What is stock twits?

Funny on a day when I got nailed by owning (SKX) Skechers Usa Inc.down 9% I was rewarded greatly by a recent increase in my (DB) Deutsche Bank Holdings now my biggest holdings overtaking Netflix (NFLX).  With this recent change in my portfolio I started looking around and ran into Stocktwits.com.

Stocktwits has proven to be an interesting site.  People, investors, traders or what ever you want to call them have so many different opinions.. It is amazing how few will actually admit what I just posted in the start of my article; (The fact that investing involves losing money sometimes or being wrong)..  No one likes to lose, and yet I wonder how you learn if you don't first admit, I effed up..  Getting the perspective of people and how they function may help one day, right now I just joined for fun.. Who and what is stocktwits.com? Here is their about us..

The Financial Idea Network 
StockTwits is the 24/7 financial idea network. It is a community of traders and investors sharing market insight, ideas, charts and news streaming in real time. 


Have you visited this site yet better yet why don't you have a look? www.stocktwits.com It's pretty fun.. I don't think any one should get caught up in it, but it is interesting to see how other people make investing decisions..

Here is a picture of Skechers current problem even though it was originally supposed to be the savior for the company. 

Wesbanco delivers good results and beats estimates for the fifth time in a row

OK, so the earnings came in for WSBC Wesbanco Inc. and they were 39 cents a share again and beat analyst estimate of 34 cents a share.. This is real good in a day when my top holding NFLX lost close to 9%.  Nothing to fret about as Netflix is still up 30% this year even after that drop.  Well instead of writing a defense or downer article I decided to discover more about the CEO for Wesbanco Inc.

I searched for picture of the CEO around the net and I can tell you Paul M. Limbert could not be found for close to an hour of search!! None on the Homepage, Forbes, Google, Local news, although I'm sure it's out there.. If you have one share it with me as I just want to put a face to the name.. I was able to find the next guy next in line, which is Robert Young, in about 5 seconds..  Here he is below.

Moving on.. What could I find about the man leading Wesbanco?? Well actually not very much, although I will say it doesn't look that bad.. Here is what I found on the Wesbanco Homepage..

Mr. Limbert is the President and Chief Executive Officer, Wesbanco, Inc. Mr. Limbert also served as Vice Chairman and Chief Financial Officer for Wesbanco Bank Wheeling, and previously served as President and Chief Executive Officer of Wesbanco Bank Wheeling. In addition, Mr. Limbert served Wesbanco Bank Wheeling in a variety of capacities, including Assistant Controller and Controller, Vice President and Controller, Senior Vice President and Controller, Executive Vice President and Controller, and Executive Vice President and Treasurer. Mr. Limbert joined the Corporation in April 1977. Prior to that, he was a Senior Accountant at Price Waterhouse and served a tour of duty in the United States Army.

Good old military guy.

Here is more info from Forbes in the likes..

View All Key Executives

PAUL M. LIMBERT has served as a member on the Board of Directors of the Corporation since December 18, 2003. Mr. Limbert is a member of the Executive Committee of the Board. Mr. Limbert is President and Chief Executive Officer of WesBanco, Inc. and President and Chief Executive Officer of Wesbanco Bank, Inc. He is the former Executive Vice President and CFO of WesBanco, Inc. Mr. Limbert has been associated with the Corporation for a period in excess of 34 years, having joined the Corporation in 1977. Mr. Limbert is a Certified Public Accountant and has an extensive financial and accounting background. He has an extensive history with the Corporation and has assisted in all of its acquisition transactions. Mr. Limbert also serves as a member of the Board of Directors of the West Virginia Bankers Association and the Ohio Bankers League. Mr. Limbert also has served on accounting advisory boards and committees through the American Bankers Association, including the American Bankers Association Accounting Administrative Committee. Mr. Limbert recently served as a member of a �Blue Ribbon Panel� to address standards for private companies jointly formed by The American Institute of Certified Public Accountants, the Financial Accounting Foundation and the National Association of State Boards of Accountancy. 

Unfortunately that's about all I could find.  Here is a a shortcut to Wesbanco Inc.'s latest earnings release..

Did you find a picture?

Tap - Molson Coors Brewing Company like cash but not really.

