EmerVest

The Turn

2008-11-03T09:47:00.002-05:00

My short-term as well as long-term outlooks are now bullish. I believe that we have bounced off of a double bottom that goes all the way back to 2003. I recently put a large chunk of my money into a few funds. For me at least, now is a good time to buy in, as I have a long ways to go until I am even close to retiring.

Key Technical Points

2008-10-06T14:20:00.002-04:00

Things are going great, huh?

A few important points to keep in mind.

If you draw a trend line all the way back from the 1995 low to the 2003 low and continue it until now we are pretty much there. If we break below this support point, I would say 950 on the S and P, then be ready for a drop to around 800 - 850, which would be a double bottom for the major 2003 bottom. That, would be a bummer. Good news though, the market hasn't been this oversold (RSI indicator) since 2003. Just because it is that low doesn't mean that the market cannot continue to decrease or stay the same. Obviously it is impossible to know exactly what will happen and I don't want to make an exact prediction, but there is not doubt that stocks are discounted right now and for younger people like myself, this is a great time to get into the market for the long haul (15-20 years).

SPX

2008-09-16T16:10:00.003-04:00

The S and P could possibly go lower down to the long term bottom line of the downtrend and failed at creating a double bottom with July's lows. The market's P/E is once again at recovery levels of the low teens, but it has also been lower. Frankly, it just sucks right now for most of us. Sit tight, however, and buy huge drops like yesterday. Quick piece of advice, don't buy companies going bankrupt, thats real easy huh. By the way, I am starting a market outlook. I have backtested it and am very confident that it is successful in most cases.

ECOL

2008-09-09T10:24:00.002-04:00

I am reiterating the buy on ECOL. It has pretty much reached the bottom line of the up-trend. For the past year, when this has happened it has rallied quickly, giving a quick profit. If you really want to try for the exact bottom then wait for 29 a share, but I tend to take what I can.

Computer

2008-09-09T10:20:00.001-04:00

So I just got my computer back from the Apple store. They were surprisingly fast. I left it with them on Thursday and they called me Monday. Good stuff. I'll get back to more postings soon.

Two Waste Management Plays

2008-08-21T19:27:00.003-04:00

American Ecology (ECOL) and Clean Harbors (CLHB) are in the business of waste management. They both have contracts with big names such as Honeywell and Tyco International respectively.

American Ecology Corporation (AEC) provides radioactive, hazardous, Polychlorinated biphenyls (PCB) and industrial waste management services to commercial and government entities, such as refineries and chemical production facilities, manufacturers, electric utilities, steel mills, medical and academic institutions. AEC operates within two segments: Operating Disposal Facilities and Non-Operating Disposal Facilities. The Operating Disposal Facilities accept hazardous and low-level radioactive waste (LLRW) and include AEC's Resource Conservation and Recovery Act of 1976 (RCRA) hazardous waste treatment and disposal facilities in Beatty, Nevada; Grand View, Idaho, and Robstown, Texas, and its LLRW disposal facility in Richland, Washington. The Non-Operating Disposal Facilities segment includes the Company's former disposal facilities in Sheffield, Illinois; Beatty, Nevada, and Bruneau, Idaho and a former hazardous waste processing and deep-well injection operation in Winona, Texas. (E*Trade)

Last quarter, their net income was up 20% and set a new high. It has strong margins and a great return on equity. The stock is up almost 50% this year. To top things off, it pays a 2% dividend. I like it at $31.5.

Clean Harbors is much like American Ecology. It is up about 40% since New Years. CLHB has fairly strong fundamentals but doesn't pay a dividend. In my opinion, it offers a little more short term trading opportunity if that's what your looking for. I would like to see it come down a tad closer to the trend line before buying in but it is still attractive as a long term play.

Oil and Stock Reversal?

2008-08-19T20:33:00.003-04:00

Technically, oil appears that it could be bottoming and the stock market appears that it may be headed lower. The below figure shows that the S and P 500 has broken through its upward trend and that the MACD is on the verge of breaking into a downtrend. The last time there was a break, it was the indication of the beginning of the recent uptrend. There is already confirmation of the downward turn by the Parabolic SAR but I would look for a clear MACD cross to be completely sure.

The next figure tracks the oil ETF USO. Like the first chart, the MACD is on the verge of crossing. USO has broken through its downward trend, but does not have Parabolic SAR confirmation. These next few days will be important to see if oil has developed a bottom or not. If the MACD begins divergence and Parabolic SAR confirms, I plan on buying into stocks heavily affected by oil. I like CF Industries (CF) and Chesapeake Energy (CHK).

Fertilizers Bounce Back

2008-08-13T14:09:00.002-04:00

Along with oil, fertilizers are bouncing back, making CF look more and more like it has hit a support level. If you look back at past recoveries by CF, you will see that they are initiated by a large advance. Today, we have seen just that and I am considering buying in with a 8% trailing stop or so.

In other news, the market itself, specifically the S and P 500 is right on the 50 DMA and we will see if it has the strength to pass through it or if this is another resistance point. The market is not overbought and shows no sign of slowing so for the time being, I bet we will see 1325 in the coming weeks.

Important Technical Levels for Fertilizer Co.'s

2008-08-12T19:33:00.004-04:00

The fertilizer industry has been hit hard along with other commodities in the last month. Although many of the companies are down more than 20%, there is no clear bottom. Many stocks such as CF Industries (CF), Mosaic (MOS), and Potash (POT) are at or nearing resistance points that if clearly broken, will likely head down towards January lows.

When the fertilizers were booming, I was a big supporter of CF over others. It was valued better yet still had strong growth. Although it has declined, it has declined less than the more notable POT since their highs. CF is now trading around 126. If you look back to May, it bottomed out at about 124. If it breaks through 120, I expect to see it continue to fall toward its April bottom of 104. It is important to note that 120 to 125 area is also around the 200 day moving average, which is another major indicator.

Potash is approaching its March low levels of around 145. If it breaks below that, there is a good chance it is heading toward its January low of just 109. Like CF, POT is also hovering around 200 MDA levels. MOS, on the other hand, has already broken through its 200 MDA and is nearing its March bottom of 92.

Just thought I'd give a heads up on some important technical levels.

Disclosure: I do not own POT, CF, or MOS

Icon Clinical (ICLR)

2008-08-01T19:56:00.003-04:00

Icon Clinical Limited is an Irish contract research organization that provides development services to pharmaceutical, biotechnology, and medical device companies. This company has continued to produce stellar results. It recently reported a 49% increase in revenue and a 52% increase in operating income. It has also announced an upcoming stock split, a chance to get in cheaper than its current price of around $80. More importantly, three years ago, the price was just $20 and has steadily grown since (it's a beautiful thing). Icon Clinical has beaten earnings for the past eleven quarters. This is a company well worth looking into and I plan to buy on the next dip.

Disclosure: I don't own ICLR... yet.

