Week 9 Performance - Up 6.09%

Week 9 Performance
Broader market gain/loss: 2.3% Dow (10959), 3% S&P (1285)
LIVEROCKET gain/loss: +6.09

Performance to Date (since inception Nov 3rd)
(Nov 3rd - Dow closed 10522, S&P closed 1219)
Broader market gain: 4.2% Dow, 5.3% S&P
LIVEROCKET gain: 15.61%

Weekly Performance
LIVEROCKET beat Dow/S&P: 6 out of 9 weeks
Dow/S&P beat LIVEROCKET: 2 out of 9 weeks
LIVEROCKET tied Dow/S&P: 1 out of 9 weeks

Individual Stock Performance
Stock growth >20% 2 out of 17
Stock Growth >10% 6 out of 17
Stock Growth 5%~10% 5 out of 17
Stock growth 0%~5% 2 out of 17
Stock growth <0% 2 out of 17
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What a great way to start the year.
So far my projections have been correct – money is flowing to high tech and the special energy related stocks we chose.

PORTFOLIO CHANGES
Jetblue – locked in gains of 17.6%. I still continue to believe in this company and I still own it in my personal portfolio. We may buy back in on short term weakness if the price dips below $14

BCSI – I love this company but the volatility ended up kicking it out of the portfolio after we locked in 6.3% gains. It has shown some weakness and their earnings are still 2 months away. Buy on weakness (<39). I have this in my IRA.

ACL – We sold at a 10.3% loss. The stock has rebounded somewhat to $135. Arguably we bought at a short term high ($145) but I don’t like 2 things: the 10% drop showed more volatility than it typically has, and the fraud lawsuit.

AKAM – We bought this week and what a great buy. Already up 13% in 4 days, and touching a new high. If TiVO opened the door to digital TV watching on-demand, and Apple pushed it wider, Google is flinging the doors open. And Akamai will benefit from the market emergence. I am not worried about Google competition: Yahoo will offer the same and use Akamai, plus there is plenty to go around for now. TV/Movie downloading will be a commodity business within 15 months, but the increased traffic is money in Akamai’s wallet. And they have a shockingly low 10 P/E! Strong volume today.
On a sidenote – what about Netflix? Netflix is not going to suffer as much as people think – at $2 per TV show download, Netflix is still cheaper in comparison. But I don’t respect Netflix’s management. They missed out on going global. They missed out on games. They missed out on aggressive marketing tie ins. In short – they lack vision beyond beating Blockbuster, and that is not a good thing.

SNDK – Another winner we bought this week. Up 15% in 4 days and blowing past their 52 week high of $69. I mentioned that I believe the digital media storage boom is on and Sandisk is at the heart of it. At CES, SanDisk announced a product to compete with Apple’s Ipod – 20% higher price and 50% more memory. My prediction: SanDisk will steal market share from Apple. And I expect that SNDK will be a big winner from the holiday shoppers. Note that Best Buy announced strong sales – how many digital cameras went out the door with SNDK cards? Strong volume today.

STX – The streak goes on. We bought this week and are up 7% in 4 days. Seagate is part of the digital media Fantastic 4 that we bought into this week (the other being Marvell). There is a value chain:
Content (but I don’t like content providers right now)
Delivery – ISPs including Yahoo, Google and Akamai. Akamai is best positioned AND has lowest P/E
Network infrastructure – Cisco, Juniper and their suppliers including Marvell.
Consumer devices – Apple, Sandisk, and Seagate. And Marvell again, as component maker. Also plasma/lcd TV component makers like SYXI (in my IRA).
Semiconductors – supply constrained, like oil. Margins will be going up.
I continue to see Seagate as a great consumer device play. I also see a lot of possible upside if this spurs on PC or at least harddrive sales as well. Strong volume today.

WFMI – Continues to drift after surging up from the split and being added to S&P index. Weak volume today.

GILD – Hitting their high. I think Gilead has broken through $55 and will stay above $55. Look for $60 very soon. Remember, flu season and Asian Bird Flu can only help their earnings release

MRVL – Broke past their 52 week high on strong volume.

JLG – Just drifting after setting a new high. Weak volume.

JOYG – Staying near its high and looking good. Strong volume as well.

MDR - Moving up after Russia returned to type and tried to blackmail Europe with its oil. (Flying true colors at last – Russia is a hardcore dictatorship without the entrepreneurial talents of China.) So MDR with its clean burning coal is a good option for spreading the risk away from Russian dependency and also meeting Green clean fuel desires. Strong volume today.

With the exception of WFMI and JLG, these stocks are moving up because they are performers. WFMI and JLG are just moving up with the market.

Timing is everything

A lot of trades today
1. Jetblue - Following a downgrade for pricing reasons, Jetblue sagged more and hit our sell of $14.5. We locked in 17.6% return and $11,745
2. BCSI - Announced a decision to buy a company and they got hit - again. We sold at our trigger of $42 for a return of 6.3% and $9,534

At the opening bell we purchased
SNDK - 185 shares at $64.8
STX - 597 shares at $20.1

However, with BCSI and JBLU hitting our Stops so early in the day, we had an additional ~$20K to invest. I strongly believe in the market turning bullish, as I keep saying, so we need to put cash back in to work for us.
We bought
AKAM - 603 shares at $19.89
This leaves $7027 in cash, which I see using at some time to buy puts in either BMHC or Apple (no puts available for HANS). I spent too much time analyzing the GOOG June $500 and $450 calls and missed out on a nice tidy jump. That's the problem with options - it is 100% about timing

Speaking about timing, our moves this morning turned out to be lucky timing - the market turned very positive with Fed releases. I expect the earnings season release to commence and work very well.

As I said - I expect this year to be one last hurrah for the market for a while - until we digest the housing bubble.