Fundamental Analysis

As was described in the last article, fundamental analysis is used to find the earning potential of a company by looking at things such as its financial health, competition, market dynamics, and future growth potential. The most important information can be found in its financial statements, which are filed quarterly and yearly with the SEC in the 10-Q and 10-K. While laid-back investors will base their investment decisions upon the “Annual Report to Shareholders” which is mailed to their doorstep every year, the more serious investors should look at the more detailed 10-K. These documents can be found at finance.yahoo.com and under the tab “SEC filings”.

A Warren Buffett Analysis Approach

Buffett’s consistent long-term profit with his investment company Berkshire Hathaway is encouraging since it suggests that there is some kind of indicator for stocks that will increase in value. Last time, we saw how companies, whose profits continue to grow, would see their stocks increase in price as well. This is necessitated by the fact that increasing profits means more money in the hands of the stockholder at some point. People will bid for these profits, thus driving the price of the stock up.

Currently, with the fluctuating financial situation, many people are looking to turn a quick profit as they look forward to an eventual recovery. Many believe stocks to have taken a major blow (with a minor recovery) and since indexes must grow in the long run, if they buy now, they can get stocks at firesale prices. But these gungho investors should not be overly confident, because stocks can and have dropped lower. 10 years ago, the SPY, or commonly known as “spiders”, were trading at 150 and right now we are hovering at 101. The SPY is an ETF (stock that simply mimics an index) that is 1/10^th the value of the S&P 500 index (so the S&P index can be seen as a representation of how 500 of America’s largest companies are trading). Since 2000, we have dipped below 100 twice, with the lowest point being in the high 60’s. Many stocks during the tech craze had insane PE ratios (meaning that the company may only have been making $1 or negative profit a year, yet the market had bid up the value of the company to maybe $100…usually this means that the market expects the company to grow quickly in the future and earn perhaps 10 or 15 dollars, making the PE fall from 100 to 10). While some companies like Google, Apple, and Yahoo paid off, most others didn’t and folded within a few years, losing all of the money that shareholders had put into the company. The same is true of high-tech companies in all fields, and even if the company does not end up going bankrupt, they may

1. continue losing money through operations rather than turning a profit, meaning they are slowly sucking away at shareholder value
2. profits fail to grow or grow at such a slow rate that if the company had a large PE (Price to Earnings ratio) it will have to fall to bring the share price more in line with how much the company is making. This means that the share price falls with it since (earnings per share) * PE = Share Price

Instead, take a look at some of the companies that Warren Buffett currently has in his portfolio: KO (Coca-Cola), WFC (Wells Fargo), BNI (Burlington Northern), PG (Proctor and Gamble), KFT (Kraft Foods) and etc. The one thing that Buffett stresses when investing in stocks is a durable advantage. This can be translated into some type of competitive advantage that a company has over other companies in the industry. Coca-Cola’s competitive advantage lies in its brand name (or secret formula...depends on if you think it really tastes better), which leads to about 2.7 billion in revenues each year. Besides for brand name, other competitive advantages may be exclusive rights to an input (such as mining rights), political barriers to entry (laws that limit new companies from joining the industry), and economies of scale (certain industries take a lot of capital before it becomes profitable, such as a telecommunications company).

While many companies have advantages, not many will have a durable advantage. Durable advantages are advantages which can withstand booms and recessions, changes in taste/culture, and technological advance. We are essentially trying to pick up free money by picking a company whose future profits and earnings are so predictable that there is little to no risk inherent in putting our money into it. However, to make it profitable, it also has to be undervalued at the moment. Practically, one is looking for a company whose product will continue to be used long into the future, and whose customer base will continue expanding. Once again, as revenues increase, profits per shareholder increases and causes stock prices to increase.

Durable Advantages:

1. Booms and Recessions

To find something that’s resistant to changes in the economy, look at the company’s revenues for the past 10 years (or just as long as possible). If you see that revenues are constantly growing, and not swinging over the place, you most likely have a company who does well regardless of how the economy is doing. For example, no matter how poorly the economy is doing, people will most likely not vary how much Coke they drink. Obviously, financials and housing are industries that would suffer in a recession.

Look for:

Constant revenue growth- Look for revenue growth over the last 10 years, and no decrease in the gross profit margin. This means that they are making more and more sales and making the same amount of profit for every dollar of sales. All of this can be found at looking at historical data on yahoo or msn.

A strong financial position- Current ratio below 1 is ideal although not all companies which are strong financially are like this. Current ratio basically shows how easily a company can pay back its debt. Its short term debt is put over its short term cash like assets, meaning the lower the better. One is also looking for stock repurchases (meaning the company is strong enough financially to start repurchasing stock…ie paying out its investors) which also leads to higher earnings per share for the rest of the outstanding shares. A strong cash flow is also important, having cash available when debt is coming due and when opportunities for acquisitions and expansions comes up is very important.

