Molly Masters the Stock Market

By Molly Helgren*, WeSeed

I don’t have as much activity this week due to the fact that few things seem to be doing well. The most disappointing company in my portfolio this week was RIMM. I bought RIMM a few weeks ago when my Portfolio was just getting started because I love their products and couldn’t live without my Blackberry.

After their disappointing earnings announcement, though, I’ve lost well over $500 in 24 hours from that position alone. But I’m holding onto it for now with the hopes that it will make a comeback after the initial buzz over their earnings dies out.

Here are my trades for this week:

Sold 100 shares of Amazon @ 90.28 – Amazon had a great week last week, and made about $1,200. The big jump seemed to not be very characteristic, so I took advantage of the large gain and got out. I still love this company, and will probably trade them again in the future as their goal is to become the biggest online marketplace out there.

Sold 200 shares of GM @ .76 – Was up a penny from when I bought it! I gave it a week and it barely moved, so with everything going on with GM right now I figured it wasn’t worth the risk and I’d take my $2 in earnings.

Bought 100 shares of Google @ 500.83 – As soon as it hit the $500 mark, I figured it was time to jump on the bandwagon with the hopes that someday it’ll reach back up to its $700 price per share before the recession was in full swing. I also love the company – I use Gmail for my personal emails, and always use google for searches, maps, weather, etc. on my Blackberry.

Bought 100 shares of Kraft @ 26.51 – There has been little support for Kraft’s attempted acquisition of Cadbury over the past few weeks. My hope is that this has driven the price down so that now is the time to buy before a deal is reached and it’s back on the rise.

Sold 100 shares of Wal-Mart @ 50.96 – I bought WalMart over the summer with the hopes that back to school season would raise the price. But so far it has been one of the poorest performers in my portfolio, so I just wanted to get rid of it. I lost about $900, but at one point I had been down almost $1,500 so I am glad I waited it out a little longer.

Bought 100 shares of Nintendo @ 33.25 – They announced this week that they will be lowering the cost of the Nintendo Wii from $249 to $199. Just in time for the holiday season! I now own 200 shares of Nintendo.

Bought 50 shares of Visa @ 71.00 – I’ve only owned Visa credit and debit cards. They were also in the headlines this week for announcing a financial education plan for consumers.

Bought 100 shares of Microsoft @ 25.71 – I’ve noticed a significant increase in Microsoft advertising recently with the upcoming release of Windows 7. I’m hoping that if the launch goes well, the shares I buy now will be much more valuable come October.

Bought 100 shares of Ralph Lauren @ 72.87 – They make a wide range of quality products from clothing to linens. I’ve had them in my Portfolio for a few months now and they have been one of my top performers, making me over $2,500 so far. Since I’ve been so pleased with their performance, I wanted to risk a little more to see if they would continue to pay off. I now own 200 shares.

Bought 100 shares of TiVo @ 10.20 – How else would I have been able to watch the season premiere of Grey’s Anatomy last night when I got home late? I love their product. Mine is set to record at least two shows every night. I get watch TV now that I never would have prioritized into my routine without TiVo.

My Portfolio is still doing well with an overall gain of $13,466.63. I currently own 6650 WeShares and hold $291,887.63 in stock positions.

This week I lost about $5,000, but I don’t feel discouraged because percentage-wise, the market as a whole was down as well. My goal for the weeks to come is to not only make as much money as I should proportionally to the market as a whole, but to be making decisions that help me beat the odds.

Gain/Loss For Today:

-1,587.72

Current Portfolio Value:

1,013,421.78

WeShares Currently Own:

6650

Overall Gain/Loss:

13,422.03

Overall Trades:

85

WeSeed Cash Available:

721,586.50

*Molly Helgren is an executive assistant at PEAK6, WeSeed’s parent company. Molly is putting together a WeSeed Portfolio based solely on the companies that she knows and likes. So far, she’s doing pretty well.

How to Profit Off Your Pooch

By Joel Reese, WeSeed

The recession has hit almost everyone pretty hard.

Wait, scratch that — it’s hit almost every person hard. Dogs, cats, and other pets are doing quite well these days.

Americans will spend roughly $45.4 billion on their pets this year, estimates the American Pets Association. (That’s up $2.2 billion from last year, the group notes.)

And this goes beyond your dog’s Derm Care Anti-Bacterial Medicated shampoo ($14.99), or your cat’s argyle sweater ($35), or your dog’s hand-painted blue dress with strawberries ($59.95). We’re talking doggie spas, pet insurance, veterinary bills that make your elective appendectomy look cheap, and things like this German custom-built cat condo ($1,034).

Meanwhile, just for fun, we’ll note that luxury store Saks Fifth Avenue (SKS) posted a 15 percent sales loss compared to last year, which is pretty much the standard trend in retail.

So enough about that — which companies will profit from people’s peculiar pet preferences? To my mind, this brings to mind another axiom: If you want to strike it rich during a gold rush, invest in picks and shovels. The point: So who services pets?

The first company that comes to mind is PetSmart (PETM) — you’d think that stock would be shooting through the woof, right?  At first, it seems the company is barking up the wrong tree. Even though the market’s dog days are starting to turn around, the stock has gone from $35 per share last year to about $21 per share today. (Ok, I’ll stop with the pet puns. It’s just so doggone tempting!)

But according to this Motley Fool story, PetSmart is actually doing pretty well: earnings were up 4.6 percent last quarter, and sales were up some 5 percent. So even though other companies are trying to creep into the pet market — Amazon (AMZN) and Target (TGT) come to mind — PetSmart is still a player here.

If PetSmart’s numbers frighten you, there are other companies taking advantage of this four-legged friend fervor. PetMed Express (PETS), which sells prescription drugs for Fido and friends, is at around $18, up from $11 a little over a year ago. The company’s ROC (return on capital, which is basically a way to tell how effectively a company is using its money) is a strong 31 percent over the last three years, and they tap into a potentially burgeoning market: The company can undersell vets via their 1-800-PETMEDS, who aren’t usually interested in passing along bargains to pet owners.

Then there’s Patterson Companies (PDCO), which makes veterinary supplies, is at $27 per share, up from below $17 just a few months ago. The Minnesota-based company has seen an increase in sales and gross operating profit over the last four years.

The lesson here: follow the crowds, and right now the crowds are making their pets happy. So maybe you should put your money where your leash is and let Fido guide your finances. Just a thought.

image by Tobyotter