Monthly Portfolio Performance Report

Two months have gone by, and after a market peak mid July, my stocks took a big hit, lowering my year to date return to +15.20% from a high of +26.74% on 07/13, and bringing my monthly losses to -6.02%.
Even with above expectation earning announcement my biggest loser was Volcom plunging -29.21%! The last time this stock lost a third of its value it went on a bull run, rising 140% over 11 months. This may well be an excellent buying opportunity, now that their European infrastructures are up and running the next quarterly earnings should bring a big upside surprise.

GOOG: -2.43%

NUAN: -1.49%

MRK: -0.30%

EEM: +1.12%

VLCM: -29.21%

GLD: +2.29%

COP: +2.98%

Investing Strategy

After a day like today, it's always good to take a long hard look at your portfolio and point out what is not working, and at the same time look for what is working that is not in your portfolio.
Here is what you should see in there:

• Defensive stocks (food, liquor, tobacco, and high yielding stocks)
• Bonds ( I don't care if you own munis (municipal bounds), or the total bond market ETF AGG, buy more)
• Oil related equities
• Precious metal

While I personally don't recommend shorting the markets, money can still be made buying index puts, or even going long on one of the new ultra short ETFs, like SDS which will capture twice the loss of the S&P 500, up +4.62% today. Putting a small portion of your money out of say, your small cap growth funds, in there would probably be wise.

Google's Earning Miss, an Opportunity For You?

As I came home today and turned on my favorite channel (CNBC) I first beheld the DOW closing above, or more exactly at 14,000, and thought "uhm, how bullish", my next observation was not as promising, as I watched the GOOG ticker followed by a red 39.40.
My heart dropped. I immediately checked the Dow Jones News to find out why my favorite stock was taking a 7% dip after hours.
As I remember, there was a couple of things that scared investors last quarter, one being the fear of rising expenses, and the other, the fear Google could not grow it's revenues fast enough anymore to justify this kind of PE. These two worries seem to have been put to rest for the time being, as traffic acquisition costs declined to 30% from 31%, and revenue came in for the quarter at $2.72 billion when analyst were expecting $2.68 billion.
Unfortunately, earnings came in at $3.56 a share compare to the expected $3.59, but since we are used to see Google's earnings beat the street expectations like a pinata, investor disappointment is high.
Time has taught us that any dip in price for Google share is usually a buying opportunity, but if CEO Eric E. Schmidt doesn't turn his recent acquisitions into earnings this company is going to have a hard time growing at the speed they have been in the past few years.

Fortress and Blackstone, Time to buy?

I was in a classroom environment last week, briefly discussing recent IPOs, when one of my class mates noted how poorly Blackstone stock had performed since its debut on the New York Stock Exchange. At first it didn't bother me..., but I then realized he had no idea why the IPO had a bad first week, and that did annoy me. The reason behind the poor start are the fears of tax law changes which could drop hedge funds and private equity firms into the 34% tax bracket from the actual 15% I believe.
Today the stock dropped an other 2.51% to $29.18 on corporate governance issue concerns, apparently the way the IPO was structured it did not follow NYSE rules imposed on other corporations trading on the exchange (operating company vs. investing company).
But as investors will learn tomorrow the first legal hurdle seem to have been passed, as Treasury Assistant Secretary for Tax Policies Eric Salomon had nothing positive to say about the new proposed tax laws.
I remember thinking, last week, "with all the money these guys have, I'm sure they'll be able to lobby successfully(Blackstone co-founder and CEO Steve Schwarzman made $7.7 Billion on the day they went public), plus if this guy says "sell" without knowing why, the odd lot theory would indicate "buy"".
Now it seems my initial prediction is holding true, I am sure they are smart enough to navigate around anything legislators might throw their way, and with BX now down 10% from its opening day, and FIG down 22%, I bet they are due for a pop.
Keep an eye out!

