Monday, March 24, 2014

Reader Questions #1

1. What stocks are you bullish on?

    I do have my favorites as readers of my blog are aware.  I am a very big fan of Yandex.  They have partnered recently with Google and have maintained being the dominant search engine in Russia and other Eastern countries even as other western search engines tried to move in.  They also have a very developed and complex code because of the Russian language.  Additionally, because of the situation in Crimea I think that the value of the stock is a steal right now.

  I am also bullish on Facebook.  They have had increased revenue growth since their IPO and I do not see it stopping anytime soon.  Even though Mark Zuckerberg said there will be no more acquisitions I do not think they will pas up any opportunity to expand into new tech sectors and reach new countries.  I also believe there are major gains to be made in the marijuana stocks, though most of them are penny stocks right now.  Many states will soon follow Colorado and Washington legalize marijuana just due to the fact that it is a major increase on tax opportunities.  Finally, my dark horse is Single Touch Systems (SITO).  Mobile is exploding right now and they are a company that creates geo-targeted apps and sales apps.  Additionally, they have multiple patents that have been violated by major companies such as Facebook and Google.  I believe that once the patents are recognized they will be acquired by a larger company and receive the recognition they deserve. 

2.  Why do you use Profit-Per-Day as a measurement?

  I use Profit-Per-Day (PPD) and Percent-Profit-Per-Day (PPPD) as a measurement because I believe that it is the most accurate way to determine my investment success.  Everyone always wants to find that stock that you can gain 100% or even 200% profit on, however what if that 100% profit takes 2 years.  Now what if I can get 10-20% profit in 1 week or 1 month.  My investment is working harder for me at during that time.  For example, if I invest $1000 dollars in a stock and the value increases 100% in a year, after 12 months I will have $2000.  Most would consider this a great success and your PPD was $2.37.  Now lets invest $1000 in a stock and assume we make 10% in a month for a small gain.  We will then take the full amount invest again for another month for 10% and continue until we have reach a 100% gain.  If we continue this trend it will take 8 months for us to gain over 100%.  Now looking at our PPD for the first month it will be $32.25.  Understand that you would not always earn 10%, maybe more maybe less, but you can see the value of how hard your investment is working for you.  Ultimately the point of using PPD is for investors to recognize the value of selling a small gain stock over a short period.

3. Why did you create a blog?

  The idea of Invest Like Me, began while I was offering advice to friends on investing.  Ultimately, beginner investors do not want to learn the technicals of a stock or do research on a company, they just want to know what stock to buy and when.  You see this on TV every day, just watch Jim Cramer.  Therefore I decided to share my ideas, my portfolio, and even my trades with everyone on a near real time basis.  Most investing blogs and TV shows tell the investor what company to buy, however they do not say when to buy or what price to buy.  I want to provide the investor this information and let them know that I am not just selling them the information as I am also taking my own advice with the same investments.

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