SHREVEPORT, La., Dec. 7, 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 Nasdaq 100, Motorola Inc., Bank Of America Corp., CIENA.
STOCKPICKREPORT RATINGS:
Nasdaq 100 (AMEX:QQQ) -- STRONG SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=QQQ
Motorola Inc. (NYSE:MOT) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=MOT
Bank Of America Corp. (NYSE:BAC) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=BAC
CIENA (Nasdaq:CIEN) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=CIEN
STOCK COMMENTARY:
Tuesday, December 7, 2004
StockPickReport Commentary
IMPORTANT: Don Harrold's email address has changed. Please
send all emails to don@stockpickreport.com.
StockPickReport Radio Show
Monday's show about stock quotes, research, and more, is now available for download. Hope you get a chance to listen. We have two great guests: Neil Batho of Wave-Trade.com, and Andy Skinner of Nebadawn.Com. Neil discusses "Position Sizing Your Portfolio", and Andy shares his unique "MACD Divergence Trading" philosophy. You can listen to this week's show at:
http://www.stockpickreport.com/radio/120604.mp3
or http://www.stockpickreport.com/radio/120604.wma
There's a special announcement at the end you'll probably not want to miss!
The Market is Still Overbought
You're probably tired of hearing it. Well, that's what "mainstream wallstreet" hopes. When it's a good time to sell, they hope you'll pour in just a bit more cash. However, when we look at the charts, we see the market is overextended. I may not be time to get back in to stocks, based on our stock research, just yet.
The rosy picture "mainstream wallstreet" has been trying to jam down our throats over the last month or so is now in question. Well, that's according to an Associated Press article. But, folks, you don't need to read the phoney-baloney spin to see that a correction is in order.
Trading on Margin
If you don't know what it means to "trade on margin" when you're using your stock research, you're probably blissfully ignorant. Hey, we're serious! See, "trading on margin" is a SERIOUS way to lose A LOT of money.
Here's the way margin-trading works: You buy 1000 shares of a stock. Your broker lets you "borrow the money" to buy another 1000 shares. You only have cash on hand to cover the 1000 original shares.
So, "What's the problem with that?", you ask.
HERE'S the problem: If the stock drops, you lose double on the way down what you would have lost if you bought only shares you could afford. For example, if the stock you bought was at $10 and it drops to $9.50. You'll lose fifty cents per share on your 1000 shares ($500) AND you'll lose fifty cents per share on the shares you borrowed (another $500). That's a 10% loss on only a 5% move down in the stock price. THAT is not good thing.
Oh, let's not forget that you will pay interest on the shares you borrowed as well. The interest is paid whether the stocks go up or down.
The TRUTH about margin is that you can lose MORE than double your money on the way down and you can NOT make double your money on the way up (interest always accrues as long as you are on margin).
We believe that trading on margin is for gamblers to lose money and brokerages to scrape cash that they wouldn't otherwise have. Remember, if you have any questions or comments, please email Don Harrold, don@stockpickreport.com.
For More Commentary Go Here: http://www.stock-letter-daily.com/index.htm
WHAT THESE RATINGS MEAN:
StockPickReport.Com ranks stocks with technical analysis. These ratings do not indicate a "long term" view. These ratings reflect an opinion for the short term. These ratings may change based on market conditions.
ABOUT STOCKPICKREPORT.COM:
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"Our analysis is issued solely for informational purposes. We do not offer to sell or buy any stock. This report does not regard your specific investment objectives, financial situation or particular needs. Our information is based on sources we believe are reliable but are not guaranteed by us as being accurate. We do not purport to offer a complete statement or summary of the available data. Any opinions expressed herein are statements of our judgment as of the date of publication and are subject to change without notice. Reproduction without written permission is prohibited."
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Interested investors should visit http://www.stock-letter-daily.com/software.htm for more details.
If the links to our ratings above do not work, please use these:
Nasdaq 100 (AMEX:QQQ) -- STRONG SELL http://www.stockpickreport.com/rating.php?sym=QQQ Motorola Inc. (NYSE:MOT) -- SELL http://www.stockpickreport.com/rating.php?sym=MOT Bank Of America Corp. (NYSE:BAC) -- SELL http://www.stockpickreport.com/rating.php?sym=BAC CIENA (Nasdaq:CIEN) -- SELL http://www.stockpickreport.com/rating.php?sym=CIEN