2. Technological Advance

This is really important when looking for a low-risk, long-term winner. Tech companies make money by coming up with the next big product. If another company manages to develop the product first, their earning potential for the near future is crippled compared to what the shareholders had been expecting. Additionally, although the high risk inherent in tech-dependent industries may be paid out with high-rewards, one day, their patents will expire and they will fail to come up with new viable products. Therefore, these industries are susceptible to large short-term risk and cannot be left as a good long-term investment.

Look for:

1. Low R&D costs: means the company (and check industry as well) is not subjected to harsh competition in terms of new products that need to be created.

2. Low capital expenditures: means you don’t need to buy new plants or large amounts of equipment every few years due to depreciation. Think of auto-manufacturers for both R&D and cap-ex. Both costs are huge because tech advance is so fast in the industry and leads to low profit margins.

3. Brand name

This is almost assuredly the second most important trait that you are looking for, besides for the resistance to booms and recessions. Brand name will help a product to continue to bring in the dough even when knockoffs come onto the market. Something like Coke has a dominant market share despite sitting on aisles next to thousands of similar products.

Look for:

1. Consistently high profit margins: Something with a brand name will be able to charge more for the same product due to the belief that it’s higher quality.

Hopefully this has been helpful. It’s mostly simple things, although it takes awhile to research. A suggestion would be filtering stocks by current ratios (<1.5),>5%), gross profit margins (>10%) and possibly current PE ratio. Above all just think, can I think of situations where my company and stock will tank and be unable to recover. If not, then think if the industry and the company itself will be able to expand and maintain its current (hopefully high) profit margins. Good luck! Next time on HOGS, and possibly a target value for this Chinese pork product manufacturer.

Easy Investing for non-dummies

How to perform a stock analysis (Basics Part 1):

There are incredibly different approaches to gauging where a stock should be priced. There are two main categories however: Fundamental and Technical analysis. Fundamental is looking at the merits of the company itself based upon information found in SEC filings (where managers talk about what their company is about, financial strengths and weaknesses, competitors, future directions of the company) and various financial reports (the balance sheet, cash flow statement and income statement). One mostly looks to decide if the direction, management, and financial strength of a company are sound. Other areas to look at would be competition, possible barriers to entry and possible expansion opportunities. Meanwhile, technical analysis is looking at various graphs and relying on possible recurring trends in market activity to predict where the stock will go: MACD (Moving averages), volumes, and looking for formations like the heads and shoulders are common Technical analysis tools. Most investors will use a combination of both in order to decide when and where to enter the market.

To further explain how to find the theoretic value of a share of stock, we would have to explore how stock prices tie company operations and investors’ capital together. Investors are people who give a company capital in return for a share of the profits. Imagine a bank where you lend the bank money (aka deposit) and get a varying amount of interest (if the company does well, you get bigger payouts for your investment and vice versa). The company’s board of directors (who are placed there by the shareholders) decide how much of the profits gets paid out as dividends and how much will be kept in order to have capital to pay for future business transactions (buying machines, factories, expanding, acquiring other companies). The latter is known as retained earnings. This money is considered stockholder equity and is still owed to the investors, though it has now been reinvested by the company. Since the company now has either more physical assets or cash, the company is worth more now. While this might intuitively make sense, (if something has more in assets, it should be worth more) how are these investors going to get their money back? Stocks don’t bring happiness like a happy meal would and if they don’t pay dividends, then why are you willing to pay $10 if they will never give you a dime of their profits (unless there’s a fool who’s willing to buy the share from you for more)? Two reasons:

1: the value of the company will one day be paid out in full to its investors: Many companies pay no dividends and yet are worth a large amount (Berkshire Hathaway has never paid a dividend yet is about $90,000/share). An example that demonstrates this entire point can be seen in a company whose shares are worth $1 and who have 1000 shares outstanding but pays no dividends. People are willing to pay the $1 because their money will be returned to them at some point in the future when it: 1. gets acquired by another company (example is Dainippon buying Sepracor for 2.6 billion and paying its investors premium ontop of their share price) 2. The company closes its doors and just pays out all the money it owes to its investors. If the company gets acquired/closes in 15 years, my ROE is the interest rate needed to turn the amount of money I paid for a share of stock when I first bought it into the amount of money that was finally paid out for 1 share of stock.

2: if stock prices stayed the same, there would be a greater return on equity (if stock price is $10, there are 100 shares, and the company makes $200 in profits, ROE = (200/100)/10 = 20%...if profits become $400, then ROE is now 40%). But, since everybody is looking for higher ROE (ie, how much money they get from investing $1) then the price of the stock will be bid up until it reaches equilibrium again, thus dropping ROE again.

So, stocks are not driven solely by mob mentality, as there is intrinsic value in the company. This value is created by the money people will receive when the company eventually pays out all of its stockholder equity (whether through future dividends, acquisition, or just by ending operations and paying out). Stock prices therefore essentially signify how much you are presently wiling to pay for a part of the profits of the company (paid at various times in the future) as long as it’s still running.

Easy Cooking! pt 5 - Tobiko + Shiso Pasta

This one is so easy and DELICIOUS, I had to re-post it under this blog too.

http://ericheartsusan.blogspot.com/2009/08/tobiko-shiso-pasta.html

UM, YOUR WELCOME.