Market Poised for a Great Comeback

2008-07-31T23:32:00.005-04:00

So GDP didn't exactly explode, but what's the big deal? Those GDP figures represent the past, not the future. The market is down almost 20% since it's highs last year and that has seem to have been somewhat of a resistance level with the exception of the last major sell off. The good news is that things are cheap.

As I pointed out in an earlier article, market Price to Earnings ratio is an important indicator. While the average runs around 17, it has been higher than 30 and lower than 10 (1932 if you're wondering). If you look at the past corrections, the market seems to bottom out when forward Price to Earnings ratio is around 13 to 15. The current market P/E is around 14.25, very attractive. Given that it is nearly impossible to know the precise bottom, I would have to say that this is as good as time as any to begin buying back into the market. While I will be buying into SPY on the dips, I will also focus on indexes that really took a hard hit in this bear market.

Specifically, I like iShares Brazil (EWZ), and First Trust Chindia (FNI). Both have taken a hit of more than 20%, but are still in huge growth areas that offer a lot of long term potential.

This Week's Economic Events

2008-07-27T15:24:00.002-04:00

I realize that this isn't really an article, but it is just a reminder of what's going on this week.
This week is a big week for economic news and could likely represent a possible turning point upward or a continuation downward. On Tuesday, Consumer Confidence will be released at 10. Unless there is a big difference from the expectation of 50, there will likely not be a big move. Crude inventories and ADP Employment come out Wednesday morning so I'll be watching oil stocks closely. A slew of numbers come out at 8:30 Thursday morning. GDP, Chain Deflator Adv, Employment Cost Index, and Initial Claims all come out. Friday will focus a lot on employment numbers with the unemployment rate and hourly earnings.

Algae for Oil-- Why Not?

2008-07-23T17:54:00.004-04:00

Algae production is not often the first thing people think of when they think of alternative energy, but it’s quietly catching on. The numbers are very supportive and a few companies are already in production mode.

The first thing to consider is that more fuel can be produced per acre than corn or any other crop. One acre of algae production currently produces 1850 gallons of oil per year compared to corn’s 15 and soybean’s 48. It is important to consider that this is not ethanol, but oil, literally squeezed out of the algae. So why isn’t it more popular?

The government seriously researched algae as a source of oil from 1978 to 1996 but eventually concluded that it wasn’t economically competitive enough with fossil fuels. The price of oil in 1996 was about $23. Why this administration doesn’t research it now? I think you know why.

Thankfully, we have the market to take interest. A press release Monday announced that Continental Airlines (CAL), Air New Zealand, and Virgin Atlantic are backing Boeing (BA) in algae based alternative fuel research. General Electric (GE), United Technologies (UTX), and Rolls Royce are also involved in the research.

There are two main methods of producing algae. The first is pretty straightforward, lots of ponds to produce lots of algae. The second is more of a factory type method. It is composed of huge greenhouses filled with tubes of water that cultivate algae. One advantage of this is that carbon dioxide can potentially be infused to promote the growth. While the second method seems more productive per acre, price will be the ultimate factor.

There are not a lot of options to consider when looking at algae companies, but the one I like most is OriginOil (OOIL). Although I have never endorsed buying stocks below $5, if I were to bet on algae, this is where I’d be. The company uses the second method of production and has a management team seasoned in the development of small companies. Today at the National Algae Association quarterly conference, it was proclaimed as one of the most promising producers of renewable oil. The stock has be gaining steadily since its IPO in April. This is a great opportunity to take advantage of huge potential long-term upside.

The Oil Correction and CHK

2008-07-21T15:59:00.002-04:00

Oil's correction has presented a good buying opportunity and its not too late to get in. A good way to get in on the recovery and hopefully continuance of the oil rally is Chesapeake Energy (CHK).

CHK has seen decent growth in the last year. To be honest, however, it is not normally a stock that I would consider. It's fundementals are decent, but not great. What got my attention was how much the CEO, Aubrey McClendon, has invested in the company owns. Overall, he has over 33 million shares, or $1 billion dollars of his own money in the company and more importantly, increased his holdings on July 18th, by adding $43 million dollars. I'm not sure if he planned that buy point or not, but he got a pretty good deal. That kind of investment in the company for which one works gives me a lot of confidence, as well as the fact that it is in a sector heavily influenced by oil.

The story in which I am referring is from MarketWatch @ http://www.marketwatch.com/news/story/chesapeake-energy-ceo-buys-43/story.aspx?guid=%7B9DFC0FE1%2D1304%2D45A4%2DA54C%2DA4D03C06C75E%7D&dist=TQP_Mod_mktwN

Disclosure: Long on CHK

A Look at the Week Ahead

2008-07-19T14:34:00.002-04:00

This is a busy week for the market. The market is at a couple of technical levels of resistance, but it is also becoming overbought. If we see a substantial gain this week, it could be a sign of better performance for a few more weeks. However, this week is packed with earnings that could move the market substantially either way. Below is an overview.

Monday- Bank of America and Apple, among others release earnings. Watch both of these, they should produce some substantial moves.

Tuesday- Broadcom, Yahoo!, as well as several other companies release earnings.

Wednesday- Ambac Financial, Amazon, Anheuser-Busch, and 140 other companies release earnings.

Thursday- 267 earnings announcements!!! Notables include POT, OXY, GNW. Also, existing home sales and initial claims.

Friday- New home sales and durable orders. Earnings include TROW, CVH, NFLX.

Two Water Transport Plays... Besides DryShips

2008-07-17T20:14:00.004-04:00

The water transportation sector has seen incredeble growth over the past years and has spawned well know success stories such as DryShips (DRYS). Like much of the rest of the market, the industry has been hit by the recent slowdown. There is no doubt in my mind, however, that when the market begins to recover, the water transport industry will be very attractive. That being said, I have found a couple of alternatives to DRYS, just in case you don't like it for one reason or another.

Genco Shipping and Trading (GNK) is a stellar company and big investors have noticed. It is almost 75% institutionally owned and is slightly undervalued when looking at its P/E ratio. It has a strong return on equity of 33% and shows very strong margins and aggressive management of its debt. On top of all of this, it pays a 6% dividend. Definitely worth a look.

Diana Shipping (DSX) has just about doubled in the last three years. While this may not sound as impressive as some of its competitors, it has the potential to make you much more than that in the next three. The stock currently pays an 11% dividend and has one of the highest EPS growth rates in the industry. It's P/E is on par with its competitors and it boast a profit margin higher than 92% of its competitors.

While both of these may be attractive, it is important to understand that we are experiencing a slowdown that has affected the entire global economy. The slowdown is likely not over and I would, therefore, wait on buying into the shipping industry. Nonetheless, these are two great companies that will be even more attractive as the market bottoms.

Options Action

2008-07-17T15:03:00.003-04:00

This recent rally has sparked a lot of action in the options market. My personal belief is that this rally is temporary and that the market has further to fall. Options trading seems to support this.

