The Investment Road to Freedom

February 8th, 2012 at 3:06 pm

Current Holdings

in: Archive

As of February 8th I own two stocks, BAC and COOL. As funds increase so will my holdings.

So why did I buy these two stocks?

 

BAC

Bank of America was my first purchase back in December. It is no secret that they are a company that is under immense pressure but I felt they were turning a corner and more importantly at the time the price of $5.28 made it a undervalued stock. I added a covered call in with a strike price of $7.50 to expire in Jan 2013. The stock price has since surpassed this so I expect my stock to be called away from me giving me a nice profit on my first trade.

COOL

Majesco Entertainment Company make no mistake is a one trick pony. The company develops and markets video game products and their star performer is the top selling Zumba Fitness game.  Zumba 1 was released in November 2010 and is currently #11 in Amazon’s Best Sellers Rank for video games, #1 in video games for the Wii in the simulation section and #2 in video games for the Wii in the all games section.

Zumba 2 was released in November 2011 and is #15 in Amazon’s Best Sellers Rank for video games. The company released it’s Fourth Quarter Fiscal 2011 Financial Results on January 17th which in my view resulted in a huge overselling on the stock as the quarter did not take in to account the sales of the Zumba 2 and also in the increase in sales of Zumba 1.

The good points from the release were

Reports Profitable Year With Fiscal 2011 Revenues up 66% to $125 Million
Zumba(R) Fitness 2 Surpasses 1 Million Units Worldwide
Zumba(R) Fitness Franchise Surpasses 6 Million Units Worldwide

Expect a very good First quarter financial results from this company as the figures take in to account the recent Zumba sales.

 

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