Category Archives: Stock Tips

IQNT Analysis

IQNT Analysis

When Your Stock Ideas Go Wrong, you need a plan of action. Watch the video above to understand where you can turn, when your stock ideas are selling off.

If you’re interested in a more detailed plan of action for what to do when the market turns red, you can read my recent blog post: When Your Stock Ideas Go Wrong

Stock Ideas I Learned From The Rhino

The Rhino - Investor ProfileInevitably… some of your best stock ideas, will come from others.

Great artists steal, right? So…

In the spirit of sharing stock picks, here are the top stock ideas I learned from The Rhino.

But you might be wondering…

Who Exactly Is “The Rhino”?

And it’s a good question. The reason I wanted to write about The Rhino is because I like successful investors who have personality, and a story to tell. The Rhino fits into that category perfectly.

For example…

Before The Rhino was a daily source of stock ideas, he was a paratrooper with the 82nd Airborne (an experience he writes about in incredibly interesting detail). Amazing.

He survived two tours of duty in Iraq and now seems to spend most of his time trading securities (and blogging about trading securities, for the iBC Cartel).

So Where Can You Find The Rhino After Normal Stock Market Hours?

Well, when Rhino isn’t crushing shorts or derelicts on the streets of San Franicisco, you can best believe he will be throwing egregious amounts of metal around at the gym, or basking in his nordic heritage.

You get the picture, right?

This man has values. And he stands for them. Plus, anyone who puts this much effort into everything he or she does has got to be a good source of stock picks, if you ask me.

So…

Now that you’re familiar with iBankCoin’s resident rhinoceros, you probably want to know what stock ideas and trading philosophies I’ve learned from him…

Top Three Stock Ideas I Learned From The Rhino:

  1. Have Courage In Your Conviction – A good stock idea is not good enough. You need to have the fortitude to pull the trigger and follow through on your investment idea. The Rhino is very clear on why he holds all of his positions. And this helps him maintain conviction in his investments, even if a trade might be going against him. It’s the same reason I am so diligent about establishing criteria for evaluating stock picks ahead of time.
  2. Stock Ideas Do Not Exist in a Vacuum -People are quick to say how you can make money investing by paying attention to local businesses around you. But Rhino is one of those rare traders who actually does translate these observations into profitable stock picks. His recent bearish position on $LULU is only one of many “finger on the pulse” stock ideas. This is an area I’m trying to learn more about, from Rhino. You can imagine why, given the ripe opportunity for investment income to be generated.
  3. Work Hard – If you aren’t willing to put in the long nights of research looking for new ideas, the days of disciplined patience stalking the ideal entry point and hours of analysis pouring over your portfolio… well, find another gig pal. Or maybe don’t. Because life is going to be tough for you. At least, according to Rhino (and me).

So there you have it. And by the way pal, these are only a few of the timeless trading lessons The Rhino has imbued me with.

Not bad, right?

Personally, I should disclose that most of The Rhinos trades are a bit too speculative for my comfort level, so in the past I haven’t often acted on his direct trade ideas. But I really love his ethic and his style (which is more important than any individual stock idea). He is opportunistic and makes money where there is money to be had, long or short.

If you shut and listen you might just learn something too!

You wake up, you read Rhino, and you can’t help but feel motivated.

So even if you don’t follow his every trade, you can still learn a ton from his stock picks, trading ideas and sensible approach to investing. Plus, just look at the amount of research he does on a daily basis.

And now that I shared one my stock idea sources, who do you like to steal your stock picks from?

Oh yeah…

Follow The Rhino On Twitter to Learn His Stock Ideas Yourself!

Update: You can now follow the Rhino at his new blog, Rhino Capital Management.

What Makes A Stock Idea Speculative?

Stock Idea Speculative

Avoid gambling on speculative stock ideas…

What Makes a Stock Idea Speculative? It’s a good question.

And depending on who you ask, how to determine the speculative nature of stock ideas, is an inquiry with a few different answers.

But let me help you out…

Here’s my rule of thumb for identifying what makes a stock idea speculative...

How To Determine What Makes A Stock Idea Speculative:

Speculative stock ideas are defined in a couple of ways. But no matter which definition of speculative stock tips you look at, there is one common element: risk. Makes sense, right?

Speculating on stocks is glorified gambling. And sitting at the blackjack table doesn’t come without risk. So let’s take a quick look at what it means to gamble.

Basically…

You’re putting your money on a hunch and hoping it pays off. Risky, right? But here’s the thing you need to watch out for:

In the modern investment landscape, their are so many data points, indicators and market prognosticators, that you can almost always convince yourself you’re right!

