Filed under: Google (GOOG), Apple Inc (AAPL), U.S. Steel (X), Technical Analysis, Las Vegas Sands (LVS), Lehman Br Holdings (LEH), Bear Stearns Cos (BSC), Stocks to Buy

Google (NASDAQ: GOOG) this, Apple Inc (NASDAQ: AAPL) that, will Lehman Brothers Holdings (NYSE: LEH) follow Bear Stearns (NYSE: BSC) — bleh, all hotly debated, all random market noise! Noise that you must learn to ignore.

The financial media — envious of the fat profits generated by such entertainment-based businesses as World Wrestling Entertainment Inc (NYSE: WWE), Las Vegas Sands Corp. (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) — has brainwashed you into believing that in order to make money in the stock market, you must keep up to date with every single headline and development in the business world. Hogwash!

I have no problem with financial entertainment, but I do take issue with all these media outlets making their content out to be useful to investors. I’ve repeatedly echoed this theme in articles like this and I don’t expect this industry to change anytime soon, but I am going to keep preaching so you will better understand how low your chances of success are if you bet on the most popular — hence the most efficient — topics du jour. Unless you are George Soros or Warren Buffett or a few other wealthy elderly men, there is always somebody better informed and more intelligent than you are. Hence, you are always at a disadvantage.

To combat this, I stick to the much derided — and highly inefficient — world of microcaps and smallcaps where my competition is just a bunch of manipulators and suckers; meaning, I often have the upper hand.

And if that niche is too volatile for you — as it is for those of you with heart conditions — I suggest focusing on stocks breaking out of their trading ranges, or those making new highs. Yesterday, I highlighted 20 stocks, only five of which I thought looked worthwhile and today let’s add three more stocks to that list. United State Steel Corporation (NYSE: X), Weatherford International (NYSE: WFT) and Illumina Inc (NASDAQ: ILMN), all of which are breaking out to new highs. If you keep your stop losses tight with charts like those, it’s tough to go wrong.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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This entry was posted on Thursday, April 3rd, 2008 at 9:13 pm and is filed under Goog news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.