Monday, October 29, 2007

Merge onto the digital superhighway.

OK, a bunch of my friends have started blogging and I just had to get in on it. So here goes. (Let's take wagers as to how many days this lasts!!).
So, I am probably not going to win awards, but then I don't find it useful to ramble on about my day's activities. Instead, lets focus on some stocks, shall we?
So, who knew, NIHD. What a stock to follow. Explosive growth in the South American cellular phone market has made riding this bad boy very profitable. Until they released their killer earnings that is.
Check out the analysts opinions on this one: NIHD . So why does it languish in the low 60's? Who knows. My best guess is that people had a mass sell off in anticipation of a sharp rise, only to be greatly disappointed at their automatic sell orders set pre-market. Well, stupid me not to buy in for more. Since it's post-earnings news and the dramatic drop from $68 down to $52, the stock has made a wicked recovery back to $62, a rise from the low of ~20% ( See for yourself!. Not bad. Expect this stock to be in the 80's by year end as holiday phone sales blow away earnings estimates.
Here's another one for you: Schering Plough. (SGP). Took a killing dropping to a localized low of $28 on Oct. 22nd. Since then, SGP has risen back up over $31, another whopping gain of ~10% in one week. Schering-Plough . Watch this stock too. With a PE of only 25 and a Yield of 1%, this stock is a hold steady for sold earnings. Consider riding the wave on this between $30 and $33.

Alright, had enough? Not even close. Want to cash in on the increase in the price of energy? RDC, DO, XOM are all great, high-yield picks. Pay attention to Exxon-Mobil as they get ready to report earnings later this week. How can you argue with the MOST profitable company on the planet? They stand to make more and more money as the $/barrel goes up. In addition, watch the on-going (YES, even still) saga of the Exxon Valdez. Good news from this Supreme Court hearing could raise the stock modestly. Couple that with good earnings, and XOM could top $100 itself ;).

Some analysts claim oil will drop to ~$60/ barrel. Very likely it is young paduan, but don't expect that to happen before the winter oil season is over. A cold winter could keep elevated prices while refineries and upped Saudi production start to come online.

Well, that's enough ramblings for now.
-K

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