Sunday, February 17, 2008

Let's GET "analytical".......

So..... Markets are behaving "better than expected"......

Time to zero in "hot sectors".....

As Democrats have a good chance of geting in white house...plus controlling senate & house.....

Solar & everything alternate energy will be the biggest beneficiary.....as there IS a serious shortage of energy worldwide.....

Food habbits are changing worldwide & shortage is growing...prices are exploding....

Oil will remain high & crack spread will increase ......

Gold is high due to $ demise.....

Infrastructure will get moving again...once credit squeeze fear goes away....

Dry goods shipping will continue its run.......

Techs selectively will be profitable.....

Medical devices & Biotechs will be strong.......

So.... let us look @ PE in the above sectors.......

FSLR....90.28
SPWR...38.28
STP.....24.37
SOLF...27.9
CSIQ...15.97
LDK....19.51

POT...22.1
MOS..16.84
AGU...14.26

ISRG...59.69
CMED.. 24.6
MR....33.15

ABX...17.76
AUY..13.80

DRYS..4.45
DSX..10.22

AAPL..24.29
RIMM..28.25
NOK...14.44
SNE...13.69

TSO...7.71
VLO...7.66

So...there you have it...PE of good stocks in the "hottest sectors"........

My suggestion will be to pick 2 from each sector and create a "smokin portfolio"

As markets will be heading "higher"...before we know it.......

So be ready with your OWN homework FA/TA + TAPE...should do it for 2008 !!!!

Good luck on your selection........

Please ...remember...it IS stocks NOT stock market ...that will make you serious money !!!

As I always say ...I WORRY a whole lot about my stocks than stock market.....

No one CAN time the markets......so do NOT even try it !!!!

Currently...it IS a great time to OWN strong stocks with great FUTURE !!!

BLOG does NOT give buy or sell.

Enjoy Presidents day !!!

Saleem

11 comments:

jackfate said...

Saleem,
Thanks a lot for the post. This list is going to be very useful indeed.

Stocks100 said...

Hi Jackfate,

Thanks for your feedback.I am glad that you will reference this list.

Saleem

minaccess said...

Hi Saleem. Don't forget natural gas. Look at UPL, SWN and KWK. I agree with oil, alt energy, ag and gold. I own UPL, AUY, LDK, COIN and DBA in my trading account. However, remember that 3 out of 4 stocks follow the overall trend in the market. Oil, gold and ag commodoties can be de-coupled from the stock market. That is why I own the stocks that I own. Peace.

Stocks100 said...

Hi Minaccess,

Thanks for your nat gas focus.

Once nat gas prices starts to take off...I will zero in.....

I like to narrow it down to few stocks...with sound fundamentals...otherwise it becomes a "watch list" vs "serious buy list"....

I like your diversified focus on few sectors....

I think it IS time to put the "dough in the market"

Saleem

Doug said...

Hi Saleem,
What a great sector analysis! Solar, Ag, Med, Tech, Gold, Oil, that is fabulous in so many ways. Diversified-Hot sectors-low PE's to choose from... Great post. Thanks for the thoughtful analysis and the making of a perfect map to prosperity in 2008.

Stocks100 said...

Hi Doug,

Thanks for your appreciation of sector & low PE picks.

We all "survived the sharpest correction in along time"

Now....we all NEED to focus on making serious money by being in the right sector & right stocks....

Time to "smell the roses"

Saleem

dslnbull said...

This is for our freinds.
US Experts Say China Is Expected To Become A Market Leader In Renewable Energy

Washington at the Worldwatch Institute, an independent research organization for the 9th said that China is expected to become the next few years the global renewable energy market leader.

Worldwatch Institute President Christopher Flavin each year a "World Situation Report" said at the press conference that China is not only a lot of new energy-saving products of the major manufacturing nations, "the policy of promoting the area of renewable energy," has shown the leadership momentum.

He predicted that China will become the front of three years renewable energy market world number one big country.

Flavin also said that in early 2006, a new development of the renewable energy in China's major entry into force of the law, the effect of the new law has already started to become apparent.

Stocks100 said...

