Digital Angel Corporation awarded patent for breakthrough Glucose-Sensing RFID chip

Digital Angel Corporation awarded patent for breakthrough Glucose-Sensing RFID chip

http://biz.yahoo.com/bw/061025/20061025005372.html?.v=1

This news is big. Sure it will take them a while to sell it commercially but it is definitely a huge revenue driver. This company's market cap is 113 Mil and stock is at 2.51. It has it's losses in control and it's poised for a big move when this technology gets commercialized.

List of ETFs

http://messages.finance.yahoo.com/Technology/Computer_Services/threadview?m=tm&bn=20360&tid=725381&mid=725381&tof=13&frt=2

Cheers,
Ahu
http://stocksharks.blogspot.com

Make money in the last hour on the options expiry day

Ever thought you can make money in the last hour of options expiry. Keep an eye open for the following prerequisites while making this trade.

1. It needs to be the day of options expiry and the open interest should be really high.
2. The volume on the options (options that are in the money) should be low. Approximately less than 30% of open interest.
3. The stock should have moved higher / lower in recent sessions (your trade depends on whether you bought calls or puts). Therefore a few people might have made money on the move up/down and are holding to see at session highs/lows since options make a lot of money even on timing the entry and exit points.

Most brokerage houses automatically exercise or sell options that are "in the money" by 3 PM EST. Options traders know this and so if the stock has maintained a flat / slightly bullish line, they start exercising options a little before that. e.g. If a lot of call are open, traders start exercising the calls (buy stock). This buying spurs up the stock price.

To see a recent example of this, check out:

http://finance.yahoo.com/q/bc?s=AAPL&t=1d and look at the move in the last 1 hour. Also, see the options page for October expiry and see the open interest for Calls with $75 Strike price.

I've seen a move like this last year in OVTI for the last day of options expiry for the month of November.

Cheers,
Ahu
http://Stocksharks.blogspot.com

United Airlines (UAUA) is way undervalued

Wonder if Airline stocks are worth investing into? All airlines have gone through bankruptcy in the last few years except Southwest and American Airlines.

United Airlines IMHO is a diamond in the rough. We only have data from a couple of quarters after bankruptcy and that suggests that the airline is extremely undervalued. The balance sheet has debt but has plenty of Cash as well. Airlines, due to the nature of their business can carry debt against their huge property and infrastructure.

UAUA has a market cap of 3.23 Bil. They might hit 18 - 20 Bil in revenues in 2007 and are in a good position to increase margins just a little so they can earn more income. Taking estimated $6 a share earnings for next year UAUA is trading at a future P/E of 5.

There is another factor that might benefit margins in the short term. Gasoline prices have dropped 16% in September and if you believe in the conspiracy theory that Republicans are ensureing the pricing stays low until the elections get over, then these prices might stay for a while.

Even without this bonus the economy is really improving and Airlines might be have emerging from a very risky environment over the last few years where people can now understand the risks of airlines, accept them and yet invest in them.

All UAUA has to do is keep up their current earnings performance and we should see a 50% appreciation in the stock price in 6 months.

Cheers,
Ahu
Stock Sharks

YHOO downgrade timing questionable

Yahoo was downgraded this morning. The downgrade came in after Yahoo had already hit rock bottom over the past few days. This truly was a shameless ploy. Yahoo is being accumulated in my humble opinion. The day started with YHOO already opening low. You can drive a stock lower on low volume by pre-market trading. Stop losses might have triggerd for the brief dip and there on there is a consistent strong buying all the way into the close.

We keep talking about how individual investors are disadvantaged in the stock market. Situations like these are examples of how individual investors will benefit from maniplation as long as you understand the play.

I feel YHOO will go higher from now until earnings.

Switch to a Mac - Excellent article

http://switchtoamac.com/site/preview-apples-q4-2006-financial-earnings-mac-sales-increase.html

Excellent article. Check it out!

Apple about to announce wireless video i-Pod?

Apple about to announce wireless video i-Pod?

http://www.engadget.com/2006/10/10/apple-about-to-announce-wireless-video-ipod

Cheers,
Ahu

Financial Analysis on AAPL and some growth drivers

Let's do the numbers on Apple:

Note: I have made the assumption AAPL will meet the September quarter expectations next week.

