Reaching For The Panic Button?

As you can see below, it has not been a stellar start to the new year for our stocks. Nasdaq has outperformed our top 3 holdings so far and begs the question: Have mistakes been made here?



Here's why we're not quite in full panic mode just yet:
1)It's still a brand new year, and there are still 355 days to meet our goal.
2)Nothing has fundamentally changed with our selections. There has been no significant news, good or bad, that would cause us to second guess ourselves just yet.
3)The market has given us an opportunity to add to these positions, or start a new position in another security.

Don't lose sleep to red ticker quote nightmares. Enjoy the multitude of stocks on sale and find a fast fortune.

Stocks Double in Six Months

The new year will bring a new direction and focus for this blog. The writings here have always been meant to follow the story of building a fortune out of nothing. This began in June when I asked my youngest brother to split a $100 deposit into a Zecco Account just to see what we could accomplish in a short amount of time, helped with zero commission trades. The result: We doubled the money as 2007 came to a close. We did a great job in a short amount of time and this has inspired some goals for 2008.

1)Make it a family affair. Three brothers collectively sharing ideas and making money.
2)Double again by Dec31, 2008 (or sooner!)

We will begin by doing an account reset. $50 is on its way into the account. I've also included my excess holdings into our figures which unfortunately did not do remotely as well and will drop our overall percentages. All together we will be starting with holdings totaling $297. Rounding up a bit we arrive at a year end goal of $600.
Gone this year are the free trades though, as our account is under the new $2500 minimum account balance that is required. We simply have to work that much harder and make wise choices in our stocks.
Stocks that are currently in play:
CBAK
FRPT
DFNS
IOGH
I hope everyone's new year is off to a great start and wish everyone a fast fortune!

Gaining: CBAK, FRPT

As mentioned in previous posts, we recently acquired CBAK and FRPT and both are performing very well for us. Since picking up a few shares of FRPT at $4.05 we see the producer of mine resistant vehicles holding steady:
We may continue to accumulate if we see a nice dip before January 1st. Foreign orders and Cheetah updates could propel this stock higher.
CBAK saw a nice pop today and then settled lower at the close. Our entry point here was averaged at $4.05 also:
We will hold both stocks going into the new year.
Also: Sold off ONNN @9.oo today for small gain.

FRPT: Buy On Panic?

FRPT is a stock I've kept my distance from ever since it fell below th $18 mark. The big boys started winning a bigger percentage of military contracts for vehicles and the shorts swarmed. But today, after again getting the short share of a total $2.6 billion in government spending, FRPT simply got bloodied up and my gut just told me to pick some shares up. I started a position at $4.05 and the price rose steadily through the day and closed at $4.93. We shall see how the story continues to unfold on Thursday. For now, a quick gut decision has made a small profit.

The Case for ONNN

ON Semiconductor (ONNN) came into my sights when I visited my brother in Scottsdale, AZ in November. In Phoenix they have a pretty nice looking facility I later discovered was HQ and when I saw their name on the building I made a mental note to check the stock upon my return home. So what do these guys do?
The answer: Power solutions and semiconductor devices. This you may already know. But let's look at some their customers. This was the big eye-opener for me. How about names like Apple, HP, Bosch, Delphi, Cisco, Dell, Honeywell, Intel, Motorola, Nokia, and Samsung just to name a few. They have a global logistics network in place to meet these demands. So how are they doing?
Lets look at Net Income.

PERIOD ENDING

31-Dec-06

31-Dec-05

31-Dec-04

Net Income

272,100

100,600

(123,700)

Pretty nice trend here. So why is the stock getting beat down of late?
Quarter 3 for ONNN didn't meet analyst estimates as there was a decline over last year same period and for the second quarter in a row. Add to this the overall sentiment of the markets lately and ONNN has certainly taken its lumps. So why am I enticed even though there is a chance that ONNN may not meet last years income numbers?
ONNN has just announced that they have agreed to purchase Amis Holdings. Amis supplies integrated circuits for the Auto and Medical fields. While the premium paid for Amis is a bit high, and the work to be done on Amis's low margins need some work, I like that ONNN is expanding their horizons and finding new revenue streams. With the lowest PE among their competitors I like ONNN to return to $11/share very soon.. I will be buying on every dip.

Fed throws the brakes on December rally

Did anyone jump off this cliff today? I'm sure most investors sure felt like it. Looks like some nice jagged rocks on the bottom to ease the decent as well. Well, after a nice 300 point free fall into the red abyss, I do as most investors do after the heart rate returns to normal: Put things in perspective. No the Fed did not make us feel nice and warm and feeling good about our economy leading into the holiday season. What the Fed did do however was gift wrap a big buying opportunity for the smart investor who realized a half percent rate cut was not coming. The investor who took a little off the table and has a little cash on the side for such an opportunity just got Christmas a little early this year.

Stocks to Watch: CBAK, VSR, ONNN, CC

Hope everyone is making money today.
Retailers are expected to release their numbers this week. Will it be a profitable holiday season? It's a sector I'm truly going to stay away from. Except for maybe Circuit City. I've always thought they had much better deals than Best Buy and I have to think I'm not the only one that sees that. Here's a retailer that has fallen this year from $25 to the $6 range and I see this moving up a point or two easy through the holiday run up.
I've recently started small positions in the following:
CBAK- Two new production lines now complete. They are rumored to be for supplying HP, but maybe there is a nice surprise in the coming weeks. This company has recently made moves for big growth in 2008.
VSR- Way oversold and tremendous backlog.
ONNN- Should rebound after getting beat down last 2 months.