ConocoPhilips Shares up 3% After Company Annouces $15B Share Buy Back

Conoco's buy back represents about 180 million shares, or 11% of all outstanding stock, it will be buying back shares every quarter until the end of 2008. Very bullish news for Conoco stock holders, on top of high oil prices, making this stock look attractive in times where the sub prime mess is pushing most averages lower.

Monthly Portfolio Performance Report

I know it has been a while, but it was a good while. Markets are going in only one direction and it’s up…for now. We just went through a great month of May the DOW was the biggest gainer with + 4.5% followed by the S&P +3.33% who set new record highs for the first time since 2000, and the NASDAQ +3.12%.

As far as my holdings go, this is the first time this year I failed to beat the DOW, my portfolio had a + 4.4% return, due to a slight down turn in gold prices, but my YTD (year to date) return is still far above the markets (+17.38% compared with +9.52% for the DOW). My performance for May was as such:

GOOG: +7.40%

NUAN: +9.21%

MRK: +3.00%

EEM: +4.92%

VLCM: +2.95%

GLD: -2.56%

COP: +11.58%

For June I think there should be a slight correction in energy prices, at least until we see the first hurricane come through the Gulf of Mexico, and I would take a good look a tech and semi-conductors in particular, since a few of them are back to 2005 levels, right before they had a real good run up.

Good luck out there.

Financials, Goldman Sachs

This week were are expecting some big financial names to release their earnings. Goldman Sachs tomorrow morning, Lehman Brothers on Wednesday, and Bear Stearns Co. on Thursday, both of them before markets open also.
While GS beat earning expectations last quarter the stock is now 10% from it's highs at about the same level as it was on its last earnings release. So the stock looks like a bargain, specially when you look at the PE and PEG compare to the industry(10.4, 0.7 to 18.2 and 1.4). It looks to me as the stock should double before it would reach average valuations. So what's keeping this stock from taking off? Guidance, I imagine.
Analyst only expect $21.15 EPS for 07 compared to 06's $19.69. That's only 7.41% earnings growth, could that be true? After 06 75.55% earnings growth and 5 year growth rate of 35.75%? I must be missing something.
If you see anything out there that could qualify as a big red flag, please let me know. Meanwhile I'm going to unlock some funds and start a very small position.
Good luck out there!

Monthly Portfolio Performance Report

Well it’s the beginning of a new month and I want to keep sharing how I did. Plus it keeps me honest about my stocks.

• GLD +2.27%
• COP –0.53%
• EEM –3.47%
• VLCM +13.03%
• GOOG –10.06%
• MRK –0.69%
• NUAN +22.67%

For a total weighted gain of +2.17%

Not that my biggest gainers were my smallest cap companies and that I am expecting a reversing trend for the month of March. I wouldn’t be surprised if I end up giving back most of these gains. I expect a lot of red ink this month, down 1.1% on the first day, and probably continue to slide until the fed decides to lower the rates hopefully in May.

I hope Google will bottom out, and energy prices will help lift Conoco.
I still think Merk is a not fully valued, the new drugs coming out indicates great potential, I think most analyst underestimate the sales the will generate.
Nuance has made an other acquisition, and I still expect a lot of upside down the road, and Volcom is just getting started its European growth, and I have a strong feeling the Volcom culture will integrate itself well. European youth will receive well this type of “we’re not the big bag corporations” attitude.

I do plan to take advantage of recent events to add a position, the bargains will be out there, I have a real interest for the financial industry, but I have not yet ruled anything out.

Correction Day

So how is everybody's portfolio doing today? Are you feeling pain and nausea from the red paint all over your account statement? If yes, then don’t you worry, you’re not the only one out there. As of 9:09 a.m. my portfolio was down 2.2%. That’s almost my January’s entire gains wipe out in one day!

I’m not worried though, February had been stellar until now (up 5.93%), and I always brace myself for some big losses after a long winning streak.

