Sunday, September 27

Burberry Stock Fashionable Again

Stocks and Shares - Burberry's Stock Rises

[NB : If you are looking for this weekend's newspaper share tips - please click here weekend newspaper share tips ]


That great British institution Burberry is trendy again or so they would have us believe. Be that as it may its shares were sought after last week as they rose nearly 6% after Angela Ahrendts, Burberry's CEO said its British business was “on fire”! Burberry has suffered in recent years from an image problem as its famous Burberry check goods were hijacked by the great unwashed. Burberry has therefore had to embark upon a campaign to regain its satus as a luxury brand, which it appears to be doing rather successfully.

Ms Ahrendts boasted at an interview at London Fashion Week that the UK business has outperformed the market “for quite a while” and added that demand for luxury goods could only get better (a strange turn of phrase as it could also mean that it couldn't get any worse - although it seems that demand for luxury goods is indeed high - see Coach handbags best luxury stock).

Burberry rose 26p to 502½p, the biggest jumper in the FTSE 100 as analysts stated that the South Korean business also seems to be recovering. For information about Burberry goods see - Burberry boots and Burberry handbags

The market as a whole feel 3 points to 5139 after being positive most of the day. Could October be the month this rally finally fizzles out - Stock Market Crash for Beginners

Burberry 5 Year Chart with the 200 Day Moving Average in Red

For information about stock market charts and the 200 day moving average see - stock charts for beginners
For info. about takeover rumours see - Burberry shares
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Wednesday, September 23

Coach Handbags Best Luxury Stock

Stocks and Shares - Coach Handbags Hottest Luxury Stock

Coach Carly Leather HandbagCoach handbags was voted hottest luxury stock this week by the readers of The company appointed Graziano de Boni head of its Reed Krakoff division this week. The new division will sell handbags, apparel, shoes and jewelry. De Boni was previously president and CEO of Prada U.S.

Shares of Coach ended the week up 7% to $33.63.

Nordstrom was a close second with 26% of votes. Nordstrom is still struggling to retain shoppers, but has mnaged to achieve this through its tiered pricing structure and the high quality of its customer service.

Nordstrom shares closed on Friday up 9% at $31.88.
Tiffany was third with 20% of the vote, with Polo Ralph Lauren fourth, with 13%.

Saks came in last with 11%. Saks has been struggling more than the others and opened a designer floor at its 5th Avenue flagship store this month. Nonetheless, shares in Saks ended up 10% on the week at $7.38.
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Monday, September 21

Stock Charts for Beginners

Stocks and Shares - Stock Charts for Beginners - Dark Cloud Cover

Stock Trading for Beginners

In Japanese candlestick charting Dark Cloud Cover is what is known as a two candle bearish reversal pattern, which means that the price has been going up for a specific period of time and it is now reversing and may be headed back down. For this to be valid it needs to occur at the top of an uptrend.

The first candle has a green (or white) real body indicating a higher close, the second candle has a red (or black) body that opens above the body of the first candle but then reverses to close below the middle of the first candle. This reversal is confirmed if the price in the next period is below the low of the second candle.

People of a conservative nature can wait to see if the price closes below the low of the red candle or even of the green candle. Confirmation is not, however, an absolute guarantee of a down trend, it may just be a sideways trend or it may fail altogether, which is why it is important to have stop losses set.

The dark cloud cover indicates that the bullish trend appears to be continuing but the price then turns around as bulls decide to sell and the bears join in. The key is if the price falls below the middle of the first candle, this shakes the confidence of the bulls and increases the confidence of the bears.

For further clarity it is sometime useful to add the two candles together, in this case adding together the two candles of the dark cloud cover pattern gives a shooting star, which is also a bearish reversal pattern.

For more detailed information check out this excellent video from the folks at

For other posts relating to stock charts for beginners check out - Stocks and Shares for Beginners -  Japanese Candlesticks and Harami Candlestick Pattern
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Saturday, September 19

Stock Market Crash for Beginners

Stocks and Shares for Beginners - Stock Market Boom and Crash All Over Again?

