It was just reported that GRGR will issue a 10% dividend to shareholders of record as of September 30, 2007. That's great news and represents a doubling of last year's 5% dividend paid.
Perhaps even more interesting, and heartening to shareholders looking to stay in GRGR for a long-term ride: CEO Joseph Murray has vowed to put his entire dividend back into the company treasury, just like he did last year.
Like, who does this kind of thing? Are we being hypnotized by some kind of chimeric "perfect green stock" and the perfect socially responsible CEO, if there is such a thing? Is Murray going to peel away his rubber human skin to reveal a horrible, lecherous, scaly yet slimy alien KILLER underneath?
Who knows...
But it was nice that the stock rallied back up to our entry point today after being 15% in the hole at lunchtime.
* * * *
One final thing we can be sure of is that Ben Bernanke's beard is looking tremendous these days... and he won't touch interest rates.
Good day to you,
James
Thursday, September 6, 2007
Move LDK Trailing Stop UP to $49.36
Well, this is an exhilerating day. Not because the markets are doing anything special, but because we have the opportunity of locking in our first triple-digit stock winner in our Evergreen Portfolio.
Of course I'm talking about LDK Solar.
Right now the stock is trading down about 3% on the day at $53. In order to ensure that we walk away from this position with at least a 101% gain, we're going to move our trailing stop on LDK Solar up to $49.36. That means we'll sell the position automatically if it closes below $49.36 at any time going forward.
Meanwhile, our newest position -- the microcap GRGR -- is down 15%. But guess what. That's nothing for a microcap to move over the course of a few trading sessions. This is a rare beast: a microcap I consider more of a long-term investment than a trade.
At any rate, congratulations to us! We've locked in our first triple-digit winner in LDK, no matter what the market brings us from here.
But to be honest, I think this Chinese solar company -- armed with a bevy of recent high-dollar contracts and plenty of momentum -- has a ways to go yet.
Good day,
James
Of course I'm talking about LDK Solar.
Right now the stock is trading down about 3% on the day at $53. In order to ensure that we walk away from this position with at least a 101% gain, we're going to move our trailing stop on LDK Solar up to $49.36. That means we'll sell the position automatically if it closes below $49.36 at any time going forward.
Meanwhile, our newest position -- the microcap GRGR -- is down 15%. But guess what. That's nothing for a microcap to move over the course of a few trading sessions. This is a rare beast: a microcap I consider more of a long-term investment than a trade.
At any rate, congratulations to us! We've locked in our first triple-digit winner in LDK, no matter what the market brings us from here.
But to be honest, I think this Chinese solar company -- armed with a bevy of recent high-dollar contracts and plenty of momentum -- has a ways to go yet.
Good day,
James
Monday, September 3, 2007
Adding Green Energy Resources to the Portfolio
I've long been searching for the perfect green commodity play, because I think commodities still have years of boom time ahead of them (the current 16-20 year bull cycle started in 1999) and because China's still growing... and will continue growing for some time to come.
What I wasn't looking for was a micro-cap stock. But unfortunately, that's what I've found.
Luckily, this micro-cap has solid fundamentals, a solid business that just issued a 10% dividend in the first quarter of 2007... and ridiculous upside. But before I tell you all about it, let me first make this confession...
Please Allow Me to... Contradict Myself
Last year I vowed never to add another penny stock to this portfolio. The company that had me so riled up was CECO, which shot up 150% in a single trading session last week, coincidentally.
Anyway, we're dipping into the micro-cap well once again. But this time we've got better fundamentals and a solid track record behind us...
This time it's a company called Green Energy Resources, based in New York. GRGR is a complete buyer, processor and shipper/seller of what could be the next big commodity: biomass woodchips, or Ecogreen Coal.
These are byproduct woodchips, basically, that burn well for fuel purposes, and come entirely from second-hand trees: trees that were being cut down anyway for road building, construction and development, etc.
The company, unlike CECO, actually has an income, which is a bonus. I'll get into the fundamentals in a later article, but a really good sign is that the company just paid a 10% dividend for the first quarter.
Besides decent fundamentals, GRGR could soon find itself at the nexus of a very big problem, and a very profitable solution...
The Emperor Has No Trees
After decades of deforestation, development, pollution and naturally arid lands, China finds itself in a strange position: it's a land that's relatively devoid of large trees, and therefore large amounts of wood for construction and fuel.