For those who read my posting on February 1^st you can now see that I was right to be worried about Emerging Market’s valuation level. EEM is my biggest loser today, currently shaving 4.7% of its value after being down over 6% at the opening bell. By now everyone should know that China’s market had its biggest one-day lost in a decade (8.8%), and this is only the beginning. I think the decline can easily continue to -25% before it bottoms out, based on previous experience (in May of 06 EEM went down 27% from about $110 to just above $80).

To look on the bright side, this is only a correction (based on CNBC analyst’s opinion) and soon opportunities will present themselves in the form of under valued equity.

The one sector I remain bullish about is commodities, and most importantly gold. I think gold is on a strong up trend and we should see prices breaking its May of 06 highs of $732 pretty soon, probably within 6 months.

Good luck out there, and don’t let a set back hampered your enthusiasm for the equity markets.

Volcom Reports Quarterly Earnings

Volcom Inc.'s (VLCM) fourth-quarter net income rose 6.7% to $7.63 million, or 31 cents a share, from $7.15 million, or 29 cents a share, a year earlier.
The Costa Mesa, Calif., sportswear designer said revenue increased 37% to $56.6 million from $41.2 million a year ago.
On average, analysts polled by Thomson Financial predicted fourth-quarter earnings of 30 cents a share and revenue of $54.8 million.
Volcom expects first-quarter earnings of 15 cents to 16 cents and revenue of $48 million to $49 million.
Analysts predict first-quarter earnings of 19 cents a share and revenue of $51.2 million.
-Monica M. Clark; 201-938-5400; AskNewswires@dowjones.com > Dow Jones Newswires
02-22-07 1704ET
Copyright (c) 2007 Dow Jones & Company, Inc.

Volcom beat analyst's estimate for this quarter but announced lower than expected guidance for the first quarter of 07, although the guidance for the year was on the high end of the analyst's expectations. The stock is currently up a little over 8% for the day after the quarterly numbers produced mixed emotions after the closing bell yesterday (down 2%).
I still think Volcom's approach to the market is right, by sticking to their traditions and what have made them successful in the past they are securing long term growth.

The market has been good to me this earning season, long live the market!

Microsoft Vs. Google

I read an interesting article this morning on TheStreet.com. In "Vista Makes Run at Google" by Vishesh Kumar, we are told how Microsoft will (hasn't happened yet) be eating away market share from Google in the online search market.

How will they do that? Just like they did every other time a competitor came out with a technically superior product: They're going to bundle up their own inferior product with their operating system. This strategy has worked in the past (ie: Explorer vs. Netscape), but look at what is going on now in the browser business: FireFox is eating away Internet Explorer's market share, (12% to 86%).
I think what the author is missing is user awareness. After a couple of decades of Microsoft product the public is finally turning an objective eye on Microsoft's product and noticing the flaws.

I also believe he is totally underestimating the momentum Apple is currently carrying. Even if Microsoft does find a way to send more Vista users to Live, the effort will be annulled by the fact that more and more users are switching to Apple, and who sits, on Apple's board, with Al Gore? Google CEO Eric Schmidt.

All of this is understandable if you read more of this author's articles about Google. He sees every new venture Google gets in as a recipe for disaster, and always points out negatives. If I didn't know any better I would say he's being paid by Microsoft to create negative publicity about Google. He is most likely just disgusted by Google's incredible success with for only mission to organize the world's information and make it universally accessible and useful.
It must be tough, for any analyst, to be positive about a company that doesn't hold it's shareholder's interest as their only reason to do business.

Chablis Grand Cru Chistophe CAMU "Les Clos" 2004

I had the pleasure to spend last weekend in Naples where the good life is lived, and lived well. During my short vacation I was lucky enough to taste my favorite Chablis of all, Francois Raveneau. Tonight, I am just a little less lucky to have found this bottle at our dear Central Market.

I can tell, when I drink this bottle, that Christophe Camu transferred his genius to his wine. This is the first time I am impressed by a Chablis that does not carry the name Raveneau.