Groundhog Day on the Stock Markets ? - Take Care

In recent posts, see - Stock Market to Crash Next Month ? and Stock Market Crash Coming Soon ? - I have mentioned the fact that a number of people have commented that they see a very strong possibility of another stock market crash very soon i.e. now or next month. One of the reasons (apart from the 50% rise since March) is that, incredible as it may seem, the so-called 'dumb money' is now invested in the stock market again. Beginners to stock market investing would do well to take heed. They would also do well to learn how to read stock market charts. For example if a share price falls below its 200 day moving average then that is not the time to be buying. At the moment that is unlikely to be the case as everything is going up, but if the stock market starts to fall back then if it falls below its 200 day moving average that is a bad sign. If you don't know what that means then have a look here - how to read stock charts for beginners

The following chart shows the FTSE 100 over 5 years with the 200 day moving average in red. Note that during 2005, 2006, and 2007 the FTSE stayed above the 200 day moving average - at the end of 2007 it fell below the 200 day moving average and slumped down to around 3500 - since May/June 2009 it has been above the 200 day M.A.

FTSE 100 3 month chart with 200 day M.A. in red

I was initially a bit sceptical of the assertion that the 'dumb money' was back in the markets, but it appears that it is true, ordinary folk have got fed up of low interest rates on their savings and they are also disillusioned with property prices and so have piled back in to the stock market ! No doubt inspired by the fact that some banks have risen 400% since March. Now is that smart I wonder ?

When did they start flocking back to the casino ? In June.

Since June the numbers of small investors taking an uneducated punt on the stock market has risen to levels not seen since the dotcom boom (remember that?) ! Incroyable but true apparently. The reason this is important is because it is generally when the dumb money is back in the money that the 'smart money' starts getting out i.e. the smart investors will start selling their stock (slowly at first) to the dumb investors. Thus the dumb investors pay top dollar for stock that the smart investors bought 6 months ago when it was cheap. When the smart investors are back in cash then the stock market can crash again as the smart investors won't be losing any money.

In the last year the number of ‘active’ traders using execution only dealers has tripled.

James Brown from Compeer, who compiled the data, told the FT. "Share trading has gone through the roof and volumes are still on the way up."

Many experts, however, fear an autumn ‘correction’. Although others say the return of the small investor represents an upturn in confidence. What is more interesting is that trading in bank shares has dominated.

Sue Concannon, from Halifax Share Dealing, expects the brokerage part to proces 125% more trades than last year.

Personally, I am very wary of what is happening. If you got in back in March or if you are sitting on large gains than I would be thinking of selling up and getting into cash, at the very least I would have stop losses set to minimize losses. The people talking about a crash are not talking about a correction of around 10%, they are talking about major crashes and draw parallels to what happened back in 1929 when the stock market first crashed, then recovered 48%, then crashed again but even more so ! The worst figure I have seen mentioned is around 1650 on the DOW i.e. 90% down from where we are now.

So if you are a wily old investor then you may just shrug your shoulders, but for stock market beginners I would say that this is not the time to be taking everything you hear on TV at face value. Rampers, bankers and experts are not there to make money for you they are there to make money from you.

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Friday, September 18

Stock Market Crash Next Month ?

Stocks and Shares - Stock Market to Crash Next Month?

There are lots of people who think that this stock market rally is the real deal and there are also plenty who, based on their reading of the stock charts, think we are headed for an almighty crash. I've got to admit even though I've been trading the stock markets online for longer than I care to remember, I don't know which scenario is the more likely, but I do know that I am very sceptical about the way the stock markets around the world have rebounded 50% in the past 6 months as if nothing had happened. I am also very sceptical about all the 'experts' that are sprouting up on TV saying we are now in a bull market and it's safe for mom and dad investors to start investing in the stock market again.

The market crash we saw in 2007 and 2008 was to my mind not any ordinary cyclical event, it was a horrendous meltdown that almost saw the end of the world economy as we know it, and those are not my words they are the words of Republican Paul Kanjorski of Pennsylvania back in February 2009 who said the US was within 1 hour of total financial meltdown in September 2008 and that total global economic meltdown would have happened within 24 hours if that had been allowed to happen. Certainly anybody who saw Hank Paulson stumbling and mumbling on live TV must have been aware that something very scary was going on.

