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Michael Kudrna
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"The market can remain irrational longer than you can remain solvent.” John Maynard Keynes In an industry which caters to the greedy and already wealthy, it has become increasingly complex for the individual investor to find a path to success. “Buy and hold” is an inadequate investing... More
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  • 1-28-10 Morning Market Update - Apple (AAPL), Cord Blood America, Inc (CBAI.OB) 2 comments
    Jan 28, 2010 11:05 AM | about stocks: AAPL, CBAI

    9:15am  (originally posted on Kudrna's Stock Market Blog)

    We have stronger action today starting from late yesterday.   President Go-Bama spoke and I don't think he gave a whole lot of anything to get excited about however I did notice that the Shanghai Exchange started to liven up during/after his speech and was actually positive for a while before closing about even for the session.   As a market, we are very oversold however I'm not sure we can be bullshit just cause we are oversold...as I say often, the market is an overemotional and irrational beast.  It doesn't always act according to logic so you can't be stubborn and fight it else you will more often than not be on the losing end.  I think some trades can be made with tight stops but I fear the sellers coming in once again after we get a bounce.  That may mean we end the week up (while I've been predicting ending the week down) but I'm not trusting the move up just yet...I think we have a stronger chance of taking a nosedive to new lows.  The market tends to swing to extremes....we were overbought for a while and now I think we will spend some time in the oversold arena.  Just make sure you don't get too anxious and put all your cash reserves in to quickly...we may be oversold longer than you think.  I'd rather be wrong though...let's all hope I am and we continue to go up and up from here.

    Apple (NASDAQ:AAPL) is down towards $200 this morning as I predicted.  We have profit takers and traders getting out while the long's are figuring out what price and when to jump in...I'm hoping we drop to the early 190's to which I'll be a happy buyer for the long.  As I've stated previously, I'm a big believer in Apple for the long term.

    Cord Blood America, Inc (CBAI.ob) has a lot of interesting news swirling it today and I'm not taking anymore action just yet but I am bullish on this stock for the long term as well.  Their CEO has recently stated that we won't be seeing anymore dilution.  While I like to believe him, I'm always skeptical as he wouldn't be the first nor the last CEO to state that and either be wrong or completely lie.  They put in an Form S-1 at the end of Dec 2009 which caused concerns over more dilution.  However on Wednesday, they withdrew the form.   Did Matt really mean no more dilution?  It would seem so but I'm still waiting on official word from him as these Form S-1's do sometimes get withdrawn and refiled with different numbers.

    CBAI also retired significant debt over the past couple years that won't be a hinder anymore as well as Matt is in China possibly putting together some more contracts or deals.  He's stated that 2010 will be a year that CBAI looks to acquire companies...and that could huge if priced right to where he doesn't overpay and strap himself financially.  I don't believe Matt would make that mistake at a critical juncture like this but I'm not him.  I'm trying not to overexcite my readers to where they blindly jump into CBAI as I want you to do your own research and make sure you agree with me before you decide to buy and at what price....that is how you learn.  However, I'm truly "giddy"  over the news and think this could be a big stock to watch and be involved in for 2010 and longer.   Unless Matt announces some great news soon (ie acquisition), I think we will have an opportunity to buy more shares at a cheaper price.

    As I'm writing this, I've noticed we are now down about 70 points...further showing that any bullish action just can't be trusted at this time.   Do some research, create a grocery list of stocks, watch the market, and start to accumulate those stocks when you think the time is right.  Keep in mind, we don't know were the "ground" is so don't think we've hit it yet....nobody knows where it is.  I'm waiting for some momentum up that I can trust before I start to aggressively buy from my grocery list.  Yes, many will say that I missed out a lot by not predicting beforehand when the bottom is but there is no need to predict and be wrong most of the time when I can act aggressively on the momentum up and take solid less risk gains.  If you protect your capital like I am saying often in this market, you won't convince yourself to take big risks to make your money back.  Follow me on SeekingAlpha, don't forget to add me on Twitter and my Blog.  Good luck out there.


    At the time of publication, Mike was Long AAPL and CBAI

    Disclosure: Long AAPL and CBAI.OB
    Stocks: AAPL, CBAI
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Comments (2)
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  • optimus203
    , contributor
    Comments (2) | Send Message
    Nice posting. I've been long in CBAI since the 0.0003 mark. Thanks for pointing out the new filing as well. I know they withdrew the S-1 in December, then resubmitted a new one. But didn't know they withdrew the resubmission.
    30 Jan 2010, 06:31 PM Reply Like
  • Michael Kudrna
    , contributor
    Comments (403) | Send Message
    Author’s reply » Good job in getting in at the right time. I believe they may just be resubmitting this last S-1 and that the stock might dip a bit on that news. Hopefully it won't be resubmitted and no more dilution from here on out like Matt said at the opening the other Friday. Glad you found the article useful...hope I can write a few more that you find useful as well. Good luck.
    30 Jan 2010, 09:44 PM Reply Like
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