There is a large volume of August SPY calls near the money, but an even larger volume of August SPY puts. This, as well as other factors in the market such as market PE ratio, lead me to believe that we will see the market edge lower in the coming months before a long term recovery.

If you look forward to the December options, however, the volumes of calls and puts are much more even. Further ahead in the June options, there is an overwhelming indication that the market will be recovering due to the high ratio of calls to puts being purchased. To sum it up, the current options trading indicates a continuance of this market slowdown through later this year and the beginning of a recovery sometime between late this year and mid next year.

Disclosure: I do not own SPY or any of its derivatives

Dollar Cost Averaging 2.0

2008-07-10T10:00:00.005-04:00

Given the certain conditions of the market, now would be a good time to address the subject of dollar cost averaging. Dollar cost averaging is an investing technique intended to reduce the amount of risk exposure to a market. The basic idea is to invest a fixed amount of money on a regular schedule, usually monthly or quarterly.

The system works especially well with mutual funds because they generally allow additional investment in increments of $100. For example, if you bought into a particular mutual fund, you could increase your principle by adding $100, $200, or more. It is simple to do this with dollar cost averaging, because you can choose an amount you feel comfortable with, such as $100 and invest it monthly, which would add an additional $1200 to that fund per year. It is harder to do this with individual stocks because stocks are generally bought in increments of 100 shares, not dollars.

Although dollar cost averaging increases your chances of buying into the market when it is low, it does not guarantee that you will not buy into the market just before a correction. If you are comfortable with this fact, then there is no problem, but if not, there is a way to further reduce risk exposure, which is only slightly more complicated.

I use a modified system of dollar cost averaging. I'd like to think I came up with it myself, but I'm sure there are several techniques identical or similar to mine that have been around for a long time.

Many people consider the Price to Earnings ratio of a company, but it is less common to consider it of the market. As seen in the chart below, the PE ratio of the market fluctuates just as the market does. Notice that it was fairly high before the '87 crash. It was in excess of 30 before the bubble burst earlier this decade.

Applying this to dollar cost averaging is not all that difficult. I use a scale that dictates how much I invest monthly into my mutual funds. The current average PE ratio for the S and P 500 is around 17. I use this as a base. At this point, I invest 100%, or what I usually would invest using a non-fluctuating dollar cost averaging technique. This is fluctuating, however, because how much I invest depends on how high or low the market P/E is. I decrease the amount I invest as the market PE increases, eventually investing no additional money per month as the PE becomes higher than 20. The money that is not invested monthly when the PE ratio is higher is not spent. It is saved so that I can access it when the market falls. As the market declines, so does the PE ratio. As the ratio falls below 17, I begin investing more than 100% using the savings that were a result of the market at a high PE ratio. Doing this helps you increase your gains and decrease your losses.

It is necessary to note that while this is not dollar cost averaging in the sense that I invest a fixed amount per month, I do follow the scale religiously. Leaving emotion behind and sticking to your rules is very important in maximizing gains.

Transocean Inc. (RIG)

2008-06-08T15:05:00.000-04:00

The market has certainly taken a turn for the worse, but it still presents a great long term buying opportunity. Transocean Incorporated (RIG) is a great company. It is a company that is attractive to both value and growth investors.

Transocean is the world's largest offshore drilling contractor. It has over 50 years of experience and its performance shows. In the past three years, it has steadily doubled from about $70 to more than $140. In that same period, the company has missed earnings only twice (both in 2006) and has solidly beat estimates since then. It is an aggressive leader in its industry in several ways.

In addition to being the largest contractor of offshore drilling services, it has a presence in every continent of business. The company boasts a return on equity of 36%, better than 93% of its competitors. The company is aggressive with debt and has a price to earnings ratio of just 9.5, lower than 94% of its competitors. RIG's operating margin is better than 96% of its competitors at over 50% and its trailing twelve month earnings growth is 89%.

These aspects make Transocean a great buy. It is a relatively cheap company with great credentials and surely worth a look.

Green's Two Meanings

2008-06-02T11:14:00.005-04:00

Let's face it, green business is huge. Think five years back and it was still something that several companies were skeptical about getting into. Today, it seems to be becoming the norm. People feel that they want to help the environment, and businesses want to help the people. The rising price of oil has only aided the need for alternative and generally cleaner energy. Either candidate for the Presidency, liberal or conservative, plans some sort of action that encourages reducing our carbon footprint with clean energy. Even if there is a lack of subsidies for clean energy, the fact that oil is pricey and that it will likely continue upward due to basic supply and demand factors means that clean energy is getting more competitive and attractive. These factors are shaping up to make clean energy a great investment in the coming years.

Several funds have emerged with the wave of thinking green. I prefer a couple that have been around for at least a few years. The first, Winslow Green Growth Fund (WGGFX), was started in 2001 and has had the same manager since 2002. Although the expense ratio is a little high at 1.49%, it has shown annualized returns of about 25% over the last five years. Unfortunately, it's not cheap with a minimum investment of $5,000. A good, more flexible alternative is PowerShares Wilderhill Clean Energy (PBW) ETF. It was started about three years ago. The index that it follows has had five-year annualized gains of over 18%. With an expense ratio of .60% and a minimum investment of only one share, PBW is a great way to invest in clean energy for a small amount of money. PBW is currently trading around $22 a share.

I would also recommend a couple of individual stocks. The first is conglomerate giant, General Electric (GE). GE has been hit incredibly hard recently-- and for good reason. Growth has gone flat and things currently look bleak. GE will, however, inevitably recover and has shown it has good intuition about green growth in the past. Well known for its Ecomagination marketing campaign, the company has put its money where its mouth is. In 2007, the company's energy efficient and environmentally advantageous products and services brought in over $14 billion in revenue, up 15% from 2006. They continue to make promises such as reducing their water consumption by 20% by 2012 that are both good for the environment and good for business. GE is a great long term option at around $30.

Evergreen Solar (ESLR) is a unique solar panel company. It has found a production process, called String Ribbon manufacturing, that not only makes a more efficient solar panel, but also make it cheaper for them to produce. Evergreen Solar produces wafers, cells, and panels. The stock signed its most recent sales contract of $1 billion on May 22nd. It is a good long term investment at $10.

Disclosure: I own GE

Oil and Opportunity

2008-05-21T14:43:00.002-04:00

Oil has had an incredible run, and it is by no means over. So why not buy now? First off, it is long overdue for a pullback. Oil has skyrocketed, but is overbought by far. I do see oil moving to $140 or $150, but not before a pullback to $125 or so. Second, there is nothing wrong with walking away with what you have already made. If you own oil stocks, I would recommend getting out. If you are in them, you have already likely made a healthy profit. Other stocks have been beaten down by oil. This has presented the perfect buying opportunity.