Tobiko is also known as flying fish roe, which you've probably had as sushi. This recipe is an adaptation of the Tokibo+Shiso spaghetti from a popular restaurant in New York called Basta Pasta (I think they meant to say Bastardized Pasta aka the love child of centuries of Japanese and Italian cuisine). Your only challenge would be in finding tobiko and shiso leaves since clam juice is available at all supermarkets. Check your local Asian groceries. Now do yourself a favor and make it.

http://rxdebt.blogspot.com/

Easy Cooking! pt 4 - Spicy Cod Roe Spaghetti

When I'm really busy and stressed, I tend to find comfort in pasta. Japanese people have appropriated the pasta genre and created some wonderful Eastern inspired dishes. A Japanese food court next to my apartment makes the most delicious spaghetti with spicy cod roe (mentaiko) for five bucks. But leaving the house means looking presentable, and often I'm too lazy to brush my teeth/hair so I make sure I keep plenty of Japanese spaghetti sauces and instant miso soup stocked.

Need: angel hair pasta and the spicy cod roe spaghetti sauce (available at most asian food stores)

Express directions:

Cook 1 serving of angel hair pasta

Drain without rinsing the pasta with water (so the sauce will stick).

Reserve some of the starchy pasta water and add a little if sauce isn't sticky enough

Toss well with spicy cod roe sauce

Garnish with a seaweed (included) and/or a soft boiled egg, some scallions..

Sandra Lee Semi-Homemade Route:

If you have more time, you can saute 1 clove of garlic and half a small onion in a 1/4 tbsp butter and add the cod roe and toss pasta while the sauce is still hot. If you want to get really fancy, you can add 1tbsp of white wine until it evaporates, then add the cod roe and a 1 tbsp heavy cream to get that rich texture.

Serve with some instant miso soup and you have yourself a fancy fusion dish!

Stay tuned for my Tobiko + Shizo spaghetti recipe. It's on the books for dinner tonight!

Road Biking pt. 3 - Le Tour de France

Not many people are familiar with the Tour de France, simply because cycling in the U.S. is rather esoteric. Those of us who know about the Tour have likely heard about it because of Lance Armstrong - the American legend with his record shattering 7 straight wins in the Tour, and even more impressively, his successful battle over testicular cancer (which had metastasized to his lungs and brain). Lance has contributed his fair share in raising awareness about cancer through his LiveStrong campaign, and is also responsible for those trendy rubber yellow bracelets.

After announcing his retirement, cycling as a sport in the U.S. seemed to have completely died. Most Americans would have cared less about who would win the Tour seeing as they couldn't put their hopes in any obviously familiar names.

Alas after 3 years of deadwinds, Lance returned for the 2009 Tour de France trying to go for his eighth win, though his main objective, as he put it, was to raise greater awareness for his LiveStrong campaign.

The Tour de France concluded yesterday, with disappointing results for us Americans as Lance wasn't not able to pull another win. This result was actually clear in stage 17, when Contador, his teammate and arch-rival, took off at adrenaling-like speeds on an excruciating uphill climb where no one was able to follow.

Sadly, Lance was not able to hold second place either.

However, one cannot expect too much from Lance Armstrong. He's currently 37-years old, an age at the verge of retirement for most cyclists. One also has to consider his impressive conditioning after his 3-year sabbatical. Had he been in his prime, the Tour de France would have been another walk in the park.

To watch the Tour de France, visit:
http://www.letour.fr/indexus.html

On pt. 4 I think I'll talk about sizing your road bike.

Computer games pt. 2 - Illustration

Uhh... Mike requested me to show a clip... hes a stupid turd



*edit* - Apparently, Mike doe not like my style of posts. So I will explain what is happening. This is just a clip from a pug, a scrim with random people, through a program called ESEA. It's basically a way for you to scrim when your team isn't around. The site keeps track of your stats and you can win prizes. And I submitted this clip and I was pretty sure I was going to win. But I didn't -_-... so you be the judge.

Easy Cooking! pt. 2 - Lemon Pancakes

This recipe is more about the virtues of eggs in baking than pancakes (see my sponge cake recipe on my other blog).

Beating Egg Whites

When beaten, egg whites will create foam. The beating process unfolds the proteins, which then reform bonds around the incorporated air. Bakers love to beat them them until they create stiff peaks and sometimes recipes call for acids, such as cream of tartar, to stabilize the foam and prevent it from liquefying again. If you don't have cream of tartar, it you can sometimes substitute with vinegar or lemon juice.

Here are some tips on how to beat egg whites:

1. They must be at room temperature. Eggs can actually be left out in room temperature for upto four days. While I wouldn't recommend pushing it to that limit, it's fine to leave them out for the day. The older the eggs, the better the foam as well.

2. You absolutely cannot have any yolk, shells, oils, or any kind of grease touching the whites. Eggs are easier to separate when cold so if you have trouble, separate first, then leave egg whites out for about 30 minutes to an hour. Also, use stainless steel bowls and attachments. Plastics will have traces of grease that will have you beating for hours wondering when your eggs will foam.

