Posterous theme by Cory Watilo

Filed under: investing

Shoemoney Predicts Yahoo Stock Decline

Early this week Shoemoney predicted that Yahoo's stock price would decline after a negative earnings release. He predicted a 5% decline, which Yahoo surpased Tuesday afternoon in after hours trading. It was down to $18.72 which made it a $2.09 (or 10%) haircut. I used to own Yahoo back in the glory days of 1999. I'm not sure if I ever bought it directly. Once I bought Broadcast.com and it got bought out by Yahoo. Then I owned Goto.com and it too got bought out by Yahoo. But I digress. I may have to stop watching Jim Cramer and start tuning into the Shoemoney stock show. This can't be good news for the "Tech Heavy" :-) Nasdaq stocks tomorrow morning...

A Fresh New FranklinCovey Calendar for 2008

This week I bought a new FranklinCovey Calendar for 2008. There's something exciting about buying a new, empty calendar. It is like buying a new notebook. The pages are empty, but they hold promise. Maybe something new and exciting will happen during the next year. As I thought about the new FranklinCovey Calendar, I couldn't help but think about the company. Earlier in the year I had written them down as a possible investment opportunity. Their stock symbol is FC. Looking at the charts on Yahoo Finance, it looks like their stock is up around 60 cents for the year, which translates to a 9% gain for the year. That's not bad. But it looks like their net income has declined significantly during the last year. I wonder much longer a paper calendar company can survive during this online age. I only know one other person that uses the FranklinCovey book as much as me, and that's my Dad. While looking at their stock information, I also found a press release titled FranklinCovey Survey Reveals Top 3 New Year's Resolutions for 2008: Eliminate Debt, Lose Weight, Develop Healthy Habits. Their top three resolutions are:
  1. Get out of debt or save money
  2. Lose weight
  3. Develop a healthy habit (e.g., exercise or healthy eating)

I pretty much want to accomplish EVERYTHING they listed during 2008. I wonder how much these resolutions change from year to year?

Lowballing for Three Letter Dot Coms (LLL.com)

Recently I added my three letter dot com to my Sedo portfolio. Within a week or two, I received my first offer for the domain. My three letter dot com is weak. Two of the letters are Z and Q, if that gives you a clue. According to the 3character.com Price Guide, the lowest observed price since November 1, 2007 for even the crappiest of three letter dot coms was $6000. So I was kind of surprised to see someone bid $2500 for it. Maybe they are assuming a $5000 retail price and trying to buy it "wholesale" for half off. I wonder how many owners would even consider an offer this low. Another scenario is that they are "anchoring" the price to the low four figure range and hoping that this will some how influence the owner to counter with a mid four figure offer. The final scenario is that they just don't know what three letter dot coms are selling for. This is highly unlikely since they are using Sedo. So now the question is what do I do. I could do nothing and let the offer expire in seven days. I could decline the offer. This is one thing I HATE about Sedo's offer system. They FORCE you to enter an amount, even if you are declining an offer. There's no way I would accept the offer since I paid more than $2500 for it. Another alternative is to make a counter offer. Part of me wants to counter with a $25,000 offer just so that I can tell the bidder how far off the mark they are. Since I think they already know this, that would be a waste of time. The final alternative is to take the domain to auction. I'm just not ready to sell it. I've only had it for 6 months or so and the value has already gone up 50%. I don't have any stocks doing that well. Who knows, maybe by next summer it will have doubled in value. Besides that, I just like saying that I own one. The more I think about it, the more I like this bidder's approach. If you know the retail value of domains, it might be worth your while to go around making 50% offers at sites like Afternic and Sedo. Who knows, maybe you'll get lucky and one out of a thousand times and find an eager seller. The trick is KNOWING the retail value. Three letter dot coms are easy to gauge since we have the three letter dot com report. Even if you bid $4000 for them, there's very little risk. This may be an avenue to explore during 2008!

My BUFFALO WILD WINGS Nightmare (NasdaqGS:BWLD)

Buffalo Wild Wings reported earnings tonight. The stock was down around $5 or (12.75%) in afterhours trading around to $34.01 or so. Why can't management be more conservative with their estimates? Why don't they ever learn? I don't get it. My biggest investment mistake of the year was selling my Chipotle stock. My second biggest mistake was thinking that Buffalo Wild Wings could perform like Chipotle. What was I thinking? Chipotle also reported earnings tonight. They "blew away" estimates by 9 cents.

Ridiculous Domain ROI (Return on Investment)

I have close to 100 domains but have never sold one before. That changed last week when I sold my first domain through Sedo! (Actually, the transfer is still in progress, but Sedo has the money.) The week before I received an offer on a .mobi I bought one year ago. The buyer actually wanted to buy the singular and plural version of the domain, but they offered less money for the plural. If you get an offer through Sedo, they allow you to take the domain to auction using the offer as a starting point. If no one else bids, then the person that makes the original offer is still obligated to make the purchase. That's what happened. I took it to auction but no one else bid. Here's the crazy part. The ROI is 915%. I paid $78 one year ago. And will get $792 (after paying Sedo 10%). I wish I had a hundred of these...