As with every bear market in the past, the US stock market will eventually cycle through the current decline and start to climb again. During this process, sectors that had previously been favored are usually replaced with new sectors that lead the new bull move.
Monthly Archives: July 2008
Oil has recently been selling at an all time high. Gasoline prices are draining American consumers directly when they fill up, and indirectly through the added expense of shipping all of the products they buy. In response, the President has lifted the ban on additional offshore oil drilling that had been imposed by his father in an earlier and very different time.
Over the previous ten years the following stocks have shown incredible returns on investment, and are poised to continue this trend in the future. Long-term investments like these are great for options trading, because you can make constant income while you are waiting for that big upward price move.
Over the last ten years, the following stocks have experienced significant returns; surprisingly, the list only includes one famous name, Apple (AAPL). The other stocks are relatively unknown to the general public:
Stop being a spectator and start competing this summer. I’m not suggesting winning gold in Beijing. I’m suggesting winning green with these Olympic related investments:
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Gold Medal: Suntech Power Holdings (STP)
Think Gold. Think Sun. Suntech Power Holdings designs, develops, and markets an array of photovoltaic cells and modules. Founded in 2001, STP’s innovation and foresight has made them the world leader in solar energy and the official solar sponsor of the Beijing Olympics. Expect positive headlines about Suntech and solar energy as the world tunes in to the opening ceremonies in Beijing’s Bird’s Nest Stadium, beautifully powered by Suntech solar panels. The stocks of solar related companies have been very volatile over the last year. A covered call investing strategy can take advantage of some of that volatility. Suntech currently has a covered call investing position with a potential return of 8.7% in only 36 days.
We all remember what happened to Martha Stewart, right? In late 2001, the homemaking queen avoided a loss of around forty-five grand by selling off close to four thousand shares of her ImClone (IMCL) stock. It was shown that Stewart had received insider information about an unfavorable FDA ruling on a drug manufactured by ImClone, and had ordered her stockbroker to sell all of her Imclone shares.
The American dream still thrives in the stock investing market. It is the only investment vehicle that has proven to increase wealth over time and one that mitigates inflationary pressures. The question for the average stock investing person is how to find the offbeat stock that flies beneath the popularity grid yet still maintains the potential for a positive Return On Investment (ROI). The following indicates some not so glamorous stocks that have strong growth and high employee satisfaction. The employee satisfaction is an integral component of a successful operation because the satisfied employee goes the extra distance for the company, lessens the impact on employee benefit packages and thereby, enhances the Earnings Per Share (EPS). The following companies score in the Forbes, 100 Best Companies to Work For in 2008, while exhibiting positive growth.
The greatest investors leave clues. When investing, investigate the clues left by the all time greatest investors.
1. Warren Buffet
Investment style: Long-term growth
Best investment: Coca Cola, 1988
Buffet began investing in 1954 with just $100. Now worth over $20 billion, Buffet invests largely in media, insurance, and consumer companies. Buffet recommends thinking like a prospective owner and sticking to businesses you understand. According to Buffet, great businesses possess simplicity, predictability, high returns, and strong cash generation.
As our country celebrates our freedom on the 4th of July with patriotic displays of fireworks and parades, you may want to consider putting together a patriotic portfolio. Americans are investing in the USA.
Especially during “The War on Terror” our thanks go out to the brave US soldiers around the world protecting our freedom and providing our security. A way to ensure that our troops have the supplies and equipment they need is to invest in the defense sector. There are great buying opportunities in Lockheed Martin (LMT), General Dynamics (GD), Curtis Wright Corp. (CW) and Orbital Sciences Corp. (ORB), who supply many products for defense equipment. Another good investment is Allied Technologies (ATK), who supplies ammunition, as well as aerospace and defense products to the US government. Some very attractive covered call investing positions are available for these companies. For example, an August $100 strike covered call for LMT has a potential return of 3.8% in 45 days. Some other August covered call investing potential returns available are: GD at 2.8%, CW at 3.0%, ORB at 4.2% and ATK at 3.3%.