I have been watching a couple of stocks very closely the past couple of weeks and am waiting to pounce.  They are both technology related, but one is online sales and the other is computer bits and bytes.  Overstock.com and Cirrus are my picks for this week.

I am going to start with my favorite, Overstock.com or NASDAQ: OSTK.  At the time of this article it is trading around $22.94 and is riding the price roller coaster between $22 and $23 with change.  The 52-week high is at $26.50 and I expect it to take off to the low $30 range soon.

As of now, I can not get a good grasp on when the  price hike will come, but I do not expect a down-turn any time soon.  Overstock is a great buy because the management is very solid all with great track records.  The CEO’s father is now a member of the board and he has an amazing record of success.  Also with what matters most, the financials look great.

Online retailers do not have as much overhead as brick and mortar retailers do, but have the potential to move as much, if not more, volume.  This adds up to more of a profit margin.

I am looking to buy OSTK around $22.50 and then sell right before it hits $30.  Once the $30 milestone is hit, investors are going to cash in on the profits.  Get out before they do.

Finally, Cirrus.  This company gained lots of momentum after a shout out from Jim Cramer on Mad Money.  They are the company who has the contract with Apple for parts that go inside of the iPhone, iPad and other goodies.  Unlike Apple, who is trading around $250 per share you can jump on Cirrus (NASDAQ:CRUS) for under $15.

Currently, CRUS is trading at $14.38 and hanging out in the $14 range.  I am convinced you can pick up some shares for just under $14 if you are patient, but this stock will continue to grow to almost $20 a share.  This is one for those who are high-volume buyers to ride.  You are not going to make much as a small investor here.

Those looking for a solid performer with huge room and potential for growth, listen to this pick.  In fact, get to the mountain!  Green Mountain Coffee Roasters (NASDAQ: GMRC) is a great stock teetering on a tipping point.  I believe it is ready to climb, I am actually putting my money on it.

Continual improvement is something I always have believed.  As a novice investor, there is much room to learn.  I have up to this point learned how to build a solid portfolio, which has produced for me quite well.  My strategy is a long term one that I coined “free money.”

Free money, I choose stock with solid financials who pay out great dividends.  I consistently have made money over the past two years in a down economy and am gobbling up more shares by reinvesting the dividends.  However, that is a moot point today.  My next chapter is about learning the sectors and what affects their movement.

I decided to start in the Consumer/Non Cyclical sector after sipping on my Panera coffee.  In doing so, I came across Diedrich Coffee (NASDAQ: DDRX) whom is being noticed as a company with huge earning potential.  In fact, they were crushing the other stocks in the sector until the DOW collapsed last week.  I would be jumping all over this stock if they were priced a couple dollars cheaper.  Not because I think they are over-priced, in fact, they are a great buy at $34.63.

The lower price desired is because there is high speculation that they are going to accept the buyout offer for $35 a share by Green Mountain Coffee Roasters.  Therefore, if they do, you would not gain much if any.  However, GMCR is sitting in the middle of their 52-week range.  They have tons of assets and very little debt.  Their management is solid, and they are moving to open new distribution channels.

If they obtain DDRX, it would slip right into their proposed launch of a wholesale line.  DDRX primarily deals with wholesale customers.  Weird how the announcement to launch wholesale is quickly followed with an offer to buy DDRX.

Just the other night, Chris Hubinsky, my friend and co-founder of H&L Ventures, and I laid out our first quarter stock investments.  I wanted to share our stocks and re-iterate our investment strategy.  Also, I am going to talk about a stock from our last strategy meeting.

We started this very small investment company in January of 2007.  H&L Ventures, Ltd. has been blessed with a 20% profit margin in the first two years.  We believe the credit can be awarded to our strategy, “free money”.  The majority of stock we purchase is high dividend yielding stocks or giant corporations.  We chase after companies with dividends because not only do we have shares in their company, they are giving us free money.

Dividend investing is when you re-distribute the funds for more stock.  So, instead of collecting a check for dividend payouts, we buy more shares, which means more dividends on the next payout.  We aim for companies with 3% yield or higher.

One such stock was (HTE) Harvest Energy Trust.  This was an energy investing company who paid monthly dividends over 3%.  Most dividend paying companies only do so quarterly.  Not only did we get dividends and more stocks, but this stock more than doubled at a rate of 230%!  Recently, they were bought out for $10 (Canadian) per share and we got $9.46 a share.  All those who listened to me last year enjoyed the profits.

This time around we decided to go after a high dividend stock.  This is Frontier Communications (FTR) with a 13% yield paid quarterly.  For those having trouble grasping this, the Law of 72 has you divide 72 by the yield.  The result is how many years it would take to double your initial investment as long as dividends are redistributed.  Every 5.5 years this investment will double.  Not too bad considering most companies have yields below 3%, which would take at least 24 years to double.

Naturally, we jumped on this stock.  I suspect the yield is high because they just started paying dividends in 2008, and they will not remain this high.  However, we couldn’t pass this one up and sleep at night.  Can you?

