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I'm calling a short-term tradable bottom at a minimum and would implore people to buy tech stocks, and Chinese consumer spending related stocks

There is serious value here in some areas. I would be buying BIDU, LFC, AAPL, GOOG in that order of preference, among many others... Since I don't have much cash on the sidelines I'm only going to pick up BIDU.

The Street.com (TSCM) is a buy here

I put in a buy order for The Street.com (TSCM) at $9.80. This company will benefit greatly from current innovation in internet video advertising, is cheap at a trailing p/e of roughly 20 and the chart looks great. It's also Jim Cramer's company (of CNBC's Mad Money) and his analysis is a big draw in terms of audience. I may not get a piece of this company at my buy price because it's already up to $9.99 in after-hours trading...

12 months Ending 2006-12-31

12 months Ending 2005-12-31

12 months Ending 2004-12-31

12 months Ending 2003-12-31

12 months Ending 2002-12-31

12 months Ending 2001-12-31

EPS

0.47

0.22

0.13

-0.04

-0.38

-0.98

3 months Ending 2007-06-30

3 months Ending 2007-03-31

3 months Ending 2006-12-31

3 months Ending 2006-09-30

3 months Ending 2006-06-30

EPS

0.12

0.11

0.14

0.11

0.12

The companies earnings have been weak lately due to poor performance in subscription revenue. The company is already positioned to catch up in earnings growth fast due to it's focus on advertising revenue and growth in popular content.

Seeking Alpha has a good article on how the company is poised for growth after missing its recent earnings estimates.

Here's an example of The Street.com's content.



TheStreet.com, Inc. is a multimedia provider of business, investment and ratings content. The Company distributes its content to customers through properties, including Websites, e-mail services, print publications, and audio and video programming. It also syndicates content for distribution by other media companies.

Very Thoughtful Interview on Chinese Economy

"is China’s roaring economy a bubble or a brick? We’ll ask a leading expert on China’s economy, Wing Thye Woo of the Brookings Institution, to help us make sense of it all."

Interview begins at 11 minutes.

Marc Faber Says U.S. Stocks Are at Beginning of Bear Market

This interview must be listened to
link to video

Bought big positions in Baidu (BIDU)

Bought almost a 50% position in my portfolio of Baidu (BIDU) and doubled the position to 10% in a client portfolio. I expect gains of at least 50% next year in both China Life Insurance (LFC) and BIDU.

"Baidu.com, Inc. provides Chinese language Internet search services. Its services enable users to find relevant information online, including Web pages, news, images, and multimedia files through its Web site links."

Fuel Tech

In my defence (for selling), Fuel Tech has made less revenue and profit in every quarter since September '06 (this streak could extend further but I haven't looked further for data).

PERIOD ENDING		30-Jun-07	31-Mar-07	31-Dec-06	30-Sep-06
Total Revenue		16,210	16,262	18,062	20,173
Cost of Revenue		9,083	8,957	9,219	10,042
Gross Profit		7,127	7,305	8,843	10,131

It is also on track to make less revenue and profit in '07 compared to '06 though this might not end up being true since apparently Q4 is supposed to end full with backlogged orders. Also, in a business like this revenue is clumpy and inconsistent. However, the shares trade like investors are expecting some huge breakout in orders, possibly from China or because of some hugely increased acceptance
of the company's technology in general or maybe because greenhouse gas emissions may become further regulated, or maybe that the company will be bought out. I don't think the company will be bought out much higher than at the price the stock trades at today.

The bottom line is that I'm trying to retroactively justify my selling of this company and am hoping that I'll get a chance to pick it up later in the year, possibly during a further market downturn or if Q3 is going to bring back some reflection of pessimism in the shares.

Selling Fuel Tech (FTEK): What a mistake!

I sold Fuel Tech (FTEK)at 25.21 the other day and the stock has already rebounded to 29.35. OUCH!


It seems the last selloff during the earnings call may turn out to be just one big shake-out as the news was expected by analysts and the company's prospects appear to be just as good as ever. New orders were announced today as well. Furthermore, the Federal Reserve left lending rates unchanged and the market seems to be reacting very positively to this, possibly thinking that this means that the lending and housing fallout will be contained and that the rest of the economy is strong enough to keep things going. This also means inflation will be kept in check.

I am going to very closely follow FTEK to see if there will be an opportunity to get back in since it's technology appears to not only reduce pollution but also more than pays for itself.

Sold Comverge (COMV)

The strategy that got me huge gains in the rising market since 2002 (buy a good stock story in a promising sector) hasn't been successful this year. The market right now is much more discriminating and since Comverge has yet to prove itself financially and I have yet to understand the ins and outs of its business, I'm going to wait on the sidelines. I'm selling my small position.

Loss on COMV: 12%

Comverge, Inc. (Comverge) provides clean energy solutions through two operating units. Its Smart Grid Solutions Group develops and delivers demand response, smart metering, advanced metering initiative, advanced meter reading, and other monitoring and control hardware and software, which allow its utility customers to measure, manage, shift and reduce energy consumption in real-time.

Sold Fuel Tech (FTEK)

I sold Ftek during their earnings call this morning. Its sales are not performing to expectations. Perhaps at some point Ftek will be hot if its technology becomes considered a standard in pollution control. This won't happen easily even if the technology works well.

profit on FTEK: 61%

Fuel Tech, Inc. (Fuel Tech) is an integrated company that uses a suite of technologies to provide boiler optimization, efficiency improvement and air pollution reduction and control solutions to utility and industrial customers worldwide. Fuel Tech's focus is the worldwide marketing of its nitrogen oxide (NOx) reduction and FUEL CHEM processes.

"The Chinese Economy: Can We Keep the Heat Alive?"

Krugman on the US Housing Bubble

sold New Oriental Education & Technology (EDU), Blackboard (BBBB) and Enernoc (ENOC)

Both EDU and BBBB are experiencing margin problems that are or will be exacerbated by competition. I already have exposure to demand response and energy management solutions with Comverge (COMV) [as well as similar exposure in Echelon (ELON) and Itron (ITRI)], and it's performing better so I sold my small position in ENOC.

EDU profit: 140%

BBBB profit: 40%

ENOC loss: 12%