As WorldWatch reported August 21, 2007:
"Today, large trees are rare in China. The country will need to take efforts to nurture them in the years ahead."
In its article "A Country with No Big Trees," WorldWatch reporter Yongfeng Feng describes a deforestation problem going back centuries.
"The exploitation of trees in China dates back thousands of years. Before the 20th century, the major destructive force was the elite ruling class of a highly centralized society, including emperors and their families, officials, and rich businesspeople.
"They constructed luxurious palaces and houses, and extravagant tombs. Those structures required huge quantities of timber. Places that served as political and economic centers were the first to be denuded."
Emperors building palaces, tombs and estates have historically sucked up every bit of lumber-quality forest in areas around Beijing, for example. For more on China's wood shortage, click here: http://www.worldwatch.org/node/5313
Using Wood to Offset Coal Pollution
The sad thing is, China's 85%-plus reliance on coal-fired powerplants could be causing much less pollution were it able to blend that coal with fuel-grade wood chips... Blending wood chips with coal creates much less CO2 emissions... and can lower fuel costs.
GRGR: Already Negotiating with China and India
And right now, Green Energy Resources is negotiating with both China and India to import their wood fiber fuels into both countries -- the two most dynamic major economies in the world. In fact, GRGR has gone so far as to negotiate a number of ships being built to move its supplies to China from the U.S.
"It's a growing market," says GER CEO Joseph Murray, who has led negotiations with the Chinese government that could lead to 10 wood-transporting ships being build in China to transport GER's goods there.
"They want to expand their co-production. We have a product that is environmentally certified that we could export to China."
Some are referring to this product as Ecogreen Coal, and it could soon become a tradeable commodity on a major exchange in Chicago or New York according to one article (http://findarticles.com/p/articles/mi_m0EIN/is_2005_May_9/ai_n13677642) wlthough this article is from two years ago!
The point is, the company's performance has been solid of late, and since it's trading well off its historic high -- and since China stocks have continued to surge this year, and this could soon be a direct China green energy play, similar to LDK Solar -- let's move now.
Action: Buy Green Energy Resources at GRGR.PK at $0.20... We won't use a TS on this position.
What I wasn't looking for was a micro-cap stock. But unfortunately, that's what I've found.
Luckily, this micro-cap has solid fundamentals, a solid business that just issued a 10% dividend in the first quarter of 2007... and ridiculous upside. But before I tell you all about it, let me first make this confession...
Please Allow Me to... Contradict Myself
Last year I vowed never to add another penny stock to this portfolio. The company that had me so riled up was CECO, which shot up 150% in a single trading session last week, coincidentally.
Anyway, we're dipping into the micro-cap well once again. But this time we've got better fundamentals and a solid track record behind us...
This time it's a company called Green Energy Resources, based in New York. GRGR is a complete buyer, processor and shipper/seller of what could be the next big commodity: biomass woodchips, or Ecogreen Coal.
These are byproduct woodchips, basically, that burn well for fuel purposes, and come entirely from second-hand trees: trees that were being cut down anyway for road building, construction and development, etc.
The company, unlike CECO, actually has an income, which is a bonus. I'll get into the fundamentals in a later article, but a really good sign is that the company just paid a 10% dividend for the first quarter.
Besides decent fundamentals, GRGR could soon find itself at the nexus of a very big problem, and a very profitable solution...
The Emperor Has No Trees
After decades of deforestation, development, pollution and naturally arid lands, China finds itself in a strange position: it's a land that's relatively devoid of large trees, and therefore large amounts of wood for construction and fuel.
As WorldWatch reported August 21, 2007:
"Today, large trees are rare in China. The country will need to take efforts to nurture them in the years ahead."
In its article "A Country with No Big Trees," WorldWatch reporter Yongfeng Feng describes a deforestation problem going back centuries.
"The exploitation of trees in China dates back thousands of years. Before the 20th century, the major destructive force was the elite ruling class of a highly centralized society, including emperors and their families, officials, and rich businesspeople.
"They constructed luxurious palaces and houses, and extravagant tombs. Those structures required huge quantities of timber. Places that served as political and economic centers were the first to be denuded."
