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Rocco Pendola

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  • How's That Sirius XM Short Working Out For You? [View article]
    No. I like to make disciplined trades. I had a target. It hit it. I am out.
    May 4 03:00 PM | 5 Likes Like |Link to Comment
  • The Why Behind The How: The Quality Of Comments On Seeking Alpha Articles [View instapost]
    Wow... there's a groundswell of support for this. :-)

    I have put in a request. We'll see.
    Apr 4 06:38 PM | 5 Likes Like |Link to Comment
  • What You Need In Order To Retire Before Age 65 [View article]
    Thanks for the article. I enjoyed it.

    Nice to see some pros doing it the "right" way. Good work.
    Apr 4 12:45 PM | 5 Likes Like |Link to Comment
  • One Way To Avoid Getting Burned In An Options Trade [View article]
    I think that's the allure, though, Tom, of options that hurts lots of people. It does turn it into gambling, which it does not have to be. You see that you can put down $500 on those OTM calls that cost like $20 each and get a whole bunch of them. You (speaking generally) psyche yourself up that this stock is going to soar and you're risking just $500 for the chance to make a seemingly unlimited amount of money.

    Logic gets ignored in that common situation. That call is "cheap" because the odds of it doing what you need it to do to turn a profit are few and far between.

    So, you're right, but it's one of those things that sounds great in theory, but does not work out so well in practice.
    Mar 31 11:27 AM | 5 Likes Like |Link to Comment
  • Why You Should Be A Buy-And-Hold Investor [View article]
    I agree. It would be priceless if we had the types of classes you suggest in high school and college. Instead, we give out credit card applications with every school bookstore purchase. Yawn.
    Mar 12 08:11 PM | 5 Likes Like |Link to Comment
  • MBAs, Gimmicks and Apple's Culture [View article]
    Jeff, with all due respect, I think you are having difficulty getting your head around my thinking here. You are right, I do not explicitly lay out reasons why sitting on a pile of money is effective. You're not going to find those reasons in an MBA textbook. They're more likely to come out of classes that deal with psychology and culture and such.

    If I keep two years' salary in a low-interest savings account, you could argue that I am not making effective use of capital. You could say, you do not need that much, you only need six months and you should put the other 18 months' worth in something that's going to produce heftier gains. That's textbook thinking. I think there's lots of sense to it, just like I think MBAs are bright people who lots of sense.

    But, you forget to factor in the variables that are much more difficult to quantify. And, again, this is where the social/behavioral v. MBA v computer science geek worldview comes into play. This is a hypothetical, but let's say my wife and I argue about money. Or, more aptly, she gets uncomfortable without an excessive cushion and things get strained in our household when we "only" have six-month emergency fund over a two-year emergency fund. Our household does not quite run as well. The vibe sucks. Our marriage suffers. Our kids feel the impact. Everybody's mood and productivity gets impacted negatively in the six-month scenario, but moves along nicely in the two-year scenario.

    I STRESS-- do not take this example and DIRECTLY apply it to Apple because I know there is not a direct connection. However, the idea that having that money "in the bank" like Apple does has a direct impact on the company's success and culture is not crazy in the least. And it's not even just about the isolated fact of having the money there. It's about Apple being Apple. And when Apple starts taking pages out of MBA textbooks just because a bunch of people tell them it's time, I think the company ultimately suffers.

    Again-- I appreciate that we probably see the world from different perspectives, but it was not that I refuted my own argument. I did not. I just not think you clearly see what I am trying to say.
    Feb 27 08:03 PM | 5 Likes Like |Link to Comment
  • MBAs, Gimmicks and Apple's Culture [View article]
    Thanks, jbfiacco and everybody else for all of the great comments. Much appreciated. It's nice to have some MBAs on your side in this one! It's all about perspective-- keeping your view of the world in proper perspective. It's tough for people like Jobs and Hastings to do this. Jobs allowed Apple to have a sound corporate structure. I do not think Hastings does quite the same thing and it's hurting him right now.

