Trust Yourself

It seems to me that with the ease of trading online instantaneously,
America has become a stock market based on emotions. I have invested
in the markets for years now, and the most beneficial way I have found
to feel confident in any kind of investment deal, is to do your
homework. If you are interested in a company and are thinking about
putting some of your savings into their business, take a step back,
analyze the full company, come up with a price range that you find the
company worth, and then compare it to market value. If the price you
come up with (through many hours of hard work) is higher than market,
then your company is undervalued and it is a good investment. If the
price point you reach is lower, then wait it out for a while.

I did this for apple about a year ago. The price range I came up with
was between 100 and 120 dollars per share. I didn't buy in because
aapl was trading at prices much higher than this. At this point in
time, Apple is trading lower than the company is valued. At this
point, due to my analysis, aapl is worth between 120 and 140 per
share. I am choosing to buy at this time.

One may ask, "If Apple is worth so much, then why are people trading
it at below 100 dollars per share?" The answer to this is emotion.
People are trading on emotion right now. Yes the economy is in a
downslide, yes we are going through tough times, however, in the end
(may be 2, 5, even 10 years from now) when this mess has cleared, the
companies that are not sucked under will again rise and maintain their
true value.

So my bit of advice to you, ironic in the sense that you are reading
this now, is to avoid all of these forums and emotional biases from
mainstream investors, and take matters into your own hands. Do your
own homework. Don't listen to emotion.

Good Luck to All,
-Andrew

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Options Trading For Dummies

With the introduction of trading options over the Internet, it has become possible for new and small investors to start options trading. Earlier, the market was not easily accessible to small investors. Banks, multinational companies and large conglomerates were the only ones who were engaged in trading. With the help of technology, now everyone can derive benefits from this low risk, high return market. However, a proper understanding of the system is necessary to avoid losses. This is where the options trading brokers are helpful. Brokers help individuals as well as institutional investors to establish their accounts for options trading.

Options trading is a relatively new option that has emerged for small investors. Brokers allow investors to open their trading accounts by putting down a comparatively smaller down-payment. They offer the investors a quick and inexpensive way to trade from the comfort of their homes or offices, day and night. Many of these brokers online websites offer demo or trial accounts that help the traders practice their trading skills. These accounts also help increase the knowledge of the functioning of the actual options trading market.

The best trading options that could yield the most profit can be selected with the help of a reputed forex trading broker. The major factors to consider while choosing a trading options product are feedback from other traders about the product, broker's advice, and its past-recorded trend in the options market.

In options trading, the strategies make a lot of difference. To decide on any particular strategy, traders must understand the trends of the market. A key strategy to limit losses is to identify and exit the loser as soon as possible. The volatility of the market is another point to consider. Traders' success in the trading market depends on their understanding of the market trends and the information they possess. Brokers keep traders informed of market fluctuations, which help them to take maximum advantage of the forex market.

DIfficulties in trading options arise when your prediction of a short term trade is in fact the opposite of what was expected. Many times an investor will chose to get "in" on an option before earnings are reported in hopes of making a short term exponential "jump". The chances of your predicting correctly is actually greater than 50:50 however one thing to weigh is the fact that ALL of the money can be lost if you are wrong.

For more information and an excellent in depth explanation of the different types of options trading and how to get started in this kind of investment, please visit www.888options.com

Thanks to Kristy Annely.

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Apple In The Courts

According to Macrumors.com

qtd in.

In April, we reported that a company called Psystar was offering the first Mac clone. Using off the shelf PC parts and a modified version of Mac OS X Leopard, Psystar promised a cheaper alternative to an Apple Mac.

Despite some initial concerns about their legitimacy, Psystar has delivered what they have advertised and later even offered software updates and server models.

Throughout, Apple has remained quiet about the company and many have expected that they would pursue legal action. AppleInsider reports that on July 3rd, Apple filed a formal complaint against the clone manufacturer. Apple's lawsuit is said to on the ground of copyright infringement.
The Mac maker filed a formal complaint in the U.S. District Court for the Northern District of California on July 3rd, just one day after Psystar began distributing a modified version of the Mac OS X 10.5.4 Leopard update to customers who had previously purchased one of its unauthorized Mac systems.

end qt

This news comes at a very volatile time in the market. While this could mean a small cash out for Apple in the end, it is such a small case barely worth their time and so is a hinderance to their ongoing research and productivity.