Emperors building palaces, tombs and estates have historically sucked up every bit of lumber-quality forest in areas around Beijing, for example. For more on China's wood shortage, click here: http://www.worldwatch.org/node/5313
Using Wood to Offset Coal Pollution
The sad thing is, China's 85%-plus reliance on coal-fired powerplants could be causing much less pollution were it able to blend that coal with fuel-grade wood chips... Blending wood chips with coal creates much less CO2 emissions... and can lower fuel costs.
GRGR: Already Negotiating with China and India
And right now, Green Energy Resources is negotiating with both China and India to import their wood fiber fuels into both countries -- the two most dynamic major economies in the world. In fact, GRGR has gone so far as to negotiate a number of ships being built to move its supplies to China from the U.S.
"It's a growing market," says GER CEO Joseph Murray, who has led negotiations with the Chinese government that could lead to 10 wood-transporting ships being build in China to transport GER's goods there.
"They want to expand their co-production. We have a product that is environmentally certified that we could export to China."
Some are referring to this product as Ecogreen Coal, and it could soon become a tradeable commodity on a major exchange in Chicago or New York according to one article (http://findarticles.com/p/articles/mi_m0EIN/is_2005_May_9/ai_n13677642) wlthough this article is from two years ago!
The point is, the company's performance has been solid of late, and since it's trading well off its historic high -- and since China stocks have continued to surge this year, and this could soon be a direct China green energy play, similar to LDK Solar -- let's move now.
Action: Buy Green Energy Resources at GRGR.PK at $0.20... We won't use a TS on this position.
Friday, August 31, 2007
LDK Up 108% - Move TS to $38.40
LDK Solar is smoking hot right now... Let's lock in at least an 81% gain by raising our Trailing Stop here to $38.40, which is 25% off today's high. I don't want to tighten the stop here, because we have more volatility ahead and we don't want to get shaken out of this position unnecessarily.
So keep an eye on the shares, and let's keep riding this one as far as she'll take us!
Good day,
James
So keep an eye on the shares, and let's keep riding this one as far as she'll take us!
Good day,
James
Thursday, August 30, 2007
Get Happy!
Well, the markets are rebounding from the highly positive yet somehow disappointing news about the economy this morning. Here's what the AP had to say in an updated article:
"Stocks recovered from a sharp dip Thursday as weaker-than-expected economic data led Wall Street to believe chances are improving for the Federal Reserve to lower interest rates."
Wha?
Okay... So... The weaker-than-expected economic data was bad news... So "Wall Street" decided this morning to sell because of the bad news. But somewhere between 9:30 and noon, this paved avenue through downtown Manhattan slapped itself on the forehead and said: "Wait a minute, since this news is so horrible, the Fed might REALLY lower interest rates now! Let's buy!"
Mokay? Mokay.
"Stocks recovered from a sharp dip Thursday as weaker-than-expected economic data led Wall Street to believe chances are improving for the Federal Reserve to lower interest rates."
Wha?
Okay... So... The weaker-than-expected economic data was bad news... So "Wall Street" decided this morning to sell because of the bad news. But somewhere between 9:30 and noon, this paved avenue through downtown Manhattan slapped itself on the forehead and said: "Wait a minute, since this news is so horrible, the Fed might REALLY lower interest rates now! Let's buy!"
Mokay? Mokay.
"Double Scream" on Wall Street
I was reading in this morning's AP report on the market's early weakness that:
"Stocks dropped in early trading Thursday, with Wall Street taking few chances amid concerns that shrinking credit is hurting the economy and uncertainty about the Federal Reserve's intentions."
Hmm. I wonder how one ascertains the opinion of Wall Street. Do you have to put your ear to the pavement, like a Northern Cheyenne of old would have put his ear to the ground to hear the cavalry coming from the next valley? Do you have to listen really hard to hear the "Street" tell you why the markets are down?
Anyway, I wonder how the mainstream financial press knows so much about Wall Street and what it thinks.
The reporter goes on...
"Thursday's economic data disappointed investors."
The disappointing news was that the economy is growing at its fastest pace in more than a year. But "investors" were "disappointed" so that's why the market tanked 100 points on the open this morning.
Perhaps we need to find these investors and tell them to get a grip. Especially if they're the ones who keep buying and selling on every bit of news reported by AP, which seems to rely on the investors to supply the reasons behind the up and down moves. Can you see the problem here?
