Stock Market for Amateurs

Israeli Commtouch has recently got a fat contract in Asia. It seems that its technology has a clear advantage over competition when it comes to asian languages.
I buy CTCH 2000 stocks for 1.01.
BEWARE: this is a very risky buy, almost a gamble.

Shay has asked me to check out: JDSU. Yes, I'm taking requests now ;)

Here goes:

• JDSU is below $5. I rarely invest in such stocks. There are so many excellent stocks out there, investing is a risky business as it is, why risk more than one should?


• It's in the Telecom/Fiber optics group, which is in a very good technical shape - its in renaissances - very important. Good stocks often come from performing sectors. However, the fundumentals of this group are poor: average EPS is low, general profit margins are on the decline


• The company itself has not grown considerably over the past year(s) = not a good sign


• There is a growing interest in the stock, and its under accumulation, the price strength is high and its nearing is 52 weeks high ($3.25). In the last four weeks, the stock has gained 23%, outperforming the index by 21%.

So - it seems that something is going on "behind the scenes" as the stock is being accumulated, but for no apparent technical / fundamental reason.Looking at the charts, It seems that JDSU is building a base. If it breaks the $2.80 it might be signalling a rally.

In short, I would not buy this stock, as the risk is very high, fundamentals are bad, and technical performance is only mediocre. Bip me again when its assed the $2.80, or better yet, when it makes a new 52 weeks high (above $3.25).

Technorati Tags: stocks, JDSU, analysis

In the past I bought and sold Google on and off. I last bought GOOG 384.40. On wedding it took a hit, all the way down to $400, and is back to $414 today. This stock has an unbelievable run, and I intend to stay with it for a while, since the US market enjoys the end-of-year rally.


Tags: stock market, portfolio , GOOG