Time To Back Up The Truck On Technology Stocks, Again

A tech revolution is coming that will propel the indices to lifetime highs, within the next 5-7 years.  Tech what?  Green tech, mobile tech and Web 2.0, that's what!

In the medium term,  shorting the market in the 3rd year of the Presidential Cycle isn't a great idea.   

There are two tech stocks - one in mobile tech and one in green tech - I believe has the potential to become the next Intel or Apple. By that time (5-7 years) the Dow may be trading at 36,000, courtesy of the Helicopter Fed.  It's time to get on board and buy tech, and ignore the market doomsdayers.

Jim Rogers On New Opportunities Amid Economic Uncertainty

Mark Haines Is Gone Now, Died At 65

He was really good at picking on the bullsh*t.



via InfectiousGreed

Buy $LNKD, The First Of The Four Social Media Horsemen; And Buy The Russian Google $YNDX While You're At It

Groupon, Twitter and Facebook make up the other 3 horsemen.  They are great investments.  Buy them as they go public, and don't let the bears scare you out of the shares.

Yesterday, Marketwatch's Mark Hulbert takes another stab at slamming an ipo. This time, he thinks investors need to do the math and LinkedIn is a bad investment. I suppose he probably thinks LinkedIn at $30 is a bad investment also, base on the math.

So what did Mark Hulbert think of the Google IPO back in 2004? "Don't do it! The odds are against investors."  Should we believe Mark will be right this time around?  You be the judge.

The bears are always clawing down on stocks for crazy reasons.  It's too expensive, they say.  Reality check -- fast growers are always expensive!

They say don't touch YNDX, the Russian Google, with a 10-foot-pole.  But I give a more profitable take.

Shai Agassi: The End Of Oil And The Beginning Of Lithium And The Green Transport Revolution

Steve Cohen: Market May Pause For Summer

Legendary hedge fund manager Steve Cohen expects that the markets will "pause" this summer. Speaking to the audience at Skybridge Alternative Investment Conference Tuesday afternoon, Cohen said that the run up in the S&P 500, which has gone from around 1000 to around 1500 since last just, is probably coming to an end.  "We’ve had a good run and I think we’ll see a little pause," he said.

Cohen, who founded hedge fund giant SAC Capital, rarely speaks publicly and was one of the most hotly anticipated names on the roster of speakers at the conference.  He made some macro-economic predictions as well. The second half of 2011 could see more robust growth than the first half, he said. "We could see 4 percent growth in the second half," he said.

But that growth won't last, according to Cohen.  "I’m more worried about 2012 as some of the stimuluses wear off," he said. "But we’ll worried about it when we get there."

CNBC

The LinkedIn Bears Are Out Again

Marketwatch's Mark Hulbert takes another stab at slamming an ipo. This time, he thinks investors need to do the math and LinkedIn is a bad investment. I suppose he probably thinks LinkedIn at $20 is a bad investment also, base on his math.

So what did Mark Hulbert think of the Google IPO back in 2004? He said, "Don't do it! The odds are against investors."

Russian Search Engine Yandex $YNDX Is Going IPO This Week, And Should You Buy It?

Consumer Internet stocks are a hot commodity now, especially following LinkedIn Inc.'s stellar initial public offering last week, during which its shares doubled on the first day. Though Yandex isn't in the same coveted social-media space as LinkedIn, it lays claim to some impressive bragging rights in the search-engine game: It is bigger than Google Inc. in Russia.

At 64% of the Russian market vs. Google's 22%, Yandex is a major force in one of the few countries in Europe not dominated by the U.S. search-engine company, which has been operating a Russian-language site since 2001.

Yandex, which also is the largest Internet company in Russia by revenue, has been profitable since 2003. In the first quarter, net income rose 62% to $29 million, and in 2010 it increased 90% to $134 million. The company is aiming to raise as much as $1.15 billion on Tuesday through a listing on the Nasdaq under the symbol YNDX.

WSJ


Should you buy the stock? Of course.  But just don't back up the truck.

Anybody that beats Google, even if only in home turf, is still worthy of your investment dollars.    

