’s easy to believe that you have the ability to find the right stocks at the right price. One problem that people incur during their early investing lives is that they believe that they can beat the stock market. By utilizing stock market simulation games, you can track your investment performance over time before you decide to jump into the stock market.
Young investors can benefit the most from utilizing stock market simulation tools. One particular website that I used when I was still learning about stocks was smartstocks.com. They give you one million dollars in imaginary money to invest in whatever stock you want. This gives you the opportunity to learn about investing.
It is important to utilize stock market simulators like smartstocks.com because they allow you to track your true performance over time. Many people believe that they knew the winners in the stock market before they made it big. They fail to remember the companies that failed that they also believed would be big winners. By utilizing a simulator, you can buy and sell stocks virtually and keep track of your performance over time. This will allow you to learn how good you truly are at picking winners and losers.
Keep in mind that if you do well in the short term, it does not always mean you will perform well over the long run. If you only utilize a stock market simulator for a few weeks and do well, you will not get the full effect than if you were to do it over a longer period of time.
Personally, I utilized a smartstocks for a few years off and on while I was in college. Utilizing a simulator allowed me to get my feet wet in the stock market. I learned that predicting the markets are not quite as easy as I imagined. Despite picking many winners through the simulator, I picked a few losers as well. These losers essentially wiped out any gains (and then some) I made from my winners, making me realize how important it is to diversify.
If you want to begin learn about the stock market, but don’t want to risk any of your own money quite yet, find a stock market simulator game online and try your hand at it for at least three months. Track how you perform compared to the market as a whole and build confidence in your investing abilities. If you still enjoy picking individual stocks by the end those three months, then you are well on your way to picking your own stocks for your portfolio. Sign up today at smartstocks.com and get started today!
Note: I am not affiliated with smartstocks.com in any way
Today’s stock winner of the day goes to…Silicom! Silicom (SILC) finished the day up 29.6% after their fourth quarter earning report this morning. Silicom experienced its best year ever after posting revenues over $73 million, an increase of over 50% on the year.
Silicom is a stock I bought back in December at $40.90. I have experience over 47% growth in only a month from this stock! While the gains have been nice, I will not let this nice gain affect my future decisions. I dedicate a small portion of my portfolio to speculative stocks. That way I decrease my risk of losing a lot of money while having an opportunity to make a nice chunk of change in the process.
More about Silicom: Silicom provides the networking industry with connectivity and networking solutions. Sales and earnings have continued to grow steadily over the past four years. They have low debt and carry over $37 million in cash and cash equivelants. Return on Equity and Return on Assets are 17.4 and 15.1 respectively, which are well above their industry average. With net income growing an average of 52% a year for the past three years, Silicom is a stock worth looking at.
Hess Corporation (HES) is a stock that worth checking out. The global integrated energy company closed at $81.12 on Thursday, a drop of 2.27% from its opening price.
The company has been reshaping their portfolio to help shed non-core assets. Hess sold $1.3 billion worth of assets in the start of December as they move away from refining and focus on exploration and production. This will help the company increase profitability and return cash to investors. The strategy appears to be working, as the company has increased earnings per share 23.1% in the past year.
Hess appears to be undervalued, with a PE ratio at 7.9 as of today. This is below the industry average PE ratio of 10.3. In addition Hess has only finished the year with a PE ratio below 7.9 only once in the past ten years. This could be an opportunity to buy this stock for a great bargain price.
If you don’t already know, this is my personal finance and investing blog! I periodically post my thoughts about finance and investing to try and help you out to create a better future for yourself. I also post some suggested stock picks every once in a while. Some people have actually asked me if I invested in the stocks I suggest. To which I say “Of course!” (when I have the money to do so). So that inspired me. Today, I have decided to post my portfolio for you to see. I believe that it is important to be as transparent as possible and I know this is a great way for all of you to see what I love to do.
Before I post my stock positions, I just want to give you some background information. I just recently started investing (real money) at the very beginning of August. During the months of August and part of September I tried my hand at buying and selling on a short time horizon. This didn’t work out quite as well as I hoped and I ended up breaking even. Since about mid September I have been investing and going long on many of my positions. For someone like me, this is the best thing that I can do given that I don’t have unlimited time and resources.
Also keep in mind that I started out with about $5,000 and have added a little bit every month. I currently have about $11,500 in principal invested which has a current fair market value of $12,000. Without further ado, here is my portfolio:
Hope you enjoy and Happy Investing!!
One stock that has interested me lately is Baidu. Baidu (BIDU) is currently trading at $151.92 at the mid point of today. Baidu is considered by many to be the Google of China. Baidu’s total revenues have nearly tripled over the past three years. In addition, Baidu’s quarterly profit rose 1.3% recently as they invested in expanding their mobile business.
Stocks were recently up as much $169.75 following their quarterly earnings release. I believe that this is a great opportunity and could be a solid stock to buy and hold on to for the long haul.
My stock pick once again is…Apple! AAPL is trading at $482.75 at the end of this Friday evening. There are a number of things that make this stock attractive to me. Everyone and their mother knows that Apple released the iPhone 5S and 5C. Apple expects sale of their new iPhones to reach up to 9 million in the first weekend! They also rolled out their new operating system, iOS 7 which has had a very positive reception among users and experts alike. In addition Barclays Capital has raised their price target for Apple up to $540. Although price target is not a reliable figure to look at, it is optimistic when you consider Goldman Sachs ($560), Duetsche Bank ($575), and Lazard Capital ($570) have all raised their price targets for this stock.
My first stock pick for the day is Apple (AAPL) which fell $11.53 to $494.64 on the day. Apple just recently introduced their iPhone 5S and 5C today. Many investors were selling today on this news, embracing the idea to sell when there is news and buy when there are rumors. I like the Apple stock right now and like where they are going.
My second pick is Phillips-Van Heusen Corp., whose stocks fell today -5.64% to $124.66. They fell due to a weak outlook, but I still like this stock to bounce back.
My stock pick for the day is Coca-Cola Co (KO). Coca-Cola finished the day down $0.28 and -0.73% at $37.90. This is amidst reports that Coke has been “greenwashing” or exaggerating the product’s environmental benefits.
Why should you buy them? Goldman Sachs upgraded Coca-Cola from “Neutral” to a “Conviction Buy” today. Analysts like their risk/reward ratio and see their shares climbing up to $47 dollars a share. Coca-Cola also offers a dividend of $.80 a share, or 2.11% of its stock price.
Occasionally I will write posts about stock picks that I think are great opportunities to earn money in the short-run and/or are good stocks to buy a low prices.
My first stock for today is Metlife Inc. (MET). Metlife is a stock that fell $2.07 and -4.32% today to $45.85. Analysts still have them ranked as a strong buy, I wouldn’t worry about the stock going down too much more. Look at Metlife as an opportunity to make a short-term gain as their prices bounce back.
Discover (DFS) fell $1.98 and -4.03% to $47.21 one day after Visa took a similar tumble. The US housing and jobs markets have been improving, which have spurred an increase in consumer spending. Consumers are going to continue to use credit cards as spending continues to climb upwards.