TRADE UPDATE
Adding to PSTR at 5.05 - 5.15. Research on the company here. This is a long-term investment for us...I am happy to be adding at these prices.
WHO IS HOLDING YOUR HAND?
I've always thought of it as important. What is surprising to me is how many investors out there pay little to no attention to it. The people you are "holding hands" with when you invest in a stock are just as, if not more important than the fundamental picture. This becomes especially true when you are investing in restructurings -- PSTR being the most recent example. Whenever I am investigating a company for investment, amongst the many items I look into are which newsletters, investors or institutions are recommending or investing in the stock. Companies that have less of a following and are exhibiting bullish characteristics tend to make me much more excited than a company that is being drooled on by every investor and newsletter in sight. The majority rules in congress, but sucks in the markets. Whenever you are running with a herd, you can be sure that your final destination is prancing right off the proverbial cliff. With restructurings it takes on a whole new level importance. Why? The firm or group of investors taking part in the restructuring become the lifeline for the company. If you have an established group of investors that have a reputation for past success, are well connected and have a substantial capital base behind them --- then chances are that they will be successful with their current investment, as well. The research report on PSTR had an equal amount of information on the activist investor involved with the company, as it did the fundamentals of the company. They should be both be weighed on equal ground. Without a competent team of investors guiding PSTR through what has been a difficult period in 2010, then the fundamentals make zero difference. So what? They produce X amount of natural gas, have X amount of new wells coming into production, have X number of pipelines, have X as a price/earnings ratio. I have seen smarter investors than myself get bludgeoned to death by trusting in the brainiac calculations and estimates of valuation and future growth. Unless there is a catalyst --- a leader, to take the company to where it is supposed to be, nothing else will matter. Who is holding your hand? What company do you have in your investments? If you find that you're walking alongside a hooker, odds are you are not in the right...
T.BOONE PICKENS AND STEVE COHEN LIKE IT
Like what? Natural gas stocks. A couple links: http://fundmanagernews.com/steve-cohen http://stocks.investopedia.com/stock-analysis/2010/Pickens-Bullish-Natural-Gas-Call-Makes-Sense-CHK-DVN-XTO-XOM-BNI-BRK.A0122.aspx Why be bullish? Here are the top 3 reasons: 1. A legitimate alternative energy source that will be gaining acceptance as crude oil prices soar 2. Sitting at historically low levels 3. Environmentally more sound Not a matter of if, simply a matter of when. Research was presented on our newest holding - a natural gas producer - yesterday. Long-term hold, with fantastic upside. Do your research...find your play. Bottom line: don't leave natural gas out of your portfolio. The potential risk/reward equation is simply too...
OUR NEWEST PLAY ON BAKKEN
I have just sent "Fire" level members our newest play on Bakken. If you haven't read the research on the Bakken formation, please check it out. Our first Bakken play is up over 300% since we bought it in 2010. We expect something similar here.
RESEARCH REPORT – NEW POSITION – 7 PAGES
Zenpenny PSTR Research Report...
NEW ADDITION TO THE PORTFOLIO COMING ON MONDAY
Going to be releasing the research report on the newest addition to the portfolio on Monday morning. It is an oil/gas name...undervalued, activist/restructuring angle, with significant estimated upside. Looking forward to finishing up the research this weekend and presenting it to everyone on Monday. The research will be available to all Zenpenny...
THE GUN: OVTI – OH MAN HOMIE, THE MARKET IS PLAYING TRICKS ON ME
click on the chart below to enlarge:
OVTI – TRADE UPDATE FOLLOWUP
I do have room for one more allocation into OVTI should it decide to move higher from our initial entry point. This is a short to intermediate term trading position for the portfolios.
NEW MEMBER VIDEO
I try to put these out as often as possible for Fire Level members and once a week for Water level members. Tonight's video detailed a significant breakout in our subprime, restructuring play. I have been telling members for weeks that the consolidation was picture perfect, with the likely next move to be on the upside. Today we saw a breakout that came with significant volume. I did issue a "Trade Update" to Fire Level members telling them of an addition to our position during the trading day. Still a double from these levels, if not more. One of the more undervalued plays I have come across on a price to cash flow basis, not to mention the activist/restructuring angle which has acted as a catalyst. Sign up and see what Zenpenny is all about. You'll receive a 9 page research report detailing this name, along with two other holdings. And, of course, the results are guaranteed through our one of a kind incentive fee refund...