So far this year, our portfolio has generated more than 100% NET returns. That's including all winners and losers.
We have taken some risks. And that has burned us on occasion. Right now we have two microcap stocks in the portfolio that are sucking wind.
However, on the main... we are smashing the S&P 500. That index has risen about 5.14% on the year thus far (although I'm betting it will make up TONS of ground over the next two months to finish somewhere around 8% on the year). That means we've outstripped the index by 2,000% (5% vs. 100%).
Not to brag. But we're happy to report this fact, even in these volatile times.
I'll soon begin calculating our entire portfolio return for the year, starting from Jan. 1, 2007 and going through Dec. 31 2007.
Then we'll really see how we stack up not just against the S&P... but against the Wilshire and even the "sin stock indexes" too.
Till then, keep the faith. And stay cool.
James
Monday, October 22, 2007
Our Green Energy Resources Position Jumps 18.75%
This morning, the world is still shaking off the hangover from last week's mess.
Tokyo, London, Shanghai... all were down sharply in a delayed reaction to Friday. And perhaps the record rise in oil prices.
But this morning, Green Energy Resources (GRGR.PK) popped 18.75%. It has almost recovered to our entry price.
That's the nature of these micro-cap options - er, stocks.
They really do behave like options. The good news is that they don't expire like options. Unless the company expires. Of course that is always a possiblity.
GRGR is a tiny company. But we think it's onto something: turning wood chips into biomass energy. Wood chips burn as hot as coal... emit far less pollutants... can be burned in coal plants... and use recycled wood products.
GRGR has developed and is perfecting technology to convert wood chips into burnable biomass on a grand scale. Even if it doesn't become a leading producer, it could sell the technology... or sell the whole company to a bigger suitor.
Plus the company is making inroads and overtures to the Chinese and European energy markets already, further increasing its value.
Let's keep an eye on this one. If it somehow soars on us, we might take profits quickly and re-enter the position at a later time. You have to move fast in these markets with micro-cap positions.
Good day,
James
Tokyo, London, Shanghai... all were down sharply in a delayed reaction to Friday. And perhaps the record rise in oil prices.
But this morning, Green Energy Resources (GRGR.PK) popped 18.75%. It has almost recovered to our entry price.
That's the nature of these micro-cap options - er, stocks.
They really do behave like options. The good news is that they don't expire like options. Unless the company expires. Of course that is always a possiblity.
GRGR is a tiny company. But we think it's onto something: turning wood chips into biomass energy. Wood chips burn as hot as coal... emit far less pollutants... can be burned in coal plants... and use recycled wood products.
GRGR has developed and is perfecting technology to convert wood chips into burnable biomass on a grand scale. Even if it doesn't become a leading producer, it could sell the technology... or sell the whole company to a bigger suitor.
Plus the company is making inroads and overtures to the Chinese and European energy markets already, further increasing its value.
Let's keep an eye on this one. If it somehow soars on us, we might take profits quickly and re-enter the position at a later time. You have to move fast in these markets with micro-cap positions.
Good day,
James
Sunday, October 21, 2007
Tom Brady IPO... The Coming Stock Rally... Oil Looks Toppy
I'm thinking that Tom Brady's so hot, he should IPO.
Can you imagine how oversubscribed that IPO would be? I bet Goldman would load UP... Tom Brady Incorporated.
The P/E ratio on that would be about 324.1 by the second day. But who cares? ANYTHING to own just a little piece of that Brady magic. You could buy the $500 January calls and watch them soar as Tom wins the Superbowl single-handedly, 45-10!
Frankly, Marsha will always be the hottest Brady to me. But I have to hand it to Tom. The guy's pretty cool.
The writer in the local paper today even declared him the national Alpha male. And to think the man is single. His member must be screaming with pain from overuse.
Ahem... ramblings of a tired person on a Sunday night after a long, ugly week in the markets.
Moving right along.
Other IPOs I would like to see: Newsgator... about five different jatropha companies... Green Investments... that's about it.
But here's the good news...
Boldly Idiotic Market Predictions: Stocks Rally, Oil Shows Weakness
This week will be a humdinger. The markets will rally broadly across the board, with some significant intraday volatility all week, but with a closing tally that'll put a smile on our faces.
Oil will begin to level off and show some weakness, but will finish around $89. But if the winter looks even a bit warm as we head into November, get ready for a wild ride with oil. I wouldn't be surprised to see it fall back below $80 before Thanksgiving, as equities take off.
