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Ron Reed

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  • Crude Oil Inventories Surge [View article]
    I agree that there is a large amount of investment in oil and energy related stocks and comm. However there is as well in metals and ag. as well. I don't like the term speculation since it carries a negative connotation, but so does derivative and that is what the actual investment is in. So I guess we can make it sound REALLY bad by pointing out the fact that it is speculation in energy derivatives, right?

    Anyhow, such as it is, with so many bonds and T-Bills being low or no return, the market has turned to high yields and comm. is a pretty easy way to get into it and an attractive return with the volatility that it runs. We still have not seen Gold fully correct and won't for a while, or corn for that matter.
    Oct 24 04:00 PM | Likes Like |Link to Comment
  • Crude Oil Inventories Surge [View article]
    no. That is a complete false thought. Sure you will save a little on gas, but no. 1 that is minimal and 2 it does not outweigh the loss to the economy. Better than that, most people that complain about the price of gas cannot even figure out how much it matters to them. And complain about the 2 cent per gallon hike while driving 40 miles one way to meet friends at the local coffee shop to pay 4.00 for a cup of coffee. I expect readers here to actually know how to calculate the amount of gas they buy a year, but very few do. The increase in food cost is much more and even when you take out for transportation the ratio is still up in the 1:1.5 range on increase. The price of oil tanks and the price of Nat. Gas goes up, all the new start-up manufacturing plans will be put on hold. I cannot put a hard number on it, but a good percentage of the interest in oil cost is only because of gasoline and only because the media reports it all the time, and only because it is something everyone can relate to and see every day. If the news reported the cost of corn each day it would be the same with corn, or X, the product matters little while the perception is everything. Run a graph on the actual price of oil to gas and the amount it actually effects you and you'll be flat shocked at how little it is.
    Oct 24 03:55 PM | 1 Like Like |Link to Comment
  • Crude Oil Inventories Surge [View article]
    If it hits 75 or below we will begin to see a larger unemployment picture. Oil field related jobs have proped up the numbers for a long time and if rigs begin to shut down a lot of doors will close. Many don't realize how much depends on decent oil prices.
    Oct 24 01:19 PM | 1 Like Like |Link to Comment
  • Crude Oil Inventories Surge [View article]
    It has!
    Oct 24 01:02 PM | Likes Like |Link to Comment
  • A123 (AONE +27.1%) shares roar higher after Wanxiang President Ni Pin says his company is still interested in taking over A123 despite the company filing for Chapter 11 this week and calling off its investment deal with the Chinese autoparts firm. Ni tells Bloomberg that the filing may make A123 more attractive. "Bankruptcy court is like a filter that lets a dirty big boy covered with mud go through it and turn himself into a clean boy," Ni says. [View news story]
    no. If they cannot sell the assets or save the company then yes, but if someone buys it then the shareholders get it.
    Oct 22 11:10 AM | 1 Like Like |Link to Comment
  • Wanxiang Group intends to outbid Johnson Controls (JCI) for A213's (AONE) automotive-business assets and replace the U.S. company as the "stalking horse" bidder. The Chinese company announced its intention at a court hearing yesterday following A123's filing for Chapter 11. At the hearing, A123 won approval to borrow up to $15.5M in interim financing from Johnson Controls. [View news story]
    I think whomever will pay the most should be the winner. If JCI thinks it can do better than WG then they need to up the bid.
    Oct 22 08:05 AM | Likes Like |Link to Comment
  • A123 (AONE +27.1%) shares roar higher after Wanxiang President Ni Pin says his company is still interested in taking over A123 despite the company filing for Chapter 11 this week and calling off its investment deal with the Chinese autoparts firm. Ni tells Bloomberg that the filing may make A123 more attractive. "Bankruptcy court is like a filter that lets a dirty big boy covered with mud go through it and turn himself into a clean boy," Ni says. [View news story]
    40% is 40% regardless of the pennies. If I have $1000.00 invested at $10.00 share and it moves 40% or I have $1000.00 invested at $0.01 per share no matter how you cut it a 40% move still equates to a $1400.00 value.
    Oct 19 08:06 AM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Keep tuned, I've got a couple I'm doing research on for my next article. With earnings season coming and lots of companies on the edge there is money to be made for sure.
    Oct 5 06:03 PM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Closed out this morning with a profit of 456% (220% for the whole strategy) on the put, the call will remain open and possibly sell back to the market a $0.05 or expire worthless, either way it was well worth it.
    Oct 5 02:13 PM | Likes Like |Link to Comment
  • Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%[View news story]
    I have not written an article that got it wrong yet. I cannot recall any strangle I've ever done that has lost money. I've had some make just enough to cover the commission fees, but I've never lost money on one. They are pretty straight forward and work very well on any volatile stock.
    Oct 5 09:54 AM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Thursday, October 4, 5:10 PM Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%.


    Thursday, October 4, 4:58 PM Zynga (ZNGA) warns it expects 2012 bookings of $1.085B-$1.1B, below already lowered guidance of $1.15B-$1.225B. The company expects Q3 revenue to reach $300M-$305M (above a $275.9M consensus), but forecasts bookings will amount to just $250M-$255M. Zynga blames weakness in games within its web "invest and express" category (e.g. FarmVille, CityVille). Also, an $85M-$95M write-down is being taken on the OMGPOP acquisition. Shares are halted, and will resume trading at 5.05PM ET. 8 Comments [Tech, Earnings, On the Move]
    Oct 5 07:30 AM | Likes Like |Link to Comment
  • Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%[View news story]
    Look here, I indicated when and what to buy:
    http://seekingalpha.co...
    Oct 5 07:29 AM | Likes Like |Link to Comment
  • Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit seeking rescission of certain transactions that closed in 2005 involving GST's Hilltop Prospect in Texas and CHK's investment in GST common stock. In addition to its original initial investment of $81.6M, CHK seeks reimbursement of additional lease and well costs. [View news story]
    They knew of the risk prior to joining the venture (they openly admit it in the filing). They received a substantial discount due to the risk. And now they want money back and money back on common shares they purchased?! No, I don't think they should get anything back. That is standard contract law. Beyond that, if they get money back I want my money back on the investment I've lost owning CHK stock and options. Don't take me wrong, I'm not a bitter investor, I knew the risks when I bought and have made money and will make money on CHK, but this filing is plain stupid.
    Oct 3 05:04 PM | 2 Likes Like |Link to Comment
  • Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit seeking rescission of certain transactions that closed in 2005 involving GST's Hilltop Prospect in Texas and CHK's investment in GST common stock. In addition to its original initial investment of $81.6M, CHK seeks reimbursement of additional lease and well costs. [View news story]
    Wow! new levels of depravity at CHK. Whats next? Strong arming the employees of their lunch money?
    Oct 3 03:24 PM | 4 Likes Like |Link to Comment
  • EV roundup: 1) General Motors (GM +0.7%) widened its lead as the top electric vehicle seller with September Volt sales of 2,851, while the Toyota (TM -0.1%) Prius line doubled sales Y/Y to 18,932 to pace hybrid sellers. 2) Israeli EV infrastructure player Better Place replaces CEO Shai Agassi with top exec Evan Thornley as financial difficulties at the company mount. 3) The DOE wants Tesla (TSLA -1.3%) to pay back its government loans at an accelerated rate when it begins making payments in December. [View news story]
    Its pretty sad when your big proponent gets nervous and asks for their investment back sooner than expected.
    Oct 3 09:54 AM | 2 Likes Like |Link to Comment
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