A Speculative Stock you should be watching!

Hey Bloggers,


Mr. Stock Pick is watching a speculative stock with huge upside potential, and I thought that I would share them with you. If you are unsure what a speculative stock is, check out my blog posted last week for a definition.


Speculative stock #1: CryptoLogic - NASDAQ:CRYP (US$) or TSE:CRY (CA$)

CryptoLogic is a software designer in the internet gaming market. They distribute the software to various online gaming companies, while retaining ownership(collecting royalties). I love the business model, pay once to build software and keep getting paid later. Cryptologic reports its Q4 2009 earnings report on March 2 2010. This is a key date for this company as they are in the middle of a balance sheet change and are cutting costs left, right and center. They have been in the red since the recession has hit as the industry is taking a beating, but if this company so happens to declare a profit on the March 2 date we can see this stock jump to the moon. The losses have been narrowing since  Q1 2009 and I expect the same for 2010, if not narrow, to turn a profit. The company has 0 debt and pays a 0.01 dividend, which shows they are confident about their cash position.

CryptoLogic has a unique business model and management that I believe will make some right choices and bring this company back to profitability. Cryptologic's software is based for online casinos such as BetClik and Bet24. The revenue that these companies bring in from people playing their slot machines and other games are split up and given to Cryptologic.

Ladies and Gentleman place your bets!

These are brief explanations if you have any questions or would like additional information please contact me directly through the blog. Leave your email and I will try to respond quickly. These are just opinions of mine and you should not use a specific opinion to make an investment. Investors should be aware of the risk involved in making investments.

ABC's of Investing in Stocks

Hey people,

At your request this blog is for those of you who are looking to make your first investment in stocks and for those who are invested but do not understand some of the basics that can make you more money in the future.

First you should find out:

What is your investment objective?

1. Safety - Your objective here is to avoid loss of original capital invested

2. Income - Your objective here is to have a steady flow of interest or dividend income

3. Growth - Your objective here is to find common stocks with future long term growth

Note: Establish your investment goals and determine how much risk you are willing to take before you do anything.

When looking at common stocks to purchase, you should be aware of the different types of common stocks.

Types of Common Stock

1. Blue Chip Stocks - Long-term and stable earnings with dividends. Also known as a high Quality Company.

2. Income Stocks - Consistent dividend yields. Preferred shares should also be looked at for income.

3. Growth Stocks - High operating margins and an excellent inflow of cash to pay debt.

4. Speculative Stocks - Shares are extremely risky, potential to rise or drop significantly

5. Cyclical Stocks - These stocks tend to move with the economy, eg. Coca cola,  Mcdonalds

What are preferred shares?

Preferred shares are shares that have no ownership in the company, Therefore you cannot vote on certain things that common shareholders do. You are, however paid a rate of return (Yield) which is a share of the companies earnings. Preferred gets paid before Common, but the appreciation for Common tends to be greater.

Markets Terminology 101:

Bull Market - Stock prices are going up

Bear Market - Stock prices are going down

Price Earnings Ratio or PE - good way to find the valuation of the company. During the dot com bubble stocks were trading at 30 times earnings.

Yield - The percentage of how much money the company pays out to shareholders in dividends.
Mr. stock pick likes big dividend yeilds.

Bid - The highest price anyone is willing to pay for a stock
Ask -The lowest price anyone will accept to sell a stock

I hope this helps, if you are still unsure of what something may mean or if you have a question about something I didn't cover, please feel free to email me directly through the blog.

In the mean time I hope you are making money this week!(Even though I am long-term, money now means more money later)

I recommended Bank of America (BAC) on Tuesday at $14.70 and it is currently trading at $16

GOOG at $535 and it is currently trading at $542. Not a bad week I might say, for the bulls.

Have a good weekend,

Mr. Stock Pick

Detailed Portfolio Holdings

Hello bulls and bears,

On Friday I mentioned that on my next blog post I would talk about my stock holdings and why I am holding them in my portfolio. This will be similar to my future stock pick posts from Mr. Stock Pick. You will receive the pro's and con's, risk ratings, detailed analysis and future price projections.

