Monday, October 16, 2006

 

Sector Spotlight: Networkers

Groundhog day.

The market goes up everyday, with little variation. Once again, I really like the action in the Networkers and feel many of them will report kick ass 3rd quarter earnings.

After such big run ups in many big cap Networkers, I am screening for micro->small cap stocks that may jump on the momentum bandwagon. So far, my list includes: FNSR, LNOP, BKHM, AFOP, TXCC, LTRX, ONT, MSPD, TERN, TUTS, MRVC and AMCC.

As for the general market action, the only weakness is the banks, led by WB's weaker than expected earnings. Aside from that, gains are abundant in Steel, Homebuilder and Networker stocks.

The following Networkers have mojo:

RVBD +13%
LTRX +13%
DPW +12%
MRVC +8.8%
TIII +5.9%
CAMD +5.5%
BCGI +5.5%
FNSR +5.2%

Comments:
I'd appreciate hearing result of any braincycles you've spent on alt energy. solar and ethanol are doing well and it's starting to look like more than a blip; I'm wondering if the recent selloff has bottomed and these guys look decent here - factors would be NERC's multiyear elec supply shortage (to be filled by 160GW of coal-burning?? Please, I'd rather breathe!), oil bottoming anywhere around here, impending end to poly shortage, ethanol oversupply risks fully factored in, positive regulatory environment likely improving further under democrats, don't know what else. I like eslr,stp, pvse, maybe peix cheap. solar looks safer than ethanol; I'd rather bet on regulatory support than the price of corn next summer ;)
 
Hi Broker, wat is your plays on water. Barrons came out a report favoring WTR, PNR, and another one I forgot over the weekend. I had been watching PNR and FELE.

Also, can you do a seasonality report on POOL and ADCT. I think it has a tendency to rise over the Q4. Thanks
 
I like SZE.

As for alt. energy, I like MGPI.
 
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