Saturday, March 14, 2009

Stock Market Bottom Out and Opportunity Abound

Last week, LSI sat down with some of the small to medium size VC firms in the Bay Area to measure the investment beat. These are the firms that managed to raise funds before the market crash last fall so they are still looking for opportunities since everything is on the cheap. With deflated valuation and and a very dead equity market , the firms are looking very very hard to find value. If LSI is holding to the kind of money that they have, LSI would invest in stock market for there are many solid and yet undervalued companies in the market.

Being a professional in the industry and had experienced the ups and downs of the market before returning to a private life, LSI thinks that these are the best of times as well as the worst of times. And the shrewd investors like Warren Buffet will make his billions more by the time the market crisis is over.

As a disclosure so to not violate any SEC regulations (and as if people care), LSI is no longer a stock broker or financial analyst. Nevertheless, LSI's relative is a head of a boutique hedge fund with real returns. Last year, he managed to neither gain nor loss any money. And that is how a real hedge fund should be if they practice the fundamental of managing risk. Of course, if one is Bernie Madoff then in this market, he still would make at least 10% for his investors who are at the top of the Ponzi pyramid.

With the Viet politics both in Southern and Northern California taking a break until the fall, LSI will try to entertain the readers with LSI's own stock portfolio. Unlike Warren Buffet, LSI does not believe in holding a position for 10 years or more. So here are the 18 stocks LSI bought within the last 3 months, most with exceptional dividends (some from 7% to 8%):

Energy and Commodity Porfolio

1. Apache (bought at $60). Currently at $60.94
2. Helix (bought at $4.25). Currently at $4.46
3. Monsanto (bought at $80). Currently at $79.11
4. Mosaic (bought at $35). Currently at 42.08
5. Conoco Phillips ($36). Currently at $36.41
6. Anadarko (bought at $34). Currently at $36.38

Biotech & Pharma

1. Life Technology (bought at $28). Currently at 29.38
2. Sigma Aldrich (bought at $40). Currently at $34.60
3. Glaxo Wellcome (bought $35). Currently at $29.12
4. Astra Zeneca (bought $37). Currently at $33
5. Pfizer (bought $15). Currently at $14.54
6. Elan (bought $7). Currently at $5.35
7. United Healthcare (bought at $20). Currently at 21.36


1. Fluor (bought at $39). Currently at $39.85
2. KBR (bought at $14). Currently at $14.23
3. GE (bought at $7). Currently at $9.62
4. OFC (bought at $25). Currently at $23.70
5. VNQ (bought at $23). Currently at $25.81

LSI cannot predict the short term future but these are stocks that LSI would go to bed safely know that they would not go away at least in 2009. One cannot go wrong in healthcare no matter. Also with a bulk of the stimulus package going to infrastructure, these are profitable companies that will further benefit despite economic hardship. The goal is to make 30% return by year end

Wednesday, March 11, 2009

Joseph Cao: " I think race might be the issue.."

In facing a recall attempt by the African American community in his New Orleans district, Congressman Joseph Cao stated in the an interview with the local ABC affiliate that race may play the role in the recent recall attempt. A Republican freshman congressman in a district where 65% are African Americans and 85% are Democrats, Joseph Cao is facing a recall effort initiated by two African American ministers for failing to vote for the stimulus package.

The recall effort is deemed to be unconstitutional by the state attorney general and now is being challenged in federal court.

Cao is facing a tough race in 2010 and the odds are against him to win his seat.