Do you care about your own stability?

I am a self-proclaimed stock nerd. And at any given time, I could tell you the balances of all my portfolio accounts. Why? I just simply like to know. I guess my real question is, why do more people not care?

I was reading the December 2005 issue of Money Magazine, and I found this little statistic: "While 85% of golfers can tell you the score of their last round, only 52% know the current value of their portfolio." The wording is a little confusing, and I'm not sure if it implies: a) 52% of golfers know the current value of their portfolio, or b) 85% of golfers can tell you their last score, while 52% of investors can tell you their current portfolio value. Either way, it's an alarming statistic.

I cannot even fathom why more people don't care about their account balances. A friend of my parents told me earlier this year that she hadn't even looked into their brokerage account since the tech bubble burst. If their account hadn't been logged into for a few years, I can only assume their positions are stale by now - assuming they owned individual stocks, opposed to entirely mutual funds. To me, this says things like: You don't care about how much you're earning/losing. (Tip: before the end of the year, sell off your losing positions for a tax benefit. However, don't buy those specific positions back within a month. IRS rule) You may not even know if you're earning more than the current savings rate. Your money may even be better off in a CD or a savings account. (Side note: after a conversation about stocks to my parents friends, they're taking a little more proactive approach. Hey - at least they liquidated their tech losses.)

While I may be an extreme, not knowing one's financial stability is something I strongly disagree with.

Practically since I was old enough to understand the concept of money, my parents were adamant about telling my sister and me our financial situation (in case of emergencies). Although you may disagree with the "full disclosure" approach to your children, you may agree that knowing your own situation can't hurt and can probably only benefit yourself. At the very least, it can't hurt you.

I'm not saying to check your balances everyday, like I do. Again, I am a stock nerd. But at the very least look at your monthly statements. If there's no activity during the month, and the brokerage does not send you a statement, at least log in to get a general idea of how well you performed during the time period.


Have a great Thanksgiving!

The Age of Robots

Remember how the first computers spawned immediate daydreams of artificial intelligence? Back in the 50s and 60s, there were commercials/documentaries for "smart houses" controlled by A.I. that would completely revolutionize the way we lived. Heck, even the Jetsons had a robotic maid. Man, how I waited for technology to exponentially advance, so I could tell my future robotic maid, Rosie, to cook and clean for me. Although that day hasn't arrived yet, the field of robotics is making great progress toward that old daydream.

The question in my mind is: How do you make money off of robots?

Two stocks come to mind: Intuitive Surgical (ISRG) and iRobot (IRBT).

Intuitive Surgical (ISRG) is the leader in operative surgical robots. A few weeks ago, ISRG dazzled investors with 3rd quarter profits that nearly tripled since the previous year. Since then, shares have skyrocketed from around $85 to (today's closing price of) $115.50. Every time their shares sky-rocket, I think it's a little over-valued. Today is no different, ending trading today, up $6.05. And for good reason too - ISRG just completed it's first sale in China. With everyone dying to get into China, the first sale in the ever-populous country is a momentous occasion that should be celebrated with share price rising 5.52%. For a complete list of ISRG's robotic products: 2003 Press Release (scroll toward the middle)

iRobot (IRBT) debuted on Wall Street on November 9, 2005. Since opening, share prices have ranged from $26.29 to $37.33, and is currently trading around $30. iRobot makes the a variety of robotic helpers, ranging from household products (with the Roomba and the Scooba) to military products (PackBot Scout, PackBot Explorer, PackBot EOD, R-Gator). Some family friends purchased a Roomba and they love it. Time Magazine even named the Scooba as the Most Amazing Invention of 2005. I think iRobot is positioned really well to become a fantastic company in the next few years.

I'm probably going to buy IRBT within the next few weeks, and I already own ISRG through an investment club.

Jumping on the "I hate Sony" bandwagon

The Fool just released a new Sony-bashing article: What Were You Thinking, Sony

Alyce Lomax (one of my favorite Fool writers) wrote everything I could have written about the topic. And since she is a professional, my article would've been pale in comparison.

Again, sorry I haven't written in a little while. busy busy busy

a New Post-Hurricane List

The Motley Fool's Kelvin Taylor just released a new article: Make Do With the Good and Bad

I'd say I made some similar picks in my September 2 post: In a Post-Katrina Portfolio

Remember: always try and think LONG TERM

Today's events

(Just as a side note: This morning I was writing an article about Marvel, which I'll cover in a sec, and then my Blogger page froze and I lost it. Now that the rest of the day has already gone by, there are more earnings/highlights I want to touch on.)