One company that I have recently been watching is General Cable (BGC). General Cable works with the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets. The Company offers competitive strengths in such areas as breadth of product line, brand recognition, distribution and logistics, sales and service, and operating efficiency. It is an international company that has expanded from North America to Europe and North Africa. The company hasn't missed earnings estimates in the past 12 quarters and has a Price to Earnings ratio that is comparable to its peers. The company also has a Return on Equity of around 36%, better than most of its peers. It makes products for infrastructure such as bridges, telecommunications, and electric grids. Not only has it seen steady growth in the last three years, but it's earning are projected to continue to grow well in the future. The CEO has both public and private experience, but more importantly has been with the company since 1994. At around $70, the stock is oversold and poised for a good run.

Even if you do not want to get your feet wet in specific stocks, I would at least get in the market. Buying opportunities likes the correction we have seen in the last few months only come once in a while. Buying into an index fund such as SPY or another mutual fund that follows an index such as Vanguards 500 Index Fund (VFINX) will not leave you unhappy in a couple of years, not to mention five or six.

Disclosure: I own VFINX

Why CF is better than Potash

2008-05-14T20:57:00.003-04:00

Potash (POT) has no doubt taken the stage when it comes to agriculturally related stock successes, but is it justified? Probably, but that does not mean that it's really the best. CF Industries (CF) is worth a look. I would first like to point out that while I am not comparing apples to oranges, I am comparing different kinds of apples. Both companies are related to agriculture, but Potash is classified in the Non-Metallic Mining sector while CF is in the Chemical Manufacturing sector. I simply believe that CF is a better investment.

The price of Potash's stock price has multiplied by about 3, certainly not a bad take for any investor in the stock. The stock has a substantial Price Earnings ratio of 45.7 and has an impressive return on equity of over 27%. Although it is small, the company does pay a .2% dividend. Potash does have a relatively high profit margin of about 24%. Those are impressive numbers, but nothing compared to CF Industries.

CF has also tripled in the last year, but is much cheaper, with a Price Earnings of around 16.5. CF has a return on equity of over 40%, much better than Potash. Its dividend of almost .3% is also higher than Potash. Where Potash does currently lead CF is profit margin. CF's profit margin is about 16%. The fact that the countries are in slightly different industries should be noted here, however.

These differences, in my opinion will help CF perform better than Potash in the long term, which is why it has earned my respect as a buy at $136.27

Manitowoc Inc (MTW)

2008-05-14T14:10:00.002-04:00

Although it might be hard to say the name, it is not nearly as hard to see why this company is desirable. Manitowoc makes construction and agricultural machinery. It is divided into three sectors as follows: cranes, foodservice equipment, and marine. Additionally, they are a global company, operating in 20 countries and six continents. The international market, especially those of much of Africa, Asia, and Latin America, have not yet gone through population transitions that developed countries have gone through. This leads to a rapidly growing population which requires the building of infrastructure to accommodate it. On July 19, 2007, the Company made its most recent acquisition of Shirke Construction Equipments Pvt. Ltd (Shirke). Manitowoc is in the perfect position to be a large provider to those countries, as well as continuing work in North America and Europe.
Manitowoc also looks very attractive both fundamentally and concerning growth. The stock has seen steady growth in the last 3 years and has not missed earnings since then. It has a below average Price Earnings ratio of 14.84 and has a high Return on Equity of 31.83%. I am looking to get into the stock and would definitely recommend it at its current price of 41.73.

Thank You Oil

2008-05-13T14:44:00.006-04:00

Central European Distribution Co. (CEDC)

2008-04-14T20:25:00.003-04:00

Eastern Europe could easily be considered the South America of five years ago. Central European Distribution Company makes something everyone loves... alcohol, specifically vodka. It makes the most popular vodka in Poland and several other brands. Last year it produced almost 8.5 million 9 liter cases of vodka. It is also a distributor of other alcoholic beverages such as beer. The Company produces vodka at two distilleries in Poland and is a distributor of alcoholic beverages. The Company is also an importer of spirits, wine and beer in Poland. Its products are also exported out of Poland. CEDC offers a portfolio of alcoholic beverages with over 700 brands. In July 2007, the Company acquired 100% of the PHS Sp. z o.o., an alcohol distributor located in western Poland.

It has shown steady growth over the last two years and I don't think it's too late go along for the ride. It's a buy at $60.15.

A Turning Point

2008-03-30T21:15:00.004-04:00

...And Opportunity

This correction, or slowdown rather, is indeed testing the strength of the stock market. The Standard and Poors 500 index is at a possible turning point. It has already broken below the 50 day moving average and is testing the waters of 200. If it should fall further below, I will stop trading until it breaks upward through the 50 day moving average. Conversely, if it bounces up, it could be the bottom This is a common technique used for buying stocks. There are several small variations but most are based around the fact that when the stock moves below the moving average you sell (hopefully a little before) and when it breaks back through you buy. Doing this will limit your losses if you have enough willpower to follow your rules. Nevertheless, we will all make money in the long run, whether you buy now or a month from now.

EBIX Inc. (EBIX)

2008-03-26T00:08:00.003-04:00

Ebix is a great growth investment opportunity. Below is a short description of the nature of Ebix's business.

Ebix, Inc. (Ebix) is an international provider of software and Internet-based solutions for the insurance industry. During the year ended December 31, 2006, the Company's revenues were derived primarily from professional and support services (94%), and from the licensing and third-party software (6%). Professional and support services include software development projects, subscription and transaction fees related to services delivered on an application service provider (ASP) basis, fees for software license maintenance, initial registration and business process outsourcing (BPO) revenue. On October 2, 2006, the Company announced the merger with Finetre Corporation (Finetre) effective October 1, 2006. Ebix acquired JenQuest, Inc. and its subsidiary, Insurance Data Services, through a merger effective November 1, 2007. On January 1, 2008, Ebix acquired Telstra eBusiness Services. (Etrade)

EBIX has seen solid growth over the last three years and has a P/E of around 19, which makes it relatively cheap. Although the economic slowdown has slowed the growth of the stock price, it has held its own. The stock was also up on huge volume today, which leads me to believe that people know something good. I believe that the stock is poised for growth at $70.51.

Biogen (BIIB)

2008-02-01T17:45:00.001-05:00

So yeah I haven't made any rec's recently, but I think that was for the better considering the market. However, I think that for the most part, this is a good time to buy. Yes, the market may go down more, but in 5 years (definitely a long term investor), this will look like a great time to buy. I like the way Biogen looks. The fact that it missed it's last quarter, which many companies did, only makes it easier for it to perform better next quarter. The stock has grown well in the last year and with the recent beating, I think this stock is a buy. Biogen works in the areas of oncology, neurology and immunology. Can't go wrong there. Biogen is a buy at 61.76.

Making Money Online

2008-01-08T19:48:00.000-05:00

I found a few sites that are actually worth joining. They won't make you rich, but you could end up with a couple extra hundred per month, and best of all, they are free. I am using them to help pay for college. I made about $20 in 2 hours.