Congratulations, You're More An IPO Expert Than Anybody Else; And Friends Don't Stop Friends From Buying LinkedIn $LNKD

When it comes to ipo's you probably shouldn't listen to the talking heads because they can't seem to see future potential of the company better than you or your friends can.

Consider BIDU, back in 1995:

"Even with increased revenue and net income results for Q2 (around $8 million), this deal has got to have Benjamin Grahm rolling in his grave. Consider that CBS Marketwatch cited a IDC report as saying the entire China online ad market was $130 million in 2004. Now I think Baidu may surpass a $1.3 billion market cap by the end of first day of trading (China Net Investor: Baidu now has a market capitalization of $3.92 billion!), and if that happens, then I must say that I don't know of that many other companies that trade at 10x INDUSTRY revenues, even if the industry happens to be growing real fast."
Philip Lin, former executive at private equity firm, Kluge & Company; entrepreneur-in-residence at Kleiner Perkins

"You want me to talk about Baidu.com? OK. The stock, which climbed $95, or 354%, to $123.06 on its first day of trading Friday, trades at 1,000 times earnings. It trades at 128 times sales. You know what to do - SellSellSell!"
Jim Cramer on his "Mad Money" show

"This one is the return to the Internet bubble"
John Fitzgibbon, analyst in New York with IPODesktop.com

"Baidu.com's P-E ratio is sick"
Enzio Von Pfeil, chief executive of Commercial Economics Asia Ltd., who stressed he was speaking for himself and not his company.

"This is a `son-of-Google' investor mentality. Everyone remembers they could have had Google at $85 and don't want to let it happen again."
David Menlow, president of IPO Financial

"For the investor who thinks that Google or Yahoo are at a premium, how can you justify Baidu at even five times greater valuation than Google or Yahoo when it's only a China play?"
Martin Pyykkonen, managing director at money management firm Hoefer & Arnett

"It's a tsunami of retail interest. The guys doing the pricing priced it for the fund market and they didn't realize the huge wave of retail interest. And the retail investors don't have a clue about the valuation. (...) The whole online e-commerce market in China last year was $130 million. "So, [Baidu.com's market cap] is approaching 30 times the entire market in 2004. And it's just a regional market. Chinese is not the international language. People are buying the story that it's the second largest web site in China's growing market. But they forget it's very much a one-country wonder."
Francis Gaskin, editor of Los Angeles research firm IPOdesktop.com.

"I think the stock's rise is outrageous. This is another one of those bubbles. At the $27 offer price it was trading at 64 times sales. Even though its sales tripled last year, that doesn't justify a 64 price-to-sales ratio."
Fariborz Ghadar, director of the Center for Global Business Studies at Penn State University

"It's a speculative fever right now. It doesn't make any sense. But as we saw in previous bubbles, that doesn't mean it can't keep going and make people money in the short term as they profit off of the greater fool. But if you're a long-term trader looking for valuation and the worth of the business based on its general future profits and cash flows, this is a ridiculous price."
Raymond Lin, portfolio manager with Tricera Capital, a San Francisco hedge fund specializing in Asian markets

"Congrats to Baidu and their investors. But if I am Baidu, I am seriously pissed at my bankers. They left almost USD $100m of Baidu company money on the table. Either they were really incompetent in gauging investor demand, they decided rewarding their institutional accounts with an Internet bubble throwback freebie was more important, or they figured they needed to keep the raise relatively low to encourage future fundraising business by Baidu. The approximately USD $100m Baidu raised is chump change when you are competing in this market sector against Google, Yahoo and Microsoft."
Bill Bishop, CEO, Red Mushroom; Co-founder CBS MarketWatch

And what did some manly guy at the Motley Fool say about GOOG, back in 2004?

My take?  If you personally use LinkedIn or know lots of people who use the site, then buy some shares.  Don't go all-in, of course -- but buy some.  Isn't this what investing is all about?  You buy what you know and you buy the companies that make the products you use.  So don't listen to the pundits on IPO's.  They all go by valuations to make their usually negative calls.  And aren't all IPO's overvalued by their very nature?

