Daily Investment Tips

Since the dot com bubble burst Microsoft stock has been the sick man of Wallstreet, the stock has remained stuck in the $20s range for the last decade. During that period other Tech stock, Google, Apple and Amazon have delivered out size returns for their investors.

Recently theres has been good news from analyst about Microsoft stock, here is a a round of of what Analyst covering Microsoft are saying.

Oppenheimer & Co Microsoft Stock Prediction

The U.S. investment firm Oppenheimer & Co. analyst Brad Reback released investment, maintaining the Microsoft stock’s “outperform” rating and raised the Microsoft stock price target to $36 from $32. His judgments were based on seeing the Microsoft system’s advantages in the Developer Conference of the 2012 Mobile World Congress.

Citigroup analyst forecast for Microsoft

Citigroup analyst Walter Pritchard reiterated the Microsoft stock’s “buy” rating and the Microsoft stock price target of $35.

Barclays Microsoft share price forecast

Barclays Capital has also raised its price target on the stock.Its price target on Microsoft’s stock is $33.

Goldman Sachs Forecast

Goldman Sachs raised its price target on Microsoft from $29 to $32 following better-than-expected Q4 EPS.

Is Microsoft stock finally turning the corner? Investors should not be too excited because even as Microsoft stock was lagging in the last decade, this is a company that always reported good results but the stock never barged.

written by Constantine Njeru \\ tags: Amazon, Barclays, Barclays Capital, Citigroup, Developer Conference, Goldman Sachs, Google, Investment Firm, Microsoft Price, Microsoft Stock Price, Microsoft System, Oppenheimer, Pritchard, Q4 Eps, Stock Prediction, Stock Price Target

We have been follow Jim Cramer stock picks for the month of July 2011 and one notable call was Motorola. Motorola company was split not a long time ago, we now have Motorola Mobility and Motorola Solutions.

Cramer has issued a sell recommendation on Motorola. “Those pieces are worth less than the whole…I didn’t like this split-up…it didn’t create any value…these pieces are both sells. Don’t forget that we don’t want to touch tech yet.”

From Cramer website we saw some Cramer buys for July 2011

1. Amazon.com
2. Target (TGT)
3. Southwestern Energy (SWN)
4. Annaly Capital (NLY)
5. Alcoa (AA)
6. Carrizo Oil & Gas (CRZO)
7. Clean Energy Fuels (CLNE)
8. Novellus Systems (NVLS)
9. Cummins (CMI)
10. Atlas Energy (ATLS)
11. Magna International (MGA)
12. Johnson Controls (JCI)

written by Constantine Njeru \\ tags: Alcoa, Amazon, Annaly Capital, Atls, Carrizo Oil, Clean Energy, Cummins Cmi, Energy Fuels, Jim Cramer, Johnson Controls, Magna International, Mga, Month Of July, Motorola Company, Nly, Novellus, Novellus Systems, Southwestern Energy, Swn, Target Tgt

It is that ime of the month when we look at our favorite stock picker, Jim Cramer of CNBC Mad Money Show. Jim Cramer Stock Picks for April 2011 included a buy recommendation for Apple again.

Some of Cramer Buy Recommendation for April 2011

1. Northern Oil and Gas
2. Bank of America
3. Continental Resources
4. EOG Resources
5. Whiting Petroleum
6. Red Hat
7. Lowes
8. Fossil
9. Amazon.com
10. Apple
11. Google
12. Nucor
13. Clear Channel Outdoor

Some of Cramer Sell Recommendations for April 2011

1. Intel
2. Cisco Systems
3. Microsoft
4. Hewlett-Packard
5. Qualcomm
6. Skyworks Solutions
7. Network Appliance
8. Home Depot
9. Citigroup

written by Constantine Njeru \\ tags: Amazon, Bank Of America, Cisco Systems, Citigroup, Cnbc, Cnbc Mad Money, Continental Resources, Eog Resources, Google, Home Depot, Jim Cramer, Money Show, Network Appliance, Northern Oil, Nucor, Qualcomm, Skyworks Solutions, Solutions Network, Stock Picker, Whiting Petroleum

Investment valuation in new age internet companies is soaring. Facebook is valued at $50 billion, Twitter is valued at $10 billion and Groupon is chasing a $25 Billion IPO. For some jittery investors it feels like 1999, and they are saying this  is a new tech bubble.

Is it really a Tech Bubble?

It feels like one. All bubbles, stock market, real estate, commodities e.t.c happen during a period of high liquidity. The more money flows into an asset class the higher the price of that asset rises.

In the tech bubble of 90s, the bubble got in gear when investment funds started raising money to invest in then technology companies. Just like then, we see Goldman Sachs e.t.c raising billions to invest in the new age technology companies. Source NYtime article.

Tech Bubble Prediction

When it comes to prediction, history is a good guide. In any bubble there are a few winners and many losers. In the tech bubble of 90s we saw Amazon, Yahoo & Ebay emerge while a string on losers Webavan, Akamai, Jupiter networks and many other were trashed in the dustbin of history.

Today, the bet is on internet companies with a competitive advantage (business model that cannot easily be copied) like Facebook & Twitter to emerge victorious. On the other hand companies like Groupon & others whose model can be easily copied might not make it.

The challenge for investors is picking winners. The situation is best summarized in NYTimes article:-

As cash continues to pile up, the fear is that all this money cannot be put to work responsibly. With only a few perceived “winners,” some investors must be choosing losers or paying too much.

 

written by Constantine Njeru \\ tags: Amazon, Asset Class, Competitive Advantage Business, Dustbin, Ebay, Facebook, Goldman Sachs, History Today, Internet Companies, Investment Funds, Investment Valuation, Jittery Investors, Liquidity, Losers, Money Flows, New Age Technology, Prediction History, Raising Money, Technology Companies, Twitter

I was over at Amazon online market and browsed some of the books on market Psychology. I read the reviews and the following chart sums up the psychology of the market.

Copyright wallstreetfoollies.com

Image source wallstreetfollies

Some of the books review on Market Psychology I read were

1. Art of Contrary thinking by Humprey Bancroft Neil

2. The Crowd : A study of popular minds by Gustva Le Bon

3. Speculation as a fine art of life by Dickson G Watts

4. Why You Win or Lose : The Psychology of speculation by Fred C. Kelly

5. The Nature of Risk by Justin Marris

written by Constantine Njeru \\ tags: Amazon, Art Of Contrary Thinking, Art Of Life, Bancroft, Books Review, Books Reviews, Crowd, Dickson G Watts, Fine Art, Fred C Kelly, Humprey, Market Psychology, Marris, Psychology Books, Risk, Speculation, Stock Market, Sums