Friday, April 30, 2010

backed out of the market

since i had high positions at high prices in the market in aapl, rcl, dpz and lvs , i backed out from the market. There is a great chance at a 10% correction is underway. There is instability in world markets because of greece debacle and the markets in u.s have been rallying from feb,2010.

Looking at the 30 average of S&P it is highly probably that a correction is coming. Even when corrections come it is possible to hold on stocks but if bought at the end of the rally there is great danger that all the profits will be wiped off and can land in losses. If stocks were bought at the beginning of the rally there is no danger of falling into the red zone. Falling into the red zone causes psychological panic in the investor. It hurts self confidence and one feels like a loser. Hence never take a from your original capital, when you see the danger coming. secure yours original capital and major profits. One needs to know when to back off from the market and when to get in.
 The S&P and the other stocks i invested in will come back to their 30 day averages. That is the time to invest again. KERX is looking good. Moved magnificiently. Monday may be a good day to bay at 5.10

 It is a good opportunity to test one's analysis.

buying on the rise

When buying on the rise in the rally wait till the price movement comes near to the 30 day average. The best thing to do is to put the automated limit price in the computer and save a lot of money. Put the price atleast 5 % below the high swing price. I market will come back towards the 30 day average. There is no doubt about it. There will be a sell of in the rally and that is the time to pick it up.

As for now DPZ and LVS look like a couple of months hold. There will do good in a couple of months. Need to just hold them. As for Aapl I am expecting it to go to 300....lets see.

this is a mistake i have done recently, which has cut my profits to at least 5 %. So I learned a lesson from this experience. 

Wednesday, April 28, 2010

As a seed grows to be a tree

As a seed grows to be a tree
I struggle to grow to the divine
I need the company of like-minded
like the fresh air to the plant
I need the wisdom and light of peers
like the sunlight to the sprout

As I grow towards the divine
there are many paths that my energies
can take me. I try to grow straight
towards the divine sun but there
are many forces that deviate me
from the heavens above.

The hustle and bustle of the forest,
materialism, money and sex
distract me and also the perverse
habits of the body to take pleasure
in old habits of the body.

life is an obstacle and a helper
sleep is an obstacle and a helper
I am a slave of my mind.
Happiness is above the mind
stands untainted alone and pure.
the stairs to bliss are within me.

Life is a struggle with yourself.
There are forces that want to
bring you back to darkness.
I saw the divine light and
felt the charge in my sleep.
the divine mother hears me.
As a plant grows to be a tree
there is uncertainty.
Though I know thee and enjoy thee
still there is perversity in the body.
The body enjoys the perverse pleasure in sleep

It takes a little wind to break
stability of my mind.
Feelings of anger and rage
are as if hiding behind the curtain
to show their ugliness in a burst.
Come to the fore, with a little wind.
Like the little plant is shaken from the ground.
All stability feels like an illusion
All self knowledge and love is tested.

Amid all this frustration 

I need to grow towards the divine.
There are prayer and self concentration
as my aids. All life is the search of pure bliss.
The stairs to bliss are within me.

I am confident even in my sadness
that the divine has taken interest in me.
There is no other way
but to exceed myself.
As the plant grows to be the tree
In time the seed becomes a tree.
Life is bright and sunny
with the joy of growth and learning.

I have understood that life
is about bringing bliss to earth
I am tested everyday in my faith.
Not to act on thoughts that
bring unhappiness to earth.
Unhappiness is the seed of unhappiness.
Happiness is the seed of more happiness.
As the seed becomes the tree
there are many paths that take you nowhere.
Into tracks of dust and disease.
All life becomes a pain.
Sorrow bites your soul and heart
and thoughts of purposelessness
become your aid to suicide.

There is strife and pain everywhere
I have made my purpose to bring
happiness in into sorrow land.
As the seed grows to be the tree.
I have faith in the sun
and that life has a purpose
and the purpose is to blissful.
I am born to be happy.
From where has this sorrow come?
I shall enjoy everyday
I shall be silly and free like a child.
Of what purpose is this seriousness?
Rules, customs and seriousness
are for the people of the sorrow land.
I want to be the citizen of the happy land.

