I took a few days off to head over to the West Coast last week. I was living it up in the state of sun, taking care of business for my boy TP who just got married...if you don't know then check out webeclubbin.com for more on the right way to live and enjoy life.
I have been watching the market closely because it seems to be bouncing like a coaster at Six Flags Great America. The catch is the ride has been heading south more than it has been gliding up. I am here to report on what I've been paying attention to the most to keep you informed on new developments. I have to admit not much has surprised me, as most analysts are very negative on the US stock market. Some fools out there keep trying to catch the bottom of sectors such as the financial industry but who knows when they will learn. Let's see, Wachovia got smashed and cut their dividend, Bank of America is not doing much better, and regional banks like National City and others are feeling the pain and strain. I am watching oil closely as many people are taking a good game but little do they forget the fundamentals haven't changed and until someone (maybe Saudi Arabia) raises oil production little will be done in the short term!!!
June URB Updates
China Digital TV Holdings (NYSE: STV) is a BUY in my mind from a valuation standpoint. The background is set as China has opened it arms like the rest of the world to the digital revolution that is taking place. I am hoping the stock will be pushed by requirements from the Chinese government that major cities convert from analog to digital (sound familiar) by the end of this year!! Next think Olympics, my reasons may be simple but who in their right mind would want to watch the 2008 Olympics with just an analog signal...not me.
Zhone Technologies (NASDAQ: ZHNE) and heartburn might be one and the same. This stock I believe is dropping due to the fact that NASDAQ has notified the company that it will be delisted because of failing to meet listing requirements because the stock has been trading under $1 for over 30 days. Pay close attention to this stock as penny stocks can move very quickly to the downside. I would recommend cutting your losses as there are other battles to fight and even though this stock is in a great industry (technology) and growing sector (telecommunications) there will be other days.
Burlington Northern Sante Fe is a stock that has been mentioned plenty of times here and I would also recommend taking a little profit here because future earnings estimate forecasts are starting to come down and remember we were watching the executives of the companies sell massive amounts of stock. Interesting timing since the company just reported that floods and fuel costs are starting to hamper their business.
National City Corporation (NCC) will remain a volatile stock for the short term but it appears to be holding up well especially around the BUY levels we identified as close to book value. I still have some concern because banks are coming out every day and scaring us with more and more write downs. But they have beefed up their cash levels and have a host of analysts rating them as a buy.
Notes: I have purchased STV in my stock tracker and personal portfolio. I am closely monitoring ZHNE, BNI for sells, and NCC for purchase. Bulls and Bears make money...pigs and fools holding on to losses for pride get slaughtered!!
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