It reminds me of the "double scream" scene you see in comedy movies so often, where the one person comes around a corner and suddenly runs into another person and both stand there screaming with fright at each other. (The most famous version might have been with ET and the little girl, although the Tommy Boy version where Chris Farley and David Spade were screaming at the panicked deer in their back seat was pretty good, too).
I mean just yesterday these same barking mad, constantly panicking investors were elated, as reported in the same AP article:
"The Dow Jones industrials gained nearly 250 points Wednesday after losing about 280 points in the prior session, as investors grew more optimistic about the chance of an interest rate cut and sought out bargains."
So they were optimistic yesterday. And great news hit about the economy this morning. But they weren't happy because they wanted it to be greater news. So that's why they're shooting the indexes down the toilet with mass selling this morning.
Are you following this?
Here's hoping they have some coffee and cheer up by this afternoon.
James
"Stocks dropped in early trading Thursday, with Wall Street taking few chances amid concerns that shrinking credit is hurting the economy and uncertainty about the Federal Reserve's intentions."
Hmm. I wonder how one ascertains the opinion of Wall Street. Do you have to put your ear to the pavement, like a Northern Cheyenne of old would have put his ear to the ground to hear the cavalry coming from the next valley? Do you have to listen really hard to hear the "Street" tell you why the markets are down?
Anyway, I wonder how the mainstream financial press knows so much about Wall Street and what it thinks.
The reporter goes on...
"Thursday's economic data disappointed investors."
The disappointing news was that the economy is growing at its fastest pace in more than a year. But "investors" were "disappointed" so that's why the market tanked 100 points on the open this morning.
Perhaps we need to find these investors and tell them to get a grip. Especially if they're the ones who keep buying and selling on every bit of news reported by AP, which seems to rely on the investors to supply the reasons behind the up and down moves. Can you see the problem here?
It reminds me of the "double scream" scene you see in comedy movies so often, where the one person comes around a corner and suddenly runs into another person and both stand there screaming with fright at each other. (The most famous version might have been with ET and the little girl, although the Tommy Boy version where Chris Farley and David Spade were screaming at the panicked deer in their back seat was pretty good, too).
I mean just yesterday these same barking mad, constantly panicking investors were elated, as reported in the same AP article:
"The Dow Jones industrials gained nearly 250 points Wednesday after losing about 280 points in the prior session, as investors grew more optimistic about the chance of an interest rate cut and sought out bargains."
So they were optimistic yesterday. And great news hit about the economy this morning. But they weren't happy because they wanted it to be greater news. So that's why they're shooting the indexes down the toilet with mass selling this morning.
Are you following this?
Here's hoping they have some coffee and cheer up by this afternoon.
James
Wednesday, August 29, 2007
Our SRI Portfolio Is Up 89%
I've got good news and bad news... The bad news is that Starbucks just dipped under our entry price. The good news is that our SRI Portfolio is up 89% on the year, including all wins and losses and open trades.
Bunge (22%) and LDK Solar (85%) are leading the charge, and our weakest laggard is NMR, down about 15% from our entry price.
Overall we are of course beating the S&P 500, with all green positions, which is the stated goal of this blog. Soon I will give a detailed breakdown of our recommendations from inception of the blog so we can compare it fairly with the S&P.
The numbers here are roughish estimates and must be corrected/fine-tuned for entry dates, closed positions, and the like. Considering that we have several sizable options winners in our track record, our performance number might actually rise a little bit relative to the S&P.
Precise details to come. Meanwhile, let's continue holding. When the market stabilizes a bit... with three successive days of flat or positive price action, we'll consider adding our next play to the portfolio.
Best,
James
Bunge (22%) and LDK Solar (85%) are leading the charge, and our weakest laggard is NMR, down about 15% from our entry price.
Overall we are of course beating the S&P 500, with all green positions, which is the stated goal of this blog. Soon I will give a detailed breakdown of our recommendations from inception of the blog so we can compare it fairly with the S&P.
The numbers here are roughish estimates and must be corrected/fine-tuned for entry dates, closed positions, and the like. Considering that we have several sizable options winners in our track record, our performance number might actually rise a little bit relative to the S&P.
Precise details to come. Meanwhile, let's continue holding. When the market stabilizes a bit... with three successive days of flat or positive price action, we'll consider adding our next play to the portfolio.
Best,
James
Subscribe to:
Posts (Atom)