Cash Crate
Swat Cash

China Life Insurance (LFC)

2007-12-12T21:03:00.000-05:00

China Life Insurance Company Limited (China Life) is an insurance company in the People's Republic of China. Its products and services include individual life insurance, group life insurance, accident and health insurance. As of December 31, 2006, the Company had over 86 million individual and group life policies and annuities, and long-term health insurance policies in force. It also provides both individual and group accident, and short-term health insurance policies. Through its controlling shareholding in China Life Insurance Assets Management Co., Ltd. (AMC), the Company is an insurance asset management company, and an institutional investor in China. In December 2006, the Company purchased stake in the state-run China Southern Power Grid.

China's middle classes is growing like crazy. It is expected to double from its size in 2005 by 2010. This means that people can afford to buy extra's such as life insurance. LFC has over half the market share in that business. It has shown continuously stead growth for years and it's not to late to take advantage of it. It's a buy at $83.00.

Hewlett Packard Co. (HPQ)

2007-11-29T13:09:00.000-05:00

Hewlett-Packard Company (HP) is a provider of products, technologies, solutions and services to individual consumers, small and medium-sized businesses (SMBs) and large enterprises. Its offerings span personal computing and other access devices, imaging and printing-related products and services, enterprise information technology infrastructure and multi-vendor customer services. During the fiscal year ended October 31, 2006, HP's operations were organized into seven business segments: Enterprise Storage and Servers (ESS), HP Services (HPS), Software, the Personal Systems Group, the Imaging and Printing Group, HP Financial Services and Corporate Investments. The last two years have shown steady, yet substantial growth. It has a very strong return on equity and hasn't missed earnings in the last 12 quarters. Dell has begun losing market share and with a moderate P/E of about 18, it's definitely a stock that could make you money. Another positive indicator is the kind of computers that HP is coming out with. HP's computers are becoming increasingly people and media friendly, much like Apple. Unlike Apple the stock has not risen so much that it appears too risky. I don't mind the recent jump due to the fact that it is still about 5% below where it was before the correction. HPQ is a buy at 51.04.

SPY

2007-11-27T15:10:00.000-05:00

Today has boosted my confidence even more concerning the market. I bought into SPY, which is an Exchange Traded Fund that follows the SandP 500. The market should at least to be able to recover what it has lost at a faster than usual growth rate. If you examine charts and look at past corrections, you will see that after the bottom, the market experiences a short period of rapid growth. I figure that with this investment, I can make at least 7%. Other investments that are similar are the mutual fund Vanguard 500 Index (VFINX), and the ETF VO, which follows the Mid Cap Index. If the dollar keeps weakening, however, I have a feeling that I will shift a little more money into the international sector, but we will see.

Correction Update

2007-11-26T17:19:00.000-05:00

Although there was a big drop today, there is more and more talk that this is a correction, not a recession (good thing). The S and P is now 10.1% below its all time high, which defines this-- so far, as a correction. I would still like to see a little more stability before I start putting money into the market.

The Real Deal: Zecco

2007-11-24T16:14:00.000-05:00

This is the first of the multi-part series "Brokers: The Real Deal."

Zecco, maybe you haven't heard of it, but if you have, it's because it offers free trading. Zecco offers 10 free trades per month if you keep a minimum of $2500 in your account. If you have less than that, you still pay less than most other brokers, just $4.95. Options contracts are just 50 cents more. Sounds awesome, to an extent. The research tools seem somewhat sub-par to other major brokers such as Etrade and TD Ameritrade and mimic those of Yahoo!Finance. Because of this, I would be inclined to open a Zecco account only if I also had another account with better research tools. That way, I could use the advantages of both of them and then just make my trades on Zecco. The other nice thing about Zecco that really sets it apart from others is its community feature. It supports groups, blogs, and forums on the same interface. So how does Zecco still make a profit? Advertising is a part of it. The ads along the sides of the pages are a little annoying, but hey why complain when you can trade for free.

Monday

2007-11-24T16:04:00.001-05:00

Friday's uptick was good, but I really want to see a bottom before I decide to get back in. If we see another up day on Monday, I will definately give one if not two reccomendations that I am really enthusiastic about.

Okay, The Market

2007-11-22T22:53:00.000-05:00

So I lied, "soon" meant a long time. Part of this is due to getting back into the swing of college and the other is because of the market volatility. Recently, especially, the market has been hit by the credit crunch. More and more I hear and read about talks of a recession. Although I really don't think this will happen, it's hard to totally bet against one. Monday will mean a lot for the market. The market has dropped about 10% since its high in October. Ten percent or less is the usual amount of a correction. If the market continues downward, then it breaks a crucial point and is much more likely to continue declining. If there is an upturn, then I have several stocks that are ripe for the picking. Stay posted.

Soon

2007-08-04T07:58:00.000-04:00

I know I know, no posts for over a week. I was on vacation hiking, biking, and whitewater rafting in Montana and Canada.

Great things have happened since my departure, however. A long needed market correction is in the works and it is time to load up. I still like my open rec's, especially ICE, because it thrives on volatility in the market.

Since the 19th of July, the market (SandP 500) has declined about 7.7%. To me, this is a bit of an overreaction of the market and will lead to a very short period of greater than normal growth. In the May market correction of last year, the SandP dropped a very similar amount.

Besides buying more of stock that you already own, you could also invest in the general market by buying mutual funds such as Vanguard 500 Index (VFINX) or the ETF SPY. SPY is a very popular ETF that follows the SandP 500 Index.

So although your portfolio may have gone down, use some of those cash reserves to take advantage of this opportunity.

Your Money or Your Body

2007-07-24T09:45:00.000-04:00

Talking about weight is a touchy subject. I admit that I am no longer overweight, but I did used to be, so hear me out.

Weight is tied to more than just how you look, it's tied to your success. As shown in a New York Times article earlier this year, normal weight people ON AVERAGE make the most money, then overweight people, and then underweight people.

So what causes this phenomenon? One clear answer is insurance costs to businesses. If a company has to pay for your insurance, they want to pay for someone who isn't going to cost them a fortune. In the June 11 issue of Business Week there is a list of the average annual costs of healthcare insurance for people according to weight.

Weight -- Average Cost

Normal-- $3254
Overweight-- 3202
Moderately Obese-- 3924
Very Obese-- 5695

Although it is interesting that people who are just overweight cost the least, it is clear that if you are significantly overwieght, the employer might be more reluctant to hire you. Another interesting fact is that, according to the Center for Disease Control, obese medicare recipients cost on average 38% or $732 more than people of normal weight. That means that taxpayers like yourself are in effect paying for that extra cost.

This shouldn't be too depressing, however. The fact that the majority of Americans (about 65%) are overwieght provides an easy opportunity to gain. If you can stay in the normal weight or slightly overweight area, then you are at an advantage when it comes to finding a job and therefore increasing your wealth.