So there you have it. Let's see what happens. Meanwhile, we'll keep a close eye on our stops and let the portfolio settle out a bit.
Good day,
James
Can you imagine how oversubscribed that IPO would be? I bet Goldman would load UP... Tom Brady Incorporated.
The P/E ratio on that would be about 324.1 by the second day. But who cares? ANYTHING to own just a little piece of that Brady magic. You could buy the $500 January calls and watch them soar as Tom wins the Superbowl single-handedly, 45-10!
Frankly, Marsha will always be the hottest Brady to me. But I have to hand it to Tom. The guy's pretty cool.
The writer in the local paper today even declared him the national Alpha male. And to think the man is single. His member must be screaming with pain from overuse.
Ahem... ramblings of a tired person on a Sunday night after a long, ugly week in the markets.
Moving right along.
Other IPOs I would like to see: Newsgator... about five different jatropha companies... Green Investments... that's about it.
But here's the good news...
Boldly Idiotic Market Predictions: Stocks Rally, Oil Shows Weakness
This week will be a humdinger. The markets will rally broadly across the board, with some significant intraday volatility all week, but with a closing tally that'll put a smile on our faces.
Oil will begin to level off and show some weakness, but will finish around $89. But if the winter looks even a bit warm as we head into November, get ready for a wild ride with oil. I wouldn't be surprised to see it fall back below $80 before Thanksgiving, as equities take off.
So there you have it. Let's see what happens. Meanwhile, we'll keep a close eye on our stops and let the portfolio settle out a bit.
Good day,
James
Friday, October 19, 2007
Markets Meltdown... WMI Rallies... Plus 6 Steps to Weatherproof the Portfolio
I was worried this might happen. As noted in this space 2 days ago, Fridays are not typically bullish days for the stock markets.
People want to cash out before the weekend, to pay for rentals in the Hamptons... and divorces... and who knows what else.
But we recommended WMI yesterday in spite of the forebodings...
And amazingly, even as the broad markets sink like a rock (dropping almost 1% before 10 a.m.), our WMI position is rallying mildly!
Six Steps to Weatherproof the Evergreen Portfolio
Well, we'll just have to see where this all goes. But the more I see of this volatility, the more I want to turn defensive with this portfolio.
My take would be: batten down the hatches, which would include:
- Less U.S. equity exposure
- Selling off bank stocks
- No more micro-caps
- More income and dividend plays
- More large-cap foreign stocks, especially the BRICs - Brazil, Russia, India, China
- More commodities
But certainly not retreating from the stock markets altogether. Till then, let's stay the course and see what happens next week.
More to come,
James
People want to cash out before the weekend, to pay for rentals in the Hamptons... and divorces... and who knows what else.
But we recommended WMI yesterday in spite of the forebodings...
And amazingly, even as the broad markets sink like a rock (dropping almost 1% before 10 a.m.), our WMI position is rallying mildly!
Six Steps to Weatherproof the Evergreen Portfolio
Well, we'll just have to see where this all goes. But the more I see of this volatility, the more I want to turn defensive with this portfolio.
My take would be: batten down the hatches, which would include:
- Less U.S. equity exposure
- Selling off bank stocks
- No more micro-caps
- More income and dividend plays
- More large-cap foreign stocks, especially the BRICs - Brazil, Russia, India, China
- More commodities
But certainly not retreating from the stock markets altogether. Till then, let's stay the course and see what happens next week.
More to come,
James
Thursday, October 18, 2007
Add Waste Management (WMI) to the Evergreen Portfolio
Well, the time has come...
I've waited until almost the last minute to reveal the "Dirtiest Green Stock in America."
It certainly wouldn't be the first company you might think of mentioning to your Green Party friends at the next cocktail party. But perhaps it should be.
Not only is this company America's #1 recycler on a volume basis... It's at the very forefront of the battle against pollution and for a cleaner environment. It is, in a nutshell, the biggest trash-disposal company in the country.
21 Million Customers... and Growing
Headquartered in Houston, the company's network of operations includes 413 collection operations, 370 transfer stations, 283 active landfill disposal sites, 17 waste-to-energy plants, 131 recycling plants, 95 beneficial-use landfill gas projects and 6 independent power production plants.
The company provides collection services to 21 million customers, including individual homes, municipalities and commercial sites.
