Friday, February 27, 2009

YHOO Still Hanging

So YHOO is currently hovering around 12.98. I bought it at 12.83, so it's about 1% over where I purchased it. It initially dropped after I purchased it and got as low as 11.98, which will definitely make you sweat.

The last few days have been positive for the stock because of rumors around a Microsoft sale, a large investor buying a lot of stock and organizational changes. This has pushed it up as high as 13.33 at one point. Yet I'm still not selling.

Here's why. The Dow is about 7,150 which is pretty damn low. It's as low as it was about 10 years ago, which means if you had just bought the Dow average back then you'd be a little over even assuming you received some dividends.

There is a lot of pressure building up for a rally. General consensus is that the floor for the Dow should be about 8,000. What's good is that YHOO is out performing the Dow, relatively. This means that YHOO went up while the DOW remained flat or went down. When the rally occurs, this should make YHOO jump up pretty significantly.

So what if the rally doesn't happen? Heh, that's why they call it gambling, uh I mean investing. If it doesn't happen you sit on it and hope for the best.

I'm convinced the rally will happen, because it's been going down for so long that mentally people are ready for a rally. As soon as any indicator occurs, people will jump on the bandwagon and drive that puppy up. It's called a sucker's rally. Which means the suckers drive it up and the non-suckers sell and take gains.

This approach is probably the most unholy, anti-academic approach in history. Real investors, smart investors hate people like me. I'm calling the stock market for what it is, an emotional response of slightly smarter than average people to CNN and Bloomberg. It's a bunch of sheep following other sheep leaving a trail of cash in their wake. I am the wolf that has discovered the pasture and am here to take my fill.

I guess I had too much coffee this morning. You may think I'm an idiot or a blowhard, we'll just have to wait and see what the money says.

Thursday, February 26, 2009

Movie Review: Burn After Reading

A while ago, we canceled DirecTV because we found ourselves watching TV just for the sake of watching TV. I like TV, but it became the only thing the kids wanted to do and it was much too easy to just let the TV babysit them. So we canceled it.

However, we didn't become completely Amish and we kept the TV around for movies etc. This could have been a mistake, because we eventually signed up for Netflix.

Netflix streams over the internet to the Xbox which is a little too convenient. In addition, we get three movies through the mail. Needless to say, I've been watching a lot of movies, some good, some bad.

Since watching movies is sort of a waste of time, I figured I 'd try to balance the uselessness with some helpful reviews.

I watched Burn After Reading last night. It's a quirky Coen brother's film with a fairly famous cast. Brad Pitt, George Clooney, John Malkovich and a few others all star in the movie.

It's sort of a weird spy movie. If you've seen any of the other Coen brother films; "Raising Arizona", "O Brother Where Art Thou", or "The Big Lebowski", think same type of comedy except with a spy like plot.

There were moments where I laughed out loud, but there were definitely moments where I was less than entertained. I'm not a huge Coen brother's fan, so you might have more luck.

Would I recommend it? Ehh, maybe. It's worth watching if your options were "Burn After Reading", "Power Rangers", and "Margo at the Wedding". Other than that, I wouldn't seek it out.

Tuesday, February 24, 2009

Laissez Les Bon Temps Rouler!

I wish I was back on the coast, freezing my tail off, drinking beer and catching Mardi Gras beads.

Mardi Gras on the Coast of Mississippi is an incredible experience, I think. It's been a while and I was usually inebriated. Despite the libations, Mardi Gras in Mississippi is a far cry from Mardi Gras in New Orleans and the two should never be confused.

Things have changed, I'm sure, but I remember Mardi Gras as a family experience to some degree. As a family we would head down to Biloxi early in the morning loaded with chairs, coolers, and blankets. It was like tailgating, except no football game. Instead you'd setup along the parade route with more family and friends and wait for some drunken fool on a float to throw you beads.

In between each parade you'd wander around the city looking for more friends and decent places to pee. Food was always available and shared freely and everyone was always happy to see everyone else. At least during the day. Once the sun set, it was time for the kiddies to go home as the drunks would be in full swing and a little out of control. This caused problems, but was all part of the mischief that is Mardi Gras.

I'm obviously not going this year, but maybe next year. Either way, Bon Temps Rouler!.

Friday, February 13, 2009

Since It's Friday

Friday the 13th no less. Here is something fun. An artistic, eclectic version of "Cribs".

The Selby

Tuesday, February 10, 2009

Yahoo! 270 shares

Bought 270 shares of Yahoo (YHOO) at $12.8388 a share. I'll probably sell tomorrow.

Thursday, February 5, 2009

Why You Should be Upset About the Bailouts

There are plenty of reasons, but here is an excellent graphic representation of why Obama is trying to cap salaries for executives.

http://www.vanityfair.com/online/politics/2009/02/bonus-babies-the-big-tarp-recipients-and-their-booty.html

And if that fails to convince you, then think of this fact. Bank of America has received over $40 Billion in TARP (Bailout) money. They're currently worth $25 Billion. We could have bought every single share of their stock and saved $15 Billion dollars. Instead, we own about 7% of the bank.

Yay for treasury secretaries who used to be CEO of Goldman Sachs!

Wednesday, February 4, 2009

Sold Wally World

Sold Wally World at 47.25 with a "Limit" sale I had put in last night.


This represents a loss of about 3%. It had been down 5% at one point and I decided to cut my losses. Obviously not the start I was looking for but I'm not overly concerned.

I have to adjust my strategy a little to account for a few things:

1. I'm on a cash account, i.e. not margin, which means it takes 3 days for the funds to settle before I can buy again.

2. I need to be patient. Wal Mart is still a good buy if I don't mind sitting on it for a month. I don't really want to sit on anything for a month, but this may be what I need to do.

3. I can't trade bank stocks.

It's definitely been interesting so far and I'll post some notes on the whole process later.