'Nobody Knows Nothing' When It Comes To IPO's, And Why You Should Buy Some LinkedIn $LNKD

When it comes to ipo's you probably shouldn't listen to the talking heads because they can't seem to see future potential of the company better than you or your friends can.

Consider BIDU, back in 1995:

"Even with increased revenue and net income results for Q2 (around $8 million), this deal has got to have Benjamin Grahm rolling in his grave. Consider that CBS Marketwatch cited a IDC report as saying the entire China online ad market was $130 million in 2004. Now I think Baidu may surpass a $1.3 billion market cap by the end of first day of trading (China Net Investor: Baidu now has a market capitalization of $3.92 billion!), and if that happens, then I must say that I don't know of that many other companies that trade at 10x INDUSTRY revenues, even if the industry happens to be growing real fast."
Philip Lin, former executive at private equity firm, Kluge & Company; entrepreneur-in-residence at Kleiner Perkins

"You want me to talk about Baidu.com? OK. The stock, which climbed $95, or 354%, to $123.06 on its first day of trading Friday, trades at 1,000 times earnings. It trades at 128 times sales. You know what to do - SellSellSell!"
Jim Cramer on his "Mad Money" show

"This one is the return to the Internet bubble"
John Fitzgibbon, analyst in New York with IPODesktop.com

"Baidu.com's P-E ratio is sick"
Enzio Von Pfeil, chief executive of Commercial Economics Asia Ltd., who stressed he was speaking for himself and not his company.

"This is a `son-of-Google' investor mentality. Everyone remembers they could have had Google at $85 and don't want to let it happen again."
David Menlow, president of IPO Financial

"For the investor who thinks that Google or Yahoo are at a premium, how can you justify Baidu at even five times greater valuation than Google or Yahoo when it's only a China play?"
Martin Pyykkonen, managing director at money management firm Hoefer & Arnett

"It's a tsunami of retail interest. The guys doing the pricing priced it for the fund market and they didn't realize the huge wave of retail interest. And the retail investors don't have a clue about the valuation. (...) The whole online e-commerce market in China last year was $130 million. "So, [Baidu.com's market cap] is approaching 30 times the entire market in 2004. And it's just a regional market. Chinese is not the international language. People are buying the story that it's the second largest web site in China's growing market. But they forget it's very much a one-country wonder."
Francis Gaskin, editor of Los Angeles research firm IPOdesktop.com.

"I think the stock's rise is outrageous. This is another one of those bubbles. At the $27 offer price it was trading at 64 times sales. Even though its sales tripled last year, that doesn't justify a 64 price-to-sales ratio."
Fariborz Ghadar, director of the Center for Global Business Studies at Penn State University

"It's a speculative fever right now. It doesn't make any sense. But as we saw in previous bubbles, that doesn't mean it can't keep going and make people money in the short term as they profit off of the greater fool. But if you're a long-term trader looking for valuation and the worth of the business based on its general future profits and cash flows, this is a ridiculous price."
Raymond Lin, portfolio manager with Tricera Capital, a San Francisco hedge fund specializing in Asian markets

"Congrats to Baidu and their investors. But if I am Baidu, I am seriously pissed at my bankers. They left almost USD $100m of Baidu company money on the table. Either they were really incompetent in gauging investor demand, they decided rewarding their institutional accounts with an Internet bubble throwback freebie was more important, or they figured they needed to keep the raise relatively low to encourage future fundraising business by Baidu. The approximately USD $100m Baidu raised is chump change when you are competing in this market sector against Google, Yahoo and Microsoft."
Bill Bishop, CEO, Red Mushroom; Co-founder CBS MarketWatch


And what did some manly guy at the Motley Fool say about GOOG, back in 2004?

My take?  If you personally use LinkedIn or know lots of people who use the site, then buy some shares.  Don't go all-in, of course -- but buy some.  Isn't this what investing is all about?  You buy what you know and you buy the companies that make the products you use.  So don't listen to the pundits on IPO's.  They all go by valuations to make their usually negative calls.  And aren't all IPO's overvalued by their very nature?