Pete's Money Makers

[Peter Hansen]

A Hedge for Falling Real Estate SRS

Hedge Against Falling Real Estate (SRS)

May 19, 2007 (Investopedia via COMTEX) -- The current real-estate environment is like a concrete mansion built on ten stories of wooden planks. And right now, the timber is starting to bow… If it comes down, it's not going to be pretty
In the mean time, investors looking for a way to hedge national real-estate woes, can consider UltraShort Real Estate ProShares (AMEX: SRS ) exchange-traded fund . UltraShort Real Estate ProShares is a "double inverse ETF". What this means is that for every 1% the Dow Jones U.S REIT Index falls, this fund increases 2%. However, beware that if the DJUSRI climbs 1%, SRS will decline 2%. (To learn more about ETFs, see Introduction To Exchange-Traded Funds and How To Use ETFs In Your Portfolio .)

There is risk. However, should U.S. real-estate markets (and REITs ) see further downside; the UltraShort Real Estate ProShares are a great way to hedge.

Exit is Everything.

[spikefader]

The way it looks to me Oil will go HIGHER ..

I agree, Peter.

[Peter Hansen]

Spike thanx for the excellent charts

I agree, Peter.

Spike thanx for the excellent charts ......I still like HOC ( Oil Services ) any thiughts on HOC?

[Peter Hansen]

AU and AG getting ready for blast off

Gold and silver look to go higher....the best play I have found for this combo is SA ....check this out .......over a several year period ....the results are needless to say ......GREAT!. http://quicktake.morningstar.com/Sto...try=&Symbol=SA

[Peter Hansen]

Visteon ( VC ) Earnings report 8/1/07

Visteon VC earnings tomorrow 8/1/07....currently $6.42 fell from $10.08 on 4/25/07 Highly spec ......but should bounce from here

[Peter Hansen]

Mortgage Stocks Buying has started

The insiders are beginning to buy Mortgage stocks:

Name
P/E
Yield
Insiders Bought
Legend

Colonial Prop
8
7%
$25 million
N/A

Newcastle
7
12%
$13 million
David Dreman

Winthrop Rlty
10
3%
$4 million
Arnold Schneider

JER Investors
9
12%
$542,000
David Dreman

Also Garret Thornberg recently purchased 6 million of his own stock Thornberg Mortgage ( TMA ) last week. These guys are shrewd savy investors and have made tons of money in the past by getting involved in these stressed situations.....I am watching and hoping to get in ....I feel sometimes it pays to go with the big money !

[Peter Hansen]

4 For the Money

Ladies and gentlemen the following four are SURE to make money if the market tracks up today .........set tight stops ......dont be greedy ......take the money and run when you make a few pesos. Drum Roll for these 4 ........bara bing ......bara bam . VDSI, SFLY, CRNT, STXS.....GOOD LUCK TO ALL.......My personal favorite of the 4 is CRNT!

[Peter Hansen]

Make money betting on a "Dead Horse"

Buying distressed and bankrupt companies can be very lucrative if done correctly. Frankly I have no expertise in such matters; however, I can hire a company to do that for me. The Company Leucadia National LUK ( Close 8/7/07 $44.50 ) is one of the best in the business. Why do I like it ?


1. LUK has managed to turn every dollar invested into it in 1978 into a spectacular $900 or 90,000% . It has compounded 20% per yr for 30 years , I love growth like that in a company. Your money should double in slightly more than 3 yrs
2.LUK is well diversified and has stakes in , an Australian iron ore company, Fortescue Metals International, in Goober Drilling an Oklahoma oil exploration company, Hark Rock Hotel and Casino in Mississippi, a partnership that invests in japanese equities ,several California vineyards and several other wise investments.
3. When no interesting deals present themselves LUK is sitting on a huge cash pile of 1.28 BILLION
4. Two experts in the business Joe Steinberg, and Ian Cumming have been with the company since 1978, and own 25% of the outstanding shares.You can bet your bankroll they are highly selective into which investments they enter into.