Year ending    Revenues Revenue YOY% growth Earnings
Sep-03---------6.21B-------------------------------69M
Sep-04---------8.28B--------33.33%----------------276M
Sep-05--------13.94B--------40.60%---------------1335M
Sep-06--------19.08B--------36.87%---------------1897M

A company growing revenues at about 37% and earnings at an even higher pace should be trading at a much higher multiple than a future P/E of 28.16. The company has had real growth and the best is yet to come in the next 6 months.

The major revenue driver for Apple has been iPod over the years. iPod's are again selling like hot cakes and will continue to do so in the holiday season. MacBooks have a small percentage of the market share and sales have picked up only in the last quarter. Apple's advertising campaign has been very successful. The stock price doesn't fully reflect the price that ought to be considering the traction for Macs. Macs are number one sellers on almost every web list you can get your hands on.

Add to this iTV. Walmart and Target that together account for 55% of DVD sales for studios are up in arms with the studios about Apple getting new movies for cheaper. The studios realize that DVD sales growth has stagnated. Downloading is the new mode of delivery. It's cheaper for studios as manufacturing and packaging costs are not present and you don't need to go to a store to buy a movie. The goal is to download a movie / TV show on your iTV and view it anywhere. Could be your TV, your video iPod just anywhere. Bottom line the growth that the company will have with the iTv sales are not factored in yet.

Just iTV and a bigger chunk of PC / Laptop market warrants another $30 - $40 price increase.

We have not even considered the new products that are in the pipeline and if you know Steve, you know he will surely have something up their sleeve in the next couple of months.

AAPL: Strong buy

Apple products are best sellers

The top four best sellers and 10 out of the top 12 best sellers on Amazon are Apple products.

http://www.amazon.com/exec/obidos/tg/new-for-you/top-sellers/-/pc/all/ref=sv_pc_1/104-8059396-1562314?%5Fencoding=UTF8

AAPL is a great buy

Dear readers,

There is a lot of talk about how AAPL is overpriced, the stock has gone up too much and that Apple will barely meet expectations.

Apple is on the verge of changing the face of the entertainment business. Forget that for the time being. Apple is only trying to be a hardware company. They don't care of they don't make money on movies, music or any software. They only want to sell their hardware (iPod, iMac, iTv etc). They are coming out with great products and Steve is timing the launch such that the interest in the Apple brand never dies.

In fact, if they don't launch anything else this year, it is not because they can't but because they don't want to. They will launch that same exciting product early next year.

The current stock price has not even covered the rise warranted by the adoption of the MacBooks. Apple has a very low market share. Imagine the revenue generated if the market share goes up by only a few percentage points. iMacs can run either Windows or the Mac platform. Everybody is asking about it. It is topping Amazon's sale numbers.

AAPL market cap is 63.2 Bil. Their revenue has gone up from 8.27B to 13.93B to about 19B (September year end) if they only come in as per expectations. December quarter is expected to be a blockbuster.

I am not even considering the impact of iPhone, movies or any of theose potential revenue drivers.

Apple is going to do fantastic and the consumers will keep craving Apple products.

Excellent Call buying opportunity

While just going through the list of stocks that I follow, I have stumbled upon this really strange options situation.

Accenture reports tomorrow. The October and Novemeber $25 calls are trading at no premium. Stock is at 29.3 and the October and November call is trading at 4.3 to 4.4. So then the question is if the earnings are expected to be really bad and so the calls are suddenly trading cheap. The Options Interest is really low and so no that can't be the case. I mean if the earnings are bad then so be it but it's not the expectation currently going by the open interest on the calls or puts.

The biggest connundrum is how can the same strike price option for 2 consecutive months trade at the same level.

Got to buy it at this point!!!!

Icahn got 33% seats on Imclone board

Interesting news on IMCL. Icahn might have something in the pipeline for all you know. Note: He hasn't always made smart decisions. Remember BBI where he bought in at 8 - 9 bucks and tried to change the company.

