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Mark Gomes
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Disclaimer: This biography is required reading for anyone considering an investment in any of Mark Gomes' selections. It contains critical information about his research and trading methodologies. Mr. Gomes is currently the CEO of Pipeline Data, LLC and a contributing analyst to PTT Research.... More
My company:
PTT Research & Pipeline Data, LLC
My blog:
Poised To Triple
My book:
Faster Than Forty
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  • Stock Market Update - Week Ending July 2
    In case you didn't hear, the market got crushed this week. The NASDAQ was down 6.1% and is now down 8.1% for the year.

    My portfolio also lost money this week, but only 1.2%. I'm still up 8.8% for the year. Overall, my year-to-date lead over the NASDAQ increased to +16.9% (-8.1% vs. +8.8%).

    The key takeaways:

    1) The U.S. government is no longer tossing money into the economy. In recent weeks we have seen the home-buyer credits expire and unemployment benefits get cut. Meanwhile, taxes are going up next year and a new stimulus package is nowhere to be found. When less money flows into the economy, it's bad for the economy (at least in the short-term). What's bad for the economy, is typically bad for stocks. Follow the money and you'll have an idea of where the market is going next.

    2) Europe is taking even more draconian measure. Not only are they not pouring extra money into the economy, they are undertaking austerity measures (i.e. heavy budget cuts). If not adding money to the economy is bad here, wait until you see the effect of taking it away across the pond.

    3) Shorting stocks had been a life-saver. I've made a year's salary on my shorts this year. Not surprisingly, my longs have gone down with the market. However, they have held up better than the market. When you combine that with a healthy basket of short, you make money while the market flounders.

    _____________________________________________________


    You can see my current portfolio below. Usually, I only publish the names that represent at least 1% of my net worth. This week, I'm providing the complete list of my holdings for your perusal.

    An interesting position to consider is shorting AMZN. It worked well this week. This could continue if the iPad destroys demand for the Kindle, AMZN will lose revenues, profits, and book downloads sales (as those move to Apple). I only have a small position here, because I don't like playing with large caps. Nonetheless, this one seems to make sense. I'm thinking that we're in the early stages of the iPad eating the Kindle's lunch, as the iPhone did to the likes of Nokia. I think AMZN's price cut on the Kindle is a sign that my thinking here is correct.


