Tuesday, February 19, 2008

Bought More NVDA

I've had my eye on NVIDIA (NVDA) long before November of last year, when I named it my stock of the month. Its stock price has fallen 34% since then, and nearly 50% from its highs in July 2007.

Enough is enough.

I bought some more NVDA at around $22.50 on Friday, after it was punished 16% a day earlier for an earnings report that exceeded expectations, but drew concerns for an 8% to 10% increase in operating expenses in the upcoming quarter. A market-leading company such as NVIDIA will reward its long-term investors, by allocating resources such that revenues and profits will increase over the long-term. Really, is the prudent action for a high-growth tech company to be slashing costs? No way.

NVIDIA is focused on growth, by entering new areas such as smartphones - although they aren't a supplier to the iPhone, they will benefit from the greatly increased graphical expectations of those devices, due to the iPhone. Meanwhile, NVDA will continue to dominate PC and gaming platforms as the premier supplier of GPUs.

Sunday, February 3, 2008

Stock Of The Month: ACAS

Bought some American Capital Strategies (ACAS) at $33 last week. ACAS is yet another high dividend stock, which has fallen 43% over the past year and was just too cheap for me to pass up. I'm not entirely comfortable about investing in a company dealing whose main product is debt, but it seems like a worthwhile risk.

Then, in a triggered sale, sold Intuitive Surgical (ISRG) at $237. Although it was for a 158% gain (64% annualized), I regretted this trade almost immediately because it's a great company with leading technology in a growing market - then I really regretted the trade when the stock zoomed up 29% in the two days thereafter. Is this a Terra Nitrogen(TNH)-like case of seller's remorse, where I'll feel compelled to "sell low and buy high"? Could be. Hopefully the stock will come back in first.

Finally, I feel Mr. Market has given us a gift recently by beating down Google (GOOG), due to "disappointing" earnings and a potential Microsoft/Yahoo! merger. You know how much of a threat MicroHoo is to Google in search? My bet is no more, and likely significantly less, than the sum of the two as they are now. So, I took my ISRG proceeds and bought some more GOOG at $520.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Southern Copper (PCU) 12.08%
Dominion Resources Black Warrior Trust (DOM) 11.50%
Fording Canadian Coal (FDG) 9.10%
Google (GOOG) 7.25%
Annaly Capital Management (NLY) 6.32%
Goldman Sachs (GS) 5.84%
American Capital Strategies (ACAS) 5.53%
Tidewater (TDW) 5.35%
MF Global (MF) 5.21%
MEMC Electronic Materials (WFR) 4.23%
Apache (APA) 4.15%
Frontline (FRO) 3.67%
Terra Nitrogen (TNH) 2.93%
NVIDIA (NVDA) 2.92%
Ace Limited (ACE) 2.92%
Alliance Resource Partners (ARLP) 2.87%
Apple (AAPL) 2.82%
Nokia (NOK) 2.77%
Foster Wheeler (FWLT) 2.52%