January 2011 Stock Picks

As I set up my incubator fund I want to begin to go over some trades that I have made and continue to make. Typically I look for small caps with big up or in a lot of cases, downside (short selling). For Big companies, I look for undervalued and under the radar picks...

Picks for 2011 

Positions Already held

Socialwise inc- (SCLW) My Average $.54
Current Price: .50
Target: $5-$10
Been in this one awhile but it will see a huge upside. Unfortunately I rode this up to its glory days of $2.88 and planned to sell at $2.50, but held for moral reasons.
Bill my Parents teen debit card is up and running and already has 10K+ users. The holders include a Billionaire, and several celebrity athletes without massively diluting contracts.  Now that the advertising campaign kicks off, Its no longer "If" but when. Definite acquisition target, and Jim Collas isnt selling cheap.  $5 is a fair target based on other company aquisitions.

Envision Solar(EVSI) My Average $.41 (Held since Dec 2010)
Current Price: .53

Target: .80-$1 Short Term     Envision Solar has a solid business plan and product already being touted and is a rare penny stock company doing things right. Robert Noble appears to have his ducks in a row and rumors abound that big contracts are just around the corner. Im looking to double up in a short period, but may hold a little long term.

Long Range Big picks:

Google (GOOG)
Current Price $600
3 year Target:$1500 (may split)


       Loved GOOG out of the gate at $200 when it IPO'd and even loved shorting it at $600 the first time it hit, but things have changed. How computing is done is changing....going are the days when we have PC's. Soon everything will be stored and downloaded from online....companies are saving millions by moving online...called "Cloud Computing"    Google is the top of this list...and if you thing there isnt room to move and you missed the boat, think again! Google is a great buy under $600


Salesforce (CRM)
Current Price $125
3 Year Target $225    
This is another "Cloud Computing" company that is growing by leaps and bounds. Fortune 500 companies are jumping on board and so should you...at least on the stock. The average company increase in sales using Sales Force is 17%.... if you are a company, why wouldnt you use them? Its companies like this that are great to jump on and ride the wave.

Amazon (AMZN)
Current Price: $180
2011 Target: $220
    Yet another "Cloud Computing". Yes this may be a little like the Tech bubble, but right now its early. Even another giant like Amazon has lots of room to grow as they expand their online presence.

A little advice here on ALL my picks. I always lock in gains. Aside from penny stocks, it is vital you lock in your gains. Always keep a "Stop Loss" order in about 10-20% of your buy price, and update it weekly as the stock moves up (never move your stop loss down!).

 
Short Selling :
  Short Selling has long since been frowned upon in the investing community. From the 1800's till now people see it as "Negative".  This is FAR from the reality. With so much fraud out there, Shorts actually balance the tables...without short selling, ENRON and its likes would defrauded the investment community of billions more. If there is something wrong with a company, you short it...just like if something is right, you buy it...

If you are not short selling, you are missing out on a large part of what should be your strategy in the markets.  A great example is BP. When the oil spill hit, as an investor the window was open to speak your mind and short the companies stock. Had you done it right away, you would have doubled up your money quite quickly.
   Typically aside from the BP situations, I short "pumped" penny stocks. They are easy to find and short...

Day Trade Stocks:
China Telephone Group (CHTL)
   Short .44 Covered today .21
     Pump and dump schemes are alive and kicking....and for the short seller, this is great news...here is a classic pump and dump stock....

Evergreen Energy (EEE) Shorted at 2.63 and Covered at 2.33
  This pig may still have wings but they are grabbing some support from somewhere...pumpers and probably covering shorts. I love shorting companies like this that are bleeding cash, have tons of shares hitting the market and bounce from .50 to nearly $3 in one month on pumps. Keep an eye out, might be some room here to jump in again on a Dead cat bounce.

On the watch list to short.. COUGF. This will be a bloodbath...

Making 50%-200% on your money on some picks can be achieved, mix in a few losses and you still end the year up nice.
Hope this helps.