Avoiding the confirmation bias is a real challenge for investors today…

So how do you objectively determine if you’re speculating on stock ideas?

Well, you need objective criteria and a rigorous decision making process to evaluate the speculative nature of your equity and debenture holdings, before you pull the trigger and buy or sell your securities based on any of your stock ideas. Got it?

Now…

How To Ensure Your Investments Are Not Speculative:

The key rule of thumb to determining if your stock ideas is speculative in nature comes down to this: You need to look at the balance sheet and determine the assets per share.

When you buy stocks that are trading below their net asset per share (or even cash per share!) then you know you are not risking money. Rather, you are buying equity at a discount to true value. This sounds a little wild but bear with me for a second…

The stock market is a volatile, irratic place and speculative place! The blade swings cuts both ways…

So when equities fall out of favor with investors they are sometimes punished unduly. The recent fall in AAPL from $750+ share to $430 is exactly such an example. So where does that leave you?

I’m glad you asked.

Your job, as a savvy investor focused on protecting your wealth, is to look for stocks that are trading below their net asset value. Low P/E and high dividends may also make these issues more attractive.Of course…

You will also do enough research to understand WHY the stock is trading at such a discount, and avoid it if future earnings look impaired (in which case you’ll stay away). Now…

A lot of people won’t agree with this definition. But it’s the precept of value investing so I’m not alone. And if you invert the supposition (as the great Charlie Munger always says you must), then it’s intuitive: paying more than something is worth is speculative (because you’re relying on the greater fool).

So buying undervalued stocks is how to avoid speculative stock ideas. And paying more for stocks than they are fundamentally worth is what makes a stock idea speculative. Period.

Of course, determining exactly how to evaluate your stock ideas is a story for another day. But hopefully you’re starting in the right direction now, at least.

What stock idea speculations have you heard recently?

 

Why You Can Share Stock Ideas:

Share Stock IDeas

Sharing Stock Tips is Caring

Some people never want to share their stock ideas. Crazy, right?

Well…

I think keeping your stock tips to yourself is pretty dumb, for two big reasons.

Two Reasons Why You Can Talk About Your Stock Tips:

1) The first big reason why you can talk about your stock tips with other interested people is because it will challenge you to think more seriously about your stock idea! This seems simple but it’s a powerful precept. Think about it…

Sometimes people buy common stocks for really shortsighted reasons. Their friend is excited about the new Blackberry and knows an “insider” who says they are selling like crazy. Well…

In my experience evaluating stock ideas… that… the most profitable opportunities occur when they you are not making emotional decisions. So here’s your take home point:

Talking about your stocks and sharing your investment ideas is helpful in that you don’t want to look like a moron in front of your investment banker friends, right?

The second big reason you can talk about your stock ideas with your finance friends, is because…

2) Stock Ideas get old fast! The market is always moving. Prices are constantly fluctuating. And when you share your current ideas, they become old. This means you are kind of forced to immediately start looking for something new. Get it? So…

Sharing your stock ideas gets you in the habit of always looking for more opportunity.

(At least, that’s what I’ve found over the course of my investing career).

Social Media Is Great For Talk Talking About Stock Tips:

So now that you know why you can share stock ideas, let me tell you HOW to share them. In my opinion, the best way is real time… and… nothing beats social media great for sharing investment tips in real time… so for starters…

Have you checked out Stocktwits?

Stocktwits is very similar to Twitter, but the stream is moderated a little bit more. So the commentary tends to be a bit serious and higher brow. There is also a stocktwits recommended users screen that is very helpful when you are just getting started sharing your investment ideas on Stocktwits.com

Twitter has a lot of active trader, too. Just go to the search page and look for traders. You can find people all kinds of equity types on Twitter.

Yahoo Finance Stock Message Boards: Be careful here, these people don’t often know what they’re talking about. But sometimes it’s good to hear every side of the story, right?

Okay, this list of ways you can share your stock ideas is starting to get a little long.

Last thing…

Finance blogs are a great way to share your stock and trading ideas, too. There are so many of them that I will have to make a whole other blog post about sharing your stock ideas at investment blogs (and which are my favorite).

So there you have it… Why you can share your stock ideas, and how! Just remember, a big part of sharing is listening!

Oh yeah, a third and final reason you can share stock ideas is because you might build some good investing karma. And maybe a hot stock tip will come your day sooner than you think.

So share your stock ideas with me in the comment section below! What are you trading right now?