    TICKER

    COMPANY

    PRICE

    HOLDING

    OCNW

    OCCAM NETWORKS

    5.56

    9.0%

    NOVL

    NOVELL

    5.95

    7.7%

    SDBT

    SOUNDBITE

    2.88

    5.7%

    RNWK

    REALNETWORKS

    3.30

    4.0%

    IGOI

    i-GO

    1.42

    3.3%

    PFWD

    PHASE FORWARD

    16.68

    3.2%

    DBTK

    DOUBLETAKE

    10.48

    2.7%

    BVSN

    BROADVISION

    11.65

    2.3%

    MDRX

    ALLSCRIPTS-MISYS

    15.85

    1.5%

    LAVA

    MAGMA DESIGN AUTOMATION

    2.89

    1.5%

    ZHNE

    ZHONE TECHNOLOGIES

    1.52

    1.5%

    OPWV

    OPENWAVE

    1.99

    1.3%

    VTAL

    VITAL IMAGES

    13.14

    1.3%

    SNIC

    SONIC SOLUTIONS

    7.85

    1.3%

    EPAY

    BOTTOMLINE TECHNOLOGIES

    12.99

    1.3%

    QADI

    QAD

    4.11

    1.1%

    DWCH

    DATAWATCH

    2.84

    1.0%

    ITMSF.PK

    INTERMAP

    0.63

    0.9%

    RKNEF.PK

    REDKNEE

    1.14

    0.9%

    GSB

    GLOBALSCAPE

    2.48

    0.7%

    TUNE

    MICROTUNE

    2.11

    0.7%

    ATEA

    ASTEA

    2.61

    0.6%

    QPSA

    QUEPASA

    3.90

    0.6%

    KEYN

    KEYNOTE

    9.00

    0.5%

    OESX

    ORION ENERGY SYSTEMS

    3.09

    0.5%

    ADTN

    ADTRAN

    27.35

    0.4%

    TKLC

    TEKELEC

    12.81

    0.4%

    CYMHF.PK

    CYMAT

    0.23

    0.4%

    FRPT

    FORCE PROTECTION

    4.05

    0.3%

    INFN

    INFINERA

    6.33

    0.3%

    CCUR

    CONCURRENT COMPUTER

    4.53

    0.3%

    AEHR

    AEHR TEST SYSTEMS

    1.68

    0.2%

    CALD

    CALIDUS

    3.34

    0.2%

    IPAS

    IPASS

    1.12

    0.2%

    ADVOF.PK

    ADVA

    5.20

    0.2%

    GGP

    GENERAL GROWTH PROPERTIES

    12.84

    0.2%

    RDLCF.PK

    REDLINE COMMUNICATIONS

    0.38

    0.2%

    SIO.V

    SENSIO

    1.10

    0.1%

    SNMX

    SENOMYX

    4.02

    0.1%

    QUIK

    QUICKLOGIC

    2.96

    0.1%

    NGNM.OB

    NEOGENOMICS

    1.26

    0.1%

    AMZN

    AMAZON.COM

    109.48

    -0.4%

    NILE

    BLUE NILE

    44.96

    -0.7%

    UWM

    ULTRA RUSSELL

    25.30

    -7.3%

    SSO

    ULTRA LONG S&P

    31.69

    -9.7%



    Have a great holiday weekend,

    G.
    Jul 02 1:10 PM | Link | Comment!
  • Some Positive News For Two of My Favorite Stocks
    You can see all of my posts from this week here:

    seekingalpha.com/author/mark-gomes/instablog

    _________________________________________________________


    As for this morning, here are a couple of notable tidbits:

    1) The RUS and NTIA announced some Round-2 Broadband Stimulus awards on Friday. Apparently, about $65M worth of awards went to Occam (OCNW) customers.

    www.whitehouse.gov/sites/default/files/B...

    Hat tip to jlraska and Niles on nyquistcapital.com!


    2) iGo continues to expand its reach into more retail outlets. IGOI's;  products have been spotted in the Best Buy kiosk at JFK Airport: yfrog.com/hqatqj

    Hat tip to dschorrnyc on Twitter!


    Both stocks are outperforming the NASDAQ today.

    _________________________________________________________


    Gold is down more than 4% this week. Corn is up 6.5%. I'm just sayin'... ;^)

    _________________________________________________________


    Kurt Badenhausen of Forbes thinks the rumored $750M estimate on Tiger Woods' divorce is overblown. Forbes believes Tiger is only worth $600M, after taxes and agent fees.

    "And if you think Tiger made a killing in the stock market, think again. The S&P 500 is at the same level it was at 12 years ago," Badenhausen wrote. "Any divorce settlement is likely to be worth a fraction of current reports."

    www.thestreet.com/_yahoo/story/10797590/...


    We already knew this about the S&P, but it never hurts to be reminded of why our finances require more than a blind buy-and-hold-mutual-fund strategy.
    Jul 02 10:38 AM | Link | Comment!
  • Don't Get Ripped Off !
    This morning, on of my favorite stocks, SDBT, is up 15% to $3.29. Unfortunately, the move is just a mirage.

    You see, someone decided to buy some with a "market order". That means they placed a order to buy shares at whatever price the market was asking.

    Well, as of last night, someone was bidding $2.85 to buy shares of SDBT, while someone else was asking for $3.07 to sell theirs. Early this morning, the asking price was $3.29 and someone paid it.

    Soon after that, the asking price dropped back to $3.07. Whoever paid $3.29 should have checked the bidding price (a.k.a. the bid) and the asking price (a.k.a. the ask) to see how far apart they were (a.k.a. how wide the spread was). They would have seen that the spread was wide and could have placed a bid to buy shares at something in-between the bid and the ask (a.k.a. a limit order).

    If they place a bid to buy at $3, the bid would have become $3, since that is higher than the $2.85 that someone else was bidding at the time.

    At worst, I think they could have bought the shares at $3.07, which has been a common asking price recently. Instead, they paid and extra 22-cents, which is 7%.

    I'll take 7% any day! Even though I like my SDBT stock, if you offer me a 7% premium, you can have it. I'll just buy it back later in the day for a cheaper price.
    Jul 01 9:41 PM | Link | Comment!
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