Anyway Imclone is a good company with really bad leadership. They made some really poor investments (check out their balance sheet). Icahn hopefully will change all that.

Stock Sharks

Stock Sharks

Macs run Vista better than a high end Sony Vaio?

http://messages.finance.yahoo.com/Technology/Computer_Hardware/threadview?m=tm&bn=60&tid=929351&mid=929351&tof=143&frt=2

http://www.computerworld.com/action/arti...d=9003111&pageNumber=1
Amazon top sellers (from another Yahoo post)

Here are some of my observations. What is AAPL selling this quarter. I always check Amazon.com top 10 list in different categories.Lets see, as of 7/7/6, 9PM.

1. http://tinyurl.com/m27vt...
Top sellers, Top 10 list Laptops & Notebooks. #1, Macbook, #2 Macbook, #5Macbook, #8 iMac 20", #10 MacPro, #16 Macbook Pro, #18 Macbook Pro, #20 iMac, #26 Mac Mini, #34 iMac, #35 Mac Mini, #43 Mac Book Pro, So, Apple has 5 products in top 10 positions. Total 8 Products in top 25.This is why Aapl will go to $86 next friday. Definately will Split the stock in October. And then you all know what happens with the January Numbers and MacWorld announcements.

2. Go to aaple.com, go to store, MacBooks are backorder 5-7 days. Translation==HIGH DEMAND

3. Software, Top Sellers. #1 Apple .Mac 4.0, #18 Apple iLife 06

4. Electornics, Top Sellers. #2 30GB iPod, #6 60 GB iPod, #9 4GB iPod Nano, #12 1GB Nano, #18 30GB iPod, #21 2GB iPod Nano. This is only Top 25. 6 items belong to Aaple. This is why Aapl will go to $86 next friday.

Stock Sharks

Stock Sharks

http://maryjaneskibum.com/2006/09/07/apple-ipod-camer a-phone-coming-out-and-a-cell-phone

AAPL might use a 2 MP image sensor from Omnivision in their iPhone. Seems like very few phones today use 2MP.

CKCM bought out for $22.5

I think they sold out cheap but hey it's a profit for most of us buying it under 17 bucks.

Considering investing in Solar Power companies?

Considering investing in Solar Power companies? Here's an attempt to break down the market and to figure out what to look for.

Photo Voltaic cells are used to generate solar energy. While PV cells aren't exactly following Moore's law, their prices are going down and capacity (conversion efficiency) is increasing. There is but one source of energy and so the improvement is sought in the conversion efficiency of the PV chips to make it competitive with traditional forms of energy.

Some important factors to consider are....

1. Low cost of Production. e.g STP -Suntech Power. Manufacturing based in China.
2. High conversion Efficiency. Every company is striving for this. Sunpower (SPWR) at 22% is way ahead in the competition. Others are in the 15 - 18% frame. If SPWR has excellent patents then they have an excellent advantage long term.
3. A major challenge for this group is the polysilicon capacity. Polysilicon is used to manufacture PV Cells. Therefore its important for PV manufacturers to strike deals for a consistent polysilicon supply. Due to a major increase in demand over the last 2 years the price of polysilicon has gone up nearly 30% (contract pricing). MEMC Electronic materials (WFR) produces most of its own silicon feedstock and has recently inked a 10 year deal with STP.
4. Therefore company size and financial health is very important for ensuring supplies through contracts.
5. A company's base country will play a role as well. Germany and Japan offer the best incentives today to use Solar energy. STP has an excellent advantage as they have good visibility with Chinese government officials (see their website which talks about some visits and statements).
6. Most companies in this sector have triple digit revenue gains and so stock pricing is tough to decide. STP is the most profitable. They also have the lowest institutional investment (partly because its an ADR) and that leaves immense scope for a stock price increase.

Note: MEMC Electronic materials (WFR) is well positioned to take advantage of the polysilicon shortage. They produce most of their own Silicon feedstock.

Regards,
Ahu

Excellent article on the Solar Power Business

http://www.carmanah.com/content/investors/showmediaclipping.aspx?id=050919

Long time!

Tue Jul 25, 2006 9:04 am

(I am posting this email a few days after I posted it on the yahoo group.)

