Over the last few weeks I’ve been trying to learn more about the stock market. The reason is that I would like to invest a little bit of money in hopes of turning a profit. Yes, this is a lot like going to Vegas, but I’ve proved twice that you can come out ahead in Vegas if you do your homework. Picking a good stock is all about homework and a little of that Vegas luck.
Not that I’m expert in finances, but as anyone will tell you, always invest in your extended future before trying to make a quick buck. IRA, Roth IRA, 401K, company stock, etc are good ways. See a financial advisor to get it going. This way if the Social Security thing falls through and goes bankrupt, you’ll have a backup in place.
Back to the stocks. I chose Scottrade to do my fun trading online. It’s a cheap way to play with a little bit of money. You don’t have to pay large “fees” for trading stock like you would with a broker. What stocks have I chosen and why? Before I list them, here’s a disclaimer: I am in no way held liable if you chose to invest in these companies, these are not suggestions, only something I thought I would have a little fun trying out. You could lose the money you invest just like I may lose mine. Okay, okay, so what are they? Let’s take a look:
HAL (Haliburton) When you fill up your gas tank think of oil. Oil will always be big money as least in the short term (as in the next decade or so). Sure we are making strides at becoming less dependent on oil, but we have a long way to go. Hal is relatively cheap right now and the market is bullish on it’s return to the top.
SIRI/XM (Sirius/XM Satellite Radio) Are you tired of listening to radio commercials and pointless DJ chatter? Well, so are millions of others which makes this appealing. Unfortunately both companies have spent their last few years in debt and wont be turning a profit until either the end of this year or early next. There’s also talk of bankruptcy that both can’t survive. So why does this look good? How about several car makers installing these radios in the new vehicles you purchase. Also, rumors are, that the companies will merge into one. Approval should happen by October which would make the shares of each surge. If the merge doesn’t happen, both can survive, but the stock won’t pay off as much as it could have.
PTN (Palatin) Looking for the next Viagra? So are many men and women. There is a new drug going through Phase III trials called Bremelanotide which is like super Viagra for men and women that works instantly and without serious side effects. This is actually spawned from another drug called Melanotan II which caused libido increase and instant tanning. Did I just say tanning? See below.
CUV (Clinuvel, Astralian stock, traded as CLVLY in US) This company is also starting Phase III trials of a drug that gives you a tan without the sun and prevents you from getting skin cancer. Can you imagine being fair skinned, never getting the chance to enjoy the sun, and now being able to? That is the hope of this drug.
I have a couple of others, but this is enough to get you started in searching for your own stocks. I believe that you cant go wrong with the health/beauty sector. Just picking out the winners from the losers is the challenge. The idea here is to educate yourself on something new and get a chance to make some “mad money” as Jim Cramer says. Of course, it’s also a chance to lose your life savings if you are not careful. Try out the market, and just like in Vegas, only put in what you are comfortable throwing away in the trash.