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The Gas Geyser: Price Of Oil Skyrockets

Unfortunately, while gas prices have gone through the roof, people's paychecks have not. Which has probably left you wondering how high gas prices will go and whether or not you'll be able to keep your head above water.

Gas prices are affected by several factors. At the local gas station, gas prices are set by the cost of replacement. Basically, gas is priced according to how much it will cost to replace it rather than how much it originally cost to buy it. This means you have to pay for the fear of rising prices.

The rising price of crude oil is another factor that has caused gas prices to increase. This is attributed to the actions of some investors who have started bidding the price of a barrel of oil ever higher, resulting in record high gas prices.

These two factors work together as speculators begin buying more in anticipation of higher profits, which in turn causes prices to rise, resulting in a vicious cycle of ever rising prices for consumers.

All of this is compounded by the ever-weakening US dollar. When our currency gets weak against that of other countries, the foreign oil companies begin to charge more for gas. This, again, is another example of a vicious circle pushing prices up, since rising gas prices negatively affect the economy, which drives the dollar down and, well, you get the idea.

So how high are gas prices going to go? Investment firm Goldman Sachs, one of the world leaders in finance, anticipates that crude oil will rise 25 dollars per barrel. In general, a dollar increase in a barrel or oil results in a rise in gas prices at about 2 cents per gallon. So $6.00 per gallon may be coming!

If Goldman Sachs is correct, you're looking at another 50 to 60 cent increase in the price of a gallon of gas. For most of us that means gas prices of $6.00 or more. On a more positive note, gas prices are expected to drop again in the fall, but don't bet on a return to $2 per gallon any time soon. Keep tightening those belts and do everything you can to get better fuel economy.

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A "Soft" Spot For Microsoft

You would have to live on top of the highest mountain in the heart of the Himalayas, and be without computer or television to not know who Microsoft C.E.O. Bill Gates is.

Gates is an American business magnate, philanthropist, the world's third richest man (as of 2008), and chairman of Microsoft, the software company he founded with Paul Allen. During his career at Microsoft, Gates held the positions of CEO and chief software architect, and remains the individual majority shareholder with more than 9% of the common stock.

Now Gates is positioning himself to step down from his full-time work at his own software development company and charge gears just a bit. He plans to put more time and effort into his philanthropic endeavor, the Bill and Melinda Gates Foundation (founded mostly by his own fortune). His decision won't elude his presence in the media. In fact it will keep him in the publics eye for many years to come. "If he was the third-richest man in the world, I don't think there would be anything near the mystique around Bill Gates that there is," says Gary Rivlin, author of "The Plot to Get Bill Gates."

Recently Gates dropped from the number one spot on the Forbes Magazine's Worlds Richest People. Still, his estimated fortune is around $59 billion, and he will always be remembered as the world's richest man. "It's almost like being compared to God, in some ways. People would say, as a matter of speech, he's not as rich as Bill Gates," claims Michael Cusumano, a professor at the Massachusetts Institute of Technology's Sloan School of Management who has written several books on Microsoft and the technology industry.

Perhaps even more amazing than his fortune is the entrepreneurial story of how he obtained it. Though he comes from a well-to-do family and has many privileges such as education at an elite private school, his story is still quite unique. He is credited with being among the earliest people to note the enormity of which the computing and technology industry could grow to. These include the power of the personal computing and the potential to make a fortune selling software. Driven by his new ambition, Gates dropped out of Harvard and started Microsoft with his high school friend Paul Allen. With this solid foundation they built one of the nation's most successful corporations.

Ed Lazowska puts it into words when he says, "It's easy to lose track of the fact that this is two kids with a dream." Lazowska is the chair of the computer science and engineering at the University of Washington and serves on the technical advisory board for Microsoft's research team. "I think there are other people now as well as Bill, but I don't think his influence has diminished."

