I often see this confusion in fundamental investors, how can you call a bottom? The thing is you can’t. Technical investors know that and never proclaim they can. Fusion investors also know they can’t time market bottoms, but they also know they can increase their chances of getting close to the bottom by combining fundamental and technical analysis in a mixing bowl along with some behavioral finance. Fusion analysts know they don’t have to nail the bottom, to outperform they simply buy at prices lower than 50% of other market …

I have a full sized position of Suntech (STP) in a personal account. Despite that I was disappointed by the large, 9.7%, rise on Friday. I had been hoping to be able to pick up more STP down around the March lows of $30. I had an alert set at $35 and depending on market conditions would have bought around then. Only time will tell if I’ll get that opportunity now.
As this article highlights Cowen and Co. analyst Rob Stone reiterated his outperform and made the bold call that 2009 …

The Fusion Investing Portfolio initiated a starting position of 1,000 shares in PFE at $17.68 at 23.40pm AEST.
I will update this post with more details tomorrow. The preferred outcome is for PFE to continue to head lower to allow a sizable position to built at lower prices.
If you’re looking for something good to read try this new post on Seth Klarman at Seeking Alpha

In short resources and more resources.
As I mentioned in my last post I attended a retirement seminar last week. The seminar was about borrowing by superannuation (retirement) funds (DIY Super Funds). While the presentation was of some interest, I found my discussion over drinks with Andrew Smith and David Bruty from the Equity Trustees Asset Management Team of more interest.
Their view was the best place for new investments remained the resource sector. They believed the resources boom had ten years more to go and that a slow down or recession …

My ten day investing brain dump will recommence in a few days.
I occasionally wonder why more people aren’t wealthy or at least heading there. For anyone or any family on above average income it is easy to get rich. If my basic understanding of statistics is correct that’s 50% of people who should retire wealthy and should retire early!
When I go into a large bookstore I see hundreds if not thousands of books all dedicated to helping people become wealthy. There is clearly no mystery surrounding how to become wealthy …

The Fusion Investing Fund continues to outperform its benchmark. Although two months is around five years short of a meaningful record it is nonetheless gratifying to be outperforming. The only position entered this month was a Fedex June $90 Put.
Current positions have an average 9.9% outperformance. Cash included, the total outperformance is 4.8%.
The fund is looking closely at whether to establish long positions in Pfizer (PFE) and General Electric (GE) and continues to monitor Australian Banks.
The fund continues to hold a significant cash balance and will continue to invest this …

There has been much speculation as to whether Pfizer will cut its dividend. As the speculation has gained momentum it has almost crossed over from speculation to sell newsprint to a fact. When I see this type of investor behaviour I sense an opportunity and try to look at the facts.

PFE is an S&P dividend aristocrat, which means they have increased cash payments for 25 years. My records show PFE has increased their dividend every year since 1980.
Management have maintained the dividend is …

I won’t bore you with a rehash of the numbers, for that you can check the Value Line report.
I’m sure BMW Method practitioners already know PFE is under -2RMS on Mike Klein’s BMW Method 20 year and 25 year charts and only a whisker away on the 16 year chart. The return factor, RF, ranges from 2.54 to 3.25, yummy, and those figures were calculated when PFE was $0.56 higher.
PFE is tantalisingly tasty on every fundamental score. It screams buy me, by me. Management are out beating their drum pleading …

Where does Warren Buffett get his investment ideas?
Start with the As: The story goes that when a reporter asked Buffett where he gets his investment ideas, he replied that he reads annual reports and learns about every publicly traded company in the United States. “But there are 27,000 public companies,” the reporter responded. “Well,” replied Buffett, “start with the As.”
I don’t think I’m going too far out on a limb to suggest that Buffett’s advice is not particularly helpful to the average investor.
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