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.
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:
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I really like COP, looking to get in soon. they trade at 6X earnings and are growing at what 9X? Very cheap.
# posted by 
: 10:36 AM
: 10:36 AM
COP rocks.
I completely overlooked it, thanks.
COP has alot of Natty exposure. Which is a good thing, ahead of hurricanes.
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.
# posted by : 10:55 AM
: 10:55 AM
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.
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?"
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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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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