Hi Ds,

Once China becomes leader in alternate energy.....US & world will follow the leader !!!

There is lot of incentives given to solar industry...China is staying ahead of the curve....

Solar looks very good !!!

Saleem

madmax said...

SALEEM

thanks for being an oasis of information i a time of CNBC pumping trash.

Note I believe countties like Gerrmanyu will lead the solar industry to new highs as it continues to try and become GREEN! China will be the producer of low cost solar materials. I beleve that the solar plays we chose are the best. CSIQ, LDK, SOLF. These 3 are poised like coiled springs ready to move up as the market looks for places to put all of the cash that is on the side lines.
I believe that ag stocks will also continue to soar in FY08. We picked AGU, which IBD says more big money in flowing into it, pumping it up for a pop!
Do NOT forget the fiancials and shipping stocks. THe record high shipping rates will drive both the OILS and the DRYA to new HIGHs in fy08, look at FRO and DSX and DRYS.
For the financials look at GS and NYX both beaten down badly! Look
also at some of the bank stocks, BBernanake will lower rates again soon and that will make the finanicals more profitable.

Just my .02 cents
Madmax

Stocks100 said...

Hi Madmax,

Solar lead countries are Germany & Japan...rest of the world has to catch up in a big way.....

Oil will keep going higher.....

Once oil crosses $100...watch solar stocks...they will take off big time.....

Always stay in strong sectors...NEVER bargain hunt....this way you OPTIMIZE your hard earned $$$$....or else it just sits there doing NOTHING.

Europe is UP 1.5% plus or 100 plus on FTSE,DAX & CAC also UP 1.5% NOW...

We are looking good for tuesday "money machine"

Saleem

madmax said...

SALEEM

News on DRYS and why it pay to be diversified!

Market Scan
DryShips: Down But Not Out
Ruthie Ackerman, 02.16.08, 12:00 PM ET

DryShips
Tear Sheet Chart News


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The shares of bulk cargo carrier DryShips ride the Baltic Dry Index like its big vessels move with the tides. When the index rises, so does the stock. In the second half of last year, the index fell, and so did DryShips shares.

The thing is, the correlation between the index, which measures dry-bulk shipping rates on 40 routes around the world, and DryShips (nyse: DRYS - news - people ) profits isn't that good. Even after a recent rally in the index and the shares, DryShips seems to be trading at one half to two thirds of what it is worth.

“The Baltic Dry Index can be influenced by weather or a number of things. It isn’t a good measure of long-term fundamentals,” said Douglas J. Mavrinac, a Jeffries analyst.

After hitting an all-time high of $131.34 in October and then falling to $52.18 on Jan. 17, DryShips settled Friday at $80.73.

Mavrinac said he thinks it is worth $160, while Natasha Boyden of Cantor Fitzgerald has a more conservative $121 target. Boyden said the company is well-positioned to benefit from a strong dry bulk spot rate environment in 2008, with 17.0% more fleet operating days than 2007, and 63.0% of its total fleet operating days in 2008 still unfixed.

Yet despite the positive analyst outlook and a better-than-expected fourth-quarter earnings report, the shipper's shares dropped 4.2% on Friday. Mavrinac said that reflected profit-taking after the stock bounced off its January low, and the pullback presents a buying opportunity. He thinks the company could earn $20 a share this year, giving its shares a bargain-basement price-earnings ratio of 4.

“The stock has had a significant run up in recent weeks and all the data points are positive,” he said. “The company reported strong earnings, daily charter rates in dry bulk markets are up, and management gave a bullish conference call. But some investors are sitting on some pretty big profits over a short period of time so they’re taking some off the table.”

DryShips reported its fourth-quarter earnings soared more than fivefold as its expanded fleet benefited from significantly higher vessel rates. The company said after the market closed Thursday it earned $195.2 million, or $5.37 per share, compared with a year-ago profit of $35.9 million, or $1.02 per share, which includes a capital gain on the sale of one vessel of $31.5 million, or 87 cents a share.

Excluding the gain, the company's profit would have been $163.7 million, or $4.50 a share, significantly higher than analysts' expectations of $4.04 a share.