Thursday, January 31, 2008


Phew, I'm glad that my APP is doing well right now, people are starting to finally look into this stock. I've noticed that there are a few more bulls in this market thanks to the 50bps cut...that's nice, but I still believe that the correction is not over yet. I would consider myself one of these bulls right now, but since the market direction is still unknown I only have 50% of my portfolio invested, the rest is in cash. The S&P should test the 1400 mark within the next week...but if it's unable to break through that support we will be testing new lows.

Now you know I'm bullish on American Apparel (APP), but Visa (V) is another company I may be interested in.

I'm sure you've heard the buzz over their new IPO, but is this company worth investing in? Now there's tons of positive comments surrounding Visa but let me list you some of the negatives first. One thing's for certain, with all these credit issues surrounding financials, Visa will not mirror Mastercard's past performance. Further, do we all remember the hype surrounding Tim Hortons? THI was up for a few weeks but dropped shortly after. The hype surrounding this IPO is something that I would be scared of. I still plan to play the hype as I have done with several Chinese IPOs, but my plan is to get in and out quickly...if that fails, I would consider holding the stock long-term. All in all, before buying into the hype do some research to see why they are going public and why they need to raise $10B from this initial public offering. Don't be fooled by all this excitement surrounding this IPO and Mastercard's great return, Visa is certain to crank up their IPO price and it may be too overvalued by the time average buyers can buy the IPO.

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