I shall learn to remember
the divine in my misery.
quickly my misery shall turn to delight
I have faith in the sun.
As the seed loves the sun
I shall love the divine.

Those who want to follow me
Do not listen to hawkers of sorrow
Life is all about bliss within
In the warmth of sun and sipping of cool water
shall I grow towards the divine.
Amid my mind's sorrow shall i remember the sun
The sun is the supreme light.
I am the warrior who has faith in the sun
during absolute darkness and hopelessness.
My faith in sun brings the sun closer to me.
As the seed grows to be the tree.

Monday, April 26, 2010

a 20 baggar

Of course I did not invest in this company. But this is an example of the potential of stock market, if one know what one is doing.

this stock went from 2 dollars to 42 dollars in one year. Wow...amazing. I am going to try to catch the tail of this

Saturday, April 24, 2010

How Goldman sachs survived and thrived by shorting the market during recession

In late 2007, as the mortgage crisis gained momentum and many banks were suffering losses, Goldman Sachs executives traded e-mail messages saying that they would make “some serious money” betting against the housing markets. 
The messages, released Saturday by the Senate Permanent Subcommittee on Investigations, appear to contradict statements by Goldman that left the impression that the firm lost money on mortgage-related investments.
In the messages, Lloyd C. Blankfein, the bank’s chief executive, acknowledged in November 2007 that the firm had lost money initially. But it later recovered by making negative bets, known as short positions, to profit as housing prices plummeted. “Of course we didn’t dodge the mortgage mess,” he wrote. “We lost money, then made more than we lost because of shorts.”
He added, “It’s not over, so who knows how it will turn out ultimately.”
In another message, dated July 25, 2007, David A. Viniar, Goldman’s chief financial officer, reacted to figures that said the company had made a $51 million profit from bets that housing securities would drop in value. “Tells you what might be happening to people who don’t have the big short,” he wrote to Gary D. Cohn, now Goldman’s president.
Actions taken by Wall Street firms during the housing collapse have become a major factor in the contentious debate over financial reform. In his weekly radio address on Saturday, President Obama said Wall Street had “hurt just about every sector of our economy” and again pressed the case for tighter regulation. On Monday, Senate Democrats will try to prevent a Republican filibuster in the first major test of the administration’s effort to push through legislation.
Goldman on Saturday denied it made a significant profit on mortgage-related products in 2007 and 2008. It said the subcommittee had “cherry-picked” e-mail messages from the nearly 20 million pages of documents it provided. This sets up a showdown between the Senate subcommittee and Goldman, which has aggressively defended itself since the Securities and Exchange Commission filed a security fraud complaint against it nine days ago. On Tuesday, seven current and former Goldman employees, including Mr. Blankfein, are expected to testify at a Congressional hearing.
Carl Levin, Democrat of Michigan and head of the Permanent Subcommittee on Investigations, said that the e-mail messages contrasted with Goldman’s public statements about its trading results. “The 2009 Goldman Sachs annual report stated that the firm ‘did not generate enormous net revenues by betting against residential related products,’ ” Senator Levin said in a statement Saturday. “These e-mails show that, in fact, Goldman made a lot of money by betting against the mortgage market.”
The messages appear to connect some of the dots at a crucial moment of Goldman history. They show that in 2007, as most other banks hemorrhaged money from plummeting mortgage holdings, Goldman prospered.
At first, Goldman openly discussed its prescience in calling the housing downfall. In the third quarter of 2007, the investment bank reported publicly that it had made big profits on its negative bet on mortgages.
But by the end of 2007, the firm curtailed disclosures about its mortgage trading results. Its chief financial officer told analysts that they should not expect Goldman to reveal whether it was long or short on the housing market. By late 2008, Goldman was emphasizing its losses, rather than its profits, pointing regularly to write-downs of $1.7 billion on mortgage assets in 2008 and not disclosing the amount it made on its negative bets.
Goldman and other firms often take positions on both sides of an investment. Some are long, which are bets that the investment will do well, and some are shorts, which are bets the investment will do poorly.
Goldman has said it added shorts to balance its mortgage book, not to make a directional bet on a market collapse. But the messages released by the subcommittee Saturday appear to show that in 2007, at least, Goldman’s short bets were eclipsing the losses on its long positions.
In May 2007, for instance, Goldman workers e-mailed one another about losses on a bundle of mortgages issued by Long Beach Mortgage Securities. Though the firm lost money on those, a worker wrote, there was “good news”: “we own 10 mm in protection.” That meant Goldman had enough of a bet against the bond that, over all, it profited by $5 million.
On Oct. 11, 2007, one Goldman manager in the trading unit wrote to another, “Sounds like we will make some serious money,” and received the response, “Yes we are well positioned.”
Documents released by the Senate committee appear to indicate that in July 2007, Goldman’s accounting showed losses of $322 million on positive mortgage positions, but its negative bet — what Mr. Viniar called “the big short” — brought in $373 million.
As recently as a week ago, a Goldman spokesman emphasized that the firm had tried only to hedge its mortgage holdings in 2007.
The firm said in its annual report this month that it did not know back then where housing was headed, a sentiment expressed by Mr. Blankfein the last time he appeared before Congress.
“We did not know at any minute what would happen next, even though there was a lot of writing,” he told the Financial Crisis Inquiry Commission in January.
It is not known how much money in total Goldman made on its negative housing bets. Neither Goldman nor the panel issued information about Goldman’s mortgage earnings in 2009 further reading. 