So to imagine that 6 months later it's all over and everything is back to normal seems to me totally unrealistic and possibly also totally manipulated. The stock market crash of 1929 and the great depression that followed took 10 years to work itself out with numerous retracements on the stock market along the way, the first being a 48% retracement. Things may be different this time round of course, for one we didn't have people sitting at home investing in the stock market online, or blogging about it for that matter, but I guess we had the 1929 equivalent. So I'm not allowed to give stock tips but I can give you this tip if you are trading the stock market online, make sure you have your stops set ! If you get stopped out, so be it, better to lose 5%, at last once you are stopped out then you are in cash and you can reassess your position based on where the stock market appears to heading.

In the following video we see how the DOW could get to 10,500 before crashing back down and the worst case scenario sees the DOW falling back to 1562 (that's not a typo).

For further information on the possible stock market crash of October 2010 see Stock Market Crash Coming ?
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Thursday, September 17

Thursday Newspaper Share Tips Roundup

Stocks and Shares - Thursday Newspaper Share Tips Round-up

Nothing from Shares Magzine yet - check back later.

Hold WEIR - Cap ex by miners is picking up, Weir's onshore US gas activities is therefore its biggest weakness. But at 15 times next year's earnings, this is not the time to sell out.

Avoid European Climate Exchange

Buy Tenon (TEN.NZs) the biggest activity of Tenon corporate restructuring and recovery — of cos. in administration, liquidation or voluntary arrangements. Tenon is able to speed up growth through bolt-on acquisitions, at 54¼p, or 8 earnings, they have further to go.

Rumour of the day

Meggitt - potential takeover target says report by Credit Suisse who say that Meggitt is one of the “best prizes” - it has market-leading positions in attractive niches.

Bet of the day

Seymour Pierce says Apollo Equity’s acquisition of Parallel Petroleum at a price of $14.55 a barrel highlights Resaca Exploitation, that operates in the same location as Parallel. Resaca finished up 2p at 39½p, - it trades at the equivalent of $4.55 a barrel. Seymour Pierce has set a 145p target price.

Tiddler to watch

Coms, was boosted after Evolution Securities founder Richard Griffiths acquired a 10% stake. Coms is expected to return to profitability this year - it rose 30% to 6½p.

Buy Hilton Food (LSE: HFG.L) - expected to increase earnings by over 12% in the current year. More growth likely from Central Europe.



Buy Regal Petroleum (LSE: RPT.L) not because revenues are up 30%, production is up 50%, operating losses are down 41% and it has $160m in cash. But because by late November RPT will have completed its resource update, which has a good chance of causing this undervalued stock to rise.

Northgate - cautious hold. It trades on a 2010 PE ratio of 7.2 and analysts believe it is a bargain. However, there is the risk of a double dip recession in Spain.


Want to remortgage ? See - remortgaging deals and info.

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Tuesday, September 15

Stock Market Crash Coming?

Stocks and Shares - Stock Market Crash Coming Soon ?

People have been saying this market has gone up too fast ever since it started going up back in March. But just recently I keep bumping into stories or videos by traders saying that they are expecting one almighty stock market crash soon. I have also heard people saying that the "dumb money" or the "retail investor" is now back in the market and that makes them nervous (or keen to fleece them again).

One guy, Rod Kuusinen, says the market crash may have already started on Friday Sept. 11 - see Stocks for Beginners.

Enzio von Pfeil of has been on both Bloomberg and CNBC predicting a stock market crash in October and Dr. Bob Flower has also just said something very similar.

I have never heard of Dr. Flower but he seems to be well-known as he is off to do a book signing at Barnes and Noble on Sept. 20 - his site is - I attach his video below - I find his delivery is infuriatingly slow but he seems sure of himself - if you can't stand the way he delivers his information then fast forward to 7 min 30 secs. which is where he talks about a stock market crash in October.

Personally I feel that the markets are overdue a correction, whether or not this will be a full-blown stock market crash I clearly have no idea, but I would argue for anybody involved in online stock trading it is worth being cautious nevertheless.