Gates has done more than create an amazing success story. He has, in fact, made the image of "geek" a more socially acceptable persona. At this year's CES (Consumer Electronics Trade Show), a parody video about his impending departure from full-time work at Microsoft showed Gates playing with action figures in his office, pumping iron with Matthew McConaughey, trying to talk Bono into letting him join U2, and even trying to convince Jon Stewart he'd be a good Daily Show co-anchor. The short film flattered him, but it also shed light on the fact that aside from being a technical guru and business executive, Gates holds a strong place of power in popular culture.

Recently Microsoft has been involved in an antitrust trial. Opinion polls that have been released, however, show that Gate's public opinion has not been seriously hurt by the trial. "We have this love-hate relationship with ruthless and successful people," says Andy Gavil, law professor at Howard University. Gavil closely followed the trial and is currently in the process of completing his book on Microsoft. "We admire them even though we fear them."

Many who watched Gates at the height of the U.S. antitrust trial have been surprised by his transformation into a major philanthropist. He is now intent on solving major global health problems. This dichotomy is yet another reason for the public's fascination with him. "It's extraordinary that this guy in the late 1900's who was so fiercely competitive, is deciding at a relatively young age (his mid 50's) to give most of his energy, not to mention half if not more of his money, to philanthropy," says Rivlin. "It's just shocking."

The company of Microsoft will neither benefit nor hurt from this major change in administration. The next person in charge will keep the company moving at the same stagnant pace it has been at for the past couple decades. As share holders, the stock will not lose value. In fact there is a much better probability now, that the common stock's value could begin a slow rise. If you own Microsoft, continue to hold it. If you don't own the stock, keep watch and look for good opportunities to buy in. Now may just be one of those opportunities.

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A Tribute To Warren Buffett

When investors think of the one person they would most like to portray in the investment field, there is one person who comes tom mind. Hiss success in the stock market is an admirable accomplishment. This man is Warren Buffett. He is depicted as an extremely successful and ethical investor that has made his money through dedication and diligence.

Buffett's entire life is a direct testimonial to the American Dream and a prime example of what can be achieved through intelligent investing. He holds the second spot on the list of America's most affluent men. He is unique in this way because almost all of his success was earned by investing in other companies. Warren Buffett presently presides as the C.E.O. of his company, Berkshire Hathaway (brk.a). He acquired this company in the late 1960's building it up and sculpting it into the highest priced and most fruitful listing on the New York Stock Exchange.

Warren offers an unusual persona as a business man. He describes himself as an "introvert with  simple tastes and a disheveled appearance. Take this shy, grandfatherly exterior and mix it with a commanding aptitude for power investing constantly seeking out talent in the corporate world and you get and unstoppable combination. 

Buffett's philosophy is diligently studied, he is idolized, respected and recognized all over for his success. Conservation in business and appearance shows he is liberal at heart, which is sharply different from his peers. He has set the standard for and broken the stereotype that a successful business man cannot flourish financially and maintain a solid set of ethical ideas.

Warren Buffett was a "reluctant" philanthropist at first shying away from donations in general. It was his wife and traveling companion, Susan, who inspired him to give money to a number of local charities. These nonprofit organizations were mainly helpful to poverty stricken regions of the US. Even though he believed that these organizations would misuse the funds he donated to them, he still donated freely. He supported his wife's ideals and became an active participant in her causes which centered around birth control and homeless youths. Together the pair created a foundation called Glide. This organization was a joint venture used to direct monetary contributions to these particular causes.

Currently Buffet remains at full-invest mode constantly scouting out a new company to buy up or market to invest in. We here at Squawk want to honor Warren and salute his investing career. Thank you Mr. Buffett.

-Squawk

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Google Finance Fun

On March 21, 2006, Google, Inc. launched the new Google Finance website. The service features business and enterprise headlines for many corporations including their financial decisions and major news events. Stock information is available, as are Adobe Flash-based stock price charts.

