Thursday, March 28, 2013

No new trades today, My largest positions in descending order are APP stock long with a 4-6 month price target of $3.25, CRAY stock long with a 5 year price target over $60 a share, AAPL Jan. 2015 leaps with a $500 strike, looking to double my money, and last is TTS which is also a long term buy that could triple in a couple years. My watch list remains the same: HIMX (up 18% today), CSV, and GRPN. Larger Cap stocks I would recommend on a 5% market pullback are: FB, CRR, and NFLX. I would love to buy FB at $23 a share, CRR and NFLX are both great companies. CRR will benefit as the US becomes less dependent on foreign imports and relies more on domestic supply, this ultimately means more drilling and more fracking. NFLX is just starting its rise, I will explain my view on NFLX this weekend. One interesting idea that I noticed when shopping for a car; many cars including luxury cars were not equipped with a Satellite Radio receiver, I happened to be looking at 2008 Infinity sedans and I was disappointed that most of them had no satellite receiver. Then as I was waiting all day in the sales department I became interested in how the sales guys closed deals. They try to get you to add options. Well there were signs up behind their computers to remind them to sell the Sirius Radio package, they were selling some 5 year deal and the way they sold it made it very appealing. I was surprised that old grandmothers buying new BMW's really wanted this option, one lady did not really even understand it but it seemed like she was more impressed with the word "satellite" than what the added option really did. Everyone I listened to that bought a car added this option. Basically what I am saying is even a few years ago this option was not even a possibility because many new cars came with no receiver and so to get satellite radio you would have to go to Best Buy and get an ugly receiver and leave your car there to get it installed. I did this one time and the reception was horrible and even though I am a huge satellite radio fan I ultimately decided I did not want to hassle with the Best Buy ordeal of having them mess with the audio wires in my car, be stuck there for hours, and have an ugly receiver that looks out of place in a nice car. Now the majority of new cars have a receiver but the average age of cars on the road in the US is 10 years old, so the majority of cars on the road do not yet have a satellite radio option, but as time progresses so does the availability of satellite receivers in cars. That should mean steady increasing radio subscriptions for SIRI. I like SIRI a lot and remember trading it when it was $.30 a share, that means it is up over 1000%, could of, should of, would have, right? Long term I think this stock moves back into the $10-$15 range. Market is closed tomorrow, have a great Easter weekend and submit any stock trading ideas to AustinJMalone@gmail.com

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