JKS boost

Semiconductor industry is doing pretty well. Solar IPO, JKS just boosted 8% today.

LDK which bottom around 6 dollar now is over 7.30 dollar.

Dendreon pharma is doing pretty well and reached its upper limit 40 now. It will be interesting to see what happens tomorrow.

If overall market supports DNDN has potential to go further up as its Q came pretty well (doubling revenue). DNDN also has possibility to be acquired by a bigger company, such as Roche.

Roche was took over Genentech when I was a shareholder of DNA.

Then DNA's executives came on board of DNDN.

Why people quit?

Because once they lose some of investment, their mind change to "I'm gonna get the money back."

This is totally wrong.

Once you think this way, the next step you will have in mind is "I'm going to get even and get out."

Then when you lose more, you will turn into emotional (if you are emotional, you are already a loser in stock investment or speculation) and bet big without precaution, study, and due diligent.

You should always think "I'm here to make money."

Whether you are down from the initial investment. You must think, "I'm here to make money."

Trust yourself.

Interesting Companies I found

$JKS: Solar
$JAZZ: Pharma

I'm looking at them very closely right now.

Barnes & Noble, retailers closing down

You've seen it with your own eyes.
Circuit City you used to go to get some CDs and other gadget closed down, bankrupted, and only its online (webstore) is remained with different owner.

You've also seen BlockBusters you used to frequently visit on Friday night or Weekends to rent some DVDs are closing down one by one.

These big chain retailers just failed to adapt into the new world of digitalization.
There must have been thousands of people worked for these firms became unemployeed because its management could not think ahead.
Competition strategy should not stop. The management should always seek for a better way to compete and survive tomorrow.
The book introduced by one of competitive strategy class professors in Haas, Competing for the Future by Gary Hamel and CK Prahalad explains all these situations.

Now, enough about sightseeing.

What will happen when these retailers close down?
Will the market shrink on that selected sector?

Do people rent fewer DVDs because Blockbusters is no longer with them?
Do people buy fewer books because B&N is not near by their houses?
Do people buy fewer clothes because many big Macy stores are closed down?

No, the buyers simply moved to some other means to purchase goods they want.
In fact, each market size of these other means is growing rapidly.
The spending power of individual consumer has got stronger and it is still.

The market size did not change, but the market leader is changed.

Movie Rental? Coinstar (CSTR)'s RedBox $1 dvd rental vending machine in super markets, and NetFlix (NFLX) online+DVD delivery has grabbed this huge market.

For book, Amazon will take the market share that B&N will lose.

We gotta invest in these type of businesses.
The upcoming market leader.
It's no longer Retail is Retail and Virtual is Virtual.
Retail is losing so its market itself is fusing into Virtual's.
And in that fused market, there will be a new leader.

Invest in that leader.