I have to admit the hesitation was great when I was standing in the Burgundy isle and I was staring at the $70 price tag. I'm, usually, and luckily, not the one opening bottles carrying this type of price tags. So when I uncorked the bottle and gave it my first tasting step: the cork smell, I was very anxious. I could distinctively smell the fruit pass the cork, which made me very optimistic about the rest of the exercise.

The nose was a total let down: Weak, smelled like a mix of iron and honey. But the honey gave me hope and I carried on to the tasting.

This is something I would never be afraid to serve. I would be proud to have on my hypothetical wine list and I would recommend it to any make believe customer who wanted a great chardonnay without having to feel like you are locked in a new oak barrel.

It's a perfect balance between fruit and minerals, earth and air. The savors dance on your tongue, and fill you nose with sweet sent.

If I were to compare it with Raveneau, I would say: It lacks Raveneau's magic touch, and only him can produce that, it's also half the price.

Nuance Communications NUAN

While I am not recommending this stock, I think it is a very interesting story I should bring to your attention. Nuance Communication is a Voice Recognition Software company. This is a small cap growth story with accelerating revenue growth and a top of the line product.
I know what you think, voice recognition is one of those mirage technologies as soon as we think we have it in our grasp we end up with...software that doesn't work. (ie: this video of how Microsoft made it "work")

But Dragon Naturally Speaking 9 is the real deal, not only it would understand even my French accent, but it will also help you navigate through your windows applications. Microsoft and Ford signed contracts with Nuance this year to provide them with their voice recognition software.
This isn't the only product Nuance is the proud owner of, they also provide IP voice dialer solutions for employee to employee communications, a very useful tool in the Health Care and Education industries, also voice recognition solutions for Sprint customers enabling the full potential of their mobile devices. The usage rates doubled during the last 9 months of 06.

Why is that important? Because Nuance’s highest margins are done on maintenance fees charged to these companies.

I’ve checked out the financial and I like the equity building, the cash flow, and it seems they have their debt under control. The obvious bother in all of this is that they have yet to produce any GAAP income, also the non-GAP came in 3 cents per share higher than analyst’s estimates last quarter.

Of course after a 20% jump last week, and the way the stock handled itself the last time the company had disappointing earnings (-50% in one month), at these levels I might add, you might want to take some money off the table.

Overall the future looks bright for Nuance, if not acquired pretty soon, it looks like a winner for many years to come.

Les Clefs D'or, Chateauneuf-du-Pape

This 2001 was a delight to enjoy. It was soft, balance, with nice rasberries and strawberries hints. The finish was a little short, but what it lacked in elegance, it made up for in complexity.

Chevalier-Montrachet Notes

When I wanted to enjoy a nice chardonnay tonight, only one choice came to my mind. My father brought me this bottle from his cellar during his last visit. This 2004 Chevalier-Montrachet (burgundy, 14%) form Philippe Colin is quite exceptional. While it could have aged few more years, it is already showing the star that he is.

The wine is of light gold color. The complexity of the bouquet gives you a glimpse at the personality of the wine. Vanilla, cocoa, and honey suckle were the most dominant aromas.

This is a wine that is too young to let it warm up. This won't be a problem one day, but right now I would advise keeping this one in the ice bucket. At warmer then advised temperature, the oak would take over, and overpower some very subtle and wonderful fragrances, I don’t want you to miss out.

This fruity, elegant, and seductive Chevalier-Montrachet is a success for this cold evening. The wine’s achievement was to deliver a powerful and infinite finish with a distinctive green pear taste.

I am currently not going to give this wine a rating, and I will tell you why later, but I might change that sometime in the future.

