Friday, March 30, 2012

Getting into Natural gas: ETF is UNG

Buying call options for UNG. Gas prices are at 10 year low. There is a trend of trucking companies slowly going the route of natural gas. I think this has bottomed or close to it's bottom. UNG has had an 85% drop over the last 3 years. Time to get in. Fundamentals are sound. Also, this is the cleanest form of fossil fuel. Many catalyst for moving into this direction for Obama as well. North America has a lot of natural gas and the economy can truly benefit by tapping more into natural gas.

Another stock to consider to play natural gas story is the fueling pump builder CLNE (Clean Energy). This is another potential riser.

Okay RIMM now a acquisition play

Stock is still a value. They aren't going to lose profitability any time soon IMHO but they need to take serious action very soon in getting value.

CEO fired old guard, is talking strategic alternatives (open to buy out), refocusing the business and getting maximum value for shareholders. Subsriptions up to 77 million but might turn soon.

Still depending on QNX (BB10) which is a big risk but think about this. Motorola mobility was bought for 12.4 billion with a shitty business and very low profitability. These guys can do much better and their current market cap is at 7 billion.

Thursday, March 08, 2012

Market doesn't know how to price RIMM's downward trajectory

The market doesn't know how to price RIMM's downward trajectory. This is actually quite amazing. I have seen this happen to other companies as well. When they have reduce sales and reduced profitability (in RIMM's case only in the US or rather a couple of developed countries), the market has real trouble pricing the shares. RIMM is by far the cheapest stock with the potential of being highly profitable and getting back to growth.

BlackBerry's are huge in developing countries and you will see them become bigger. BTW, I use an iPhone and I prefer my BlackBerry for work any day. You can type faster and it's very user friendly. At 13.19, RIMM is a steal in my mind. You can find several articles around how cheap the stock is. Look at the numbers.