3. A pinch of salt will help firm up the proteins

4. Use the whisk attachment on a hand mixer to get maximum air incorporation. Or mix by hand with the long whisk.

5. If the recipe calls for cream of tartar, add it midway.

6. Stop whisking as soon as stiff peaks form (will not droop). Overwhisking will cause whites to liquefy again.

7. Use whites gently and immediately.

Stiff peaks

Folding in Egg Whites

Folding egg whites into batter is what gives cakes, meringues, and pancakes their loft and fluff, or what I like to call super fun happiness! This video is a great tutorial on how to fold in egg whites, as well as a demonstration of how the steam from within the egg whites rises during cooking!

http://link.brightcove.com/services/player/bcpid271521142?bctid=1711778260

In a bowl whisk together until very smooth:

2 cups sifted flour (sift first, then spoon into measuring cup and level)

zest and juice of 1 lemon

1 tsp salt

1 tbsp baking powder

1/4 tsp baking soda

1/3 cup vegetable oil

2 cups milk

2 egg yolks (save whites)

In a separate bowl, beat egg whites, then fold into batter as instructed by the video. Butter your frying pan, ladle your batter, watch the cake rise, and then flip. Serve immediately!

Art pt. 2 - Graphics Software

Now that you know about graphics tablets, I must also say that they are pretty useless unless you have some sort of graphics software to use them with. Everyone knows about Adobe Photoshop, so the purpose of this article will be to showcase some of the lesser known graphics software out there that I use, have used, or have heard about.

1. OpenCanvas: http://www.portalgraphics.net/en/



This program is very handy and intuitive, and it is the program that I use the most because of its simple feel. Version 4.06 is the last of its line that uses the original OpenCanvas interface that I felt was easy to use. All of the controls were simple to adjust (opacity, pen pressure options, min diameter, max diameter, etc) and the hotkeys to switch brush types were simply a, s, d, and f. However, after the release of version 4.5, the OpenCanvas developers decided to give the software a more photoshop look and feel, probably so that long-time photoshop users can easily get adjusted. Even the hotkeys were changed to that of photohop, so I felt that it just became more complicating to use. Well, you will probably have no idea what I am talking about unless you try out this program for yourself. It has a free trial available, so you can test it out, but afterwards you will have to pay (although it's pretty darn cheap compared to professional software like photoshop).

If you don't want to pay, there is a free version available, but it is one of the earliest versions of the software, which isn't really bad at all if you just want to draw or paint. You can find it free to download here: http://wistinga.online.fr/opencanvas/

2. Easy Paint Tool SAI: http://sai.detstwo.com/sai/



If you are active on deviantart.com, then you probably noticed that this particular program is all the rage these days. I haven't used it that much, but it certainly does have a nice feel to it. Many people on deviantart who use it say something like "it's so easy to use and it's really easy to make your art look good with SAI." The preset brushes for marker effect, watercolor, etc feel more natural and smooth than in other programs, and it's easier to blend colors while painting. Also, all of the interface is shoved over to the left so that your working area won't be blocked or hindered by floating tool windows, which I think is a very clever and efficient design.

This program is also not for free, but there is a 1 month trial period (which apparently is resettable by some method that I will not discuss here).

3. TheGIMP: http://www.gimp.org/



This program is said to be the open source alternative to Photoshop, but it has a very different feel to it even though it is capable of many of the same things. I have very limited experience with it, so I can't say much more about it except that it's totally free.

4. Oekaki/SHI-Painter: http://hp.vector.co.jp/authors/VA016309/spainter/index_en.html


Many people call this a super enhanced version of MS paint, but I've found it to be quite different than paint when I tried it out for a bit. It is a very simple piece of software, but many people like it because it is so simple. There aren't a lot of options or a large variety of brushes, but it has more "advanced" features such as layers. Even though this is a very simple program, there are lots of amazing art pieces that have been done on oekaki (http://yayster.deviantart.com), so don't be deceived by that example picture on the web site :). This one is totally free, too.


There's a lot more stuff out there (Corel Draw, Paint Shop Pro, etc) that many people use and love, but I have no experience using those programs so I can't say anything about them. There's probably also a lot of other drawing/painting software out there that I've never heard about, so if you know of any (especially free ones) that aren't listed here, feel free to list them in the comments.

And since there was a request to see some of my works, here it is:
http://jeongk.deviantart.com (profile)
http://jeongk.deviantart.com/gallery/ (gallery)
It's nothing pro level, but I hope to get there someday. Thanks for reading!

Magic pt. 1 - Wow Factor

Magic is a discipline that requires perfection and nothing less. Though I am no where near that level it is a hobby that I enjoy practicing. One of the greatest things about magic is that it creates a whole new world for the viewer: the illusion that the impossible can be accomplished in such an ordinary world. Magic is an art form that speaks the language of mysteriousness, regale, and perfection. The very act of completing a successful magic trick or routine is enough to open doors to an imaginative world.

