Thursday, April 25, 2013

5 $100 Investments

First, Netflix is up 24% two days ago. Booyah. Before I get too happy, even a broke clock is right twice a day.  I didn't expect that when I bought it a few weeks ago.

I'm looking at buying $100 worth each of 5 stocks. My point is that you don't have to have a lot of money to start investing. If $500 is too much, buy $10 worth of 5 stocks.  You can start there and work your way it.

Ideally, I want to get stocks with very low prices so I can buy several shares. Since I already bought Fanny Mae and Freddie Mac at about $.76 each I'll leave those alone, here are some I looked at:

WebMedia Brands (WEBM) - Up 8% today to $1.86/share. They lost $6.4M last quarter, even without a non recurring charge, the loss was bout $900k, the worst quarter last year.  Looking at the headlines, I don't see anything exciting.

Zaap (ZAP)  - this maker of hybrid engines is up 2% today, to $.15/share. Their historical best price was about $1.80, 3 years ago. The headlines look like they're doing things to keep the lights on....

Suntech Power Holdings (STP) - the world's biggest maker of solar inverters, used to trade at $90/share. Now it's $.64. Wow.  They also just defaulted on some convertible notes and are trying to restructure. Any other time I'd say run for the hills, but if they do pull off a miracle, that $100 investment might soar....

LDK Solar (LDK) - another solar supplier, up 3% today.  This company looks like they're having serious financial problems, but are further down the road than Suntech in fixing them. Doesn't mean they can or will be fixed, but they've  been dealing with them longer. It's sold off a few subsidiaries and other interests, but the US's countervailing duties tax of 15% is seriously hurting Chinese solar suppliers.They're also looking at $23M in convertible senior debt they can't pay back right now. Their historic high is about $80/share, which makes today's $1.14 look crazy.

ArQule, Inc (ARQL) - This biotechnology company engaged in the research and development of next-generation, small-molecule cancer therapeutics. Yeah, a mouthful. Up 2% today, to $3.07. Their historical high is about $40. They caught the mother of all stock beatdowns back in October 2012 when they stopped a lung tumor study, losing 54% in one day. Their low was about $2, so they've climbed 50% since then. Yeah, they got my attention. But their 6 month chart looks like a mountain range after the Enterprise skidded across it.

Advanced Micro Devices (AMD) - this long time Intel competitor was once a $50 stock, now it's a $2.69 stock. It and Intel are both feeling the "post PC" heat. Intel's handling it better. They're up 3% today.

Alcatel Lucent (ALU) - This was once an $80 stock, now  it's $1.41.  They just installed a high speed network in Italy, so they're still working. Deutsche Bank recently upgraded them from HOLD to BUY, not that that means anything, other than somebody somewhere with a nice office likes them. Two years ago, it was $7, now it's $1.41. It's been as low as $.98.  They're still in business and can't go anywhere but up.

 Authentidate Holding Corp (ADAT) - Twelve years ago this was a $40 stock. It's now $1.35. They've lost at least $2.5B each of the last 3 quarters. That's with a B. Most articles on them are about their filing financial statements. Very little company info other than here's a new 10k report.

I'll let you know shortly who I go with....