Water Water Everywhere

2007-07-19T12:11:00.000-04:00

Everyone needs water. It is needed everyday by everybody, and it is only becoming more scarce and polluted. I understand that this is a huge crisis, but it is also one which will benefit companies who are willing to combat it. A good, simple way to get a piece of the profit is to invest in PHO, at exchange traded fund that focuses on the water industry.

It is currently trading at 21.80 and has been seeing good and steady growth since last year. With an expense ration of .6%, it is a good way to diversify your portfolio. Another benefit of water is that it is a staple. Even when the market is down, people will still need clean water.

Buying "Your" Stock Picks

2007-07-16T09:08:00.000-04:00

First off, if you buy picks from a company, the stock picks aren't really yours. But why care if you can earn an average of over 20% a year? Buying picks also relieves you of some of the stress and time consumed with investing. There are several factors to consider, though.

First off, nothing is guaranteed. You may or may not make the average 22.8% annual gain that Motley Fool's Stock Advisor claims. Another thing to consider is how many trades are made and how long stocks are held. The more trades made, the more you pay in commission. The shorter stocks are held, the more you pay in taxes. Stock Advisor claims that its stocks are held for about 4 to 5 years and ideally forever. One more thing to consider is what you're getting for the money you pay. I would reccomend being wary of Gorilla Trades, as it is very expensive and does not show any sort of history of the gains it has seen besides its best and worst stocks.

If you haven't noticed, I favor the Motley Fool's Stock advisor. Not only does it show a pretty good history of performance, but it also is just $149. Included in that price are in-depth reports on each stock that is picked. This will allow you to learn more while you make your million (hopefully).

Keep in mind that I am open and looking for people who have tried different stock picking services. If you have, tell us about your experience.

RBC Bearings Inc (ROLL)

2007-07-12T12:29:00.000-04:00

Their business is simple, make precision ball bearings, plain bearings, and roll bearings. Although the company may not seem interesting, thier stock is. With margins better than most in the industry and return on equity and earnings growth also solid, ROLL presents an attractive buying opportunity. I think it's a buy at $41.46.

The Real Cost of Smoking

2007-07-02T11:22:00.000-04:00

Before I write this, I want to let you know that there will be more stock rec's coming out soon, so keep an eye out.

Smoking, in my opinion, is one of the worst habits a person can have. Not only is it bad for your health, but it is also bad for your financial situation. It is a drain of money-- money that could be used to invest or to at least spend on something more healthy like a new bike or skis.

If you think about it, a pack of cigarettes costs anywhere between around $2.50 and $7.00 depending on where you live. Let's assume that it costs $3.00 (a conservative estimate) and you smoke a pack a week. That means that you spend over $150 on smoking a year. If you smoke a pack a day, you spend over $1000 a year. This is money could be earning interest or being invested in another way. If it were put into Etrade's Complete Online Savings account, $1000 would earn $50 worth of interest in one year.

In addition to the short term consequences of smoking, you must also consider your future. Not all health care providers cover all the problems associated with smoking. Plus, many insurance companies will have you pay more if you do smoke.

So if you do smoke, stop. It's not cool anymore and most people don't like smokers. I know, your saying that it's not that easy, but it is. It's all about will power and if you can't stop, well natural selection may start to kick in. I know it sounds harsh, but anyone can do it.

The Best Way to Triple Your Money in 10 Years

2007-06-29T19:14:00.000-04:00

Ten years may seem like a long time, but for a relatively safe investment, it certainly is not. The Standard and Poor's 500 Index has returned an average of over 10% since 1926. Although that percentage cannot triple your money in ten years, 12.6 can.

The Vanguard 500 Index Fund (VFINX) is a mutual fund by Vanguard (hence the name), which due to its wonderful dividends, can produce great returns. With an expense ration of .18% and a minimum of $3000, it is a solid choice that all investors should consider. Not only does it give you exposure to a large portion of the market, but it will also give returns that could help you one day retire or pay for your kid's college tuition. If mutual funds aren't your thing or you don't want to invest that much, you could always look at ETFs.

Symbols SPY and VTI are two that I would recommend, both of which have decent expense ratios.

Saving Money With Store Brands

2007-06-27T14:53:00.000-04:00

In many cases, buying a knock-off brand item is a bad choice. Take shoes for instance. You want something that will last for a long time and be comfortable. There are some cases, however, where buying knock-offs or store brand products is a great choice.

An example of this is mouthwash. A while ago, I was in CVS recently and finally realized how much I was being ripped off on so many things. One Liter of Listerine Mint Mouthwash is $5.99. One Liter of the CVS Mint Mouthwash is $2.79. If you look at the back label of the bottle, they have the exact same active ingredient and the same other minor ingredients. The price is so much lower because they eliminate the middle-man. And the nice thing is that nobody will think you're cheap because unless you have some weird place for your mouthwash, they will not see it. Now I know you are probably thinking that three bucks isn't much of a savings, but if you start thinking about buying more store brand items, you might begin to see a difference in the amount of money is left in your bank account.

Some other big companies that offer store brands:
Target- Target, Market Pantry
Costco- Kirkland
Whole Foods- 365
Kroger- Kroger

Keep an eye out!

Etrade's Global Trading

2007-06-26T11:33:00.000-04:00

In July of this year, Etrade will be coming out with a feature they call "Global Trading". I think this is a great opportunity to diversify your portfolio. Although you can already buy some foreign stocks on Etrade, this will certainly increase the possiblilities. That isn't the half of it, however. Etrade investors will also be able to hedge the U.S. Dollar by putting their money in other currencies, such as the British Pound.

Over the past years, the U.S. dollar has continued to weaken, especially agains the Euro and the Pound. This means that your cash, which is in U.S. dollars, isn't really gaining as much value as you think on a global scale. With Etrade's global trading, you will be able to convert your dollars to 5 different currencies including Euro's, Pound's, and Japanese Yen. It's nice to have your cash working more for you when it is not being invested in equities.

Etrade Global Trading looks like they are off to a great start, but I would still like to see access to more international markets. Ghana, although many people may not think of it, is one of the fastest growing economies in the world.

Be sure to check back on EmerVest as I will be trying Etrade's Global Trading and can let you know how it goes.

https://us.etrade.com

Pros and Cons of "Free Trades"

2007-06-24T11:41:00.000-04:00

Many brokerage companies offer some amount of free trades per year or when you join (See the list below). It is certainly an enticing offer, but you must look beyond the big print.

First and foremost, read the small print. A lot of the brokerage companies require you to have a certain amount of money in the account, often upwards of $25,000. Be careful not to choose a broker that nickle-and-dimes you. If you go below Wells Fargo's $25,000 minimum, you will be charged $25 a month. That may not sound like a lot initially, but in a year, you will have paid them $300 of your hard-earned money. If you have well above the minimum, however, there's no problem.

You also need to consider what kind of a trader you are. If you stick with just a couple trades a month or so, having one hundred free trades or more won't help you that much. Also, if you are not heavily invested, you want to be able to be earning a decent interest on your cash.

