In May, I sold a few stocks, bought into a REIT fund or two, and built up some nice momentum for the summer months ahead. Here’s a quick recap of what happened to my investments and blog during the month of May.
May 2007 Investments Recap
- Increased Roth IRA contributions - I’m still on pace to fully max out my 2007 Roth IRA contributions before December 2007. Allocating funds to my Roth IRA account by December grants my balance 4 extra months of compound interest effects. The sooner I compete this task, the faster my balance will grow.
- Sold Microsoft (MSFT) - I can finally admit Apple (AAPL) is a smarter tech play. The iPhone releasal will cause pandemonium around Wall Street, plus Apple leads the retail industry in net profits per customer. My inclination is to invest in 2009 AAPL Leaps.
- Sold EFJ Technologies (EFJI) - Q1 Earnings were awful. During the Q1 conference call, CEO Michael Jalbert’s myopic comments on forward sales growth were pathetic. As for my automatic sell indicators, EFJI stock reached my 25% stop-loss limit. EFJI shares had to go.
- Commenced Fidelity Automatic Account Builder w/ Alpine International Real Estate Fund (EGLRX) - I added Samuel Lieber’s Apline International REIT Fund to my Roth IRA investment portfolio. Investing in International REITs was one of my biggest goals this month.
Forward Investment Goals for June 2007
- Increase my Knowledge base on Options Trading - I plan to accomplish this feat through picking up additional books and lurking through options trading forums.
- Continue Feeding the Roth IRA - I’ve built up some nice momentum. Can I keep it going?
- Buy SBUX - Starbucks trades at 26x forward earnings, and plans to service the Indian coffee drinking market by the end of 2007. I’m long SBUX.
- Increase my Prosper Lending Investment - I have invested $100 in loans to get a feel of how the marketplace operates. In the past, I explained my basic Prosper lending techniques. A boost in my Prosper investment provides the additional diversification and risk protection needed to hedge slow Dow Jones summer months.
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{ 8 comments… read them below or add one }
I have owned SBUX for awhile. I’m just not feelin it. I don’t think this one’s moving for awhile
@ Q at $1 million
When did you buy? I think Wall Street has overlooked Starbucks. SBUX earnings grow double digits each quarter, and they’re improving menu items/ingredients.
But who knows when it will take off, again. Could be a few months or years.
With their strategic plans in entering new markets they should, and will, increase the volume of their sales for a great deal. SBUX should start going up, it’s only a matter of time.
I got in at 36. Ooops
The problem with Prosper is that, if 1-2 borrowers default, whatever you earned from other borrowers will be nullified. Is it worth the effort then ?
@ Q at $1 million
If you’re investing for the long term, I would hold my shares. I’m going to talk about this more next week once I buy shares for my Roth IRA, but things aren’t as grim as they seem.
@ sJ
True, you will lose your investment on all defaults, but that’s why you diversify your loans. Out of 10, 2 may default, but the other 8 still remain profitable.
Think about all the people who foreclosed when the real estate market cooled. Sure, banks lost a lot of potential profits, but they gave out so many mortgages that the active loan payments made up for all the loan losses.
But I only have $100 invested, so I’m no loan expert
For option trading, let me recommend a good book by Natenberg “Option volatility and pricing”
Do yourself a favour and master this book before doing and option trading.
I am very interested in the SBUX article too since I have been off and on looking at this stock.
I have about $200 in Prosper.com but will probably add more also. It seems to be holding up well enough. I think it’s probably a safe investment until the owners try to inject something new into the business model.