Hope you are all doing well. I had taken a sabbatical after taking up the new job last October but the market has become enticing enough to start considering long term investing in bits and pieces.

Most Tech stocks are doing quite poorly and many of them are down dramatically from the beginning of the year (mostly well deserved). Seems like Oil and Mining stocks are doing the best all year. I do think thistrend will change in time.

I feel a lot of tech stocks currently make good long term buys. If you wouldlike to buy into a upscale restaurant chain that is growing at a steady pace, buy into RUTH. It is a Steak House and has been around since the 60's, but gone public only in the last year or two. It is below IPO price currently and I might be rusty but I don't see any factors standing out except a poor over all market. Yup, don't think Americans will stop eating steak any time soon :)

Anyway, at 18 bucks, I think it is a deal. Earnings are tomorrow and so you can choose to buy after earnings too.

I think the market can still fall a little more but right now might be a good time to buy stocks that you plan to hold for a while.

CKCM earnings are on Thursday and I do think it is a good buy long term at16.6. OVTI might see a traditional dip before earnings which will be in early Sept. Texas Instruments (mentioned strong chips sale for cell phones) and Cell phone companies have had strong earnings which bodes well for OVTI. Image capturing chips according to some analyst might be becoming acommodity but I feel OVTI has planned its diversification quite well, have good revenue growth and have a cheap P/E.

I will not be covering Oil / Mining stocks in general but the gains there have been dramatic for those who are interested.

Good luck!
Ahu

Blockbuster BBI

From: "Ahunawar Chhapgar" Date: Sun Feb 26, 2006 3:40 pm Subject: Blockbuster (BBI): Might be way undervalued

Carl Icahn bought BBI in the 8 to 10 dollars range. Carl Icahn is a
billionaire investor who buys companies when he thinks that he can run them
operationally and likes to break down companies after buying into them or as
in this case, try to replace management that pays themselves too well after
doing a shoddy job of running the company.

Some fundamental analysis on the stock:
1. Revenues: around 6 Bil / year; Market cap: 719 Mil. This should
definitely catch anyone's attention. Of course this means that they are a
loss making company which is why this discrepancy.
2. Total liabilities = 2.56 Bil and Total Assets = 3.03 Bil (they own their
stores). The difference in this has gone down since the previous quarter but
you still have about a +$500 Mil difference. In the meantime the stock is
down by about a third in value.
3. Their online rentals have not picked up like Netflix. Round 1 goes to
Netflix. BBI took the beating of it's life to get to $3.75 from the 10 to 11
dollars range. Having said that, BBI has more distribution centers than
Netflix and if they can do a half decent job of trying to run the business,
they would be much more successful with Blockbuster Online.

What is Icahn doing to turnaround business.
1. Classify stores as profitable or loss making and close down the loss
making stores. BBI has thousands of stores in the country.
2. Use the extra time he had over the last 18 months to develop a good
Inventory management system and make BBI online successful.
Five years from now DVD's will probably be replaced. Don't be so sure though
cause studios are making a lot of money via DVDs and unless they find an
alternate source of the same revenue, they are surely creating DVDs.
One very interesting observation is that there are 81000 $5 calls open for
April. How big is the anomaly? Get this. Every call / put for all the months
has an open interest in between 500 - 2000. This means some one is betting
8.1 million shares on the fact that BBI will cross $5 by April options
expiry. The option is at 10 cents and a pretty good bet in my opinion.

The recovery might take longer than one would like. So you could still see a
March 9 earnings report that is not good enough but hey this one is quite
undervalued

Cheers,
Ahu

PLAY

From: "harish rao" Date: Wed Feb 1, 2006 7:00 am Subject: RE: [stock_sharks] CKCM, AMD, GOOG, OVTI


Ahu,
I would check out Play(Portal Player). They are the primary provider of soc chips for Mp3 players, the market for which is growing at 40%. They are providing chips to sndk, aapl and have a design win with philips.
Also, there are is a talk that they are coming with up PMD devices and a tie up with microsoft. They have 6+$ cash for every share, no debt and a very low forward looking PE.

Thanks
Harish