Seeking Alpha by Adding Beta

As we are getting closer to enter into 2008, I started thinking about potential stock recommendations which could return 50% by end of 2008. Due to recent turmoil in financial markets, even after markets recovering in last 2 weeks (S&P is up by 7% in last two weeks), there are still quite a few stocks which would fit the bill. Here are my recommendations. Disclaimer: I may have positions in some of these recommendations US Stock Recommendations: VeriFone (PAY): This company's stock got penalized last week (down by 54%) due to accounting errors on how they accounted for inventory in first 3 quarters of 2007 even though they increased the revenue guidance. This company makes products which you come across almost everyday when you go shopping in malls or for groceries. They make devices which read your credit or ATM cards at the counter. This company is leader in that space. So fundamentally nothing has changed as far as business is considered. Credits cards are here to stay and...

After my trip to meet with Mr Warren Buffett, everytime I think about an investment idea, I take a pause and ask myself: What would Mr Buffett would do ? Hope I can make some wise decisions with this question. November was an unusual month where markets went down (only 2nd time in 13 years markets have gone down in November). Is it good or bad ? After strong and volatile October, it's good for markets to get excesses out, get the correction (10% down from peak) and get ready for another high. With major banks taking big writedowns, companies like Countrywide, E*Trade and many builders trading like they are going to declare bankruptcy, finally Fed and US Gov have realized that this sub-prime issue is much larger than they originally estimated. Late last week, things have started lining up for some kind of arrangement to avoid recession due to sub-prime meltdown. With that context in mind, here are my predictions and recommendations (Disclaimer: I may have positions in some of the r...

As part of Berkeley MBA, on Monday Nov 19, 2007, we had a trip to Omaha, Nebraska to meet with greatest investor of all time, Mr. Warren Buffett and I must say that we all were totally impressed by his intellect, sharp mind and simple life he is living. Students from Haas School of Business, UC Berkeley, London Business School and University of Arizona, Tuscon came to meet with him. Here are some observations, tips we heard from him about investing and life and photos: Even though he is one of the richest person on planet, he was so simple, approachable and down-to-earth person. He came driving his old Cadillac, had lunch with all students, spent 4 and half hours and went back driving his car He is extremely sharp with numbers and still remember numbers about his investments, various macro-economic statistics and how he makes money on every 12th coke bottle consumed in the world Mr Warren Buffett is funny and extremely good speaker. We wer all surprised when he started his talk with a ...