Today after owning Molson-Coors Brewing Company stock for a little over 9 months I sold the stock (TAP).  This is way less than I normally want to keep a stock but situations change and I am not liking the decreasing sales revenue.  TAP's earnings came in good but they proved that raising prices would increase income at the expense of lower revenue.. The question is at what time do the customers give up their beer for something better?  What happens in the long run with decreasing sales #'s.

Seeing that local brewery's are  increasing in numbers, local observation, and increase of wine consumption I believe light beers has reached a tipping point..The consumer is demanding different choices.. I don't know how many people I have heard state they lost weight as soon as they dropped beer, but if TAP doesn't come out with a diet beer (good idea) the revenue will continue to suffer as the "it" thing becomes craft beer for people looking for more taste, wines for the ever increasing middle class, and spirits for those looking for a better way to feel a buzz.

The stock has only appreciated 7% or so and it paid a nice 3% dividend.. So why would I get rid of this company after only a short 9 months or so and 10% appreciation?? When I invested in Molson Coors it was like cash to me.. It was never supposed to be a big gainer, but more of slow grower with a huge margin of safety.. As the economy continues to get better and the market continues to climb I believe it is time to be in hard cold cash or cash like investments to prepare for a corrections.. Now don't get me wrong!! I'm 80% invested stocks but I feel 20% in Cash or cash like money market, is a good idea as a way to lock in gains and also to look for something that may have taken a beating lately..

"I have kept TAP on my IRA portfolio as it continues to be a safe investment and pays a good dividend so I am not completely out"

I cashed out on TAP this week and increased positions in Visa and Deutsche Bank. I have lowered my cost average on both stocks to 75 and 57 respectably and believe these stocks could prove to be very profitable if the market continues to appreciate..  Both of these stocks would do good with inflation as revenues would increase and thus earnings would increase.

Have you noticed MCD lately? It dropped on awesome #'s as it continues to increase revenue, deliver solid growth, and pay a great dividend.  We may be increasing more happy meals in the near future as the analyst don't get it!  If food prices continue to rise then people will switch to cheaper alternatives like McDonalds; if inflation remains in the lower end then McDonalds will have a better margin; infact the only real negative will be if we have another bad economy similar to 2009 when few companies where spared and only a few like McDonalds held their own.

Inflation, McDonalds, and Stock Splits.

Oh the days you could eat on pennies.

I have heard some very bad theories on McDonalds (Think Super Size Me) , some very good one ones, (No Country that has a McDonalds has gone to war with each other) and now an interesting one. (Burgernomics?)

Yes the Big Mac index exists and it is used in some interesting ways.. One of the ways is to judge which country may be understating or overstating inflation.. As it happens, if a restaurant has to raise its food prices to offset inflationary conditions in a region, it creates a very measurable change.  This change is fun to observe and creates an easy index to evaluate inflation. If the burger goes up 20% and the country stated it only had 10% inflation, you can see this country may be understating inflation. If food prices go up, the rent goes up, then the almighty burger goes up.. You can see based on the picture above the burger is no longer 15 cents and the theory lives on.  If you don't travel much you may not know that a Burger in Texas has a different price compared to one in New York.

here is a direct link to economist.com article on the Mcflation index.


Will McDonalds Split already? Based on historical numbers I believe a split is coming but it has to go above $80 a share and stay there.. Last time it only brushed 80.00 and proceeded to fall from there.  Here is a link to the history of McDonald's Stock split.

If you had to choose between an Apple and a Google which would you choose?

It's amazing to be writing about Google and Apple as value plays but the reality is that both are selling pretty inexpensive relative to earnings power.. Google currently sits at 19.30 P/E, one of the lowest P/E even during the 2009 market collapse it was in the 20's.  Here is a chart showing Googles growth in the last few years from Nasdaq.com

Year	Sales	Net Income	EPS
12/2006	10,604.92	3,077.45	9.94
12/2007	16,593.99	4,203.72	13.29
12/2008	21,795.55	4,226.86	13.31
12/2009	23,651.00	6,520.00	20.41
12/2010	29,321.00	8,505.00	26.31
Growth Rates	28.95	28.94	27.55

If Google continues this growth let's say for just 5 more years the stock would sell at an equivalent of a stock under 10 P/E. This is what makes it a value play.. Currently Google is valued at 3.46 x Book Value and 4.38 x Tangible book value.. Definitely not a Benjamin Graham book value play but more of a legendary Peter Lynch growth company play.