But it also happens to be the most aggressively green waste-management company on the planet.
And that's why we're adding Waste Management Inc. (NYSE: WMI) to the Evergreen Portfolio today...
WMI's Been "In Training"... And It's Ready for a Title Run
This $20 billion behemoth is rated a four-star "buy" by Standard & Poor's... and for good reason.
WMI has it been buying back shares to the tune of more than $1 billion annually (starting in 2006 and continuing into this year)... It's in a non-cyclical business with high cash flow. But here's why the stock could be prepared to take off...
Over the past two years, WMI has quietly been divesting itself of underperforming assets, paring back losing operations and getting the company's massive operations into fighting shape.
It currently plans on divesting some $900 million dollars worth of annual revenue producers... In 2006 alone, it dumped $325 million worth of going-nowhere enterprises off the books. So far this year it has cut another $230 million in underperforming assets.
Such waste-trimming doesn't do a lot to make you sexy to shareholders when it's happening...
But now is about the time when we can expect this efficiency increase to start paying dividends.
As stated in the S&P report:
And that brings me to another point: WMI is yielding 2.49% as I write, which betters the S&P 500's average dividend of 1.9%.
Overall, this stock should provide a nice, stabilizing influence on our portfolio.
Now... for the Green Part
WMI has long prided itself on earth-friendly, effiency-oriented initiatives. And indeed, this company is the perfect example of the idea that greener business means smarter organization... more efficiency... and bigger gains.
Just a few examples...
Increasing waste-based energy production. Today, Waste Management creates enough energy for the equivalent of 1 million homes each year. By 2020 it expects to double that output, producing enough energy for the equivalent of more than 2 million homes.
Increasing the volume of recyclable materials managed. Waste Management currently manages 8 million tons of recyclables; by 2020 it plans to capture enough of the increasing volumes to manage more than 20 million tons.
Directing its capital spending of up to $500 million per annum over a 10-year period to increase the fuel efficiency of its fleet by 15 percent and reduce fleet emissions by 15 percent by 2020. The company also expects to invest in technologies to enhance its waste business.
Preserving and restore wildlife habitat across North America. By 2020, Waste Management plans to increase by more than four times the number of facilities – from 24 to 100 – certified by the Wildlife Habitat Council, and increase the number of acres set aside for conservation and wildlife habitat to approximately 25,000.
(Source: www.wm.com)
For all these reasons, and more, we like WMI right now.
Action: Add Waste Management Inc. (NYSE: WMI) to the Evergreen Portfolio at $38.11. Use a 25% trailing stop to protect your principal and profits here.
Good investing,
James
I've waited until almost the last minute to reveal the "Dirtiest Green Stock in America."
It certainly wouldn't be the first company you might think of mentioning to your Green Party friends at the next cocktail party. But perhaps it should be.
Not only is this company America's #1 recycler on a volume basis... It's at the very forefront of the battle against pollution and for a cleaner environment. It is, in a nutshell, the biggest trash-disposal company in the country.
21 Million Customers... and Growing
Headquartered in Houston, the company's network of operations includes 413 collection operations, 370 transfer stations, 283 active landfill disposal sites, 17 waste-to-energy plants, 131 recycling plants, 95 beneficial-use landfill gas projects and 6 independent power production plants.
The company provides collection services to 21 million customers, including individual homes, municipalities and commercial sites.
But it also happens to be the most aggressively green waste-management company on the planet.
And that's why we're adding Waste Management Inc. (NYSE: WMI) to the Evergreen Portfolio today...
WMI's Been "In Training"... And It's Ready for a Title Run
This $20 billion behemoth is rated a four-star "buy" by Standard & Poor's... and for good reason.
WMI has it been buying back shares to the tune of more than $1 billion annually (starting in 2006 and continuing into this year)... It's in a non-cyclical business with high cash flow. But here's why the stock could be prepared to take off...
Over the past two years, WMI has quietly been divesting itself of underperforming assets, paring back losing operations and getting the company's massive operations into fighting shape.
It currently plans on divesting some $900 million dollars worth of annual revenue producers... In 2006 alone, it dumped $325 million worth of going-nowhere enterprises off the books. So far this year it has cut another $230 million in underperforming assets.
Such waste-trimming doesn't do a lot to make you sexy to shareholders when it's happening...
But now is about the time when we can expect this efficiency increase to start paying dividends.
