mercredi 30 avril 2008
Kolombo Techs., a relatively new venture, could make your portfolio discover the meaning of "Responsible investment"; This company, quoted on TMX B.O.T (KOL:TSXV)( used to be TSX, but it merged with Montreal B.O.T), is doing in vehicules' security and all what is related to it. As an example, a truck company's operator could secure a perimeter where the trucks are while a computer tell him about the condition of those trucks. And if an intruder enter in a truck, the computer tell immediately the operator which truck it is while a G.P.S tracks the non-authorized vehicle . Also, they sell a key-ring with a recognisance device on it; the vehicle won't start if it doesn't recognize authorized drivers.
But there's more: Kolombo Techs. are the only ones to have a device able to block the fuel pump of a stolen car. ( I've called GM and ask them if OnStar had the tech. and they told me they are still working on it ). That's an amazing step in security devices, and that's why I think Kolombo is not like any other tech company: Its products are going to reduce considerably the number of cars stolen.
JEEZ HOPE YOU SAW THE OPPORTUNITY
Insurance companies are loosing a lot of money with stolen cars' compensation. So when a new tech seems to got what it needs to reduce the number of thefts, insurance companies make that tech affordable for everybody by simply slashing in their insurances rates for those who buy the "risk reducer" gadget.
I think they will do the same with Kolombo technologies devices.
Another reason why you should have an interest in Kolombo: Since 2001, nations worldwide, but particularly U.S.A, are raising borders' security level while queue line is getting longer. When you see the fuel prices and you're a trucks company owner, you want to find an alternative.
That's exactly what Kolombo is developing right now: a device certifying that the truck is filled with authorized materials, but also identity of the truck and the driver. I'm sure trucks companies will run to buy this device!
Kolombo is a serious company focusing on tech development; In fact, they do not sell their products by themselves, leaving this to Detroit Diesel-Allison, and the installation to Ajilon Communications Canada inc.
The problem is that KOL, as I said, is a venture so it's not the easy traditional way of trading
But it is with no doubts that people who bought shares of this company will soon see their investment rewarded: After five years the company exists, it starts having more clients, although it's still not enough to push the stock up to the 1$. Buy & Hold, I'm pretty sure it is a question of months, their technologies are so goooooodd!
lundi 28 avril 2008
The repercussion of this decision is that YHOO will probably crawl under 20$ a share, as it was before Microsoft deal.
Forget about that scenario!
Yes, MSFT acquisition of Yahoo is the only way to save that company and yes, if YHOO decide to fight alone for the search market, you should sell your stock right now or you'll lose about 7 or 9 $ a share. But that won't happen, because YHOO is THE opportunity for MSFT to get into the search market, (forget about MSN that has only a share of 10%) and maybe get 35% of this market. Here's a graph made in september '07 by MegaView Search:
So yes, Microsoft will fight back for Yahoo, and ultimately they will buy the company. The problem is while the two companies are dealing and talking (for about 2 months now), Google has a chance to work on its projects. I do believe that YHOO bid will help Microsoft gaining some search shares, but I'm affraid Google is above everyone and will continue to grow and grow more in the search market.
samedi 26 avril 2008
If there's an uncertain stock on Nasdaq, it is Starbucks corp.( NASDAQ:SBUX ). What's happening with Starbucks is that people DO believe Schultz will bring back the company as it was before its fall but they DON'T want to make the first move, in case Mc Donald's ( NYSE:MCD ) wins the lattes war against Seattle's giant. This is a misunderstanding of the two companies ; each has its own customers base:
Two different markets
A recent market study orchestrated by Hitwise showed that Mc Donald's customers earn less than 50 000 dollars a year when Starbucks clients earn more than 60 000 dollars a year! Beyond this point, if people are willing to pay 4,80$ for a grande latte, they also want a brand experience. Starbucks offers them a big place with sofas and fresh design and good music ( they have their own music label " Hearmusic " , that has produced CDs of Paul McCartney, REM, Jack Johnson, Willie Nelson, etc.). I'm not sure that Mc Donald's can offer the same experience, think about a barista calling " a grande nonfat latte with a big mac extra cheese " in a restaurant that smells of meat all over the place...
Starbucks and McDonald's are just not competing for the same market at all!
But here's a good reason why people should care about sbux stock: The company was multiplying stores all around the world when, at the same time, Arabica growers told the world they won't fill the demand ! All over the planet, more coffee shops open than ever before and using the best grains on the market, usually Arabica ones. ( forget about dunkin donuts Robusta coffee that taste anything but water... we're in a new era!) Just in
If Starbucks really listen to its Arabica growers, it will guarantee customers some quality in their cup and maybe stop costs raises
Why I believe in Starbucks
Sbux is at a low of 15$ per share. At the same time, Schultz is promising lots of things to bring investors back in the game: As I was in New-York, I stopped by a Starbucks and ordered an espresso. I didn't really like it and told a barista about it( it was the first time my sbux espresso taste very bitter) , and after he apologized for it and gave me an other one, he told me that by 2011, every Starbucks will have a new espresso machine!
Starbucks standards have also changed. Schultz wants his coffee to be the best in
Well, what's important it's that standards have evolved since that; milk has to be steamed only once, while
Finally, I think what Starbucks needed to do was to remember where the coffee experience started, in a fine coffee shop in
Next wednesday, april 30, Starbucks will have its earnings conference call for its second financial quarter. Here's a good way for those who want to figure out if the stock will go up or down.