Google launched a revamped version of their finance site on December 12, 2006, featuring a new homepage design which lets users see currency information, sector performance for the U.S. market, and a listing of top market movers along with the relevant and important news of the day. A top movers section was also added, based on popularity determined by Google Trends. The upgrade also featured charts containing up to 40 years of data for U.S. stocks, and richer portfolio options.

Every once in a while, Google will have a glitch in their system. Just yesterday, Apple Inc. (aapl) was showing a $4.47 gain during trading hours and a $4.50 loss in after hours trading. This was known not to be true. Though rare, we have caught some of their mistakes in screenshots and thought we would share them with you. So sit back and enjoy a lighthearted few photos from Google Finance.

First up, Tele Norte Celular (tnc) with a gain of $198,986.95 

And again as a top mover...

Here we have Cons. Cyclical taking a huge hit...

And finally we come to Squawks top stock pick of the millennium, United Industrial Corp. (uic) with an outstanding performance of more than 10 billion percent gains in a day!

We hope you enjoy these wonderful stocks. But remember, we here at Squawk highly recommend consulting your investment advisor before making any serious investment decisions.

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Calling All iPhones! Calling All GPhones?

Google Inc. is in a position to develop its own mobile cellphone and incorporate wireless Internet into the device with hopes of competing with Apple's iPhone. Code-name gPhone by the Tech community, Google is not in facet creating a telephone with a google like operating system. Instead they are hoping to persuade wireless communication companies and cellular telephone makers to use their own software in the phone. Their plan is to have Google offset the advertising costs of manufacturers to make the devices more attractive to companies so that they will jump on board.

Byron Acohido of the USA Today writes, "Google`s widely anticipated (not to mention top secret) GPhone mobile phone project could trump Apple`s glitzy iPhone by going low cost and low tech." Google recently acquired Finnish company Jaiku who holds a multitude of Short Message Service patents (SMS), which is the technology that enables the exchanging of short messages between cell phones.

Google currently holds a 29% share of the US Market over 16% to Yahoo according to internet marketing research firm eMarketer, and would like nothing more than to control the mobile device market such as cell phones, blackberry's and more, including their own GPhone. Their market share recently skyrocketed when Yahoo! announced it will be listing ads with Google on their sites. On this news Google's stock rose to a whopping $600 per share, speculating that Google's profits may climb to as high as 50% over last year's numbers.

Acohido reports that, "Richard Doherty, research director at The Envisioneering Group, claims Google is driving toward getting device makers to produce basic handsets equipped with a "Gbutton" that takes users right to a Google texting screen." According to Doherty, "Their goal is to get GPhone texters in the habit of querying its vast databases for directions, phone numbers, movie times or restaurant tips and woo advertisers to sponsor GPhone-delivered answers." Apparently the hush-hush top secret project by Google (said tongue in cheek of course), is already in a phase where a model is being designed with rumors abound that includes a Google browser and access to Gmail and YouTube (both of which are Google operated, and both of which are already accessible on the iPhone by Apple).

The first question that all consumers will ask of course, is about the cost. The iPhone was introduced at a price of around $600, only to be dropped $200 dollars in price after the initial hype wore off. Google insiders claimed that the GPhone will be offered at a fraction of the cost of the iPhone, Blackberry and Palm Trio, but this is becoming more and more difficult for Google especially because of Apple's recent announcement of the iPhone 3G and the new price tag of $199 per phone. Google will use its power of advertising to reduce the price of their gPhone, but one drawback according to Acohido is that, "cell phone carriers want a cut of the advertising revenue". A cut that many say Google isn't ready to give.

Although nothing has been released as far as an agreement between Google and a cellular provider, manufacturers are said to have devices ready to go and according to Acohido, "could be ready to be on the shelves in a matter of weeks." The Gphone will be aimed toward a younger consumer. For those teens around the neighborhood, chances are this may be the next hot item on it's way just it time for the summer craze and the holiday season to roll in.