Here is a little info on Apple inc. Apple currently trades at 18.52 P/E, not one of the lowest P/E in Apple history but Apple has been trading in this range for a few years now.  Here is a chart showing Apple's growth in the last few years from Nasdaq.com

Year	Sales	Net Income	EPS
09/2006	19,315.00	1,989.00	2.27
09/2007	24,006.00	3,496.00	3.93
09/2008	32,479.00	4,834.00	5.36
09/2009	42,905.00	8,235.00	6.29
09/2010	65,225.00	14,013.00	15.15
Growth Rates	35.56	62.92	60.73

Wow pretty impressive growth right?? Apple without a doubt has been delivering great growth and if it continued at this growth for 5 more years it would trade for an equivalent of 6 P/E. This is what makes it a value play and the fact that I think Apple has reached a tipping point.  More and more people are now going to macs and are abandoning windows, not a good thing for Microsoft, but a great thing for Apple.  Currently Apple is valued at 5.52 x book value and 5.65 x tangible book value.. Again definitely not a Benjamin Graham book value and even Peter Lynch would say this company is growing too fast and its growth is unattainable growth for the future..

 In the end if I had to choose one of these I believe I would choose Google.  More companies are working with Google to produce products and it seems like google survives whether the next hit phone is an Iphone or a windows 9 phone; not the same story for Apple.  Right now everyone is gunning for Apple, like a champion fighter the more people know about you the better the chance of exploiting your weaknesses  and what happens if the Apple fad dies when Steve goes?

Just a quick thought from the mind of an insomniac.

It may be time to buy more SKX as a value investing idea.

The message is clear today.. Even though I am not making any different purchases this month, it may be a great time to invest more in SKX Skechers Usa Inc.  The stock is trading at a low purchase price..  If this was a sale at a regular store, work shoes would be selling at 50 cents on the dollar.

I don't see my self wearing these shoes any time soon.. Or at all! But guess what? I see people wearing them.

Value investing portfolio performance so far.

Here is a picture of a nice coors light.. Why don't you go buy one?

2011 has come in with a roar..  Many events have occurred which have created market movements and wild swings.. Yet to a patient value investor it is but a blip in the course of time..  I remember reading The intelligent investor and Benjamin Graham stating the worst enemy of a value investor, or intelligent investor, is boredom.. What to do when you are invested and your portfolio or as he calls it "your book" continues to grow?   I look for more values and even though I find some very attractive stocks they are not nowhere as attractive as they seemed to be just months ago..6 months I could find 10-15 stock ideas and value plays.. Now I can only find 2-4 additional ones that I would feel "OK" putting money in, but definitely not super excited about.. 

I figured since I am not making any moves to my portfolio at the moment I would do a summary of the year so far.. So here goes.  

My portfolio of stocks has gained 10.6% so far in 2011.. I would be happy with returns like that for 1 year although obviously I prefer more.. How long would it take to get a Cd to deliver 10.6% returns??? NOT 3 Months!!!

My best performing stock for the year is Netflix (NFLX) up 36.5% so far this year.  But wait, what in gods name is netflix doing in a value portfolio? Well it was a value when I purchased it  over 700% point gains ago..

My worst performing stock of the year is Molson-Coors (Tap)  down a mere 5% for the year.. Molson Coors Brewing Company is a slow grower and pays a nice dividend.. This stock is more of a defensive play to begin with.. No worries here..  

I currently only have 1 stock trading down from my original purchase although I feel in the long run and with the government stopping the silly idea of controlling price on Visa debit fees, this stock should perform good for many years..  This stock is down 4.58% since my purchase..  Not a bad batting average when your portfolio is swinging 90% winners, 1 loser and the loser is only down 4.58%, wouldn't you agree? 

So there you go on the highlights.. Good luck investing.

You can see my complete portfolio performance here:

http://www.insomniacinvestors.com/p/portfolio.html