Other posts
Bernie Madoff Phone Call
Hammer Candlestick Pattern
Stock Market Crash

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Sunday, September 13

Vialogy a Share to Watch

Online Stocks and Shares Trading - Vialogy

[NB : For the Sunday Newspaper Share Tips please click here - Stock Market Investing]
Vialogy (Lon : VIY) is a technology company that is causing a lot of interest due to the fact that it, in the form of Dr. Sandeep Gulati, appears to "have invented a better mousetrap". Their better mousetrap is called QRI (Quantum Resonance Interferometry) and it is not used for catching mice but for the detection of underground oil and gas reserves.

QRI is a breakthrough technology developed by Vialogy that uses innovative software algorithms for active signal processing, the technology "enhances signal-to-noise-ratios by rapidly determining whether a signal is present in the noisy data".

QRI is between 10 and 100 times more effective than current passive signal-processing techniques at detecting signals in noisy environments. This minimizes false alarms and event dropouts, "making the technique highly specific and reproducible".

QRI is incorporated into 3 solutions, one of which is QuantumRD®, a "powerful new technology for the discovery, validation, and recovery of oil and gas reservoirs".

QuantumRD® can result in operational cost-savings by:
  • permitting oil recovery using the minimum number of wells
  • identifying and positioning hydrocarbon deposits
  • optimizing infill well locations
Normally, out of every 10 wells an oil company drills 8 will be dry and therefore represent a great drain on time and money. As stated above, QRI is 10 to 100 times more effective, which should clearly result in great savings for oil and gas companies.

Does the Vialogy technology work ?
Well, US oil company Atascosa was interested enough to find out. It signed a deal with Vialogy and asked them to interpret its seismic data using QRI. Vialogy was able to tell Atascosa not only where to set up its rig but also what it could expect to find underground. Vialogy received a fee for its services but it also insisted on receiving 5% of any oil that was produced.

Last March Atascosa found oil exactly where Vialogy predicted it would. It is estimated that the reservoir discovered holds in excess of 2 million barrels of oil - 5% of which goes to Vialogy i.e. 100,000 barrels the current price of a barrel of oil is I believe $70.

Atascosa was so impressed they drilled a second well based on Vialogy's recommendations. This time the result was even better!

Atascosa's CEO John Mullins, said about the Galba Prospect find : "We're very pleased with the success of this well. We have increased our lease positions at the prospect, and are planning to further grow our collaboration with ViaLogy on Galba and other prospects. Our geology team has been working with the ViaLogy scientists for some months now, and we're highly impressed with the technology behind QuantumRD. The accuracy of the results is remarkable and the payoff is reducing the risk of dry holes. The quality of the information relating to the size and content of the reservoirs enables us to position the wells to extract the maximum amount of hydrocarbons."

The press release at the time stated "Under its contract with Atascosa, ViaLogy will receive a 5% Back-In-After-Payout (BIAPO) working interest. This means that after costs ViaLogy will receive over $300K over the life of this first well (assuming oil price at $40 per barrel)."

It is quite probable that other oil companies will want to make use of Vialogy's technology, which is why people are so excited about the ptoential.

According to The Herald newspaper in Scotland, ViaLogy may announce further contracts for its equipment when it announces its yearly figures. Seymour Pierce expect losses of around £5.6m to be announced too but they give the shares as a buy at the current level of around 6.12p and expect a rapid build-up of business.

ViaLogy recently raised £2m for its expansion plans in a share issue at 4p.

The share was tipped by The Times as a tiddler to watch back in July 2008 and has recently been tipped as a High Risk BUY by Red Hot Penny Shares who said "I have seen plenty of exciting scientific innovations in my time, but nothing to beat this. The scale of the opportunity is enormous, and so is the value of Vialogy’s revolutionary QRI software. High Risk BUY."

Name: Vialogy EPIC: VIY
52 Week High/Low: 6.38p/1.50p
Market Cap: £23.88m
Buy Limit: 7p
12 Month Target Price: 20p

I'm not a tipster but Vialogy certainly looks interesting if you can take the risk. Also I never buy ahead of results so I'll be waiting till the dust settles before I decide what to do.

