What would I do in this market

I would save up to buy more at lower prices in 2nd half of this year. If you want to give someone a present, give them cash and ask them to get financial advise so their investment may have a potential to grow.

Please consult your financial advisor before making any decision. Do your own DD.

J Crew & Upcoming IPOs this week

There's a lot of IPO buzz going on this week. With J Crew, the retail store going public with an expected share price of $16 per share, people may start liking IPO's again (especially after the Vonage train wreck). However, I'm skeptical at this point for any company going IPO. This is not the best time for a company to go public, with FED expected to raise interest rate again, the train wreck Vonage, and the DOW down today by about 100 points.

Other companies going IPO this week are:
Wintegra (WNTG)
Gordon Biersch Restaurants (BIER)
Omniture (OMTR)
PGT, INC (PGTI)
Replidyne (RDYN)
Aventine Renewable Energy (AVR)
Bidz.com (BIDZ)
GMarket Inc. (GMKT)

I'd be waiting atleast until July 15 for these new comers before taking a dive in the sea again. Its a conservative approach that shields you from the downside, but also limits your upside, if the stocks do take major gains within the first few trading days.

I particularly like J Crew.

Positions: None
The writer has no positions in the stocks mentioned above at the time of writing.

This is just our opinion. Please do not trade stocks based on what you read in this website. Do your own Due Diligence. Good luck :D

Mad Money Speculative Index

Cramer and Mad Money team came out with a Mad Money Speculative Index of 10 highly risky speculative stocks. Here are the stocks he mentioned today. For further information, visit www.thestreet.com.

RTK
KRY
IVAN
TMY
NXG
EZM
JDSU
CNXT
FNSR
CIEN

We'll be watching Cramer in Mad Money to track this speculative index.

Speculative Play on Copper - EuroZinc Mining Corp (EZM)

Our first question, what does EZM do. As per the Yahoo profile,

"EuroZinc Mining Corporation engages in the acquisition, exploration, development, and mining of base metal deposits internationally. The company owns the Neves-Corvo copper mine; and the Aljustrel zinc, lead, and silver project in southern Portugal. EuroZinc was founded in 1981 and is headquartered in Vancouver, Canada."

We value EZM as extremely attractive and cheap anywhere below $2.05. There are a few reasons for this. First, they recently approved a new drilling site in southern Portugal and production is scheduled to start in 2007. Portugal is an excellent place for heavy metal industry and they may even drill for other metals like Gold and Silver (pure speculation).

Even though EZM's PE ratio of 14.25 is higher than its competitor's, we believe that their EPS will dramatically increase once production starts in 2007 so it deserves the higher multiple.

Few other points that make us bullish on EZM:
Drilling companies rely on # of employees, which we expect to increase in 2007
EZM only has a few direct competitors as others are in gold and specific metals.

This is an extremely speculative stock. No analyst covers this stock. What that means is it is extremely risky but the reward could be equally high. This stock fluctuates quite a bit, as you will see that today itself it went down to $2 and came back up to $2.29. Exercise caution when trading this stock.

We believe this company has great potential as a long-term investment. In the last one year, EZM has accumulated nearly 1.25 Billion market capital.


Position: None
The writer has no position in the stock mentioned above

Vonage – An IPO Disaster

On May 15, 2006 I informed the readers about VOIP technology and Vonage going IPO. Click here to read that post. The summary of that post was:

"I will not recommend Vonage as a long term investment. It will be a good trade as I believe that the hype will make the price jump to low 20's in a few weeks when the stock comes out."

I was right about the fact that its not a good long-term play (for last 4 months) and it shows as Vonage closed today at $6.72 per share. But I was very wrong about the fact that it will be a good trade in mid-teens.

I'm removing VG from my watchlist at this time.

Again, all this is opinion. Don't trade on opinions presented here.

Position: The writer had no position in VG at the time of writing this article.