Computer Games pt. 1- CS... no it does not stand for computer science

Well, I wouldn't be as far as to say that it is a hobby but dictionary.com would prove me wrong. Made in 1999 (almost as old as starcraft), I didn't confront Counter-Strike til a harmless gathering of people at EVO sometime during middle school, the only LAN cafe (only a chinese restaurant now) in champaign. When I heard we were going to play CS, I thought Counter-strike was the command and conquer game. Boy was I wrong. My immature, naive gaming of usual starcraft and N64 would be warped into a form of obsession, an obsession to become -Good-, or as some may say... l33t. (haha the things you can find from google searches)


Losing time for social and productive activities (I never studied... but still graduated =P), CS occupied a big part of my life. I sacrificed my sleep and many other important things in order to become better and better. Although my personality seemed to change once I was behind a computer, playing with friends and e-friends was my way of spending "quality" time.

During the years, I've had a few chances to really make it big (relative term... so moving towards being a more known player). Of course this would happen simultaneously with the formation of a new team consisting of friends... Sammeh, Jinwoo, and M.Andy... how could I say "no" to them??? Impossible. So I spent the bulk of my years trying to play competitively but it was quite difficult. My team didn't seem to have the same kind of aspiration as I did but I still wanted to play with them.

In the recent years, everyone seemed either bored or unsatisfied. Each friend went on to do their thang... whether it be WoW or bball... they just phased out. But where was I? I still wanted to play. Not being able to afford or unwilling to pay for a new game, I kept at it. Now there was nothing to stop me from joining a good team and hopefully finding sponsorships. However, reality gave me a good K.O.
Although this may sound humorous, upper-levels of CS is highly political. You needed connections to get anywhere. Me not having played too competitively, I did not form the much needed connections throughout the CS community. All I could do is laugh at the position I was in. I was going nowhere.

I made it to the upper-third (thats only 33%... but theres a lottt of teams) of the unknown competitive CS community with a team named providers (trust me... i dont even know what that's supposed to mean... no one does). But this was as far as I will ever go.

And this is where I am today. Of course I play not nearly as much as I did in my earlier years, I do still play. There's something about the game, which mixes a great deal of physical (haha) muscle reactions and a great deal of mental strategy, that keeps luring me in.

Although I would say the game gives me more of a heart attack than pleasure nowadays (hence my reluctance to call it a hobby), there were some good things that came out of it over the years.

1. Quality time spent with friends - I know I put it in quotes earlier... but I really do believe it was quite a bit better than some of the usual activities such as the movies (one of the only things to do in Champaign outside of someone's home). Movies involve near to none person-to-person interaction except the occasional... whoa ... AHHHHH.... "How did he do that?? Can you explain it?" "It's a movie Sam."2. Made a few e-friends, one of whom i've met to play tennis... I would say on many occasions I've felt a lot closer than just online friends: spent many hours together trying to reach the same goal and I've talked to them about life problems and vice versa. It's funny how much you can achieve without ever seeing them in person. (This is not a leeway for online dating... I still think online dating is ridiculous and should be considered malpractice and punishable by law... haha i'm exaggerating... or am i?)3. An Alternative - I never really had the chance to get good at something. My parents weren't willing to put me on a sports team, something I really wanted to do, due to either financial or ride issues. I came to accept our situation, but I wanted to do something I was interested in. Although not a good alternative, it was there.

Haha... all those years of playing and being able to come up with only 3 points... what can I say? I'm not that smart.

Moral of the Story???




Stick with starcraft and the N64 =P


*Update* I fixed a few grammatical errors due to Mike's suggestion of proofreading... UHHH NAOOO? If Microsoft Word doesn't give me a red or green line (occasionally blue), then it's correct. That's my method of proofreading.
I added some pictures.... for those who need a distraction while reading a long story such as myself... so i guess it was for me

Easy Cooking! pt. 1 - Butterflied Garlic Shrimp

When you're short on time and money, it seems like the easiest thing to do is to go a local fast food joint to pick up a greasy hamburger or burrito. If anyone knows this, it's me. During the past academic year, I ate at least 500 slices of pizza, while sleeping 3 hours a night. That's why when I had free time this summer, the only thing I wanted to do was cook and feast. I have a another blog dedicated to my more challenging culinary adventures as I attempt to perfect the art of popping popovers and braising coq au vin. But this is an entirely different blog. Here I will feature fast and easy recipes that will nourish and impress, and hopefully inspire you to EAT (real food).

Cooking is a skill. And with all skills, it needs practice and consistency. I highly encourage you to start practicing these recipes this summer. Pretty soon, your pantry will be stocked with the right ingredients and you won't even need to follow a recipe. You'll be composing your own impromtu creations and you'll come to love not only eating, but the art of entertaining and cooking. Being a college student doesn't mean you have to be condemned to eating unhealthy and over-processed food!

My first post is about a kitchen appliance that no college student should be without - the toaster oven. It can toast your bagels, bake, and broil your fishes and meats. The best part about is it that it saves electricity if you're cooking for just one or two people. I received the Cuisinart TOB-195 Exact Heat Toaster Oven Broiler in stainless steel as a wedding gift. It's available on Amazon.com for about $150 and it's been rated the best consumer toaster oven. But I know you guys are young, and mostly without an income, so if that's too heavy of an investment, the Proctor Silex 31115, which retails for about $30, is a great basic toaster oven.