Vialogy 3 Year Chart showing 200 day MA in Black and Volume

For information about stock market charts see - Stock Charts for Beginners

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Friday, September 11

Stocks Shares Tips Investors Chronicle

Online Stock Trading - Investors Chronicle and Newspaper Share Tips Sept. 11

Online Stock Market Share Tips


Share Tips of the week:

Sell Enterprise Inns at 175.4p
Sell Dana Petroleum at £14.36
Sell WH Smith at 445p
Sell Anite at 37p

Buy San Leon Energy at 19p
Buy Goodwin at £11.25

Share tip Updates:

Buy Rurelec -- Cluff Gold -- Spice -- BAE Systems -- Healthcare Locums

KBC Advanced technologies good value

Company Results:

Buy AJ Mucklow -- Raven Russia -- Speymill Macau Property -- Steppe Cement -- Concurrent Technologies -- Mattioli Woods -- Brady -- Medusa Mining

Tempus - Share Tips

Galliford Try: take up the rights
Hold Genus
Hold Hilton Food


Playfish taking online gaming industry into uncharted waters

Chloride Group up on Emerson Electric bid hopes

Bet of the day: Sage Group

Tiddler to watch - Kopane Diamond Developments


Questor - Share Tips

Buy BG Group
Buy Gulfsands Petroleum


Investment - Share Tips

Hold Galliford Try
Buy Falkland Holdings
Sell RBS


Bid rumours around Workspace


Vague bid rumours around Chloride


To listen to the tape of Bernie Madoff's phone call where he talks about how to handle the SEC see - Madoff Taped Phone Call

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Thursday, September 10

Bernie Madoff Taped Phone Call

Online Stock Trades - Bernie Madoff Taped Phone Call

Bernie Madoff is currently serving 150 years in prison after he handed himself over to police and confessed to running a Ponzi scheme. People ask how was Bernie Madoff discovered ? In fact he wasn't discovered he just contacted the police and confessed because he had run out of money to finance his scam. The recent he ran out of money was the stock market crash that left him unable to finance his operations with new money. Bernie Madoff was not caught by the SEC investigators, who apparently repeatedly visited his offices only to declare that everything was fine and above-board. It is also reported that he owes a rather lot of money to some very large and ugly people - so he may have figured he was better of in police custody.

In a conversation with Fairfield Greenwich Group back in 2005 Madoff said "You know, they ask you a zillion different questions and we look at them sometimes and we laugh, and we say, are you guys writing a book?".

It is clear from his conversation with Fairfield that Madoff didin't take the SEC seriously and he thought they were only going through the motions, as long as you gave them the answers they wanted to hear they weren't too bothered. If things had been left to the SEC investigators it is quite probable that Bernie Madoff would still be operating today.

Fairfield Greenwich Group, is itself facing numerous civil suits, one of which is a $3.4 billion complaint by Madoff bankruptcy trustee Irving Picard.

For some reason Fairfield taped the conversation and CNBC obtained a copy of it. Madoff speaks for over an hour and although it is not as damning as the media would have us believe it nevertheless gives an interesting insight into the working of 'big business' a la Madoff.

If you think you might like to buy the Madoff penthouse suite or one of his other assets see - Madoff Home for Sale

Stocks and Shares Magazine Share Tips

Stocks and Shares - Shares Magazine and Newspaper Share Tips



Buy Cadbury at 799p
Buy JD Wetherspoon at 511p


Buy Vodafone
Sell Brooks Macdonald
Hold NetPlay TV and Fenner

The Factor:

Buy Rentokil -- Unilever -- Styles Wood -- William Hill -- ITM Power -- Tate and Lyle -- Smiths Group -- William Morrison

Sector Report:

Buy Clarkson -- Business Post -- Braemar Shipping Services


Rumours of a break-up bid for Tomkins involving Lupus Capital and General Electric
MWB up on Asian investor stakebuilding
Quintain Estates overshadowed by Lloyds stake sale rumour

Tempus - Share Tips

Buy Thorntons on weakness
Hold on to Prezzo
Morse a speculative buy

Bet of the day: Yell Group

Tiddler to watch - Tarsus Group

Questor - Share Tips

Buy Shanks
Hold IG Group

Investment - Share Tips

Buy IG Group
Buy Thorntons

Smith & Nephew up on bid talk

Wednesday, September 9

Madoff Properties for Sale Video

Online Stock Trading - Video of Bernie Madoff's Properties Up for Sale

Bernie Madoff's properties, mansions, belongings and art collection are being put up for sale. His New York penthouse has four fireplaces, a wraparound terrace and walk-in wardrobes galore. U.S. Marshals plan to put the 4,000-sq.ft. duplex in a 12-storey building on the Upper East Side up for sale this week.

