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Charles Santerre
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Investing on my own since 2007. Investing successfully is the most challenging activity I have ever undertaken. Books that inspired me to fire my investment adviser: The Big Investment Lie, Michael Edesess; and What Wall Street Doesn't Want You To Know, Larry E. Swedroe. The Snowball: Warren... More
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  • Tell Us How You Follow Nokia, Or Any Stock

    Two heads are better than one. Imagine 10 or 100!

    In this era of instant communications, complex and marvelous tools are being creating and improved upon everyday designed to provide us with a priceless resource: information.

    We have all heard of the expression "Information is power." It`s more true today than ever before. I don`t mean power in the sense of dominating over a person or a group, but power to better your own life and those you cherish.

    That`s why I thought it could be very, very useful if those who wanted to share their sources of information, or tools that they use to follow and understand Nokia, as well as how its share are traded, could do so here.

    My sources are few and simple, but I will also share an example that I received in a Stocktalk on Thursday that impressed me.

    News on Nokia: go to google.com/news. Set up an alert on Nokia to send you by email news as often as you wish via email. Staying on the news page itself and adding Nokia as a topic of interest can also be useful.

    Stock movement: 1) again here I am very simple. I go to google.com/finance and have set up a portfolio. When I set it up Google was one of the rare places where you could get a real-time price feed for free.

    2) On Thursday I believe Seppo included a link to Nasdaq Nordic where NOK1V is traded. It includes info on upcoming blocks and their bid-ask price:

    http://www.nasdaqomxnordic.com/aktier/shareinformation?Instrument=HEX24311

    Portfolio management: again Google Finance helps me keep track on my portfolio that I have divided in two separate brokerage accounts: CIBC Investor's Edge and RBC Self-Directed. Why two brokerages? I am glad you asked. See fees below.

    Fees: 1) $6.95 per trade at CIBC Investor's Edge. The only reason I still have money here is a family connection and because we have other products with them that keeps fees lower. However if you buy US or other foreign cos in currencies other than Canadian, you will get squeezed both ways. That is why I created a second account.

    2) RBC Self-Directed Investing: RBC offers Registered Retirement Savings Plans in Canadian and US currencies with the obvious benefit of saving on change fees on transactions. Once you have money in the US account there are no more change fees. Trust me, 1% or more in fees on every transaction hurts a lot.

    That's it. I have a two-monitor setup but that is for my work as a computer tech not for stock monitoring. No expensive, customized stock monitoring software, charts and graphs, other than SMA on Google Finance.

    I am a newbie. I don't follow or believe in technicals but I believe that it does have an impact on stock movement as many follow and act on it. The market is large enough to carry many truths, lies and perspectives.

    Go ahead and share yours if you dare and don't fear giving away your advantage! Thank you in advance!

    Disclosure: I am long NOK.

    Tags: NOK, Long
    Jan 12 7:30 AM | Link | 18 Comments
  • Here To Make (Quick) Money With Nokia

    Ok folks, can I be more direct in the headline? The space below is for you to discuss how daily news events can or may have an impact on the trading price for NOK during the day, both ADRs in the US and shares in Helsinki.

    Why? Users at SA have the option of either communicating with each other via comments in an article or by short messages in Stock Talks. This is insufficient in my opinion as we do not really have a designated area where NOK followers can focus on NOK share price.

    Let me be the first to chime in: I have a long term core investment in NOK to which I am considering adding trading portion of 3k shares. This is not money that I would like to lose but it would not cripple me either.

    This purchase would not go in my retirement account. I plan to put it in a Tax Fee Savings Account or TFSA for short as it is called in Canada.

    Today 8 January 2013, NOK was hit with an tax audit from the Indian government and may be on the hook for a large fine of $500M US. I do not know when a decision to prosecute will be made and how long this will take to go through the courts.

    Also out today a guesstimate was given on how many Lumias were sold in Q4, approx 4 million. If so, what kind of impact would this have on the share price, extrapolating results from the other Nokia divisions as well?

    Chime in as I want to know when I should buy those 3k shares, at what price, and when I should sell them!

    Let's make some money!

    Disclosure: I am long NOK.

