Thursday, October 25, 2007

Sun Microsystems Inc, a cheap tech stock who lives up to its name with ambitious eco-initiatives

Sun Microsystems, Inc. (JAVA), whose stock price has been beaten down in recent years, may have found some answers to turn the tide. The company has recently been concentrating on taking the lead in many eco-friendly initiatives related to IT infrastructure and have themselves shown dramatic reductions in their own energy use.

The company provides network computing infrastructure product and service solutions worldwide which are used in many industries including, technical/scientific, business, engineering, telecommunications, financial services, manufacturing, retail, government, life sciences, media and entertainment, transportation, energy/utilities, and healthcare.

Recent developments include a new state of the art data center, new energy efficient server products, and a newly formed organization dedicated to environmental conscientiousness. Such initiatives recently earned them a $1 million incentive payment from local utility Silicon Valley Power. Wall Street is starting to take notice of how their green strategy can give them the edge on their competition

The stock traded as high as the mid-60s seven years ago and considering their new products and plans to offer solutions to help solve the problem of IT energy demands, I love the idea of buying it here under $6.00 per share.

I do not own the stock as of this post but considering Tech's history of 4th quarter performance, I will take a position once the market settles down from its recent volatility.

Tuesday, October 23, 2007

Why following an NFL team's success may be good for your portfolio

Suggestions of "Best NFL team ever" have been the buzz words in recent weeks and the past few years while describing the New England Patriots NFL franchise. Currently undefeated at 7-0 and past success in 3 Superbowls suggest that team owner Robert Kraft knows how to be a leader.

Now a member of the board of directors at Viacom (VIA-B) since 2005, investors should pay attention to Mr. Kraft's business success over the years and what that could mean to investors by following companies that he is directly involved in. Listed by Forbes as one of the richest men in the world by building a paper and packaging goliath, Mr. Kraft proves why management and personnel choices translate to overall top and bottom line performance. Also important to note for the socially conscious investor, his paper and and packaging businesses are very much involved in the recycling arena to compliment their overall strategy.

Recent SEC filings have shown that Mr. Kraft, probably as part of his compensation package, has been building a very comfortable position for himself by exercising and acquiring options on Viacom stock over the past couple of years. Now this provides for a pretty good incentive for him to perform well while on the board and even if the stock suffers somewhat he still comes out a winner. Now while the stock has traded in a narrow range for the last couple of years ($35-$45) I like the idea of following his lead by looking at the stock at these reasonable levels below $40 per share.

If his private business and football successes are anything to go by, investors should get in the game and score a touchdown with one of the richest men in the world.

Its October 23rd and almost halfway through the NFL season and I "expect", not "hope" that the Patriots will go undefeated this year. I expect the same performance from Viacom in the next few years as media companies thrive in the current globalization environment.

I do not own Viacom as of this post, but I will be adding it to my overall investment and trading strategies. I am also a "huge" Patriots fan.