As stated in the S&P report:
"We think the company will benefit from its intention to simplify its organizational structure by placing more emphasis on the day-to-day decision making at its regional operations, and by reducing costs at its group and corporate offices."
And that brings me to another point: WMI is yielding 2.49% as I write, which betters the S&P 500's average dividend of 1.9%.
Overall, this stock should provide a nice, stabilizing influence on our portfolio.
Now... for the Green Part
WMI has long prided itself on earth-friendly, effiency-oriented initiatives. And indeed, this company is the perfect example of the idea that greener business means smarter organization... more efficiency... and bigger gains.
Just a few examples...
- WMI recovers and processes methane gas, which is naturally fermented from landfills, and sells it to power plants to produce energy. Right now the company supplies enough landfill gas to generate 250 megawatts of energy each year... enough to power 225,000 homes or replace about 2 million barrels of oil (www.wm.com/wm/about/overview.asp).
- It has converted 495 of its vehicles from diesel into natural gas and has one of the country's largest natural-gas-powered heavy-truck fleets.
- WMI helped found the Chicago Climate Exchange, which is fast becoming the leading exchange for carbon trading (offsets), favored by the likes of Al Gore, the Nobel Prize Winner (tee-hee!).
Increasing waste-based energy production. Today, Waste Management creates enough energy for the equivalent of 1 million homes each year. By 2020 it expects to double that output, producing enough energy for the equivalent of more than 2 million homes.
Increasing the volume of recyclable materials managed. Waste Management currently manages 8 million tons of recyclables; by 2020 it plans to capture enough of the increasing volumes to manage more than 20 million tons.
Directing its capital spending of up to $500 million per annum over a 10-year period to increase the fuel efficiency of its fleet by 15 percent and reduce fleet emissions by 15 percent by 2020. The company also expects to invest in technologies to enhance its waste business.
Preserving and restore wildlife habitat across North America. By 2020, Waste Management plans to increase by more than four times the number of facilities – from 24 to 100 – certified by the Wildlife Habitat Council, and increase the number of acres set aside for conservation and wildlife habitat to approximately 25,000.
(Source: www.wm.com)
For all these reasons, and more, we like WMI right now.
Action: Add Waste Management Inc. (NYSE: WMI) to the Evergreen Portfolio at $38.11. Use a 25% trailing stop to protect your principal and profits here.
Good investing,
James
Our New Pick Is Coming Soon
By the end of the day, I will have revealed the name of "America's Dirtiest Green Stock."
But there's a snag.
Due to the volatility in the markets, and the slew of bad earnings reports today, I'm hesitant to add the company to the portfolio right now. It's always nice to add a new picks on a nice, market-wide upsurge.
And Friday's aren't typically bull days.
Either way, you'll have the name of the company before midnight tonight. And trust me, this is a great stock regardless of whether we add it in time for tomorrow's session... or if we wait until early next week.
Till then, good day,
James
But there's a snag.
Due to the volatility in the markets, and the slew of bad earnings reports today, I'm hesitant to add the company to the portfolio right now. It's always nice to add a new picks on a nice, market-wide upsurge.
And Friday's aren't typically bull days.
Either way, you'll have the name of the company before midnight tonight. And trust me, this is a great stock regardless of whether we add it in time for tomorrow's session... or if we wait until early next week.
Till then, good day,
James
Wednesday, October 17, 2007
Our Green Energy Resources Play Jumps 11%!
It's nice to finally see our Green Energy Resources (GRGR.PK) recommendation moving in the right direction.
So far in today's trading session, the producer and seller of wood biomass has jumped 11.76% for us.
Now keep in mind: those gains could be gone by the end of the day.
This is a micro-cap we're talking about here and it's not likely rising by double-digits today based entirely on fundamentals.
But I believe that long-term, GRGR makes a LOT of sense for our Evergreen Portfolio, especially because it's moving into China and Europe, two huge developing markets for biomass energy.
Let's keep a close eye on this one.
Good day,
James
So far in today's trading session, the producer and seller of wood biomass has jumped 11.76% for us.
Now keep in mind: those gains could be gone by the end of the day.
This is a micro-cap we're talking about here and it's not likely rising by double-digits today based entirely on fundamentals.
But I believe that long-term, GRGR makes a LOT of sense for our Evergreen Portfolio, especially because it's moving into China and Europe, two huge developing markets for biomass energy.
Let's keep a close eye on this one.
Good day,
James
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