The Rise Of BlackBerry?

Has anyone noticed that RIMM (Research In Motion) is up over 100% since September? I have. And I wish I could have predicted it! Double your money in just 4 months??? Damn, I wish I could have seen this coming! But what does this mean? Is BlackBerry again on the rise? Maybe. There are plenty of investors who have been hurt by RIMM but if you are looking for a tech company to put money in for the first time, this would be the stock to buy. The barrier to entry is low enough and they have a brand new product/platform launching this year. And lets not forget that BlackBerry hasn’t been completely left behind in the world. Sales in Europe are still decent and in emerging markets like South America, Africa, and Pacific Asia is where BlackBerry will see lots of growth. Even if this is just smoke and mirrors, there is money to be made in RIMM.

Google Crashes The Market

Did anyone pay attention to the stock market yesterday? No? Well let me fill you in on what happened. Google’s earnings got published early and sent the tech sector into a dive. Google missed their quarterly expectations and so the selloff began. Now I genuinely don’t care about what Google does (aside from them ripping off everything that that produce from someone else). But I start to care when Google’s earnings somehow decrease my Apple (AAPL) shares! How the hell does Google’s earning have to do with my stock? I’m waiting for Wall Street to return my inquiries on that. Apple has exceeded their own guidance for as long as I can remember. Yet their stock gets hammered when they don’t crush analysts inflated expectations. Does anyone see what is wrong with Wall Street? Because I surely do.

But Wasn’t FB The Next Big Stock?

Ok, so remember when I said that Facebook (FB) was the next big stock. Well, I was right. It was. Is. But did anyone predict that this would have happened to the stock so soon? I doubt it. Many investors were salivating over this stock. I have to admit, I was bullish on the stock as well. I thought that FB would rocket out the gates and reward early investors with quick gains. Again, I was right. The stock shot up almost 10 points on its opening price. But that was about it. FB ended its first day of trading only a few cents above its opening price. That was the worst possible thing that have could have happened. It also didn’t help that Facebook employees were selling massive amounts of shares. Can you blame them? They took the opportunity to become instant millionaires. But many also had to sell to avoid hefty capital gains taxes. But still, it doesn’t give investors confidence if employees are selling shares. It looks like rats fleeing a sinking ship.

And while I’m not saying Facebook is sinking, its just not that profitable a company yet. I gave Facebook as little as 5 years of usefulness to investors and as much as 15. While it’s too early to tell for sure, the pressure for Facebook to show strong revenue is now on. FB is opening today at $25.87. That’s down $12.13 from its opening price of $38. So was FB still the next big stock? Sure. Didn’t you hear that big thud it made after it climbed to $45 on opening day. A lot of people have lost a lot of money in a short period of time. While the stock will eventually go up, it will take some time. Will I ever buy FB? Not in the first year.

Mark Zuckerberg Isn't Ethical? Allegedly. Surprised?

Mark Zuckerberg is being sued for allegedly dumping a billion dollars in Facebook (FB) stock that he knew was overvalued. But this wouldn’t be the first time that he’s been accused of ripping someone off. I say this is par for the course. You don’t become worth $15 billion without screwing more than a few people over.

I’ve got more on this whole Facebook fiasco coming soon. But let me just preface that by saying that even though I was wrong about Facebook’s IPO, I was also right.

BOOM! There Goes AAPL!

What have I been saying recently? Just what have I been saying? Pull down a good stock and enjoy the slingshot ride back to the top! As of the time of this post, AAPL (Apple) is up $51.94! That is a 9.27% increase! AAPL is a stock that will be heavily manipulated every quarter but my view is still the same. It is going to $1000. We’ll see if I’m right. I believe I am. And every quarter, Apple announces earnings that makes me believe that I’m right.

Buy Buy Buy!

AAPL (Apple) is opening at $580.13 this morning. $580.13! That’s over $60 lower than it was a week ago. I won’t tell you how much I lost in the last week. But the gains are going to come back and with a vengeance. So if you can, BUY! The stock may go down a little more but the rebound is coming. Think about a slingshot. The harder you pull it back, the more force it has when you release it. AAPL is one of those stocks. Investors occasionally put it down so that they can load up on it and ride the uptick. So take my advice and buy. Today.

Read the MacDailyNews Take on what’s happening with AAPL (link).

[Update]: AAPL closed at $609.70 today. Up $29.57 or 5.1% from its opening price. If you listened to me this morning, you turned a decent profit. Ask any bank to give you 5.1% in one day. You’re welcome!

My Advice For Investing Money

So I get asked all the time for advice about purchasing stocks. And while I’m no financial guru, I am more knowledgable than many my age. I’m the guy that has been saying for over a year and a half that AAPL (Apple) is going to $1K. And I still believe it. So if someone asks me for advice on a stock to buy, I’ll easily recommend AAPL. Sure, at over $600 a share, it looks expensive. But there is more growth in that stock. Oh, and AAPL is now paying a dividend. Now, I will admit that I didn’t like the idea of a dividend at first. It just wasn’t something Steve would have done. But it does make sense if you want to reward long-term investors. A dividend basically gives away profits to the ownership of a company. How else would an investor ever make money off of a company that they own without a dividend? They’d have to sell their stake (stock) in the company at a higher value than when they bout it. And this doesn’t make sense if you are looking for a steady and long-term revenue stream. So while I see upside and long-term value with AAPL, it’s becoming priced too high for many potential young investors.

So what other alternatives are out there? The list is vast. But I’d start looking at component suppliers for smartphone and tablet manufacturers. Companies that produce the components for your iPhone 4S or Galaxy S2, your iPad or Galaxy Tab 10.1 are seeing their volume of sales increase tremendously during this next wave in personal computing. The tablet market is expected to surpass the PC market in coming years as consumers look to purchase devices that are more portable. So while sales of smartphones and tablets increase, sales of components for those devices will increase as well. All of these devices use flash memory and touch panels. So investing in companies that make those components would be smart. Are you going to see gains on those investments like you would with AAPL? Of course not, but a stock portfolio should be diverse. Should. I’ll be the first to tell you that my portfolio is 90% AAPL. I haven’t made any new investments since 2008. But that will change this year when Facebook goes public.

Facebook (FB?) will be the new glamour stock. Get in early because at this moment, I can’t see Facebook being a long-term stock. I see a relatively short surge before it plateaus off. 5-8 years at worst. 10-15 at best. Facebook has a huge audience to display ads to, but Facebook will have to become more to be a stock worth owning for a long time. One thing that Facebook has going for it, is that it is synonymous with social networking. You think search (Not even web search, but search in general.) and Google comes to mind. Running and Nike. MP3 player and iPod/Apple. There are just some companies who’s brand is so strong that it makes their stock even more attractive. I believe Facebook has that potential. I mentioned in my post, The $1 Billion App, that with Facebook’s purchase of Instagram, it is showing that it is serious about protecting some of its core functionality. You can expect more acquisitions which will increase Facebook’s functionality and give the company valuable intellectual property. That is also of value when looking at a stock.

So how do you start? I started on eTrade but I acquired my AAPL shares while working for the company. Taking part in an employee stock program is great. You first need to believe in the company and it’s business model. But those programs allow you to purchase shares at a lower price than their street value. To a new investor, I’d recommend looking into mutual funds that are loaded with tech stocks. Technology is the future. There is money to be made there. Go to your local bank and talk to an investment planner. Decide on how much risk you’re willing to take. But most importantly, do some research on your own.