Friday, May 20, 2011
Wednesday, May 4, 2011
As you know I am a Wall Street Technical Strategist which is very long for “Trader” I want to offer up for your personal funds a few choices for you to think about. The companies that follow are very good, stable, growth and actually somewhat conservative choices. I will include ONE somewhat speculative company too.
One thing that I need you to know is that MAY is typically NOT a great time to buy stocks. Sell in May and go away is very real. Wall Streeter’s begin to go to vacation and market volume declines starting in May through August. Because of this I don’t want you to run out and BUY a BUNCH maybe just a little currently. I will give you some guidelines.
Catepillar CAT As you know CAT manufactures Commercial trucks and heavy equipment. This company is leading the Global recovery “I stress GLOBAL” CAT is a world leader and is not subject to fluctuations in just one economy like the US. CAT is a very strong GROWTH story. Even though the company currently trades over $100.00 it is expected to grow much more. If your into PE’s it’s 20 which is low. Currently CAT is expected to grow 30% in 2012. THE TRADE: Currently CAT is at 113.00 they just announce fantastic earnings and is selling off slightly. The closer you can get it at 110.00 the better. I think in this current time frame and month of May there is a very good chance. I would divide the money you allocate to CAT into 4 bunches. 1st BUY at 110.00. 2nd Buy if it continues to decline to the 40 Day Moving Average (DMA) then wait. Do not buy your last two buys until CAT moves back up through the 20 DMA and then above your first buy point. Plan 2, Just wait until late July to buy and do the same thing described above at July prices. There is no hurry here because of the summer months.
Biogen BIIB Biogen is a Leader in the Bio Tech arena. 3 short years ago they were thought to be a possible take over story but they have developed a new compound called BG-12. The data is extremely positive on this new compound and the MS community is very excited! Biogen’s product line is very focused and strong, their other compounds are also highly used in the medical community and great data is coming out every day. This is a company that traded at $45.00 less than one year ago and now trades at $97.00. No longer a take over target. The reason, Medical Community recognition of BG-12, and Big Institution investment. BG-12 is going to be like Lipitor to Pfizer when it was released. BIG! Biogen has hired an additional 70 representatives Nation wide to keep up with demand. Even trading near $100 you have not missed the boat yet. Your looking at a 125 to 175 stock. BG-12 is going to be a huge growth engine that is not communicated on the Balance sheet yet.
THE TRADE: BIIB trades currently at $97.00. Same thing as in CAT divide the Money into 4 piles. If we can get BIIB at 95 that is going to be very good. 90 will probably be a true gift. After that, once BIIB gets above 100 and stays there 120 will come quickly.
Some what Speculative
Sirius SIRI Sirius is the only Satellite Radio company. Their channel line up is great. Teamed with the NFL, MBA, NHL and NBA along with Howard Stern every news channel you can imagine and type of music to set every mood all for $12.00 month. This company is on the comeback after years of BURN of start up capital and bringing Howard Stern on. They also merged with XM 3 years ago. The stronger of the two names and programming prevailed, SIRIUS. I like this above $2.00. I think you have a lot of upside to 5. When will we hit 5? Don’t know that or if we even will. The momentum will build and institutions will come in at 5. I look at Sirius as a new snowball rolling down hill, there is the potential of SIRI really getting back to 2004 levels of 6 to 10. THE TRADE This is the one that I’ll let you BUY a BUNCH on a HUNCH between $1.90 to 2.10 and forget about it. Don’t go crazy this is our speculative play here and we could be wrong. SIRI is currently breaking out to the upside which means money is coming it. This is positive.
Thursday, April 28, 2011
Is it all systems go yet? Almost, but we must see just one or two more closes over that 1350 level. Will the markets be off to the races? Probably not, we are starting to come into the summer months which marks low volume and Wall Street Traders going on vacation. Because Ben Bernanki’s policy dosen’t give investors many choices to do with their money. Institutions have to deploy money on a monthly basis, the only choices for funds are equities or gold / silver at this point which means stocks and commodities should go up.