It is coming up on the summer months, and there are two great stocks to help earn you some lemonade money for the upcoming heat.  There is a great one to watch and another great one to pounce on right now for almost instant returns.  I am talking about General Electric (NYSE: GE) and Harvest Energy Trust (NYSE: HTE).

The stock to watch is GE.  General Electric is currently much lower than their usual range in the $30′s sitting at $10.94.  Just looking at the technical, I expect them to drop in between $8-9 range in a month or two.  However, even buying them right now is a 60% off bargain deal.

General Electric is leading the way in alternative energy ideas.  They are the largest producer of the new Compact Flourescent Light (CFL) bulbs.  These bulbs soon will be taking over our normal bulbs because of their energy savings and long lasting durability.  GE will capitalize on this market.

GE is also a very solid company, famous for their excellent leadership throughout the years.  Everything they build is of great quality and affordable price.  From light bulbs to home appliances.  From medical equipment to aircraft engines.  They are everywhere and appear to have a vision for the new “green” market we are entering.

My top pick that you need to run out and buy now is Harvest Energy Trust.  This company is an energy company based out of Canada.  Their normal range prior to the recession was in the $20′s and now are a steal at 80% off of that.

Coming up on summer and the normal trend of skyrocketing gas prices at the pump, they are poised to make a decent profit.  This is an excellent time to buy a stock like this.  My only regret is that I don’t have more money to throw at them right now.

Oh, I almost forgot.  Dividends.  Harvest Energy Trust pays out monthly dividends.  Normally, they are about $0.30 per share.  Now they are a mere $0.05, but with one hundred shares (dividends reinvested) you get one free share a month.  That is 12 free shares a year just for having faith.

Everyday as you watch the news or even check your email, you hear or see something about the stock market, whether it’s how the Dow is doing for the day or a great stock tip for some company.  Whatever the case, the stock market is making big news for a good reason, people are making money!

To understand stocks better we’ll need to go over what some of the numbers mean and two of the biggest strategies for buying.  First, the number you see on the ticker when you look up the symbol isn’t necessarily what you’ll buy it for.  That number is the amount of the last trade.

There are two other numbers that you need to worry about, they are the ask and the bid prices.  The ask price is the amount the stock is selling for per share (example, if it was 1.00 that is $1.00 per share to buy it).  The bid number is the exact opposite, for what amount can you sell your share?

There are a lot of factors used to tell if a stock is a good buy.  Some people research business plans and financial statements while others solely evaluate the technical aspects.  Researching the plans can be very confusing and time consuming.  They usually are misleading because every company is going to make their company sound like they are the best company.  Study the income sheets and determine if they have the ability to make a profit.

Other professionals solely base purchases on the technical aspects of a stock.  Studies have shown stocks act within a certain degree of predictability.  This means certain trends and chart patterns commonly yield the same outcomes.  There are many good Internet articles and books to teach you all about these.

You need to employ a little bit of both methods to make wise investment decisions.  Unless you have an MBA, you’re not likely able to determine how a company is going to do by the business plan alone.  Also, looking at only the technical aspects is like financial astrology.  When you see a great buy…jump on it!

This economic slow down is very scary for everyone.  Daily we are hearing about companies going under and watching our portfolios dwindle.  Those with the spare cash have an extremely unique opportunity, though.

Why do people go to Wal-Mart or dollar stores?  To buy things more cheaply than in other places.  This is a very smart shopping policy.  If you went in to your favorite clothing store and saw jeans for $0.50 when they are normally $75.00, would you panic and sell all the clothes in your closet?  Heck, no!  You would clear the racks.

Why do we all panic now when our stocks prices are falling?  This is like the ultimate holiday sale.  Sure, if you are close to retirement age or were planning on using that money for another purpose in the short term it is a real bummer.  One thing to keep in mind for the future is when you are within a few years of needing the money you have invested, put it into something solid like savings bonds or CDs.

There are actually people dumping the stock they have and placing even less into the automatic investing plans they have.  I understand it is really scary and there is no perceivable bottom to this drop in the market, but history has proven the market will rebound.  In fact, on average it has risen 13% a year over the last century.  Remember the Great Depression, Savings and Loan issues in the 80′s, etc.?  Still the average has been this high.

My advice is to find a solid company like General Electric (GE) or Coca-Cola (KO) and invest in them.  Both pay dividends and have not been hit extremely hard with the recession.  It is likely their numbers will once again drop a little lower but in a three to five years I bet they go up again.

My personal stock pick for the month is GE.  Their yields are sitting at 6.36.  This means whatever I invest today, and allow the dividends to re-invest, will double every eleven years.  Imagine investing even more over the next decade.

Don’t you love it when you get that order of French fries and find an onion ring in the container? What about getting an extra soda from the vending machine? Free things tend to make your day or at least make the moment. Why not keep the spirit alive in your investment strategy?

My friend Chris Hubinsky and I recently formed an investing company called H&L Ventures, Ltd. Our goal for the first few years is to build a strong portfolio with a solid base. We want a structure that will last for years and solidify our financial futures. We are employing a dividend grabbing strategy that I will call the Check, Please! Strategy or CPS.