Friday, April 23, 2010

stock analysis 4/23/10

I just sold CMG for 34% profit. That is a good progress. I see the stock deviate too much from the
30 day average with is at 122. So sold it at 144. But when it comes back to near the 30 day average I may enter the rally again.

Now my attention is on LVS and MGM. These casino stocks seem to be moving up. One interesting observation is that these stock fell 90-95 percent when the recession hit in 2008. They are the first to loose most of the value and on a brink of bankruptcy. These are called the cyclicals. They are seasonal business. Like the holiday cruises and seasonal industry.
These two stocks are the last to move up after the major stock move after the recession. The financial was the first to make progress and rest followed. LVS and MGM have doubled already but there is a great scope for them to move upwards.

Got out of espx and vrx because they are showing no greater movement. Their fuel is almost empty looks like. Though I got out with a penny profit in in espx and a penny loss in vrx.

The major profit came from restaurant industry that i correctly guess was making progress. I am still holding DPZ. its p/e is only 10. I can see more scope of going up.

Bought LVS. Thinking of getting into MGM.
Bought RCL for 35.79, this stock moved so nicely. It still has some fuel left in it. I want to take the ride till 40 and then may be sell it off.

RCL balance sheet actually does not look that bad. Its a profitable company. LvS is the one that is in losses but this industry is recovering. this is where most profit can come from.

Restaurant industry recovered and hence investing in that gave me good profits.

Thursday, April 22, 2010

stock analysis 4/22/10

In CMG i got almost 30% profit but i find one mistake that i have made. When you invest in a 4-5 stocks, you have to invest proportionally according to the upward momentum. For example in CMG shows a great movement and steeper rally than VRX,ESRX AND EMR.

though i have not incurred any losses from the rest i have also not gained much. all my profit came from DPZ and CMG both from the restaurent industry. i cases like these it is good to shift more money into this sector and reap more profit from stocks that are showing good momentum and steep rally.

Nirvana and works in the world

This peace of Nirvana is reached when all the mental consciousness is perfectly controlled and liberated from desire and remains still in the Self, when, motionless like the light of a lamp in a windless place, it ceases from its restless action, shut in from its outward motion, and by the silence and stillness of the mind the Self is seen within, not disfigured as in the mind, but in the Self, seen, not as is mistraslated
falsely or partially by the mind and represented to us through the ego, but self-perceived by the Self, svaprakasa. Then the soul is satisfied and knows its own true and exceeding bliss, not the untranquil
happiness which is the portion of the mind and the senses, but an inner and serene felicity in which it is safe from the mind's perturbations and can no longer fall away from the spiritual truth of its being. Not even the fieriest assault of mental grief can disturb it; for mental grief comes to us from outside, is a reaction to external touches, and this is the inner, the self-existent happiness of those who no longer accept the slavery of the unstable mental reactions to external touches. It is the putting away of the contact with pain, the divorce of the mind's marriage with grief, duhkha-samyogaviyogam. The firm
winning of this inalienable spiritual bliss is Yoga, beside which all others lose their value. Therefore is this Yoga to be resolutely practised without yielding to any discouragement of difficulty or failure until the release, until the bliss of Nirvana is secured as an eternal possession. 

