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Simon Monger

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  • 4 Attractive Stocks Under $6 [View article]
    I have also been looking at CSR and other Chinese names that appear to be quite cheap. The problem is that their multiples simply do not want to expand, despite the growth. With CSR, there is also the concern about the commercial real estate slowdown in China, which has a lot left to deflate in my opinion. Still undervalued though. It will be very interesting to see where multiples are at in 5-10 years... if they reach U.S. levels, these stocks could soar.
    Aug 20 03:10 PM | 4 Likes Like |Link to Comment
  • Why Gold Prices Are Soaring [View article]
    I agree, the euro as a concept was never viable in my opinion. Without political unity (like the states in the U.S.) it is impossible to expect northern countries like Germany to continue indefinitely supporting southern economies like Greece. The political situation in Germany since the bailout has already confirmed this... Only a matter of time.
    May 12 07:54 PM | 3 Likes Like |Link to Comment
  • Uranium Stocks: Set To Implode Or Explode? [View article]
    That's true. Since the Japanese crisis, the tide seems to have turned a bit and the sector was punished. But many emerging markets are going ahead with their plans to introduce nuclear energy, which could make up for the lost demand in some countries.
    Oct 31 07:24 PM | 1 Like Like |Link to Comment
  • Uranium Stocks: Set To Implode Or Explode? [View article]
    These are very good points. I was trying to focus more on the recent rally drawing attention to the sector, but the major players are down pretty significantly year-to-date. Whether the rebound is because of that drop, real pent up demand, or simply the M&A (some a combination of all three) will determine how long it lasts and remains to be seen.
    Oct 31 07:23 PM | 1 Like Like |Link to Comment
  • 2 Safe-Havens To Protect Your Profits [View article]
    Commissions vary by broker and depend on things like how many contracts are written. The point I was trying to make is that you can make money by writing out-of-the-money covered calls on blue chip stocks. It's not going to be a ton of money (since they aren't volatile by definition and that lowers the premiums), but it can amount to something in some cases.
    Sep 7 04:51 PM | 1 Like Like |Link to Comment
  • 3 Prudent Ways to Profit From a Declining Dollar [View article]
    The only time owning assets priced in dollars would matter is (1) when you sell the position and hold cash (2) or if the currency was ever abandoned in a Zimbabwe-like scenario.

    Assuming there is no apocalypse and you simply hold the positions, you make more dollars by holding commodities, shorting treasuries or holding TIPS, that offsets the decline in the dollar's value.

    You can even think of it like a pairs trade: You are shorting the dollar's value by loaning it (to buy something else you'll eventually sell to get them back) and going long commodities.
    Apr 26 09:29 AM | 1 Like Like |Link to Comment
  • Stocks Say Goodbye, and Euro Says Hello ... To the Crisis [View article]
    Interesting commentary and chart.

    You're right that euro stocks are rising due to ECB actions and the fact that a $750 billion bailout is set aside to ensure no major problems in the near-term. Meanwhile, a cheaper euro helps products from their countries become more competitive globally.

    The euro, however, is likely falling due to structural uncertainty surrounding the euro zone and, perhaps more importantly, the prospect of inflation following a likely increase in spending. Unlike the dollar, the euro isn't a flight-to-safety and therefore it will not be propped up despite a spending package (like what happened in the states), in my opinion.
    May 13 11:57 AM | 1 Like Like |Link to Comment
  • Reading Into the Simultaneous Rise in Gold and the U.S. Dollar [View article]
    The dollar is the reserve currency and not gold for one simple reason: Gold and other currencies aren't large enough anymore. The euro is the only viable alternative, but a strong euro isn't exactly in the best interest of exporting nations like Germany.

    And there is not likely to be a run on the dollar anytime soon precisely because it is a reserve currency.
    May 12 08:01 PM | 1 Like Like |Link to Comment
  • Rethinking the Baltic Dry Index [View article]
    I would add that some of the volatility is due to the supply of ships versus the demand for them (ie. supply/demand of commodities). I read in a Reuters article recently (sorry, I can't find it at the moment) that a bunch of new builds amounting to around 30-40% of the existing fleet will go online in 2010. Despite anything but a huge jump in demand, this will keep prices under pressure. So, as an economic indicator, it is definitely questionable, I agree.
    Aug 21 03:05 PM | 1 Like Like |Link to Comment
  • Mortgage Stocks: High Risk, High Payouts [View article]
    The point of the article was to say that it may be worth it if you can afford it. Generalizing a buy or sell in an all-you-can-eat fashion is unwise, in my opinion. I present the facts and let people decide.

    If you're young, have a long time horizon, and can afford losses, then yes, these may be cheap opportunities. If you're old and about to retire, you probably shouldn't take the risk. In my personal opinion.
    Nov 28 11:30 PM | Likes Like |Link to Comment
  • Uranium Stocks: Set To Implode Or Explode? [View article]
    Mergers & Acquisitions
    Oct 31 07:23 PM | Likes Like |Link to Comment
  • Options Strategies For Recouping Losses In Netflix, Amazon [View article]
    You could definitely go with a lower strike price and realize a higher premium. That decision depends on where you want your breakeven point to stand. If you have a $95 strike price, then you'll never make anything above $95 on the position, which could mean a significant loss, if you bought it at $150 or something and have confidence that it will eventually return.
    Oct 27 10:11 AM | Likes Like |Link to Comment
  • Top Small Cap Analyst Picks With 40%+ Price Targets [View article]
    Pfizer may make up a large part of its revenues, but it's also a vote of confidence in its software. If a huge phama company benefits from it, surely the same software can be used by other large companies. One more large contract and Pfizer is only 5% or maybe less.
    Oct 3 09:25 AM | Likes Like |Link to Comment
  • A Strategy To Recoup Your Losses On Netflix [View article]
    Yes, this is a lot of margin for some individual investors given the stock's price. Nevertheless, for institutional investors and/or individual investors that have acquired a large dollar value by holding it over time, it is a strategy that might make sense. Moreover, the real risk is lower given the fact that its half a covered call and half covered by the other set of options.

    And, as I mentioned in the article, this is for people who believe shares will come back. So, buying puts without any equity position is not really an option for that thesis.
    Sep 20 05:10 PM | Likes Like |Link to Comment
  • Why Gold Prices Are Soaring [View article]
    There are a few other important considerations as well.

    Most notably, a lot of traders would prefer to be short European sovereign debt or the euro itself in today's environment, but that is impossible because of the potential for ECB interventions and quantitative easing.

    Other traders would be long other commodities as an inflation hedge, but that is difficult because the demand picture is drying up. Mostly, because China is experiencing problems and will be able to carry as much weight as many were hoping.

    I wrote more about these reasons here: sumfolio.com/gold-pric.../
    May 12 07:52 PM | Likes Like |Link to Comment
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