June 10, 2008

Back in the Saddle!

Its been sometime since I have last posted. But thats because I have been hard at work growing AG Capital. I have big dreams for my firm and know that I can't do it by myself and need more in the way of manpower and technological advancements to hit my personal goals. With that said, let's go over some of the changes:

(1) Employees - I have added a portfolio manager and a trading assistant.

Our newest portfolio manager is Jim Schneider. I have known Jim for almost 13 years. We go all the way back to the United States Air Force Academy as classmates in Cadet Squadron 9. After graduating from the Academy, he was a C-130 pilot and is now an MBA Candidate at SMU's Cox School of Business concentrating in Finance. Jim will be involved in both client acquisition and trading.

In addition to our newest portfolio manager we have also added a trading assistant, Carlos Rocha. Carlos is tasked with day-to-day trade reconciliation and maintaining our performance reporting system.

I am very pleased to have expanded the ranks within our firm and believe both of them are high-quality team players that will work to make our firm better.

(2) Technology - I have fallen for the MAC!

I never thought I would have taken such a liking into the Apple iMAC but I sure did. Therefore, with the addition of the new employees, I have purchased two more computer and three more monitors. In total, our tech setting now has a total of 8 monitors, 4 computers and 2 printers.

I'm a big believer, in the use of the "dual monitor" setup. Everyone in the office has use of the two monitor trade desk as I am convinced it definitely increases efficiency.

(3) Office Space - We doubled our office space.

Rather than give everyone private offices I went the way of the trading desk "bullpen." I am a big believer in putting everyone in one big room which does at least two things: (a) increases team communication and (b) forces each other to work harder and not seclude ourselves behind closed doors.

In case you are wondering, our address remains exactly the same. There are no changes.

(4) Statement Reporting System - We signed a deal with Advent.

Advent is a "World Class Leader in Portfolio Management Software." Within the past week we deployed the software and initiated the migrating our client accounts into the new platform. Our clients will not only continue to receive the usual client statements from our custodian but will also receive a portfolio statement from our firm that will provide far better performance results.

We are excited about this addition and will be sending out client communications shortly to provide more details. It is our expectation that it will take us about 5-7 weeks to complete the migration in total.

Again, I am very excited about the direction of my firm. In about six more days I will be reaching the 2nd year anniversary of my firm's inception. I will always grateful to our clients for having provided the capital for success. You can bet that I will continue to work at a feverish pace to provide you exceptional service and performance plus find ways to make your experience first-class.

Conviction List

  • BUY Goldman Sachs (ticker: GS)
    Recent Px: $180
    12 Mo. Target Px: $230
    Goldman Sachs is a "best of breed" firm that prints money like no other on Wall Street. Trading at 9 times next years earning there is no reason to see this stock going lower than recent volatility has suggested. Recent earnings announcement surpassed analyst expectations. I would expect them to continue doing so. Buying in the 170s or lower would be a good buy. Earnings come next week....let's keep our fingers crossed that they surprise (on the upside, of course).

    SOLD Bear Stearns Corp. (ticker: BSC)
    Bought Px: $4-5
    Sold Px: $9
    JP Morgan got a heck of a deal and even felt bad about their initial offering price that they raised the bid from $2 to $10 per share. I guess it always possible that the deal falls apart and other outside bids are submitted but not without losing their building. Its was a virtual lock at this point. We bought in the mid single digits which afforded a nice 40-50% gain.

    HOLD Ultra Petroleum (ticker: UPL)
    Recent Px:$95
    12 Mo. Target Px: $100
    Ultra Petroleum's knack for oil and gas exploratory success makes this name a "must have" in the portfolio. This Houston-based firm has interests and business in Green River Basin, Wyoming, and offshore China. It is very close to hitting our price target. We recommended it at $78 per share about two months ago. Nice gain.

    BUY iShares China 25 (ticker: FXI)
    Recent Px: $145
    12 Mo. Target Px: $175
    Chinese economist have forecasted a 11% growth in GDP for this year...and that comes on the heels of a slowing US economy. One word: "WOW!"

    BUY Dow Jones Ultra 200% Index (ticker: DDM)
    Recent Px: $70
    12 Mo. Target Px: $88
    Consider using this 2:1 magnification ETF that is based on the Dow's performance. This is like betting on an ETF with steriods.

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