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NVIDIA (NVDA) KICKS AMD (AMD) OUT OF APPLE (AAPL)

November 21, 2011

Nvidia (NVDA) has kicked out AMD (AMD ) from Apple (AAPL) MacBooks. Previously AMD had kicked Nvidia out of MacBooks. It appears that Apple is playing the game to get the best pricing. There does not seem to be any performance issues with AMD or Nvidia. Nvidia stock is strong on the news, however, the news is not material. GPU sales from Nvidia to Apple may be only in the range of $50 million. If Nvidia continues to move up, it may form a good short. If and when six

WHY I’M BUYING CHEVRON (CVX) AND TRANSOCEAN (RIG) BECAUSE OF THE BRAZILIAN SPILL

November 21, 2011

Headlines yelled, Big Oil Spill Off Brazil. Complete with satellite images, reports of cover up by a super major oil giant Chevron (CVX), big police investigation, a rig by Transocean (RIG), and message boards abuzz with a spill bigger than the BP (BP) spill in the Gulf of Mexico, the media had a juicy story. Conspiracy theorists were delighted to see market value of Chevron drop by about $17 billion. Quick trigger fingers at large institutions went along for a ride by rapidly selling Chevron stock in large quantities before even asking a question. The chart shows the

INTERDIGITAL (IDCC) PATENTS NOT ATTRACTING HIGH INTEREST

November 20, 2011

InterDigital (IDCC) possess a considerable amount of intellectual property. When Motorola Mobility (MMI) was bought by Google (GOOG) , there developed considerable excitement in the market about patents. InterDigital put itself up for sale. InterDigital wanted to strike while the iron was hot. Iron has cooled and InterDigital has not yet struck. InterDigital has been actively shopping itself. Absence of a deal is not because of effort. For strategic reasons , Google overpaid for the patents. It appears that InterDigital is not finding a strategic buyer willing to pay a price at par with recent patent sales. A strategic

BLAME THE IMF FOR THE BIG DROP IN GOLD

November 18, 2011

ETFs mentioned in this article include GLD, IAU, SLV, DGP, UGL, and AGQ. Gold fell $54 Thursday. Most gurus were expecting gold to go up due to increasing instability in Europe. Spain conducted a dreadful bond auction, in which it was forced to pay 6.975%, just shy of the 7% benchmark. Interest rate of 7% is considered unsustainable. Bid-to-cover ratio was 1.5 compared to 1.8 last month for a similar bond. The lower the bid-to- cover ratio, lower the investor demand. The worst part of the Spanish auction was that the government was not able to sell all

TIME TO TAKE PARTIAL PROFITS ON WESTERN DIGITAL (WDC)

November 17, 2011

On our Western Digital (WDC) position we are lowering the stops on a 5% tranche to $25.32 and another 5% tranche at $25.36. Also taking profits on a 15% tranche at $25.20. In these volatile times when we have a quick profit like we have on Western Digital, it is best to realize the profits.

WESTERN DIGITAL (WDC): REALITY IS BEGINNING TO SET IN

November 17, 2011

The reality is beginning to set in that yesterday’s move on Western Digital (WDC) was excessive. The news of supply agreement with SAE Magnetics is positive for the next three months, but after that it should make no difference. EU approval of Hitachi deal was expected so there was no surprise there. Western Digital is down today about $1.00. Western Digital has now broken the first support at $25.85. The next support is at $25.50 and then $25.20. In the interest of defensive trading, it is best for conservative investors to take

MORE ON WESTERN DIGITAL

November 16, 2011

Western Digital (WDC) is in the business of disk drives. The stock has moved up strongly on European Union approving acquisition of Hitachi unit and a supply agreement with SAE Magnetics. None of these developments help the long-term deterioration of the disk drive business. Our plan is to slowly keep on adding if the stock goes higher, but also be quick to take profits because this is a technology stock and the 4th quarter is seasonally strong for technology stocks. Added an additional 10% tranche order at $27.54 in addition to the previous orders.