Marshals will also be selling an 8,700-sq.ft. estate in Palm Beach, Florida, a yacht and 2 smaller boats in Fort Lauderdale, Florida. The aim is to raise millions of dollars to help compensate victims.

Prices for the homes will be set by the brokers who will be chosen later today, but the seaside beach house on Long Island was put on the market last week for $8.75 M.

Madoff himself said the Manhattan apartment is worth $7 M, the Florida home $11 M and the boat $2.2 M.

The marshals also want to auction off boats and furnishings still in the homes, a baby grand piano and works of art.

Madoff was sentenced to 150 years in prison for his part in his Ponzi scheme - see what is a Ponzi scheme ?

The penthouse kitchen has stainless steel and marble countertops, Baccarat crystal glasses and an atrium for breakfast. A spiral staircase rises to the 11th floor and the master bedroom, with 4-poster bed.

See the US Marshals video of the apartment below -

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Stock Trading Share Tips Questor

Online Stock Trading - Wednesday Newspaper Stocks and Shares Tips

Kraft needs to pay more to win Cadbury's chocolate factory - but may find it difficult
Cadbury should have many suitors but in fact if you look closer the field narrows
UK outsourcing -- anyone interested in British govt. spending ought to invest in outsourcing service companies.


Yell is debt-laden but confounds critics with 21% surge
Gold Oil boosted by talk of a major discovery in Peru

Tempus - Share Tips

Buy Ashtead Group on weakness
Hold Greene King
Hold on to Interior Services Group


New tax on the way to halt rise in air travel
BAE Systems wants to capture a $20 M market with anti-piracy radar
Camec up on ENRC bid talk
Aminex said to be set to increase its Nyuni Production Sharing Agreement interest in Tanzania by 10%

Bet of the day: William Morrison

Tiddler to watch - Medical House

Questor - Stock Picks

Hold Randgold Resources
Buy Hochschild Mining
Buy Peter Hambro Mining
Hold Centamin Egypt

Tom Stevenson says gold could be set for a meaningful rise

Consolidation on its way in the drinks sector? (SABMiller)

Investment - Share Tips

Buy Mattioli Woods
Sell Lloyds
Hold Greene King


BBA Aviation up on tentative bid speculation


Brewers may be next in line for a tie-up - Diageo, SABMiller
British Airways on verge of agreement with unions

Stock charts for beginners - Hanging Man Pattern
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Thursday, September 3

Stock Trading using Japanese Candlesticks

Stocks and Shares - Stock Trading for Beginners using Candlestick Charts

What are Candlestick Charts ?

When trading stocks it is useful to have some sort of method on which to base your trading decisions. One method that many experts use is technical analysis using Japanese candlestick charts. Candlestick charting will allow you to spot market reversals relatively accurately. One problem that you come up against however when using candlestick charts is that there are around 50 different patterns that can be used.

Experts (such as Stephen Bigalow) however, say that there are only around 12 candlestick charting signals that occur regularly, which makes using candlestick charts more feasible.

The most common candlestick chart signals are :-
The beauty of these signals is that they are, according to those that use them regularly, very accurate and also that they can be easily learned by beginners to stock trading. They cut through all the noise and conflicting signals and inofmration given out by the 'professionals and experts'. It is also worth bearing in mind that candlesticks have been around for centuries since they were invented by Japanese rice traders hundreds of years ago. Why have they stood the test of time ? Quite simply because they work !

A Japanese candlestick "buy" signal in an oversold condition will give an extremely high probability that the trade will be profitable, but adding other indicators such as stochastics around 20 or below, moving averages, Fibonacci numbers, trendlines and trading channels etc... will make them even more accurate.

Fro a video of a trder's use of candlestick charts see - stock charts for beginners
For more details about the basics of Japanese Candlesticks - see Candlestick Charting
Other candlestick charts patterns : Piercing Pattern
See also : stocks and shares for beginners
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