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Yahoo! Ads On Google

Yahoo! which is in a heated battle against a takeover attempt from Microsoft, said Wednesday it would host search advertising from Google, one of Microsoft's many rivals. This test-drive, expecting to last for two weeks, could show whether Yahoo! can raise more funds counter balancing its already tanking revenue by outsourcing a key part of its business to Google.

Yahoo! released a statement claiming that it would run ads as part of an experiment that would only last up to a couple weeks and would be limited to no more than 3 percent of their searches. "This is only a limited test and does not necessarily mean that Yahoo! will join the AdSense program." As with most deals like this, Yahoo! would receive the majority of the money from the ads and Google would keep the rest. This would also allow them to make significant job cuts to their search-advertising team, saving them a lot of money, say analysts.

The competition with Google in search-based advertising is the sole reason Microsoft wants to acquire Yahoo!. Microsoft said last Saturday that if Yahoo! did not agree to their offer in three weeks, they would attempt to overturn the board of directors and replace them with those who would vote in favor. They also threatened to lower their offer for the company. Yahoo!'s reasons for resistance are uncertain. The company could be trying to show investors that it has found alternative ways to raise their profits, and ultimately its stock price, without being bought out by Microsoft. Yahoo! has said repeatedly that Microsoft's generous offer of $31 a share is below what they would like to see.

Analysts at Citigroup have calculated Yahoo! could boost its annual cashflow by 25% by outsourcing the sale of search ads to Google, because Google has more efficient technology and an agreement would allow Yahoo! to cut its own investment in this area. But a tie-up would give Google control of more than 90% of all the advertising sold next to search engine results, putting the deal at risk of being blocked by regulators.

In the end, Google once again comes out on top. They lead the market and the industry, and continue to improve their search capabilities. The company is growing at an exponential rate and their stock has proven that it can weather any storm that blows its way.

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Apple Seeds

Right now Apple is poised in one of the most lucrative positions the market has seen it in for almost half of a year. Rumors are running rampant. Here is some good history about the company courtesy of Yina Dong.

The Macintosh computer began life as the Apple I in 1976 when two friends, Steve Wozniak and Steve Jobs with the aid of some friends built the first of fifty computers for the Byte Shop for $500 each. This first Apple computer came equipped with a display screen (a rarity at the time), and was the first computer with a fully assembled circuit board. Eventually, the little group made and sold two hundred Apple I for $666.66 each. With loan of $250,000 Steve Wozniak, Steve Jobs and Armas Clifford ‘Mike’ Markkula joined forces to form Apple Computer on April 1, 1976. By mid-1977, they had improved upon the design of the Apple I and the Apple II was made available to the public.

Ever wondered why the Company was named, Apple Computer? Simply because the trio realized that “Apple” would come before the most famous name in computers at the time, Atari. Over the years, Apple Computers continued to improve, becoming cheaper thereby making it easier for many homes to have a personal computer. Apple was the first computer company to use GUI (Graphical User Interface) in their machines; a concept that was to revolutionize the computer industry. After many trials and errors, Apple came out with a true home computer, the Apple Macintosh or Mac in 1984.

The Apple Computer was the beginning of desktop publishing era. Apple revolutionized publishing with its magic combination of a PC, it’s LaserWriter printer and specialized software, Aldus PageMaker and MacPublisher. Aldus is now Adobe PageMaker. These components allowed the designing and printing of documents complete with text and graphics. It is for this reason that the Macintosh is still a favorite among the graphic design crowd.

Apple faced stiff competition from Microsoft, especially in relation to the cost of PC-clones. Apple’s popularity waned and the home PC market was taken over by Bill Gates’ Microsoft. However, there are still many different lines of Macs on the market today: the iMac and Power Mac being two of the most popular.


Times have changed for the company since they first began. Apple has planted its seed in many emerging markets. They now hold one of the top market shares in the computer and mp3 player categories nationwide. The company continues to grow and with the new iPhone 3G hitting shelves July 11th, we will see this company begin to take over market share in the cell phone industry as well. The stock is at a low and Squawk is upgrading it today to a strong buy between $150 and $185 per share. This is a window of opportunity for investors. Our projected sell point is $245 per share before the end of fiscal 2008.

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