Finally, think outside of the box. How much you pay in dollars is one thing, but time is also money. A few seconds can cost you a few dollars when trying to get the right price. Wells Fargo and ShareBuilder reportedly slowed down on extremely high volume days while other brokers such as Etrade and Ameritrade remained fast.

And don't be afraid to trust your gut. If you get a bad feeling about a broker, don't invest with them.

Brokers

Etrade: 100 Free trades with a minimum of just $1000. Fastest brokerage with free trades according to www.gomez.com

TDAmeritrade: Unlimited free trades for 45 days if you have a minimum of $2000

Wells Fargo: 100 free trades per year with $25,000 minimum. $25 fee if account falls below minimum

Sharebuilder: No free trades, but trades as low as $4 if you don't mind not trading real-time (you might have to sacrifice a penny or two on the purchase and sale price).

Fidelity: Free trades for six months with $25,000 and one year with $100,000 in retirement assets.

Scottrade: No free trades, but fastest brokerage site according to www.gomez.com

Zecco: Up to 10 free trades a day and 40 a month with no minimum.

Bank of America: 360 Free trades a year with a minimum of $25,000.

Philipine Tel (PHI)

2007-06-18T13:53:00.000-04:00

This company is a great way to put a little international diversity into your portfolio. PHI is in both the wireless and landline business in the Philipines. The Philippines economy is expected to grow a solid 5.4%. For its numbers, PHI is a bargain. Its margins and return on equity are some of the best in the industry and it also pays a 3.5% dividend. I think PHI is a buy at $57.36.

Riding the Bumps

2007-06-15T16:11:00.000-04:00

So basically we have been seeing some examples of a slowing economy and I think it is important to consider the possibility of a correction some time soon. I wouldn't say that we are overdue, but I think that it is safe to say that in the next two months, there will be a couple of nasty weeks. Keep in mind that there is no reason to sell now. Very few people can really time the market and the most effective way to make money in the long run is to just hold on to your investments through the ups and downs (it takes the least amount of work too). This of course does not mean that you should not buy in the dips. In fact, that's the beautiful thing, the entry points are practically laid out for you. Any time the market is down 5-10%, I like to buy a little stock. I don't worry too much about getting in at the perfect entry point, as long as I get in 6 or 7% below what the market was before the correction. Happy investing.

Selling MDR

2007-06-14T13:42:00.000-04:00

Well, another quick run. Since the rec was made in March, this pick has soarded over 65%. I have decided to minimize my risk and take some profit. Not much more to say.

Precision Castparts Corp (PCP)

2007-06-12T15:41:00.000-04:00

Precision Castparts Corp. (PCC) manufactures complex metal components and products, investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine (IGT) applications. The Company also provides investment castings and forgings for general industrial, automotive, armament, medical and other applications; specialty alloys, waxes and metal processing solutions for the investment casting industry; metal-injection-molded and ThixoFormed parts for automotive and other markets; sewer systems, and metalworking tools for the fastener market and other applications. The company is one of the fastest growing in its sector and hasn't missed estimates in over ten quarters. This little dip provides a good buying opportunity at $115.50.

Selling China Life Insurance (LFC)

2007-06-11T15:35:00.000-04:00

I would have liked to have made a bigger profit, but I feel that the Chinese market is becoming a bubble waiting to pop so I don't want to be in it when it does. Therefore, I have sold my shares of China Life Insurance for a 10% gain.

Takin' a profit on Barnes (B)

2007-06-10T14:28:00.000-04:00

I normally wouldn't opt to sell a stock this quickly, but I wasn't expecting this big of a profit in such short amount of time. Therefore, I have decided to sell on Monday for about a 30% profit.

This is a good time to bring up the importance of knowing when to sell. First of all, it is hard to be certain. For instance, I don't really know what this stock will do. It may keep going up or it may go down. Either way, one must know when to take a profit. To me, a 30% profit in 2 months is great, so I have decided to get out while I am ahead.

ATandT Inc (T)

2007-06-10T11:35:00.000-04:00

Everyone knows what ATandT is, so no need for a long explanation, but this telecommunications company looks good. There is nothing really special about it except that its stock continues to climb and that it is one of the few well known companies that I have recommended. The actual company is a very solid company and has beaten EPS estimates all of the last ten quarters. Not only does it show strong growth, but it also pays a 3.5% dividend. Reinvest those dividends and you will find that ATandT will serve you well. It is also moderately priced and shows better than average return on equity for the telecomunication industry. I think it's a buy at $40.26.

P.S. I wrote "and" instead of the sign above seven on the keyboard because blogger wont let me publish it otherwise. Sry : (

Intercontinental Exchange (ICE)

2007-06-09T13:11:00.000-04:00

ICE has seen some serious growth and it is poised for even more. Its EPS is currently the fastest growing in the industry and it also has great margins and return on equity. And although analysts shouldn't make or break an investment decision, it is ranked at outperform by Reuters.

IntercontinentalExchange, Inc. (IntercontinentalExchange) operates as an electronic global futures and over-the-counter (OTC) marketplace for trading an array of energy products. The Company also operates as a soft commodities exchange. IntercontinentalExchange offer an integrated electronic platform for side-by-side trading of energy products in both futures and OTC markets. Through its electronic trading platform, the Company’s marketplace brings together buyers and sellers of derivative and physical commodities contracts. IntercontinentalExchange also offers open-outcry trading in Board of Trade of the City of New York, Inc.’s (NYBOT) regulated futures and options markets. The Company conducts its OTC business directly and its regulated energy futures business through its wholly owned subsidiary, ICE Futures. It operates in three segments: energy futures, OTC and market data. (Etrade)

Offering great exposure to several markets, ICE is a buy at $145.63.

It has been a while

2007-06-08T15:31:00.000-04:00

So its been a long time, but is that so bad? The picks so far have done great overall. Although I have been busy, you can be sure that I will be making some more recommendations soon. So keep an eye out and do your homework.

Crown Holdings (CCK)

2007-04-21T18:00:00.000-04:00

I admit it has been 10 days, but nothing has really gone too bad. Crown holdings makes packaging products for consumer goods such as cans for soup and other stuff like that. That is precisely what makes this stock attractive. It is a staple business that will continue to succeed even if the market suffers. It has also shown a fair amount of growth over the last year. With a P/E of just over 11, the stock is a little underpriced and makes for a nice buy at $24.39. Be sure to do your homework first though. I recommend a minimum of a half hour per stock per week, but preferably about an hour and a half if you have the time.

Lan Airline (LFL)

2007-04-11T19:09:00.000-04:00

Lan Airlines is an airline operating in Latin America. It already has the main stake in the cargo business and has a big portion in passenger transportation. The fact that it is in Latin America also has its advantages. While there is not a huge middle class, there is a growing upper class and an overall rapid increase in population. LFL is growing fasts and only projects great growth in the future. It is effective at managing its debt and also has a great return on both equity and investment. Be wary, however, because this is the airline business and things can go sour fast. Remember the rules of selling out when you lose 8% and putting a stop loss in or taking a profit when you have made 15 to 20%. Right now LFL looks good at $73.12.