    If you guys like the article, please use the tabs at the top of the page to recommend it on Seeking Alpha and share across Twitter, Facebook, LinkedIn and Google +. Thanks!
    Feb 27 02:40 PM | 5 Likes Like |Link to Comment
  • Why Apple Should Not Pay A Dividend (Or Do Anything Else Incredibly Stupid) [View article]
    This is how we should all run our households and businesses. Accumulate cash and sit on it for as long as you can and need to and want to. And then put it to work... don't give it to somebody else you have already done more than enough for.
    Feb 24 03:40 PM | 5 Likes Like |Link to Comment
  • Why Apple Should Not Pay A Dividend (Or Do Anything Else Incredibly Stupid) [View article]
    Well, I guess I insulted myself. About 70% of my portfolio is in dividend-paying stocks and is likely to stay that way for the next 5, 10, 15 years or longer.

    You do not know what you are talking about when you make assumptions about me.
    Feb 24 03:17 PM | 5 Likes Like |Link to Comment
  • Sirius XM Bagholders May Have A Problem [View article]

    Anybody who knows me even a little bit understands (if nothing else about me) that it pains me to see crap like this happen. By no means, do I see myself as some altruistic savior, but I feel like beating the drum against certain things can help if even in a small way.

    If you're a bagholder in this stock, you clearly have had a problem. There's nothing meaningful here? These insiders are basically telling that $$it is about to go down.

    Don't misdirect your anger at me. There's a full board and executive suite at both Sirius XM and Liberty that you should be calling.
    Feb 24 01:47 PM | 5 Likes Like |Link to Comment
  • "Those jobs aren't coming back," said Steve Jobs to the President, who asked what it would take to bring Apple's production to the U.S. It's not just low wages, Chinese manufacturing infrastructure has grown to remarkable size and sophistication. Apple's contribution to U.S. employment will be through its stores, its empowerment of entrepreneurs, and jobs at cellular providers and shippers, but not the actual building of its products.  [View news story]
    Check the tags on his shirts as well.
    Jan 22 12:01 PM | 5 Likes Like |Link to Comment
  • Why Are Sirius XM Investors So Emotional? [View article]
    Excellent post.

    I have written articles that focus on this before. It's so much "better" (psychologically, for some) to own 2,500 shares of a $2.00 stock instead of "just" 12 shares of AAPL. By and large, however, that's a poor choice. As you say, "Plenty of $20 stocks will double and plenty of $1 stocks will stagnate. Investing should be about the underlying business and what that says about the potential for growth or the risk of decline. It should never be about the sticker price of 1 share of stock."

    The lure in SIRI's case is that it did what most penny stocks do not do. It returned a massive amount from its lows. The people in my #2 deserve lots of credit for taking a risk. Some had more conviction behind the play than others, who were merely rolling the dice, but the results, ultimately, are all that matters. But, just because SIRI did that from penny stock levels does not mean it will do it from the levels it's at now. That's an easy dream to latch on to and a tough one to let die.
    Dec 30 04:27 PM | 5 Likes Like |Link to Comment
  • The Last Place I Want To Invest During 2012 [View article]
    The level of discourse when the Sirius XM crowd gets involved in a discussion takes a pathetic dive. Just compare these conversations to ones that take place in articles I write about AAPL and AMZN and two stocks I am harder on than SIRI, NFLX and RIMM. I will let the comments speak for themselves.

    That said-- the idea that we should just passively allow Apple to sit in a class by itself and comments like "That's retail!" are quite defeatist. Or, at least, they give inferior competition a pass.

    As far as I know, Apple is in retail as well. And Apple does not have to resort to any of these "That's retail" tactics. Apple runs like a high-end luxury brand because it has done a superior job from every angle, namely product quality, development and marketing.

    The fact that Apple and Amazon exist in classes by themselves, relative to their direct and indirect competitors, really says a lot about the pathetic state of innovation outside of a handful of now old guard and recent start-up innovators.
    Dec 29 03:50 PM | 5 Likes Like |Link to Comment
  • The World's Most Frustrating Stock: Sirius XM [View article]
    Merry Christmas.
    Dec 20 06:42 PM | 5 Likes Like |Link to Comment
  • How A Real Value Investor Evaluates Netflix [View article]
    Simply brilliant article.
    Oct 31 05:23 PM | 5 Likes Like |Link to Comment