Use access key #2 to skip to page content.

Varchild2008 (84.35)

Investor Ignorance 101



August 06, 2008 – Comments (0) | RELATED TICKERS: DPS , BB , FEEDQ

(FEED) is selling off big-time for the wrong reasons.  The commodity implosion in prices should have helped FEED's Grain pricing and thus make it easier to sell more FEED product.

I guess the stock market works in reverse.  They want feed prices to skyrocket in order to be bullish on feed?  Well...  The market reality is that VOLUME trumps PRICING.

Plus.... (FEED) gets most of its revenue from the sale of HOGS.  And it can sell HOGS for a greater price if Feed Product's pricing is slipping.  I.E.  If it becomes cheaper to buy FEED from FEED then AgFEED industries can have leverage to justify higher HOG prices to make up the gap.

Ultimately, I am not convinced (period).  So I bought 10 more shares of FEED today for a total of 137 shares.

(RIMM) gets 2 stars on Motley Fool and the stock is up $10 from it's 116 low 2 days ago.

Granted, CAPS investors think long-term.  But, short term traders are drooling over RIMM's short-term profit boosts that you can get from cycling the thing.

As an investor you can just hold on to those shares until December, just days prior to the BOLD release in America for T-Mobile which is JANUARY.  (it may sell earlier for AT&T customers).

(DPS)  Dr. Pepper Snapple is *NOT* trading up because of their earnings report next week.
It is trading up because of what Dr. Pepper Snapple did recently.

Just days before their earnings report, as part of advertising VENOM Energy Drink, they have created a fun website/advertisement in conjunction with a cryptozoology website asking consumers to join the "Venom Monster Squad" in pursuit of a live Montauk Monster.

This Montauk Monster is a creature found dead, washed ashore on the Island called Montauk, which is named after the Indian Tribe.  This monster is more than likely a Raccoon, but I digress.

Whenever a Corporation has time on their hands to *goof off* and *have fun* with their consumers then there's plenty of reason to believe Dr. Pepper Snapple is going to hit a Grand Slam on Earnings report day.

After all.. If they are prepared to report a frightening MISS in earnings.... Would they be having this much fun?

0 Comments – Post Your Own

Featured Broker Partners