Investing With Just $1000

2007-04-10T17:54:00.000-04:00

I understand that investing isn't exactly the easiest thing to get into. It requires both money and time. The time is a relatively flexible variable while the money is absolutely crucial. This does not mean that you cannot invest with a small amount of money though. If you don't already have $1000 saved, start saving. Put away a fixed amount of money every month and don't ever skip a month. By the way, you will probably actually need about $1020 due to commission, which is the fee charged whenever you buy or sell a stock or mutual fund.

Once at $1000, you need to decide what to invest in. There are several options. I do not recommend investing in a single stock because they carry a lot of risk. Rather, I suggest an Exchange Traded Fund or a Mutual Fund. Both types of funds consist of groups of stocks that the fund invests in. The main difference is that an ETF can be traded throughout the day while the mutual fund cannot. Mutual fund's, can often produce higher returns because they are able to be more selective in their selection of investments, but they also carry more risk.

For a mutual fund, I would take a look at Oakmark Select (OAKLX). Its minimum invest is $1000 and has averaged over 15% a year since it has been started. The Icon Long/Short Fund (IOLIX) is also very good. Although it does not generally make as much per year, it is able to make money when the market goes sour while other funds are losing money. The Vanguard Mid-Cap Index Fund (VO) is a great ETF option. It has averaged over 12% for the last ten years. Always remember to research these yourself before buying.

Many banks offer the ability to invest your money through them, but you can also start a new online account. Either one works fine if you are not an active investor. It never hurts to talk to someone at your local bank.

China Life Insurance (LFC)

2007-04-09T08:56:00.000-04:00

China Life Insurance company is a life insurace company in China (obviously). In addition to life insurance, however, it also provides accident and health insurance. The company currently has over 70 million policies and that number is growing. China has one of the fastest growing middle classes in the world, which means that more and more people will be able to buy both health and life insurance. This company continues to growth and I would have mentioned it earlier if this site were up sooner because I did very well in it. I still see the price steadily increasing and I do not think that it is too late. The company's EPS is growing faster than 35% and it has a great return on equity compared to other companies in its sector. Therefore, I see it as a buy at $43.5.

2007-04-06T16:32:00.000-04:00

Barnes Group (B)

2007-04-05T12:52:00.000-04:00

Barnes Group Inc. is an international aerospace and industrial products manufacturer and distributor serving a range of end markets and customers. The Company operates through three segments: Barnes Distribution, an international, full-service vendor-managed inventory (VMI) distributor of maintenance, repair, operating and production supplies (MROP); Associated Spring, a global provider of precision components for critical applications and a manufacturer of precision mechanical and nitrogen gas products, and Barnes Aerospace, a specialized manufacturer and repairer of engineered components and assemblies for aircraft engines, airframes and land-based industrial gas turbines. (Etrade)

The company has a solid history and very steady and positive performance over the last 6 months. A buy @ 23.18.

The Market

2007-03-23T20:34:00.000-04:00

Well, the market has had its best week in 4 years. I have a feeling that with this there will be a slow if not a 50 to 100 point correction on the Dow. In the long term, it still looks very bullish, however. When the market is less overbought, I will probably record another buy or so that fits my criteria.

CarMax (KMX)

2007-03-16T15:46:00.000-04:00

CarMax, Inc. (CarMax) is a retailer of used cars in the United States. The Company purchases, reconditions, and sells used vehicles. As of February 28, 2006, CarMax had 67 superstores in 31 United States markets. CarMax also sells new vehicles under franchise agreements with four new car manufacturers. During the fiscal year ended February 28, 2006 (fiscal 2006), new vehicles comprised 7% of the Company's total retail vehicle unit sales. CarMax provides its customers with a range of related products and services, including the financing of vehicle purchases through CarMax Auto Finance (CAF), the Company's own finance operation, and third-party lenders, the sale of extended service plans and accessories, the appraisal and purchase of vehicles directly from consumers, and vehicle repair service.

CarMax hasn't missed earning in the last 12 quarters and is only projected to grow. It has a good return on equity and is a buy @$25.50

McDermott International (MDR)

2007-03-16T15:38:00.000-04:00

McDermott International, Inc. (MII) is an engineering and construction company with specialty manufacturing and service capabilities. MII is the parent company of the McDermott group of companies, which includes J. Ray McDermott, S.A. (JRMSA) and its consolidated subsidiaries; McDermott Holdings, Inc. (MHI) and its consolidated subsidiaries; McDermott Incorporated (MI), a subsidiary of MHI, and its consolidated subsidiaries; The Babcock & Wilcox Companies (B&WC), a subsidiary of MI; BWX Technologies, Inc. (BWXT), a subsidiary of B&WC, and its consolidated subsidiaries, and The Babcock & Wilcox Company (B&W), a subsidiary of B&WC, and its consolidated subsidiaries. MII is a worldwide energy services company operating in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. (Etrade)

This growth stock has shown solid growth over the last year and projects continue growth. It has a great return on equity and also has incredible EPS growth. @48.53

Valero Energy (VLO)

2007-03-16T15:29:00.000-04:00

Valero Energy Corporation (Valero) owns and operates 18 refineries located in the United States, Canada, and Aruba that produce refined products, such as reformulated gasoline blendstock for oxygenate blending (RBOB), gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel, and oxygenates (liquid hydrocarbon compounds containing oxygen). The Company also produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants and other refined products. Valero markets branded and unbranded refined products on a wholesale basis in the United States and Canada through a bulk and rack marketing network. It also sells refined products through a network of approximately 5,800 retail and wholesale branded outlets in the United States, Canada and Aruba. During the year ended December 31, 2006, Valero sold all of its ownership interest in Valero GP Holdings, LLC. (Etrade)

With a P/E of 7, this stock is a buy. It has also beat earnings in the past 11 of 12 quarters. Looks good as a long term investment and is currently oversold. A buy @60.00.

GEO Group Inc (GEO)

2007-03-12T19:35:00.000-04:00

The GEO Group, Inc. (GEO) is a developer and manager of privatized correctional, detention and mental health residential treatment services facilities located in the United States, Australia and South Africa. It operates correctional and detention facilities, including maximum, medium and minimum-security prisons, immigration detention centers, minimum-security detention centers and mental health facilities. Its correctional and detention management services involve the provision of security, administrative, education, health and food services, primarily at adult male correctional and detention facilities. (Etrade)

The company has seen solid growth. It has beat earning in the past 11 out of 12 earnings. The stock is also currently oversold.

I see it as a buy @ 46.41

Numero Uno

2007-03-12T19:27:00.000-04:00

This being the first post, I would like to outline the purpose of this blog. I am creating this blog to be used as a way to track an investing strategy over a long period of time and to record notes and comments. The stocks are not meant to be picks and should not be used as advice.