Google's Quaterly Earnings Report

As I am writing this Google stock is having a bad day. It is down 2.76% with >x2 average volume, and it's just past the first hour of trading. After the earnings report yesterday, which came in with exceptional numbers as far as income ($3.29 EPS) was overshadowed by a slightly lower than expected profit margin. Google spending habits are growing faster than their earnings. How horrible!
Meanwhile the other concern is that Google is a one trick pony, making money only from advertising (much better than anyone else, kind of like their products).
Now I remember reading somewhere that one of the type of spending Google is doing was on developing new products to create new revenue streams.
Am I the only one seeing this? They are taking care of the "one revenue stream" problem by increasing capital spending. Shouldn't this be praised? Shouldn't this type of behavior be encouraged? Or is wall street so used to Companies ignoring a problem until the very last minute, and more than often, too late, that when one companies takes control of their future way ahead of time, they have to be negative about it? For doing something positive too early?
It's not doubt to me that Google is ahead of its time, their mission statement says it all. It must be the only one out of the thousands and thousands of traded companies, which do not contain the world "maximum profits for investors" in it. The way they treat their employees should be a model for everyone. The way they treat their customers should be a model for everyone. The Google model works, plain and simple, and if you trust it, it will reward you.

Stock Performance

The first month of the year has passed and it’s time to tally up the results. The portfolio that I managed as performed as such:

• GLD +2.56%
• COP –7.70%
• EEM –0.32%
• VLCM +9.91%
• GOOG +8.91%
• MRK +1.77%
• NUAN –0.94%

For a total weighted gain of +2.31%

My only concern for the month of February is the emerging markets. I’m afraid the long streak they are on is about to end, and I expect some below domestic return performance. As they say--most of the money comes at the end of a run, and I think this is what we are seeing right now. I have seen many TV reports praising the benefits of having emerging markets exposure, and heard enthusiasts pouring as much as 40% of their portfolio in international stocks.

It’s hard to imagine that the countries theses companies are established in will be supportive in economic hard times. A small recession could seriously impair their ability to grow, as I have seen it many times, popular and socialist governments will turn their attention to the neediest of the population instead of the fortune 500 (I don’t think the level of campaign donation by emerging markets countries could ever attain the levels seen in the U.S.).

Be wary of overexposure to one sector!

Champange, Recoltant

I mentioned having a great bottle of champagne over new years, it happened to be this one: Pierre Peters Cuvee Special 1999 Brut Blanc de Blanc. Pierre Peters is a recoltant-manipulant as opposed to a negociant. A recoltant-manipulant will grow his own grape to make his champagne. This gives him better controlled over what is going to be part of his creation. A negocians will buy his grape in bulks from grower to make their champagne. Such famous negociant would be Moet & Chandon, Veuve Clicquot and other mainstream champagne found at every supermarket. A recoltant-manipulant will have a smaller production then a negociant and will not be able production like a negociant does. This assures the highest quality of champagne (for the producers who love what they do), and usually gives the champagne certain softness and refinement only found is very expensive champagne for a fraction of the price (more or less). This champagne's complexity was impressive; the multitudes of different tastes were rolling of your tongue like models down the runway. The finish didn't have an end and left your mouth cleaned and salivating for more. It took a worthwhile half an hour to truly express itself, and when it did it wouldn't stop.

Robert Parker's Point System

This man here, next to my little brother Kevin is Robert Parker. For those who aren't familiar with his work, Mr. Parker is a wine critic whose point scale to rate wines has been widely accepted as one of the best in the market. His contribution to making wine mainstream in America is unprecedented.
While I applaud his work at what he has done for the American wine market I also condemn him for making buying wine a little too easy. I have personally experienced the influence he has on the American wine drinker, so much that some tasting dinner have become nothing more than a Robert Parker points competition. If someone makes a decision to buy a wine based solely on what number of points Robert Parker has attributed them in order to impress their entourage, then I think that person should stick to expensive cognacs or even beer. Mr. Parker's point scale should be used as final decision tool, you should already know what wine styles, grapes or region you are interested in and then use Mr. Parker’s point scale to decide which you would pick. In no way should you ever try to use his point scale to compare wines that are in any way different (except the producer...maybe). Comparing a New Zealand Pinot Gris to a California Cab makes no sense. No matter what number of points they have received, one cannot be better than the other, or the same for that matter, they are just too different.
Another aspect of his rating that I think is flawed is that it is not personal enough. No one has the same pallet, we all feel and taste things differently, so you might rate a wine an 88 that Mr. Parker would give a 90 or an 85.
The last issue I have with this scale is that it implies that there is a perfect wine out there, king of all, which will receive 100 points and deemed the best wine ever. Or will there? If no wine is perfect than how can you measure the rest of them? If you don't know what a 100 points wine is, then how do you know what a 90 points wine is? I personally think that there is a perfect wine, for every climate, every blend, and every region.