Now lets get to my holdings,

First is my favorite stock for 2010 and that is Bank of America (BAC). With GDP numbers on the rise, foreclosures and unemployment improving this stock can be the best recovery play in the market today. Bank of America was lead by Ken Lewis who has taken tremendous risks making the powerful bank fall to its knees to the fed in 2008/2009. Ken Lewis to some is known as a hero who saved the financial world from collapse with his acquisition of Merrill Lynch, to others he is known as a risk taker who deteriorated long term share holder value. This acquisition made Bank of America the largest US bank by assets. With Bank of Americas strong business model and its new businesses Merrill Lynch and Countrywide it can have a positive bounce with a recovered market.

I believe in the new CEO Brian Moynihan, he has mentioned the business does not need to be larger but to execute its current businesses and turn them profitable. With the right man in charge this company can be a money making machine. Earnings per share (EPS) was $0.45 in the past twelve months with 2010 EPS estimates at $0.85 that is nearly a 100% increase. I see Bank of America outperforming this year as they now are not under the helm of the government as they have repaid their 45 Billion of tarp funds. BAC is rated 7/10 for a risk rating as there are short term bumps along the road to recovery.

Mr. Stock Picks price target for BAC by year end 2010 = $25

My second holding in my portfolio is Google (GOOG). Google is the most visited website of all time. Their Q4 earnings showed that they were cutting costs and earning more profits consistently, they are spending less to make more. I believe the search business has room to grow but that is just Google's main business. Google is a diversified tech company with mobile phones, Chrome, Gmail, YouTube and now Google Buzz. Google has also mentioned launching a fiber to home based internet service which will allow download speeds of 1GB/s for 50,000 up to 500,000 Americans. I am also a believer of cloud computing which Google has a huge advantage on.

Google is down to $535 per share from $629.51 just last month. This move down was the result of Google threatening to pull out of China due to censorship laws. Currently Google is still operating in China so negotiating a deal must not be going too bad. Earnings Per Share (EPS) for the past twelve months was $20.41 and estimated EPS for 2010 is $24.29. Google is currently trading at 26.3 times earnings and that is the cheapest it has been in a long time. I think if you want a piece of this Internet giant I think now is the time to buy. Google gets an 8/10 for risk rating due to the fact that competition like Apple and Microsoft are strong companies with great innovation and they have a chance to steal market share from Google.

Mr. Stock Picks price target for GOOG by year end 2010 = $750

These are brief explanations if you have any questions or would like additional information please contact me directly through the blog. Leave your email and I will try to respond quickly. These are just opinions of mine and you should not use a specific opinion to make an investment. Investors should be aware of the risk involved in making investments.

Visit the blog frequently for financial updates and information to help you make money!

Until next time,

Mr. Stock Pick

Brief Introduction & My Portfolio

Hello everyone,

My name is Brian, I am also known as "Brian Trouble" or "Ron Ron". I have an interest in investing which comes from my background in a specialized course for banking and wealth management at my local college. I am putting together this blog to educate others about my form of investing. I believe in long term investments(95% of the time), Short term trades do arise and for that reason you always need some cash on the sidelines. I have met so many people that have 100% of their money into equities, its unbelievable. My goal is to educate individuals how to successfully invest in money markets. This education is extremely important and will result in greater returns and picking winning stocks. As I am a believer in the long-term for equities I will also cover commodities and currencies for you day traders out there.

The weekly Blogs will consist of:

• Market updates /outlooks
• Detailed Stock Picks
• Tips for success (starting from the basics)
• My personal portfolio and updates
• + More - so visit frequently

Portfolio:

Below I have my current stock portfolio and how it weighs in the account. I am for the US recovery although others don' t see the big picture, it will happen. I am not diversified by holding a stock in every sector, but I feel comfortable with having 10% of my portfolio in cash. The number was recently higher but I have picked up more Google on weakness. I need to stress how important it is to have cash in your account. Picking up quality stocks on dips due to uncertainty and market confusion is a great way to get a deal on companies for the long term.

Stock Symbol & Name % of my portfolio

BAC(Bank of America) - 55 %

GOOG(Google) - 35 %

CASH(money) - 10 %

I will talk specifically about the 2 stocks that are being held in my portfolio in the next blog. In the mean time the markets are down about 7% from the year high, I think now is the time to implement some of that cash and pick some winners.

Good bye for now,

Mr. Stock Pick