50% return guaranteed

Sounds like the emails I sometimes get sent, from some stanger who is trying to get people to speculate on penny stock. But this one is for real and completely legit. For those of us who are grad students, our income is modest to say the least. When you file taxes, the gov. will give you up to a 50% credit (not deduction) on the first $2000 you put into a retirement account (which would give you a $1,000 credit), which for most of us should be a Roth IRA. A quick google of “IRA tax credit” will give you hundreds of web pages about this.
Now here is my question, for the 8 or 10 of you reading this blog: If you take a standard deduction on taxes, which for poor people like us is usually the case, can we still claim this credit? Email me with your thoughts.
Now, assuming you can all get this cool credit, imagine how you can keep this $$ working for you: you get your $1000 credit, and you turn around and invest it in your 2006 IRA, immediately qualifying you potentially for another $500 credit the next year. Keep repeating until you get a real job and no longer qualify and before you know it, you will have a nice IRA started.

2006 pics

You know how you think you predicted certain stocks that had a great year, like Google or Apple, but forgot about all those ones tuned out to be real loosers and conveniently forgot about. Well, I am going to put my stock picks down on paper, right now, right here, so that you can all tell me a year from now either how amazing I am or how I should not give up my teaching job just yet.
Here are my seven winning pics for the end of the year.
1. Apple (Aapl). 71.89
2. British Petroleum (BP) 64.22
3. Toyota (T) 104.64
4. XSUNX (XSUNX) .58
5. Energy Conversion Devices (ENER) 40.75
6. CREE (CREE) 25.24
7. Allergen (AGN) 107.96
Moreover, I am going to predict that collectively these stocks will earn more than 25%

cool alternate energy blog

Here is a cool site I found today called Alternative Energy Stock. Check it out.

BP and GE

Both of these companies are involved in huge solar and wind programs that are really taking off. Unfortunately they are just a segment of their business overall business so it might take more for these sectors to influence their stock. BP has the head start on its competitors in alternative energy investments, but GE double dips. They manufacture the products and then they turn around and finance them. I don’t really have the time today to expand much more, but both of these stocks will do will in the long term. Buy and hold for 5 years. GE is at 35 and BP, 64.

Toyota still has drive

After a fantastic 2005, they are posed to do it again in 2006. They have recently announced the arrival of several new cars that are getting quite a bit of interest.
In the Toyota lineup there is the new retro FJ Cruiser, a mid-sized SUV that has panache. It seems to me that this sector hasn’t seen any new cars in a while--think of the Toyota RAV and Honda CRV, which have been around too long with no major changes. Although I think that most of the people who would consider the FJ Cruiser are looking for a SUV that they can take off road a bit more. Nissan’s Xterra or Honda’s Element will possibly see their numbers slip when this comes out.
They also have a new Yaris come out. The American Yaris doesn’t look too much like the European version. I especially think the sedan version will be very popular in the US. Its body calls to mind the new Lexus IS 350, a great comparison for an entry-level car.
In addition, they have covered the high and low end of the markets with some new cars in their Lexus and Scion brand that are getting a lot of attention. And to top things off, they are expanding their hybrids to include a new hybrid in the Toyota line, the Camry, and one more in the Lexus lineup, the GS 450h. Within two years, more than half of their cars will have hybrid versions available.
The Prius, to the chagrin of many Americans, will not have many more sold in the US because they are stretched to capacity already. This is a purely strategic move. First, they are hoping that if people can’t get a Prius, they will look at the Camry instead of looking at Honda. Second, I think the first car made in China that we are going to see on US soil is going to be a Prius. People want the car so badly, even if it is made in China, they will still be willing to buy it. A great move by Toyota, I think.
Toyota is sitting pretty. They have some exciting cars arriving early in spring that people are talking about, unlike the Chevrolet Cobalt or Malibu. In terms of simple financials, they had a huge run up in 2005. The question is can they keep that momentum going, can they have another 47% year in 2006? I think they can. My thoughts: at 102 a share, it is still a good price. Buy and hold at least until the end of 2006.

A bright idea: CREE

CREE (stock symbol CREE) is along the lines of ENER, similar sizes and similarly posed for the future. The difference is, however, that unlike ENER, CREE does mostly 1 thing: LED lights, the lights that are taking over the world: they are now used in cars, stoplights, and are making their way into houses. They also make the screens we see in cell phones and Ipods. As far as I can tell, they have a sort of vertical monopoly. According to their website, they are "the world leader in the development and manufacture of silicon carbide (SiC), a base material used in the fabrication of the company's products and materials." Their product is basically a solid-state lighting making it much more efficient. They are also the largest producer of this product. A recent article on the Motley Fool (dec 14) website also seems to thing that Cree is a bright idea because of the US Department of Energy's mandate to improve energy consumption. My advice, at 26.18 it is a strong buy.

http://www.investopedia.com/

Here is a website I ran into by accident. Maybe I will finally understand what it means to sell short.

Annie is to coffee as Ford (F) is to SUVs

Although I drink coffee and Ford makes SUVs, the relation between the statement is that we just can’t stay away from the objects of our affection. I try to drink less coffee just as Ford tries to wean itself from SUVs. But at the end of the day, or at midday as is the case for me, I pick up another cup of coffee and Ford is back making more huge cars that people no longer seem to want. According to an article in the Money Section of CNN, Ford is about to introduce a new SUV called the EVEREST. The article notes that Ford isn’t going to introduce the car at the super cool car show in Detroit. Given most auto manufactures spend a lot of money to show off their cars in order to woo both media and buyers it seems a bit odd. The logic, as the article suggested, is that Ford is caught in a conundrum, they want to be green and they want to sell lucrative SUVs. However, it seems to me that the best way to do that is to eco-pimp their new SUV. Make it a plug in hybrid with solar power—beat Toyota to it. Show that off at the Detroit car show and you would have a hit. So I say to Ford, buy some Toyota stock and stop making SUVs