Wednesday, September 27, 2006


Sector Spotlight: Networkers

The bulls are hell bent on dragging the DOW to a new all-time high, despite bad durable goods numbers. Frankly, the bears are weak pussies and will not stand in the way of a charging bull. The only way for the bear to win, is to let the bull run out of energy. Now, where the bulls exhaust themselves is the million dollar question.

Today, we are seeing upside across the board, with exception to the drug/biotech sectors. The hottest sector is definitely the Networkers, led by GLBC (added to Goldman's conviction list), FNSR, DIVX (Cramer pump, but a very good company), FDRY and ADCT.

With my money: I like the action in CORS. This stock has been ripped to shreds in recent months, mainly due to its exposure to the condo market. However, at these levels, with a 4.5% dividend, I think it's a steal.

As for RACK: Well, they got a downgraded to sell by Matrix Research, based upon valuation.


The following Networker stocks have mojo:

GNET +12.3%
DIVX +11.4%
FDRY +6.5%
GLBC +6.3%
WJCI +4.9%
AFOP +3.4%
ADCT +2%

Have you more of Goldman's conviction list? I presume it doesnt overlap with Elliot Spitzer's conviction list.
Hi Broker Man, I brought the )CT 615 Puts yesterday, just before they sink, early always,I got at 4.70, their now 3.4 , what do you think, this bull is nit giving in, should I cut and run, or hang in..? Thanks For You Opinion !
FORM was added to their "conviction" list yesterday.

As for your puts:

I feel uncomfortable advising you, since its such a risky play.

As I said in my article, the bulls are hell bent.

Perhaps, you may want to go long OEX too, in order to hedge. Or,draw a line in the sand.

The one thing you cannot allow your self to do is let asmall loss become big. Stay in the game.

If you are on the wrong side of the trade, so be it.

Providing you have extra resources, you can always make it back.

Don't let it slide too much lower.
The one thing you cannot allow your self to do is let asmall loss become big. Stay in the game.

Thats sounds contridictory, (pardon my spelling) your saying don't let a small loss grt huge, and then you say "stay in the game"

Did you mean BY staying in the game?

I really like your New years eve spin up their , you should be a writer very nice one !
Sorry for the confusion:

Staying in the game means to preserve your capital. Don't let those options go to zero, because most do.

Thanks for the compliment.
your welcome and its well deserved, as per my post up their I sold em.(see post)
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