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COLORADO (unofficial senior simian epicenter) NEWS:
THE FREDERICKS INVESTMENT NEWSLETTERS
(Now in its 2nd year!)Issue 8 (January 19, 2007)
Fredericks Investment NewsletterIn today’s news, we learned that China had managed to shoot down one of its old weather satellites. Since Chinese bureaucracy is probably even slower to correct error than American bureaucracy, it is entirely possible that in the coming weeks, China will shoot down all of its weather satellites.
This may mean that China will soon be required to place big orders with Boeing and Lockheed-Martin for new satellites and launch vehicles,
Our analysts have not yet figured out what the impact on Wal-Mart may be.
DISCLOSURE: George Fredericks owns no stock in Boeing or Lockheed-Martin or any Chinese company.
DISCLAIMER: George Fredericks is not a particularly good stock picker and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on his recommendation
Issue 7 (September 22, 2006)
Fredericks Investment NewsletterHave you ever bought a stock that immediately went down? How about selling one that immediately went up? We have all had these experiences. They make us feel bad. I will now explain a well known theory that might take away a little of the pain.
It is the “Many Worlds Theory of Reality.” It goes like this: Every time that reality needs to make a decision, it does not punt and flip a coin. It takes all possible outcomes and launches a new universe for each one.
When Wile E. Coyote runs off of the edge of a mesa and does not fall, it is funny because it is improbable. Perhaps, a miracle could happen and Mr. Coyote could immediately learn to fly. This is very improbable. Therefore, there are very few universes spawned that contain flying coyotes.
Often in our pursuit of riches, we make decisions and an anvil from our Acme stock ranking kit falls on our head.
If you know a little about the market, the economy and the madness of crowds, you are somewhat more likely to make correct decisions and avoid falling anvils.
After you make a decision between BUY and SELL, the market makes its decision. It goes up or goes down. So you can label the four possible universes as SELL-UP, SELL-DOWN, BUY-UP, and BUY-DOWN. There are now four versions of your previous self; you and three doppelgangers. I oversimplify. There is a googleplex or perhaps an infinite number of versions of your self. But discussion about this is beyond the scope of this newsletter. We will stick to the simplified theory.
Now, suppose that you find yourself in the universe where you bought a stock and it went down; that is the one labeled BUY-DOWN. You know that you have one happy doppelganger in the BUY-UP universe and another in the SELL-DOWN universe. Perhaps you can empathize more with the guy in the SELL-UP universe. Anyway, you know that you have two doppelgangers that are happier than you and one that is sad. You should be consoled to know that two thirds of your fellow humans are happier.
Now consider the case where you find yourself most often in the BUY-UP or the SELL-DOWN universes. This could make you a billionaire. You could feel guilty. All that you can do then is endow a foundation that will make similar bets with your money after you are dead. Being dead means that there are no more universes for you but perhaps there are for your money.
If you are always in the BUY-DOWN or the SELL -UP universe, you should cease ordering kits from Acme.
DISCLOSURE: George Fredericks owns no stock in Acme.
DISCLAIMER: George Fredericks is not a philosopher or guru. He just spends his time avoiding falling anvils. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on any of his recommendations.
Issue 6 (August 29, 2006)
Fredericks Investment News Letter
From time to time, as an up and coming geriatric investment newsletter writer, I need to try to identify the next big thing.
A while back, I noticed that even though I ate less each year, I none the less had to buy larger trousers. Then, I saw on TV that obesity had become the greatest threat to America. After all, terrorists, hurricanes and the war in Iraq only kill a few thousand Americans every few years. But obesity kills hundreds of thousands
every year.
Then I knew that I had found the next big thing. Venture capital companies will soon start to fund start-ups that will try to use genetic engineering to remove the food value from food crops.
Consider no-cal corn. . You could eat an extra bowl of corn flakes at breakfast without blimping up. Corn fed cattle would be more like grass feed cattle. A downside is that no-cal corn would produce less ethanol to power your car. But then, you might have to walk more.
DISCLOSURE: George Fredericks owns no farm land or stock in Archer Daniels Midland.
DISCLAIMER: George Fredericks is not a particularly good futurist and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
Issue 5 (July 30, 2006)
Fredericks Investment News LetterThis summer looks like it will be the warmest in several hundred years. This could be because of human caused global warming, a change in solar output, or the normal mathematical chaos known to affect the weather.
For the investor, the reason does not matter. As the sweating masses abandon the Midwest and coastal regions, they will inevitably bid up the prices of high altitude mountain property.
While places like Aspen and Vail seem fully priced, there are still places like Leadville or Red Cliff where prices have been depressed since the last silver boom, a hundred years ago. When I was in Leadville recently, it seemed to be gentrifying. So, you need to do you own research.
There is one other downside risk that I need to disclose. In a recent episode of South Park, Al Gore claimed that the high altitude regions of Colorado were infested with a horrible, perhaps genetically engineered, carnivorous chimera, called a manbearpig. If this were to turn out to be true, it could depress real estate values.
DISCLOSURE: George Fredericks owns property in Colorado.
DISCLAIMER: George Fredericks is not a particularly good analyst of real estate and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
Issue 4 (April 27, 2006)
Fredericks Investment News LetterPresident Bush and a bipartisan group in Congress have become alarmed at the recent climb in the price of gasoline. This probably means that soon laws will be passed that screw up the petroleum products industry to the point where in some locations gasoline may become unobtainable at any price.
Therefore, we recommend the purchase of the stocks of bicycle manufacturers or marketers.
Furthermore, we recommend that rural dwellers with fuel tanks keep them topped off.
DISCLOSURE: George Fredericks does not have an investment position in any company specializing in bicycle manufacturing or marketing.
DISCLAIMER: George Fredericks is not a particularly good analyst of stocks and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
Issue 3 (April 11, 2006)
Fredericks Investment News LetterIt is possible that Congress may pass a draconian measure mandating a wall across the Mexican border. If this should happen it would create an investment opportunity in companies that make tunneling machinery. Some web sites of companies of interest are:
http://www.bor-it.com/
http://www.pow-r-mole.com
DISCLOSURE: George Fredericks does not have an investment position these companies or any others specializing in tunneling machinery.
DISCLAIMER: George Fredericks is not a particularly good analyst of stocks and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
Issue 2
Fredericks Investment News Letter 12/10/2005We have recently noticed a strong anticorrelation between the price of gasoline and President Bush’s approval ratings. So it is likely that George Soros will soon commit billions of dollars to push up the price of gasoline. Therefore, we have become extremely bullish on gasoline futures.
DISCLOSURE: George Fredericks does not have an investment position in gasoline futures.
DISCLAIMER: George Fredericks is not a particularly good analyst of the futures markets and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
Issue 1 (Nov 14, 2005)
Fredericks Investment News LetterWe have increased our rating for the French automobile industry from HOLD to STRONG BUY. In 2006, if the French burn an average of 1000 cars per day, this will represent and excess demand for 365,000 vehicles.
DISCLOSURE: George Fredericks does not have an investment position in the French auto industry.
DISCLAIMER: George Fredericks is not a particularly good stock analyst and does not have any credentials in this area. It is recommended that you consult your own financial advisor and possibly your psychiatrist before acting on this recommendation.
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