Paul Meyer Buys Houses

HOKU, AAPL, SWN, NYX – Latest news on the trailor park

After HOKU earnings the stock plummeted to $8 and I totally expected it to fall. Everyone knew they weren’t going to show a profit and it is still very much a speculation stock because it hasn’t been able to start production yet. I’m with Jim Crammer about people rebuying it at a lower price and it moves up again throughout the year on its speculation of being the #1 for alternative energy. Our world is moving in that direction so I could only expect growth. As for AAPL it’s iPhone has been a success, but the market is turning over and its stock is finally starting to become submissive to all the selling. I’d buy AAPL later, but I see it moving much further down into the possible $110’s before it moves into the $200’s. If AAPL is able to continue momentum then I’d buy Calls on it if it moves past $150. Then it will be fighting the selling, but investors are true believers in it. It’s PEG score also has moved down to around 1.66 from over 2.00. So its value has gone up as well with its super profitable earnings. SWN’s charts have been showing a flip to oil/gas companies. Its major trend on the Daily and Weekly are going down with all smaller charts. Just yesterday it bumped up because it was slammed down into the Bollinger bands. I expect it to keep moving further down in the lower $30’s. I’m playing SEP 07 35 Puts on it currently up around 10%. I plan to sell out once it hits around $35 if I’m correct. NYX is always a confusing stock. You’d think this stock would be doing what ICE is doing, but it isn’t. I’m in Calls and I think I’m going to lose my entire $7,000 investment if by Sept. it doesn’t move higher than $87. At its current price of around $74 I’m left dumbfounded and believing in the stock that makes me seem living life a bit bicariously. NYX has had almost 4 major falls with small peaks. This stock has to pop high if on Aug 2nd earnings are awesome and profits are up. It should pop past $90 because there hasn’t been much news on it. So if it surprises investors and analysis it could finally get back in the game and be a more volatile stock like it use to be. If you are currently playing Puts on it you are probably a lot more correct and wise thinking then myself.

As for the good old trailor park I bought. I’ve been working with my property manager. I’ve been trying to get the cable tv hooked back up because it was disconnected before I could transfer it into my name. Two of the tenants are refusing to pay their rent because they are not receiving cable tv. Can you believe this? I’ve never heard of such a moron of a tenant in my life! I told him to turn off their electricity and gas that day until they paid their rent or enforce them to be evicted that week. I’m not going to tollerate this type of behavior. Business is business and you pay your rent regardless if you get cable tv or not. I pay for their housing and all utilities. Cable tv is a luxury. I only see future problems with very low income low education tenants like this in the future. I’m trying to move all the tenants in and rent the trailors properly with full leases, applications, and deposits so I don’t get shitted on. If I’m going to make this profitable I need to take the steps to make it profitable and not deal with unacceptable tenants.

2 responses

  1. Bob

    Think you are asking for trouble. Turning off elctricity to teach them a lesson may actually be illegal. Better check the TN laws before doing it. You may end up with a lawsuit.

    You may also put your manager in a position they are very uncomfortable with and you could lose them.

    You should try to remember that the type of people who you rent to don’t have much more to do than watch the tube. They pay for shelter, heat or cooling and lame TV. If you were stuck in a motel room for a month would you get pissed about no TV?

    Keep in mind that you get what falls between the cracks of society. If they were good at keeping it all together they would probably have a better living situation.

    The kind of turn around you are trying to do at the park is hard to do from a distance. With all of the maintenance issues I can’t help but wonder if you are over your head.

    You seem to have your stuff together very well on this blog but I wonder if dealing with simpler folks isn’t going to be a major hassle for you. Two totally different worlds. You seem to be a no-nonsense, got my shit together type dude in a nonsense filled, don’t have shit for my shit together biz.

    Rural TN is unlike a lot of the rest of the world. I moved from Oregon last year and suffered a little culture shock. If it gets to be too much let me know as I am looking for a park to buy locally. I am in Nashville. Good luck, Bob

    August 2, 2007 at 5:32 pm

  2. Bob,

    You make a truly valid point here. I read up on TN law and there is nothing on not turning off utilities if no payment. I’m sure they could use against me so I changed it within the 30 day rule to be kicked out. Most of my tenants do not have leases so they don’t have much power against me, but still you are right and I’m going to take that into deep consideration before I turn off someones power. This time it worked. Both tenants moved out. Now I’m tenantless on two properties BUT my hope to get ones that are willing to sign a lease and be long term better ones is what I’m soliciting for.

    August 10, 2007 at 4:45 am

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