Monday, April 5, 2010

5 billionaires who live below their means

Five Billionaires Who Live Below Their Means

by Katie Adams
Thursday, April 1, 2010
provided by
At least once in your life - maybe even once a week or once a day for that matter - you have fantasized about coming into a lot of money. What would you do if you were worth millions or even billions? Believe it or not there are millionaires and billionaires among us who masquerade as relatively normal, run-of-the-mill people. Take a peek at some of the most frugal wealthy people in the world.
Warren Buffett
Associated Press
Millions of people read Buffett's books and follow his firm, Berkshire Hathaway's, every move. But the real secret to Buffett's personal fortune may be his penchant for frugality. Buffett, who is worth an estimated $47 billion, eschews opulent homes and luxury items. He and his wife still live in their modest home in Omaha, Nebraska which they purchased for just $31,500 more than 50 years ago.
 Although he's dined in the best restaurants around the globe, given the choice he would opt for a good burger and fries accompanied by a cold cherry Coke. When asked why he doesn't own a yacht he responded "Most toys are just a pain in the neck." (Find out how he went from selling soft drinks to buying up companies and making billions of dollars.
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Carlos Slim
Associated Press
While most of the world is very familiar with Bill Gates, the name Carlos Slim rarely rings a bell. But it's a name worth knowing. Slim, who is a native of Mexico, was just named the world's richest billionaire – that's right, richer than the uber-famous Microsoft founder. Slim is worth more than $53 billion and while he could afford the world's most extravagant luxuries he rarely indulges. He, like Buffett, doesn't own a yacht or plane and he has lived in the same home for over 40 years.
Ingvar Kamprad
Associated Press
The founder of the Swedish furniture phenomenon Ikea struck success with affordable, assemble-it-yourself furniture. For Kamprad, figuring out how to save money isn't just for his customers, it's a high personal value. He's been quoted as saying "Ikea people do not drive flashy cars or stay at luxury hotels." That goes for the founder as well. He flies coach for business and when he needs to get around town locally he either takes the bus or will head out in his 15-year-old Volvo 240 GL.
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Chuck Feeney
Growing up in the wake of The Depression as an Irish-American probably has something to do with Feeney's frugality. With a personal motto of "I set out to work hard, not get rich," the co-founder of Duty Free Shoppers has quietly become a billionaire but even more secretively given almost all of it away through his foundation, Atlantic Philanthropies. In addition to giving more than $600 million to his alma mater Cornell University, he has given billions to schools, research departments and hospitals. 
Loath to spend if he doesn't have to, Feeney beats both Buffett and Kamprad in the donation category, giving out less grants than only Ford and the Bill and Melinda Gates Foundations. A frequent user of public transportation, Mr. Feeney flies economy class, buys clothes from retail stores, and does not wast money on an extensive shoes closet, stating "you can only wear one pair of shoes at a time". He raised his children in the same way; making them work the same normal summer jobs as most teens.
Frederik Meijer
If you live in the Midwest chances are good that you shop at Meijer's chain of grocery stores. Meijer is worth more than $5 billion and nearly half of that was amassed when everyone else was watching their net worth drop in 2009. Like Buffett he buys reasonably-priced cars and drives them until they die, and like Kamprad he chooses affordable motels when on travel for work. Also, like Chuck Feeney, rather than carelessly spending his wealth Mr. Meijer is focused on the good that it can provide to the community.
The Bottom Line
The dirty little secret of some of the world's wealthiest people is that they rarely act like it. Instead of over-the-top spending, they're busy figuring out how to save and invest to have that much more in the future. It's a habit you might want to consider in order to build up your own little storehouse of cash.