To me the perfect wine is the wine that I enjoy now, whenever, where ever. The one that will adapt best to the current situation, it might be a 2 Euro Rose that I bought at the local supermarket and I'm enjoying with my friends, or the $88 dollar bottle of champagne I had with my wife on New Year's Eve.
Wine should never be a competition, there shall never be "winner", only bottles that come alive and die, with the rhythm of you bottle opener and at the pace of your elbow, giving you all that they've got for your enjoyment, no matter what it is.

Rhone, Rhone, and more Rhone

I want to take time, on this beautiful Friday, to talk about my favorite wine in my favorite region. Three summers ago I found myself in this beautiful region again, this time under circumstances that went beyond my power, with two of my cousins who are wine enthusiasts themselves. We were driving up to my Aunt and Uncle’s farm in the region of Macon. By chance my older cousin whose car we were in, wanted to bring back some good wines from the Rhone valley, and I happened to know a few of them. One of the stops we made, one of the many stops, was in Vacqueyras at the Sang des Cailloux vineyard.

This wine is my favorite because it is the one that I can understand the best. I can actually feel the emotions of the winemaker while he made the wine. Most people will just think I’m lying, they have never felt emotions from a wine. And yet, wines that are influenced by the wine maker’s personality are the best wine in the world. This only happens with small productions vineyard that are trying to recreate a local authentic taste. They will give their wine character, and that character will enhance you tasting experience. This is an earthy wine, with red fruits, impeccable balance, a pleasant finish, complex and robust, full of pain and happiness, just like life.

Retirement Investing Discussion

With the baby boomers approaching retirement age, there is a new wind coming across the investment firms, and this wind is bringing the sound of hours and hours of planning, and implementing a new strategies to get the baby boomer's money into their pockets once they retire, or even better, start thinking about retiring. In his book "The Number" Lee Eisenberg tell us how every major player in Wall Street has devided plans to allocate a huge influx of retirement money.
During a discussion through LinkedIn I was told by an Independent Financial Services Professional that I might want to take a look at MLPs, even thought they were targeted at older investors looking to provide income, the had one heck of a year. Of course I'm always wary of anything that would qualify as "hot", watching your net worth plummet into the darkness, lighting up the way by the glow of its own flames is never pleasant, and most painful when bought at the very top of an unbelievable run up. Plus I am not even familiar with the loads, expenses, fees, years of lock up...But with millions of baby boomers coming into retirement, it just makes you want to believe that there will be many more incredible years. Unfortunately, I do not have a private line with the CEO of Lehman(up 1.82% today), Goldman Sacks (up 3.51% today, 10% this week) or Bearn Stearns (up 2.01%), but I bet they know what they're doing.
So, once your money is invested, and you have reached your "number", which way is the road to Paradise going to take you?

Bearish News

Well, we thought it was going to be a tough week for the markets, and with the Alcatel-Lucent downbeat announcement it looks like it will be a really long week for tech. Even thought Mr. Cramer likes to say “there is always a bull market somewhere” even he was saying on his street.com TV show that the markets will be on a down trend until the middle of the year, hopefully, by then the fed will ease, and markets should pick up and finish the year with the Dow at 15000. By the way, last year he was 7 points off his prediction for the Dow.

So, what will we do until then you ask? Personally I will hold on to my holdings, hope that GLD will be a good hedge and counter balance my losses. I was planning on buying some ETFs for my IRA, and I will probably limit myself to a Bond Market ETF, and maybe an REIT EFT, but for this one I will wait for some better market valuation, there hasn’t been any meaningful correction in a while.

