Thursday, August 10, 2006

 

Sector Spotlight

The only sector I want to buy right now is oil/gas. I am sure there are some values elsewhere, but for now, I want to focus on oil.

However, because of the run up in crude lately, thanks to the dipshits at BP, I will be buying in small increments-- in order to "average in" to a position.

Anyway, the cheapest stocks, in my humble opinion are the following:

CEO @ $89.58
UPL @ $55.35
SFY @ $44.75 (nice nat gas exposure)
GMRK @ $30.90 (they move equipment and personnel on/off offshore rigs, think hurricane)
and longshot
MIND @ $12.10

The sector I am most bearish on is, well of course, tech.

To hedge my long oil investments, I am allocating equal dollars to short certain tech names.

My recent short is Atheros Communication, ticker ATHR ($16.71).

One of ATHR's biggest customers is the one day to be bankrupt legacy cellphone company UTSI. According to the last earnings report, UTSI represents more than 10% of ATHR's business.

Other companies that rely on too few customers for revenue are: NETL, MFLX, SIRF, RACK, SMDI and SYNA.

For now, I will continue to short ATHR, until it dies, or it hits $15.

UPDATE: A reader suggested COP looks good. I agree, but, with oil getting raped today, I'll be buying in mini-increments.

Comments:
I really like COP, looking to get in soon. they trade at 6X earnings and are growing at what 9X? Very cheap.
 
COP rocks.

I completely overlooked it, thanks.

COP has alot of Natty exposure. Which is a good thing, ahead of hurricanes.
 
No NBR? The stock is dirt cheap because ppl see it as all gas it seems, even though it does oil too.
 
I can't get behind NBR, despite its stellar fundies.

Whoever is the specialist for NBR is a complete assclown and I do not want to be affiliated with assclowns.

Instead of NBR, go with CEO.
 
For the newbies like I, what makes a moronic specialist?
 
"For the newbies like I, what makes a moronic specialist?"

Well, if you ever owned NBR, you know it is one of the worst trading stocks on the NYSE.

Whoever trades that stock is a complete moron.

NBR may be a good company-- it is NOT a good stock.

CEO is better.
 
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