Actionable Long Ideas: DD, QCOM, PALM, AV, MRVL, AMD; and recently GLW, FLSH and SNDK.
Outlook: From a Long-term standpoint, wise to seek bargains in late 1990’s theme of technology, telecom and media. (TMT) Although, a strong run since July’s low, there are investment opportunities. A rotation out of energy and into TMT – is a call I am watching for in 2007. Macro picture is unclear with steady complacency, relatively low volatility and clear message from the FED. Important to stay humble in recent run and potential continuing run
Key Themes:
- Favoring tech versus other groups in the market SOX VS OSX.
- Specific areas in Tech: Semi’s and Disk Drives .Continue to favor SNDK and FLSH as top names in that group.
- Healthcare timely investment to consider especially in small cap. Despite post election noise, a worthwhile early one should explore .
- Shorts to consider due to high p/s – and extended charts Focusing on financials as 2007 short candidates: CFFN: S&L name w/ P/S, Also follow up on mortgage shorts for names like ACF and CNO. Earlier in the year, continued to address the fundamental call of sub-prime lenders as overvalued themes.
- Media long-term bets and investments to consider given cycle opportunities emerging in the sector.
Recap of stock calls.
Posted JBLU long - $9 based on inverse oil play and turned out to be a profitable call. Although, I sold early with a $10-12 target, market momentum continues to pick up steam.
GG: at $21 level on oversold commodity related theme worked as well. Plenty of vilotility but got ahead of the game here.
CVS: Around $30 remains a value bet but no major stock moment but use opportunities to add. Overreaction on headline news w/ solid foundation and critical support levels.
My weekend Read’s :
http://www.aaii.com/commentary/articles/200608_stockstrategies.cfm
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