09.29
I’ve described a little bit about myself and that I plan to retire in an abnormally short period of time at an abnormally young age. So, how do I plan to accomplish this achievement?
The process is a multiphase approach. The first phase is all about short-term growth: buy low and sell high!
Now is the best time in the history of the United States since The Great Depression to get in on the stock market. Playing off the words of the great and powerful Warren Buffett, right now the market is frightened, so it’s time to get greedy.
I’ve bought into a number of short-term gains. Namely, Fannie and Freddie. I sold off half my shares of Fannie with approximately a 40% gain. I’ll let the rest of Fannie rise before selling. As for Freddie, it’ll be on a roller coaster until this bill is passed allowing the government to buy into mortgage backed securities.
I’m not usually the day-trading sort, but this type of roller coaster action is great for selling high and buying low multiple times. When you’re playing with a few thousand dollars at a time, you can make a good thousand bucks in under an hour. These periods are usually targeted to between 12:30 and 2:00 (CST), so that’s the time to watch. The trick is knowing when to sell so you can hold up a good profit from your later buy-in. Normally, I’d recommend short sells, but there’s a ban on those until the second of October.
This is just the start of my tactic. These short term gains will exist all over the place as the market works to get back on its feet or fall face-first into depression. Gains like this will be around in abundance for the next year to two years.
The next piece of tactic is all about buying into great ideas and even better capital. That’s right, brand new companies. They’re cheap (mostly penny stocks in this market), but they’re not in abundance. It’s difficult to find the best of the best. Right now, I’m in a couple.
Pink:HKBV – Hat Trick Beverage
This company is great. They are inventive, but their start-up capital is a little low. However, they are turning contracts and deals like thriving real-estate market 
. I believe they have great growth potential.
Pink:EDWY – eDOORWAYS
eD is great. I’m way into this company. They are everything that one looks for in a great start-up: tons of capital, a great idea, great partners, and an awesome CEO. Following is a piece I wrote for a financial forum:
eDOORWAYS,
What a great concept. It’s a combination eBay, MySpace, Facebook, Amazon approach that puts the community and support with the product, puts the fun and ease back in shopping, and makes the job simple, informative, and interactive for sellers.
It’s thirty-two minutes after market close in the afternoon, and I know that anyone who’s walking in the front door on this investment right now can’t possibly be looking for short-term gain, because the liquidity simply isn’t there yet. So I know that I’m speaking to a forum of believers who back this company because they know it’s going to be the best thing since sliced bread. I’m a strong believer, and I’m slowly working my way to becoming a heavy investor.
Based on responses from the company to questions on their Corporate blog, we’ve heard it from the horse’s mouth that eD (eDOORWAYS) expects a launch in early 2009. They are hopeful for January or February, but a hard deadline has yet to be set.
Last week, it was stated that a press release showing site earning estimates (once launched) would possibly be published last week, but the press release didn’t come. eD is great about moving paper on time, so I’m sure we’ll either see the press release this week or next, but while this is an educated guess, it is still only speculation.
Both images of what eD might do for the look of the site and wire-frames of site functionality and process are available directly on the front page of their site at http://www.edoorways.com.
While eD isn’t allowed to make any estimates on their stock price, I most certainly can. I’m not affiliated with eD in any way other than as a stockholder. Over the last several months, the company has fallen from a six-cent high to nearly a tenth of a penny per share.
Liquidity on these shares is very low as approximately one-and-a-half million shares are traded each day. Today, it traded high at nearly four million shares. In after-market trading, the price fell one one-hundredth of a penny (7.69%). It’s likely that we will see this stock go down slightly to a tenth of a penny and hold by November.
I estimate that by the middle of November, enough press releases and detail will have made it out to the world that liquidity and volume will increase slightly, and the stock price will begin to rise. The one thing to look out for is that this is considered a “tech stock”. That’s market slang meaning companies of the technology industry. It’s lumped in with Ebay, Best Buy, Circuit City, Amazon, and the rest of the related industry. At this time, tech stocks are down and aren’t recommended buys.
The biggest reason for this recommendation is that spending in general is down, and most people pump large sums of their personal pocket books into technology on a regular basis. How many of your friends own an iPod, radio, television, computer, game console, computer games, dvds, music cds, “tricked-out” speaker systems for their car or truck, a GPS device, a new blue-ray player, or hundreds of other nick-nacks and accessories? A point of analysis here starts with the fact that these are expensive toys.
So, how does this play to eD? In fact, it plays right into their business plan. At this time, people are making the most informed decisions they can about how and where to spend their money (especially when it comes to expensive toys). The launch of eD will miss the holiday season for the most part, so their initial income stream will likely be steady and deliberate. What eD has that most other online shops lack is the power to inform and be informed, which is exactly what the market is demanding right now.
Based on my research as an average investor, as the eD community develops, each target audience will have the power to make collective decisions on products, and support for those products will be a click away. Consumers will be able to do all of their research in one place so that they can then make an informed purchase as a customer. This hits the demand in the market square on, and the business itself has plenty of enthusiasm and a great foundation from which to build a great brand.
Today, the bill authorizing $250 billion dollars in troubled assets purchasing power for the federal government was stopped by the House of Representatives. This caused falls across the board. Tech stocks fell further, financial stocks fell period, and the Dow came out less than seven hundred points under where it ended on Friday. This is how volatile and frightened the market is right now. It’s all fear out there — a perfect time to get greedy.
eD is at a great price per floating share. I see eD moving in the future toward higher-traded OTC markets. In less than two years, I’m sure I’ll be picking them off the common markets. Also in that two-year time-frame, I can see this company (the result of five hundred million dollars in start-up capital) hitting a dollar a share, moderate liquidity, and at least one split without a problem (according to eD, they have fifty million floating shares).
-Aaron