Raw Greed Holiday Update

Posted on December 23, 2005 , filed under Stocks | Print This Post

I hope everyone enjoys a happy and healthy holiday. We should remember to pray for our family, friends and those in need. My portfolio finished up yesterday. UMC, United Microelectronics Corporation and TSM, Taiwan Semiconductor Manufacturing Company Limited are starting a rampage and I expect both stocks to do well going into 2006. Utilization at both UMC and TSM is nearing 100%, driven by strong demand for consumer electronics. In 2006, I expect the strongest demand for consumer electronics to come from HD-DVD, Blu-Ray, Playstation 3 and HDTV application technologies. UMC and TSM produce many of the microchips used in todays consumer electronics. Taiwan’s economy which is heavily supported by the electronics and semiconductor industries is steadily improving and the political climate following last years presidential election is smoothing out, easing investor fears. I expect to see UMC cross $3.40 and TSM to cross $10.30 in the next 1-3 weeks.

Gold is trading at low $500’s. Gold mining stocks are acting strangely and have failed to adjust themselves accordingly after gold’s drop from $540. I expected to see BGO, Bema Gold Corporation drop to below $2.50 as gold traded under $500 levels. I may sell my position in BGO if gold remains at low $500’s and the stock advances past $3 by the end of the year.

In retrospect, since I believe that gold mining stocks are being held up by speculation over gold resuming its bull run, I should have purchased shares of AUY, Yamana Gold, Inc. instead of BGO. AUY is my top speculative gold mining stock pick.

Shares of MBAY, MediaBay Inc. have failed to advance. The company annouced news of an A&E Television Network and an MSN partnership and neither has created investor interest in the company. I will likley sell my shares in MBAY by the end of the year.

*Disclaimer: Please view my portolio page for a full disclosure of the stocks I own.

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