March, 2011

The Professional Opinion - Snippet

DJIA: 12226.34


.CNRL Mine
The Future of US Oil - a CNRL Mine in Northern Alberta, CA

Personal Portfolio
Home builders, materials and engergy led the way.  I still don't quite know what to think of that....
Well the 'religion of peace' is at it again...

Doesn't help the markets though. Can't really fault the people living under the thumb of 7th century monarchies for wanting a little freedom from oppression.

Speaking of markets,  this is seeming and more more of a stock picker's market.  There are still deals to be had but it does take some looking.

One place to look is the REIT and Alternative Investments sector.  Companies in this area are starting to use their reserve cash and are picking up some attractive deals.

Just remember that REITs are required by their charter to distribute @ 90% of their profits to share holders.  In order to make acquisitions, they have to make secondary share offerings which dilute the value of existing shares. The payback hopefully, is in greater profits.


Personal Portfolio


Not much of interest to me this month but one stock worth mentioning is Newport Corporation (NEWP).  The company had a great quarter and got hammered because while the results were good, those in the analyst sector didn't think they were good enough.


This is a small cap company with a beta over 2, which means it can move twice as far up and twice as far down is its tracking index.

I think it is still in the lower sector of its trading range and with some patience, will produce some nice results.

The numbers and performance relative to the sector made it worth a 5% position in the portfolio.  Hopefully it will soon grow to a 10% position.

Looking to make some spare change?



Have a look at the housing sector.

DR HORTON (DHI) and Standard Pacific Homes (SPF) are two of my favorite trading stocks.  Both are currently trading at very attractive levels.

I typically look for gains of at least 10% before selling.  Frequently the gains are higher when the housing sector moves up. This is particularly true for SPF.

The only thing really predictable about these stocks is their unpredictability.  Odds are you can make some decent change out of both of these but it may take some time to do it. 

Sometimes it can take several months before the stocks really move. Other times in three or four days one can make enough for a new IPOD in short order - as in the case of my brother.

Either way, these two stocks are great for speculation but I would not consider either a core holding in this environment.

BGS Foods Soars

BGS Foods


This was a great way to start off a Monday.  By Tuesday the stock was worth over 6% of the portfolio.  It's best to take some profits and get the allocation back to normal, which in my case is 4-5% of of the overall portfolio.

An alternative to drilling for oil - digging it.