SHREVEPORT, La., Nov. 19, 2004 (PRIMEZONE) -- Stock-Letter-Daily.Com (http://www.stock-letter-daily.com - an affiliate site of StockPickReport, the web's only non-mainstream stock rating service), rates Pfizer Inc., Novell Inc., Altria Group Inc., Flextronics International Ltd
STOCKPICKREPORT RATINGS:
Pfizer Inc. (NYSE:PFE) -- BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=PFE
Novell Inc. (Nasdaq:NOVL) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=NOVL
Altria Group Inc. (NYSE:MO) -- WEAK BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=MO
Flextronics International Ltd (Nasdaq:FLEX) -- WEAK BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=FLEX
STOCK COMMENTARY:
Friday, November 19, 2004
StockPickReport Commentary
Today was an historic day for gold.
Mark November 17, 2004 in your calendar.
Investors began to trade gold as an "ETF" (AMEX:GLD). The "share price" of the new gold issue is roughly 1/10 the "spot price" of gold. This is great news for folks who follow gold. Here are three reasons to like the gold stocks, now:
1. More folks can buy a 1/10 share of an ounce than a full
ounce at "spot". This will entice folks to buy and
speculate on gold stocks.
2. As speculation increases, interest in the general public
will rise. Gold, of all forms, should increase in value
with this increased public awareness.
3. Buy shares in GLD are more convenient than owning the
actual gold -- no need to store gold in your home, for
example, to receive the benefit of gold's value.
Gold has always been relegated to "late night TV commercials" or "tip sheet"-type investing advice. Now, as gold comes into the mainstream as a more "recognized" investment vehicle, we think gold could move up nicely. GLD is a stock to watch, for sure.
Gold and silver prices are up dramatically this year. Many observers believe that the "metals" market is overbought right now. We see merit in that opinion. Some of the spike yesterday (most likely all) was due to the new ETF available for trade today. But, if gold and silver pull back we would find that a buying opportunity in GLD. We will keep you posted on the new "gold stock" as conditions warrant.
OPTIONS - GENERAL THEORY AND COMMENTS
I was introduced to the world of options through a family member. My uncle went to a "Wade Cook" seminar and came back aglow with newfound wisdom. He (my uncle) looked like a guy who'd found the proverbial "fountain of youth".
Since that day, I've been a student of options: What they are, how they work, and who can benefit from their use.
Yet, I find it distressing that more traders are not "in the know" about options. Wait, come to think of it, I'm MORE distressed that brokers don't seem to know what options are, either.
I visited an Edward Jones broker recently. He lives in my hometown. I thought, "Why not go talk to this guy and get his take on the market." Oh boy. That was an interesting conversation! What I discovered is that he was a great source of unimpressive, boring, and easily refutable pabulum regarding where I should "put" my "money". But an expert in trading, and options, he was not.
On the topic of options, this Edward Jones "professional" was 100% "in the dark." But, he did say this, "The reason we don't really get our clients interested in options is that options are dangerous. We are interested in showing our clients how to make long-term wealth with safe investment vehicles."
STOP SNICKERING. Right now. I mean it. STOP LAUGHING. This guy was just telling me what he was told to tell me. He did a good job. We can discuss, in a later commentary, the inherent crookedness of the brokerage industry, but for now, back to options...
Let me say that I believe OPTIONS ARE NOT "DANGEROUS". Is there risk involved? Yep. Can you lose money? Yep. Are there ways to lose ALL your money in an option? Yep. Do you need to study a bit to figure 'em out? Yep. Should you put all your money into options? Nope.
Okay. So what? All that stuff applies to ANY investment you enter in to. It is (excuse the overused word here), disingenuous, for "mainstream wallstreet" to tell you that "options" are "dangerous."
It is disingenuous, and it is also self-serving.
Over the weekend we'll prepare an overview of what options can, can't, should, and shouldn't be used for. In the meantime, I suggest you pick up the book, "All About Options" by Thomas A. McAfferty. You can get a copy at Amazon.Com. The book is especially illustrative and instructive on general "trading rules" that apply to stocks AND options.
Have a great weekend. As always, please send questions or comments to don@strikefriday.com
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If the links to our ratings above do not work, please use these:
Pfizer Inc. (NYSE:PFE) -- BUY http://www.stockpickreport.com/rating.php?sym=PFE Novell Inc. (Nasdaq:NOVL) -- SELL http://www.stockpickreport.com/rating.php?sym=NOVL Altria Group Inc. (NYSE:MO) -- WEAK BUY http://www.stockpickreport.com/rating.php?sym=MO Flextronics International Ltd (Nasdaq:FLEX) -- WEAK BUY http://www.stockpickreport.com/rating.php?sym=FLEX