My Rule Number 1 Investing Experience

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Mining for the future.
2008-03-10 22:34:00
Last week I spent most of the time discussing the health sector, with most of the news surrounding GlaxoSmithKline. This week I will begin my discussion about the mining sector, while primarily focusing on my mining pick, VALE (NYSE: RIO). Stay tuned, VALE is at a very attractive price right now, there is a high chance that I will be a proud owner of VALE by the end of this week.(Remember, as Rule #1 investors, we don't buy shares of the stock, we own the company)
More About: Mining , Future , The Future

GlaxoSmithKline's 2007 Annual IMPACT Awards recipients each receives $40,00
2008-03-06 21:12:00
The winners for GlaxoSmithKline's 2007 Annual IMPACT Awards were announced. GlaxoSmithKline (NYSE: GSK) is one of the world's leader in pharmaceutical and health care research. The recipients will each receive $40,000 for their outstanding works in the community. "These organizations have committed themselves to promoting health and well-being." Said MaryLinda Andrews, GlaxoSmithKline Director for Community Partnership. The award ceremony will be held at GlaxoSmithKline's headquarter in Philadelphia on March 20th. The non-profit organizations that were recognized this year are: Domestic Violence Center of Chester County, The Free Clinic of Doylestown, Institute for Safe Families, The Letitia Fifer House d/b/a The Clinic, Pennsylvania Breast Cancer Coalition, Pennsylvania Health Law Project, Samaritan Counseling Center, and Water Street Rescue Missions Medical Clinic."The GSK IMPACT Awards are designed to recognize and promote the work of nonprofit organizations with a proven trac...

GSK: SELL signs signaled on all three tools!!
2008-03-06 00:47:00
What a dreadful day, it's only 9:30am and I'm already regretting not selling my GSK shares when I had a chance. As I said before, I bought GSK because of the market, I didn't buy GSK because of my rule #1 researches. This has been a week of bad news, I'll list a brief recap:GlaxoSmithKline discontinued the development of Dacart, their malaria drug. Full article. (source: CNNmoney)Researchers found out that Gilead's HIV drug outperforms GlaxoSmithKline's competing compound. Full Article. (source: The Motley Fool)Just happened today, no necessarily bad but it's nothing good. FDA requests from GlaxoSmithKline regarding the safety of their asthma drug. Full article. (source: Reuters)As of 12:42 EST GSK has dropped to a new resistance level around 42.4. If you recall I bought the stock at 44.51, not good at all. When GSK breaks even (if it ever does), I will sell it no matter what. I didn't want to own the company to begin with, if the stock rise up after I sell then so be it. I...
More About: Tools , Signs , Sell

Further "RIO" discussion
2008-03-04 04:50:00
First, let's look at the numbers and find RIO's intrinsic value using Rule #1 formula. We know that in order to find out Margin of Safety (MOS) price we need to know three values: Current EPS, Estimated EPS, and Estimated PE in ten years. I've made predictions, one conservative and one aggressive.Aggressive Prediction:Current EPS: 2.33Estimated Future EPS: 33 (As seen from historical Equity Growth)Future P/E: 13 (As seen from average of historical P/E)Using these numbers, we conclude that the MOS price (50% off sticker price) is $64.83. When I saw this number I almost jumped out of my chair, it's almost too good to be true. The price is so good that I almost think that my prediction is off. That's why I also came up with numbers for the conservative prediction:Conservative Predicton:Current EPS: 2.33Estimated Future EPS: 25.4 (Future earning growth estimate of RIO from money.msn.com on 03/03/08. Personally I don't like this number too much because it's an estimate growth or e...
More About: Discussion

Good news all around
2008-03-04 03:30:00
Good news came from all three companies on my watch list.GSK:Came up to $44.50 after last friday's low $43.91 closing price.FDA grants priority review for GlaxoSmithKline's bleeding disorder drug, you can find the news link at here. (provided by www.reuters.com)BVN:Operations resumes at four sites after last week's strike breakout. You can find out more at PR News wire and Reuters.com.RIO:Brazil based mining company Vale announced their quarterly earning on Feb 29th, its revenue rose 12.2% and its net earning was increased by 59%. (www.fools.com)
More About: Good News , Good

Further Analysis
2008-03-02 20:39:00
I was searching for financial analysis online and bumped into this nifty website, www.getrichwithwealth.com. The website offers free service to break down and rank different stocks for a wide range of categories. I looked up on the three stocks that I talked about,(http://getrichwithwealth.com)As you can see, the two mining companies BVN and RIO both received the overall A grade. The company that I bought reluctantly (remember how I mentioned that GSK was on the bottom of my top 3 list), only has an overall D grade. Now look at the equity growth rate, one of the most important category for Rule number 1 investors. RIO has an A, BVN received a B, GSK is stamped with a C. Once again, GSK has the lowest grade. It isn't looking good for GSK, I'm thinking about putting a stop loss at $43.51.What do you think?
More About: Analysis

First Three Picks
2008-03-01 22:49:00
I followed the book's guidance and used yahoo finance to look for companies in different sectors. Two industries caught my eyes, pharmaceutical and minings. This is how I see it, as our human society becomes more populated there will be a greater need for different prescription drugs and minerals.Three companies caught my eyes, here are their big 5 numbers (Second row is year. Third row is growth percentage).Compania de Minas Buenaventura SA (ADR) (Public, NYSE:BVN)GlaxoSmithKline plc (ADR) (Public, NYSE:GSK)Vale (ADR) (Public, NYSE:RIO)Click on the pictures to enlarge them.All the results were calculated from data provided by http://money.msn.com/I didn't include the free cash flow growth rate for any of the three companies because they were inconsistent and unpredictable.As you can see, the number looks pretty good on all three of the companies, after further reading I found out that the fundamental of the three companies are also decent. BVN is my favorite company on this list ...

New to Wallstreet
2008-02-29 09:12:00
"I have not traded before, at least not before this week."...Two months ago, my roommate handed me a book called "Rule #1" by Phil Town. He suggested me to start investing in stock following the book's method, it has worked for him. I was interested at his suggestions, so I started reading. I read the book multiple times until I felt that I have a pretty good grasp of Mr. Town's Rule #1 on investing.Now it's time to put what I've learned to test. In this blog, I will record all transactions that I make and explain the reasoning behind my decisions. I will also post information regarding the stocks on my watchlist, and other news about the market that I find interesting. I have allocated a small fund for this project, $2000.00.With all these being said, I welcome you to vicarously live out my first Wall Street Journey with me!
More About: Wallstreet