    Tags: NOK
    Jan 08 7:02 PM | Link | 820 Comments
  • Are Standard & Poor's Opinions Misleading And Is Goldman Sachs Ripping Us Off?

    It clearly states on their website : Standard & Poor's Ratings Services. If you`re a retail investor, that sounds pretty official. If you have a brokerage account, chances are their website will feature a link called "Quotes and Research" and another called "Analysts Reports". Choose a company and go ahead and read an Analyst's Report. Chances are it will be by Standard & Poor's. In that analysis, what will you see in bold letters right under the date and company name? S&P Recommendation. And in big bold letters you will read Buy, Sell, Hold. Or you may even read even stronger words such as Strong Buy followed by five stars. That`s a pretty strong recommendation, wouldn't you say?

    A report also contains headers such as Target Price and Qualitative Risk Assessment. Well that sounds pretty official, and even scientific. So when S&P testifies in front of Congress following the subprime mortgage products that they rated AAA, why did they insist on calling their ratings, research, recommendations and analysis, just opinions?

    It seems to me than an opinion is something that everyone has, and it usually comes free. Most of the time, opinions aren`t very valuable. Would you want to base your retirement fund decisions on opinions or research and analysis? I know I feel more comfortable using the latter. If Standard & Poor`s is in the business of providing opinions and not research, ratings and recommendations, then it should be made clear to everyone that relies on these opinions.

    Wouldn'tyou agree that your financial health can have serious repercussions on your physical health? In my "opinion", Standard & Poor`s products should come with the same level of warnings of… cigarette manufacturers. I am not asking for pictures of sick lungs on their opinion "reports", but it would be sobering to read in bold letters: "Hey, this is just our opinion. In fact, your guess is as good as ours! We're wrong at least as often as we're right!" We'd all be better off, maybe even financially.

    I am a retail investor in Canada. I have been following Nokia Corporation since the summer of 2010. At that time, I thought I was doing my due diligence by studying what else? Standard & Poor`s Analysts Reports on Nokia. The first S&P report that I kept rated Nokia a Strong Buy with five stars on July 10, 2010. This despite the fact that the price per share had previously plunged from $15 to $8 from April to June. S&P continued to rate Nokia a Strong Buy in their subsequent reports dated July 22 & 31, as well as August 31, 2010. For some reason I stopped collecting S&P reports after that date. And unfortunately, if I wanted a historical perspective of the accuracy of S&P's opinions on Nokia before I started collecting them and after I gave up, my brokerage's website does not provide them. They only offer them on their website for a period of 12 months.

    Fast-forward a bit less than two years, the share price for Nokia has gone from $15 down to $4 and change. I can read in S&P`s analysis dated for that period, February 29, 2012, that they had a Hold rating and three stars. The Hold rating would remain for the July 31, 2012 S&P report despite the fact that the share price reached a new 52-week low of $1.63. When the share price for Nokia started to go back up, S&P emitted a Sell rating in their September 6th report and then again in their subsequent report five days later. One month later, on October 18, 2012, S&P rated Nokia a Strong Sell. At that time, Nokia's share price was actually going up, reaching $2.80. S&P has not put out a new report on Nokia since. However Nokia was found trading as high as $3.56 at the close of trading on November 23, 2012. It launched a new line of phones in many parts of the world in November and apparently they are sold out in many outlets including in the US.

    Now to another of America's fine financial institutions: Goldman Sachs. According to MSN Money, Goldman Sachs International owns over 100 million shares in Nokia, having bought the bulk of those shares recently. They are the largest shareholder of Nokia`s American Depository Receipts or ADRs. So how come Goldman Sachs has a Sell rating on Nokia? That doesn`t make sense! Would they be on the one hand encouraging their clients to sell Nokia shares, driving the price lower, while on the other hand, buying up those shares at a bargain price hoping for a quick profit for themselves? Goldman recently purchased 66 million shares and the Nokia share price has gone up roughly one dollar in the last month: that`s a $66 million dollar profit. Very nice!

    Disclosure: I am long NOK.

    Tags: NOK
    Dec 01 8:29 AM | Link | 4 Comments
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