So, the first recipe is Butterflied Garlic Shrimp. Eric Ripert, of famed restaurant Le Bernadin, proves that it's the man, not the tools. Look at what this guy can do with just a toaster oven!

1 small clove of garlic minced

1/2 small shallot minced

1/2 tbsp of parsley chopped

2 tbsp of butter softened at room temp

6 medium shrimp peeled and deveined

fine sea salt and fresh ground pepper

1/2 a lemon

Pre-heat the toaster oven to Broil and cook the shrimp 3-4 minutes until it just turns opaque. You may finish it with just a little bit of fresh squeezed lemon juice if you want. The shrimp is perfect served alone, with a rice, or on top of a pasta or salad.

You might not yet be ready to cook with all of the above ingredients. If mincing garlic is too time consuming for you, buy a bottle of pre-minced garlic and just spoon it out. Shallots look like a small onion but are milder and slightly sweeter in flavor. They're great for seafood dishes and store for a really long time in a cabinet with the onions and potatoes. You can, however, substitute shallots with a little bit of minced onion, preferably a red, vidalia, or sweet one. I always try to keep fresh parsley on hand because I use it to flavor my rice and pasta dishes all the time. If you don't use it as often, dried parsley is an alternative, but the flavors just won't be as robust. If you're entertaining or cooking to impress, definitely use fresh parsley, but always the flat leaf Italian variety - not the curly parsley. Try to cook with kosher salt and a black peppercorn grinder for the best flavor. And if you keep a bag of frozen uncooked shrimp, just take out the amount you want to use and soak it in some salt water for about an hour to thaw.

If you try the recipe, let me know how it turns out. Pictures would be great too!

Go, Baduk, Weichi pt. 1 - The Mindset of Go

I first started learning Go when I was about 8 years old, but I never devlved much deeper than the most basic strategies. It was much later when I became fascinated with sea shell stones on a wooden board.

What was the most striking difference between my playing style as an 8-year-old and my playing style now is that I am less greedy and more patient. I'm not necessarily prying on the issue of virtue, but Go is also a game of character. It's a multi-dimensional game touching base with several facets of life not excluding strategy, memory, flexibility, but most importantly a test of character.

I'm by no means an expert, but it seems apparent that the sooner you learn to apply patience and understanding to the game, the faster you begin to realize what this game is really about. Once you nail down the basic strategies, you begin to understand that at higher level games it really becomes an exciting game, more like psychological warfare.

You begin to learn how to wear down the opponent or scare him into making the wrong move. Patience and character pays because the longer you hold up can often make the difference between a win or a loss.

The concept of applying patience is also fundamental to lower level games. When you begin to sit back and think about the consequences of each move, you understand when and where to start cutting your losses. You will also begin to see where the appropriate time to attack your opponent and avoid playing overly aggressive plays. It is really quite remarkable how closely Go will articulate your patience and reward you with it.

It is not surprising to see thousands of Go proverbs that seem to impose more of a moral than a strategical tactic. You can spend all the time memorizing proverbs, however, the easier option is to just apply pinch of patience.

Art pt. 1 - Graphic Tablets and You

Whether you are an aspiring artist or just a casual photo editor, having a graphics tablet really comes in handy. For artists, it certainly feels different from traditional media (paper, paint, pencils, etc.) but the potential knows no bounds. However, having a nice tablet and fancy programs does NOT make a good artist. The skill and practice needs to be there first, and THEN you can utilize the potential of art in digital media. There are some people who are truly loyal to traditional art and view digital art as "cheating" in a way, but I personally don't believe that's true. If you can envision an idea and you want to make it into a work of art, why let traditional means get in the way of that goal? Anyway, that's a completely different argument, so I'll move on to the main point: choosing a graphics tablet.

1. The first thing that any artist will tell you about choosing a graphics tablet is: Wacom brand tablets are the ONLY way to go (www.wacom.com). They are a bit expensive, sure, and there are tablets that are twice as large and half as cheap as some Wacom models, but Wacom technology is vastly superior and they last for many many years in perfect working order.

I've read many comments about non-Wacom tablets from people who just wanted a cheap tablet to do simple photo-editing, and the responses have always been the same. The tablet either simply did not work properly all the time, or the pressure sensitivity was inaccurate, or maybe there wasn't even any pressure sensitivity at all. I don't work for Wacom or whatever, so I'm not trying to sell them out or anything - any artist anywhere will tell you that rule number 1 is to go Wacom.

2. Now that you know to go Wacom, the next consideration would be the size of the tablet. I currently have a Wacom Graphire 4 medium size tablet (6in. x 8in. active area) and it seems to be a safe size to go with for anyone. I thought the small would be too tiny (4in. x 6in. active area) but I tried it out once and it was not bad at all. Of course the smaller tablets are cheaper, so if it's a budget issue, getting a small tablet might be a good consideration. But of course you should try one out if you can to see if the size is comfortable for you.

