Occasionally I like to give updates of my current investments. Since I last updated, I took a large hit from Netflix. I sold out after feeling the pain and of course it rebounded. As it stands now I have $6,000 in my brokerage account which is –$640 since November.
Sure if I would have held Netflix I would have probably been up at least $1,000 or more, but the Netflix was showing some weakness and I didn’t feel comfortable with holding it as an investment. I stand by my decision to sell Netflix and you can be certain I’ll be avoiding this stock. On the bright-side I closed out before the end of the year for tax purposes.
Now let’s get to what I am currently holding.
Amazon (AMZN)– Option – Call $180, Expiration Jan 19th, 2013 — Quantity: 1
NVIDIA (NVDA) – Option – Call $10, Expiration Jan 19th, 2013 — Quantity: 1
Sprint (S) – Option – Call $1, Expiration Jan 19th, 2013 – Quantity: 10
Cash: Roughly $1000.
Amazon (AMZN), Current Price: $187.80 Amazon has a P/E of a shocking roughly 98. So why would I invest in it? Because I believe amazon is an industry leader and when the economy recovers, this stock is going to go crazy in my opinion (it has a BETA of 1.01 by the way). I don’t have the stats, but I have to believe that amazon is hitting a homerun with age groups 18-35, and I think over time this stock will continue to pull more people into it’s amazing “amazon prime” program. I can see Amazon’s P/E quickly turning into about 30-50 by mid 2013 (this is entirely speculation). Long and short though – I see a booming future for this company.
NVIDIA (NVDA), Current Price: $14.85
NVIDIA has been in a decline for the last year and is far off it’s 52 week high of roughly $26 a share, but it’s P/E is only 13.75 and to me that says “bargain.” I think this stock could easily hit $20 or a more by the end of this year. I also think as a consumer, NVIDIA is a company that is here to stay.
Sprint (S), Current Price $2.20:
Here comes the hard one to defend. Sprint has a EPS of –$.84 and lost $301 million in 3rd Quarter 2011. That being said it lost $847 million the quarter before and close to a billion 2 out of the 3 quarters before that. All this company has to do is become profitable again, and this stock will be ridiculously underpriced. Could this company go under? Yes. Could the company turn things around with the iPhone – Yes. Sprint has three things going for it right now which are the iPhone, unlimited data, and being the best price. I personally use sprint and I noticed they out sourced a lot of their support lines – but if it helps get them in the black, I’m fine with the hassle. Will customers get mad and leave? Doubtful since most of them are like me – in search of the cheapest smartphone plan.