I do think that the defensive stocks will make a stand, you can bet Kellogg’s and Procter & Gamble will not be shaken. I also expect any company with a large winter sports apparel portfolio to do well, as snow fell generously on the Rockies, I bet skiers come out strong to enjoy the powder.

Sunday News

Sundays are always tough for me: stock market closed, most of the business world is resting, football is on, the only people making money are the bookies and the few winners of gambling. Not exactly my cup of tea. That's why I opened a bottle of Rasteau last night. And for the unlucky few who do not know the Rhone Valley, Rasteau is a small village located between Chateauneuf-Du-Pape and Orange, slightly to the east, by Sablet and Cairanne, two other great Southern Rohne wines. This bottle is by Perrin also the owner of Beaucastel, probably the best Chateauneuf-du-Pape wine house. Mr. Perrin, who I had the pleasure to meet during one of his tastings at Bleu Provence in Naples, FL, is an extremely smart and nice man, who makes a variety of Rhone wines under the label "Perrin & Fils" including this Rasteau. This was a 2001, "L'Andeol" vineyard, 80% Grenache, 20% Syrah, with 10% aged in French oak, 13.5% alc./vol. I picked it up at our local Central Market for about $18.
This wine was barely showing age, the outer ring was starting to turn purple, but only by getting very close could you notice and the red was vivid. The concentration was perfect for me, which made the wine full bodied but without showing any alcoholic taste and a perfect balance. A long lasting finish, and full of lovely perfumes, such as black olives, thyme, and berries. You should know that I tend to detect the subtle tastes and miss the obvious ones. But the soul of the wine made me think of a warm and dry afternoon by an old olive tree in the Provencial grarigue. Then again my judgment might be swayed by the fact that I spent most of my childhood there.

Ritz-Carlton Naples, FL

Tech Vs...Energy?

While we all watched the horrible earning report from Intel send the Tech world into a wild downward trends and the likes of Google stock goog (I do own) , Apple (do not own), and RIMM (Do not own) lost about 5%. But if we avoid the obvious names and look at other companies on the hardware side like NT, ALU, or JDSU you will notice that the stock prices have done nothing since 2005. Yesterday JDSU announced better than expected results and saw share rise above 9%. Could this be an insight into the rest of the semis quarterly results? Will we see CNXT or SANM make a come back awaited since late 2004? No one can be sure but risk/rewards ratio are sure looking good. I mean how much lower can these stock prices go, and how far up could they rise?
Meanwhile energy stock have rebounded, some natural gas companies as much as 6.8% (KWK) after crude hit $50 a barrel and finally bounced back to $52.04, and now that the cold weather has landed in the east, should stay above these levels and probably higher. Yet I have not heard much positive long term commentary about oil and gas stocks, but it all sounds so last year to the media community. I will hold on to my oil sock (COP), if it's good enough for Mr. Warren Buffet it is good enough for me.

The Wedding Party

Open

I would like to talk about two things today: Oregon wines and financials.
First you should know that Domaine Serene from Oregon will be putting out the best pinot noirs in this century and probably millennia. Ken Evenstad, after making it in the pharmaceutical industry, is coming up with his greatest creation yet, and it's called "Monogram". You won't find it at your typical wine store, and you shouldn't drink it for another 15 to 20 anyway. But if you ever get your hands on one of those bottles thy shall treasure it like it is your own child. If you don't believe me, pick up a bottle the "Grace", lovingly named after Ken's wife. You will find yourself drinking one of the most complex, feminine, balanced pinot on this side of the Atlantic and the Monogram is suppose to be the king of the portfolio of already magnificent wines. Oregon with it's longer than California day time in the summer and clement temperatures is the perfect place to grow such delicate grape as pinot.
Next I would like to turn your attention to financials. After consulting Jim Cramer's chart of the GPD cycle it looks like we are approaching the bottom. Soon enough, the Fed should ease and the financial sector should be one of the beneficiary. But I am not a financial analyst and before taking my advice consult your own financial adviser.