Thursday, September 27, 2007

New position to porfolio

Opened a long position in SHLD yesterday. Ive been watching this stock for a while and believe I got a good entry point. I am a bit of a contrarian, and look for good stocks at lows that may have been oversold a bit. I view SHLD as more of a holding company ala Warren Buffett then a retail play. I would not bet against Eddie Lampert.

On my watch list- SNDA. Its been up 26% before it came across my radar. Chinese internet gaming company. They make role playing games like World of Warcraft for Chinese. Low P/E (16) considering industry type and the fact that it's a China play.

Chinese consumers are dying over these games, prostituting themselves out, spending money on face weapons... It's like investing in legal heroin.

Shanda has been beating estimates every single quarter. I believe this is a great buy now. Trading around 36. Look for a top of at least 45-46.

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