The CPS focuses on buying stocks from secure companies that pay dividends numerous times each year. Many of the big corporations pay dividends quarterly. These dividends are free bonuses to the shareholders (you) that can be rolled right back into your investment. More often than not, the dividends are between 10-50 cents per share. “This Joe Lawrence guy is a moron!” you must be saying to yourself.

You would be right on many occasions, but not here. Let me show you some numbers. If you bought $300 worth of General Electric (GE) back on January 6, 2006, you would own 8.45 shares (I went to 2006 to use real numbers). GE paid $.25 per share dividends throughout 2006. After the first quarter you would have made $2.11. Again, not much but work with me here.

Allow the dividends to be reinvested (most brokers do this automatically, like Sharebuilder.com) and you will have .06 of a share. Your new total shares are 8.51. Keep this up until today, and you now made $24.74 in dividends and own 9.18 shares. That is $25 for free in two and a half years. Sure, it is not a retirement check, but give it a few more years and that number will continue to grow.

H&L Ventures uses Sharebuilder.com because it allows for fractional stock purchases and only $4 fees per trade. To learn more check out Quality Over Quantity.

We all have heard it is smart to invest in the stock market. The problem is so few of us actually know much about it. That is why I decided to write this to tell you how to spend the extra $100 you wrestled from the couch cushions this month.

First off, I want to prove my opening statement. From the early 1900′s to today the market has averaged a 13% annual increase. Similar statistics show the dollar bill has lost 95% of its spending power. To put that into different terms: In 1919 one share of Coca-Cola cost $40. If you decided to take $40 and bury it in the yard, the spending power of that cash would be $2. Instead if you took that cash and bought one share of Coca-Cola, today it would be worth over $5 million, if you reinvested the dividends. Hmmm…tough decision.

With that out of the way, onto the application. Some people buy shares of certain stocks because their online broker requires them to. Example: you want to invest in Amazon and it is trading at $74.15 a share. You have $100 to invest. Your company will only allow you to buy a whole share costing $74.15 plus a $9.99 fee. That leaves you with $15.86 left over doing nothing for you. In time you will build up enough extra cash this way to buy another whole stock…in time.

The problem with this is that you are not investing to your full potential when you buy whole shares of stock. In an ideal world you could buy “fractional” stocks. Example: that same $100 would buy you 1.213 shares of Amazon. That extra .213 of a share is working for you and not rotting away in an account somewhere. Obviously, this is the best way.

Sharebuilder.com is the only online trading company I know of that will allow you to buy fractional stocks. On top of that, if you set up an automatic investing plan, trades are only $4 opposed to the standard $9.99! Finally, a company that cares about us.

Stop reading this right now. Go and set up an account. Invest a dollar amount, NOT a set number of whole shares each month. GO!!

One of the great truisms of investing is the Cockroach Theory of surprises.  Like cockroaches, unpleasant surprises rarely show up alone.

Take the travails of Bear Stearns, one of the pillars of the Wall Street establishment.

At the beginning of the year, Bear Stearns was trading at over $80/share.

As the subprime mess took its toll, Bear Stearns drifted downwards, until last week’s news that JP Morgan had to bail it out caused the stock to drop to $30/share on Friday.

At that point, the inexperienced investor might say, “Looks like the situation is stabilized.  Maybe it’s a buying opportunity.  After all, it’s down over 50% from the beginning of the year.”

On the other hand, followers of the Cockroach Theory would avoid Bear like it was radioactive, assuming that there was worse to come.

And they were right.

Over the weekend, JPMorgan announced a plan to buy out Bear at $2 per share.  No, that’s not a misprint.  The stock is currently trading at $3.82, presumably because investors are betting that alternate bidders will step up to the plate.

As numerous folks have pointed out, Bear Stearns’ HQ is worth about $10 per share on its own, meaning that Bear Stearns’ business is valued at NEGATIVE $1 billion based on the buyout offer.

So when bad news leaks, and you’re tempted to go bargain hunting, remember the Cockroach Theory.  Otherwise you’re portfolio might end up in the dump with the real cockroaches.

I am a romantic, hopeful for the perfect Valentine’s Day gift.  However, having received my share of poorly chosen gifts, e.g. a reflective running vest and coffee, I know that a charming gift can be elusive.

Many men take the position that as long as the gift sparkles, smells wonderful, or is blooming they are all set.  For some women that may be true, but I want a gift that is chosen thoughtfully.  Sure, a pair of diamond earrings is wonderful, but if you always have purchased jewelry for your girlfriends, how does that make me special?

So, what are you supposed to do?  Why not purchase a gift that will last forever, can be as generous as you want to spend, and can have sentimental value?  The gift that I am suggesting is stock. 

Sound crazy?  A former colleague of mine was given Kimberly-Clark stock as a wedding gift from her husband.  Because she had seasonal allergies, he knew they’d buy lots of tissues during their marriage.  She was touched by his unique gift.

So, what should you get for your valentine?  You should buy stock to a company that has personal meaning.  Be creative – think of what would mean the most to her.  If you’re not certain, why not try a romance-inspiring company, such as Tiffany & Company? 

Once you’ve purchased the stock, add a hand-written note declaring your love, and add a bow.  Your one-of-a-kind gift is ready for giving on Valentine’s Day.