LUKS guiding principles are simple:

1. NEVER , ever , ever pay to much.
2. Pay employees for performance and expect nothing less than hard hard and honesty
3. Buy companies with products people want and understand
4. Earnings sheltered by net operating loss carry forwards ( NOLs ) are more valuable than earnings that are taxed by the IRS
5. Rule 5 NEVER forget rule one.

LUK is exceelent for a Roth Ira , and I have added it to my daughter's portfolio. Rest assured that with recent bankruptcies in this wild market, the LUK boys are circling with talons ready to sink into the next, "Dead Horse"

[billyjoe]

Pete,
I'd like your opinion on DRIPS. If you decided to get out of stocks, liquidate everything, put a million in DRIPS and live off the dividends, what % could you realistically make? Thanks. I know Doug (IIC) could do this with his millions but abandoning the trading desk would drive him crazy.

------------billyjoe

[Peter Hansen]

Billie Good news for YOU

Billie personally I am not a big fan of drips and have none......but I have an interesting concept for you . Simply take the 1 million and split it up equally into these 8 ETFs: FAX, IGR, DSU, EHI, EOS, CHY, ZTR, and PFL. This list represents some rock solid investments and are primarily income and debt stratedy funds. With a discount broker such as Scott or Ameritrade it will only cost you 7 dollars to buy or sell . You can elect to have the checks deposited into your brokerage account and simply withdraw the cash as needed. Since these are spread out you will get 96 checks ( Dividends ) per yr and at todays rates for a 1 million dollar investment your return should be $78,000 for the year .........not bad for sitting on your ass while twiddling your thumbs ......Billie Good Luck .......Hope this has been helpful!

[skiracer]

whatever that means....as I said I woiuld, I took your small loss and put it to work. I sold the august 130 put yesterday for $6.6...6 weeks to wait.

well at this moment AAPL is at $124.75 somewhat lower than where i initially bought the puts and much lower than where Tatnic sold the puts. The puts are now selling for somewhat less than where Tatnic made his play. This was a beautiful short from the flighty levels of when the phone first came out but has since petered out to drop over 14 points. 8 points lower than where i bought the puts.

[jiesen]

well at this moment AAPL is at $124.75 somewhat lower than where i initially bought the puts and much lower than where Tatnic sold the puts. The puts are now selling for somewhat less than where Tatnic made his play. This was a beautiful short from the flighty levels of when the phone first came out but has since petered out to drop over 14 points. 8 points lower than where i bought the puts.

nice call, Ski!

[Peter Hansen]

UTSI & BIDZ Breaking out

Check out UTSI and BIDZ both appear to be ready for quick pop.....highly specualtive but I feel a fast buck can be made here !

[Peter Hansen]

Markets will soar today

Get in and make some quick money .........load up on Pro Funds Ulta Long ETF s Ultra DOW DDM, Ultra QQQ QLD, and Ultra S&P SSO....be sure to take any profits and set tight stops ! Good Luck to all

[ringo69]

Pete,
I'd like your opinion on DRIPS. If you decided to get out of stocks, liquidate everything, put a million in DRIPS and live off the dividends, what % could you realistically make? Thanks. I know Doug (IIC) could do this with his millions but abandoning the trading desk would drive him crazy.

------------billyjoe

This is an excerpt from the Motley Fool Income Invester ad to get you to join their newsletter.

Hard to believe? Just look at these examples…

Money Machine #1: Pepsi — $2,000 invested in Pepsi in 1980 is now worth more than $150,000. You would have started with 80 shares, but by reinvesting dividends, you now would have 2,800 shares.
Money Machine #2: Philip Morris — $2,000 invested in Philip Morris in 1980 is worth just under $300,000 today. You would have started with 58 shares. Today, thanks to stock splits and reinvesting dividends, you now would have more than 4,300 shares!
Money Machine #3: Johnson & Johnson — $2,000 invested in Johnson & Johnson in 1980 would be worth close to $140,000 today. You would have started with only 13 shares of stock. Today thanks to reinvestment and splits, you now would own more than 2,000 shares.
You'd have a portfolio now worth close to $600,000, starting with a total investment of only $6,000. And you never needed to add another penny.

Today, your little $6,000 investment is generating $17,000 every year in dividends.