The Graphire tablet that I have is currently discontinued by Wacom, but you might still be able to find it around online retailers or ebay. It is replaced by the Bamboo tablets, which are better anyway. There's two different tablets in that line: Bamboo and Bamboo fun. As far as I can tell, they are basically exactly the same thing in terms of tech specs. The two tablets just look different and the Bamboo doesn't come with a mouse (which feels really weird and is pretty useless in my opinion). However, the Bamboo only comes in small size, whereas the Bamboo fun has both small and medium.

There is a much larger range of sizes to choose from in the professional Intuos line of tablets, but I personally have not used one before. However, the larger the tablet, the more detail you can achieve in your work, but it also means that you will have to move your hand in larger motions when drawing or editing so it might become a bit tiring.

3. Which leads to the next point - pressure and tilt sensitivity. All of the tablets besides the Intuos have 512 levels of pen pressure sensitivity, which means you can use the pen pressure (pressing harder or softer on the tablet) to control things like brush size and opacity to give your strokes a more natural look. The Intuos is the professional tablet, so it has more than all the others. The Intuos 3 (which is discontinued) has 1024 levels, and the new Intuos 4 has 2048 levels, which just means it has amazing accuracy. I didn't really think having that much more sensitivity levels mattered that much, but I've read that it feels much more natural to have more sensitivity. The Intuos also is the only tablet with pen tilt sensitivity, but I have not used one myself so I can't really say much else about it.


Well, I think that's about all I can say about tablets with my limited experience. There's also the Cintiq line of tablets, which is basically a tablet monitor so you're drawing "on" the screen, but I read that it is not as precise as the other tablets, but really convenient in its own way.

If I missed anything or if something doesn't make any sense, feel free to say so in the comments!

Road Biking pt. 2 - Draag

When I first bought my road bike, I never understood the reasoning behind why they go so fast. Granted, I bought it because I knew they somehow go significantly faster than my old moutain bike, but there are a couple of factors that contribute to the speed advantage.

I just finished my first long ride on the road (about 15 mi) and noted a couple things.

1. There are in actuality 2 important gradients. The first being uphill and downhill variations on the terrain where the biker will have to work against gravity or will be boosted by its effects. The second gradient is wind. At near zero velocity, wind pressure does little to hinder your progress, but on the road you might be pedalling at 20-25 mph. If the wind is gusting at significant speeds, riding in the opposite direction is going to be very hard on the biker.

Force of Wind = -1/2 * density * biker velocity ^2 * drag coefficient * unit vector of wind

So this means the force is a square relationship to velocity making this a very formidable force at higher speeds. Now there are three factors in this equation in the control of the biker: biker veloctiy, unit vector of wind, and drag coefficient. Reducing biker velocity to decrease the force of wind (or drag) is out of the question because we want to be going faster. Changing the unit vector is not entirely in the biker's control, and thus a factor that isn't desirable to necessarily change. The reason road bikes are so much faster is that you can reduce the drag coefficient. The person on the bike can use the drop down handles to their advantage and cut their surface area down to half - thereby potentially halving the drag coefficent and the force of wind. I can attest to the force of wind as while I was pedalling against it, I could only ride in the 1st wheel, 5th cog on a flat surface. Going down the gradient, however, allowed me to shift up to the 2nd wheel 9th cog, thereby allowing me to go near car-like speeds.

2. The second factor that contributes to the speed of the bike is that the tires are much thinner. Thinner tires means less friction on the road that potentially slows down the biker. The tires of road bikes also lack treads making the surface much smoother. This allows the biker to go much faster with a drawback, however - the tires are more suceptible to punctures.

3. Road bikes are much lighter, perhaps shaving 3-4 lbs. While this weight might not seem like much compared to the average weight of a human 140-160 lbs, 3-4 lbs on the frame accounted for large distances will wear the biker down more. Try riding a 30lbs frame over long distances (ie like those heavey cruisers) and then ride a 20 lbs road bike - you will feel the difference.

Road Biking pt. 1 - A New Beginning

I can't exactly recall where my fascination for bikes emerged from. Maybe it was ingrained in me, but my infatuation was always there. In all honesty, I was never good at riding bikes. The first bike I got was from walmart, and I was about eight years old. It costed me an arm and a leg in order to learn how to ride a bike. After many graceful failed attempts in teaching myself, it suddenly clicked. Ever since then I've always wanted to zoom down the road at 30mph.

So, if you've read my post on selling stuff on craigslist, you can probably assume that I earned a little extra pocket cash. I needed $499 to fund my new bike and lo and behold, I've reached my goal.

Here was my old bike bought some 6-months ago:

And here is my new bike:

Yes...it's not brand name, but it's arguably a good bike. Granted I might receive a lot of sneers from the richer snobs with namebrand 7k bikes. However, I don't believe the performance of the bike will suffer too much in comparison.

Frame: 54 cm Aluminum

Shifters: Shimano Sora (9 speed)

Front Derailleur: Shimano Sora

Rear Derailleur: Shimano Tiagra

These aren't necessarily racing caliber either...but not bad at all!

So here I begin my journey into the world of Cycling. I'm still a novice, but so far I've managed to tune my brakes, gears, and assemble my own bike! I'm learning as fast as I can and hope to share all the knowledge I gain to all other humble novice bikers!