First things first. Marvel. This morning, Marvel (MVL) reported third quarter earnings that were significantly lower than expectations, citing lower toys and licensing sales. Well Marvel, they do make up 60% of your business. I'd say it's probably a big deal. Shareholders were right to dump the stock, falling 22% to a new 52-week low of $14.06. As a Marvel shareholder, I'm not particularly pleased with the poor performance. But on the other hand, I understand that you can't always have stellar earnings. I'd rather you disappoint me once in awhile, than to super disappoint me with the revelation of fraud (<- part of the Oracle of Omaha's philosophy). I'm disappointed, but not to the point of selling. Marvel is still a great company, with more prospects in the coming years. Going into 2005, I knew it'd be somewhat of a dud year for Marvel - they only released two movies this year. 2004 was more outstanding, with Spider-Man 2 as their summer blockbuster, and the subsequent toy sales associated with the ever popular Spider-Man.
But on a brighter note, the board of directors approved a $250 million share buyback. Marvel's Chairman, Morton Handel, commented, "We believe repurchases will be accretive to earnings and will provide a very attractive long-term return on investment as we proceed beyond 2006. Those years will include the release of both the Spider-Man and Fantastic Four sequels in 2007 and the anticipated launch of Marvel's own film slate starting in 2008." I agree. With investing, sometimes it's good to focus on the long-term. If you really believe in your company (like I do), then short-term ups and downs don't matter.

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However, short term ups are always funner. Speaking of which, Pixar (PIXR) reported $0.22 diluted eps (versus analyst expectations of $0.11). Pixar's shares shot up 11% to a new 52-week high of $56.59. Short-term investors will probably take this chance to cash out and send the shares down in the next few days. But for the long-term, Pixar still has one major strength: It ensures quality over quantity. Not to knock Dreamworks Animation around or anything, but I like knowing that the one single movie that Pixar releases a year (except for this year) is complete quality from beginning to end.

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Whole Foods Market reported earnings after the bell today. They incurred charges related to share-based compensation and natural disasters that made eps drop to $0.13 a share from $0.45 a share a year ago. The $0.13 eps was significantly lower than the expectations of $0.53. But it's not all bad news for Whole Foods. The board of directors approved:

• a $200-million, 4 year stock buyback plan
• a 2-for-1 split, to be distributed on December 27, 2005, to shareholders of record upon closing on December 12, 2005
• a 20% increase in quarterly dividends, bringing it to $0.30 a share
• a one-time special dividend of $4.00 (both dividends will be paid on January 23, 2006, to shareholders of record upon closing on January 13, 2006).

I'll give you a minute to reflect all of the board's activities. But let me just say, I love special dividends. It makes me feel like I own preferred shares or something. :) You should notice that the stock split happens before the special dividend record date. So in essence, if you're already a shareholder (and I am), you'll be getting double the special dividends.

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Okay, what began as a mini-update on a few stocks has turned into a ridiculously long blog. Have a great day.

ANF Update

SAN FRANCISCO (MarketWatch) -- Abercrombie & Fitch Co. (ANF) said late Friday that it has agreed to stop selling several T-shirts in its stores after a "girlcott" was launched by a group to protest the shirts. "We recognize that the shirts in question, while meant to be humorous, might be troubling to some," the New Albany, Ohio-based retailer said in a statement. The Women & Girls Foundation of Southwest Pennsylvania had objected to several of the company's T-shirts as "offensive."

Stop making me mad, and I MIGHT buy your stock.

I've never really been a fan of Abercrombie and Fitch. The stock's performance over the past few years has been really great, but the company keeps offending people! (Kind of like Sony, I guess).

Abercrombie has been in the news a few times in the past few years over the printed material on their t-shirts. Back in 2002, Abercrombie offended a large portion of the Asian American community, when their t-shirts implied amusement behind Asian accents. As an Asian, I was definitely not amused. And then, maybe last year, Abercrombie's t-shirts offended West Virginian residents with t-shirts suggesting inbreeding as highly common in WV. Or how about earlier this year when they rolled out a line of thongs for children?

Apparently today, the fuss is brought about by a group of females that have officially "girlcotted" Abercrombie. The specific t-shirts they're complaining about have slogans such as:

• Anatomy Tutor
• Blondes are Adored - Brunettes are Ignored
• You better better make more than I can spend

The girls that are girlcotting say that Abercrombie makes the assumption that females will want to wear t-shirts that make themselves look ditsy. I completely agree. However, this new line of shirts alone, accounted for a 20% increase in sales. However impressive that statistic is, is it worth offending groups of potential customers? I know after that Asian American incident in 2002, I've never re-set foot into a store. It's not really a conscious effort, but why would I want t-shirts telling people I'm an anatomy tutor?

Well I guess me and the girlcotters are the only ones annoyed at Abercrombie's shirts. This morning, before the bell, Abercrombie reported a surge in October sales of a whopping 41%. Some people are buying Abercombie's clothes. And if all this drama is bringing Abercrombie free publicity and exposure to new customers, then I guess it's great for the company.

I probably will never own Abercrombie stock. Probably. I don't know if the temptation of the great sales increases will eventually lure me in or not. I think for some companies you need to make a personal stand. My mentality is, if Abercrombie stopped offending people how much better would their sales be? Maybe after they stop printing shirts that suggest that women have an IQ of 5, I'll think about investing in their stock. Otherwise, why buy into a company with all this excess drama?

P.S. Sorry I haven't written in awhile. Grad school is overwhelming.