Market Order vs. Limit Order

December 19, 2006

If you’re buying a low-volume stock, always place a limit order. Look at Friday’s IDWD chart (from Yahoo Finance). There were only 50,000 shares traded. Right around 1pm some poor sap placed a market order and overpaid 12%. See that spike? Somewhere out there, a rookie is crying.

Market Order vs Limit Order

Advertisements

ValueWiki expands Fund Coverage

December 19, 2006

ValueWiki may now be the only financial site showing all funds holding a position in each stock. Thanks to Zach for some nifty programming.

Here’s how it works…

Let’s search for Apple Computer. The ValueWiki Apple Computer article shows a dashboard box stating that 1191 Funds hold Apple in their Top 25 Holdings, making Apple Computer the 25th most held stock by funds.

So every stock on ValueWiki now has a subpage listing all the funds with Top 25 ownership positions. Another upgrade to ValueWiki’s Fund coverage is on each Fund page. We now list the Top 10 Holdings for every US Fund.

How we generate this data

All Funds (aside from private Hedge Funds) make their holdings pubicly available. A fairly accurate portrait of a fund can be garnered from their Top 25 Holdings, or even their Top 10 Holdings, because of portfolio weighting. Zach parsed data for all US Funds (NYSE, NASD, AMEX, OTC) and found that only 4,500 stocks were held in the Top 25 position by US Funds. Ranking this data, Zach was able to discover which stocks were the most widely held by Funds. Due to the large number of ties, there are only 351 ranks. Thus, Apple Computer is ranked 25th out of 351, for stocks held by Funds.

Stocks most widely held by Funds

For those who are curious, these are the Top 10 Stocks held by Funds (in the Top 25 position in a Fund portfolio). The first number is the Stock’s rank, the second number is the total number of Funds holding. The full list of all 4,500 stocks can be found at ValueWiki.

1. BK OF AMERICA CP: 2750

2. GEN ELECTRIC CO: 2734

3. CITIGROUP INC: 2649

4. EXXON MOBIL CP: 2643

5. Microsoft Corporation: 2508

6. JP MORGAN CHASE CO: 2411

7. Cisco Systems, Inc.: 2313

8. PFIZER INC: 2230

9. AMER INTL GROUP INC: 2094

10. PROCTER GAMBLE CO: 1899


Full Disclosure…I own Google stock

December 13, 2006

Two weeks ago, Google shed $5 Billion in market cap on Barrons’ article claiming Google is overvalued. Google’s current P/E is 61, or around 37 times FY 2007 earnings estimates. Google’s price has been stalled ever since.

Barrons has a history of predicting Google’s crash. And Google stock has a history of going up. For example, in February Barrons predicting Google would crash to as low as $175, and in November Google topped $500.

Does anyone at Barrons use the internet? Let’s not pretend, Google’s running the show. No search engine competes with Google. And Google Adsense pretty much single-handedly revitalized the internet, spurring the current Web 2.0 boom. Gmail revolutionized email, and may have just got perfect. What other company comes close to Google’s internet innovations of the past five years? Microsoft? Yahoo? Is a forward P/E of 37 really so expensive?

Okay fine, maybe it’s time for Google’s stock to rest for a few months from its steady ascent, but Barrons’ gloomy predictions strike me as a bit overblown.


Pump and Dump is alive and kicking

December 13, 2006

Consumer Affairs has announced their Top 10 Scams of 2006, and number 6 is the classic Pump and Dump. Consumer Affairs sites a penny stock called Texhoma Energy that was email spammed in October. Daily volume grew from 53,000 shares to more than 5 million before the stock crashed.

TXHE Chart from BigCharts.com

Aside from gullible investors, the real victims in these situations are often the underlying companies. The ValueWiki community can help prevent these scams and protect investors by immediately reporting stock spam to ValueWiki. As soon as you receive stock spam, list the company on ValueWiki’s Top 10 Stock Spam Victims and make a note on that company’s article page. This will help alert investors that a small volume stock is being manipulated.


ValueWiki Ranked 8th Largest (Non-WikiMedia) Wiki

December 10, 2006

From its birth in September, Valuewiki is now ranked the 32nd largest MediaWiki-Wiki in the world. The list is dominated by the behemoth WikiMedia Projects: Wikipedia and Wiktionary, in all their various foreign languages. Removing these WikiMedia Projects from the list bumps ValueWiki up to 8th place for all non-WikiMedia MediaWiki Wikis.

That’s right, non-WikiMedia MediaWiki Wikis…MediaWiki is the software and WikiMedia is the foundation that overseas Wikipedia and Wiktionary. That is why we are a non-WikiMedia MediaWiki Wiki.

Inclusion in the world rankings currently requires a conservative article count of 8,700. ValueWiki currently has a conservative article count of 54,705.


New Features – Tutorial

December 10, 2006

I wrote a new ValueWiki Tutorial this week. Wiki can intimidate a lot of new users – this is probably the biggest challenge ValueWiki faces as a startup. I know it took me a while before I began to contribute to Wikipedia. I guess the trick is to present a tutorial that is as user-friendly as possible, and then add easily accessible help links to every page of the wiki.

The truth is, there’s really only about eight commands you will ever need to write on a Wiki. Just bold, italics, bullet lists, most of which are available as soon as you open an edit window.

Wiki is a great way to introduce people to programming, and is a sort of gateway drug to learning HTML. Zach believes HTML should be a mandatory high school class nowadays, a required course in a modern society. I take his point.

If you’re new to Wiki, check out the Tutorial’s wiki cheatsheet to help you get started. If you’re a Wiki pro, you can check out how I programmed the stacked folder windows. If you’re a Wiki Ninja, you may notice some redundancy in my programming; most likely Zach is going to trim things down. Take a minute to give the Tutorial a test drive and let us know if you think the Tutorial will be helpful to newcomers.


Startup Gossip IV

December 10, 2006

I read about JobberWiki on TechCrunch yesterday. JobberWiki is a forum for posting insider comments about Companies’ work environments. It’s definitely information that ValueWiki would want to link to.

JobberWiki is running out-of-the-box MediaWiki. This means setting up their website probably required a few hours work, tops. So I take it as a good sign that a wiki with a decent concept can receive media attention.

Since I’ve been on a big Alexa kick lately, check out how JobberWiki’s traffic spike from their media mention yesterday. Very nice.