Making Money pt. 1 - Starting Somewhere

Well, this isn't really a hobby I suppose, but it is something that interests all of us. Making money is likely the most arduous task as there is fierce competition in this field. In truth, there are rarely any working get-rich-quick schemes - most of which are scams. If you're actively seeking out a way to get rich fast the easy way, you mine as well be buying lottery tickets, as both seem to have a payout in the red.

My first lesson in this field would be to prepare yourself for a long and ostentatious journey of sleepless nights and hard work. Just kidding! Sleepless nights might be pushing it, just be prepared for a lot of work!

If you're thinking about starting up a business or just wanting some quick pocket money, consider selling a few of your old items on your local Craigslist.

Just go to: http://craigslist.org and set up your account to start selling. It's free, fast, and easy.

Just some tips as you sell your old stuff:

1. ALWAYS include a picture. An item without a picture is never going to sell well, it's shadey. Would you buy an item that you can't see? A picture is worth a thousand words, trite, but true. With that being said, BE descriptive with your item. Include measurements, damages, and additional info relevant to the buyer, they will appreciate it and will reward you with interest in the item.

2. When taking your picture, take your items to a clean background. Never use flash. Take a picture in a well lit room. Take a couple close up pictures. See photography in this blog.

3. ALWAYS accept cash only. Unless the person is someone you know and can trust, never accept money order, check, best western, etc. CASH only. Reason being: It's common courtesy for the buyer to pay in cash so they should understand. Scams are prevasive on craigslist, and accepting any form of payment other than cash is largely susceptible to those scams. Also, even though the buyer might not be a scammer, the check might bounce, and you're faced with the difficulty of trying to get your money back.

4. Find an appropriate value. Cut all emotional ties with your item. To the buyer, your sentimental value means nothing in terms of price. An item bought right off the shelf, even though unused, might lose 20% of it's value right off the bat. Any scratches, rips, or chips also significantly depreciate the value. So consider the price of your item carefully.

5. Don't sell your item for too low! While you're encouraged not to get greedy, there is a reason someone is interested in your item. That interest is largely porportional to the price at which you can sell it for.

6. Look around, survey the market before placing your item on sale. The price at which you can sell an item is also largely dependent on supply and demand. For example, in areas with a college campus, you can sell a road bike for much higher than you would anywhere else - just because students are more likely to want a cheap used bike. Consider the population of your community and see what they want. A good indication of what is desired is what is already selling on craigslist.

7. CLEAN your items. You don't understand how much more you can sell your items if you just wipe them down. Appearance of the item first-hand makes or breaks the sale. Either that or you'll end up negotiating for a much lower price. Clean your item before you take the picture. If there is anything in your power to make the item more functional, cleaner, and more sellable in a reasonable amount of time: DO IT!

8. Be prepared to negotiate. A little annoying part of selling your stuff on craigslist is that you advertize a price, but that price just seems relative/abstract/intangible. People rarely adhere to the price and will always want to negotiate for a lower one. You're in a losing battle, because you can't negotiate for a higer price than what you listed, but they can always negotiate a lower one. A lot of buyers feel good shaving off a couple dollars. Depending on the price of the item, I don't mind too much. For example $25 dollars off a $450 couch is not too bad, just because $25 relative to $450 is small. But $10 off a $30 water dispenser is not especially good on my end of the transaction considering that's 33% of the price I'm selling it for. So there are a couple things you can do to combat rampant bargaining on the consumer end.

• 1. Explain to them kindly that, you'd rather sell it for the original price. If you have more people interested, don't be afraid to let it go. I will admit...this is the least effective.
• 2. In your advertizement, say you are firm on the price.
• 3. Price your item a little higher, and prepare for bargaining (you have to becareful)

If you are a master at #3, I think it's the most effective. Just because people buying will feel good about shaving the extra dollar and your selling price won't take as hard of a blow. Becareful not to price it too high so that you get no offers.

9. When a buyer is interested, be prepared to give them your number and address. If you can, meet in a neutral location as that is always the safest option. Pinpoint a specific time to meet and encourage the buyer to call you if they cancel.

10. If a buyer is really interested in an item, and they ask you to hold it, DO IT! It would be very rude and on the verge of malpractice if you didn't. If you need to sell it ASAP kindly explain why you can't hold it. If it's a large expensive item, ask them for a down payment. I've had good experences with holding items as people appreciate you and will often buy the item from you in the end.

11. My last advice to you: be organized! Don't consider selling 100% of your items unless you're pretty much giving them away for free, so consider selling large numbers of your old stuff. Clear out your garage, closet, or whatever and sell them all. Catalogue your items, perhaps in an excel sheet or something with potential buyers who contact you about the item. Also be prompt with your e-mail. Responding a whole day later will be too late for many people! They probably would have already bought another item.

That's it guys! Hope you're on your way to making some quick cash! I sure have. My goal was $499 for my bike, but I've sold about $900. Considering these are items I'll never used in the future, it's not too bad. Also I'll be continuing to sell more stuff, like my brother's guitar!