Hot Topics - Oil, Housing, & the Economy

A common question people have these days is how is someone expected to maintain or get ahead when prices keep going up everywhere you look. Well, I will admit I don't have an answer for each and every person but when times get tough you have to get a real understanding of how much money you are making and even more importantly where is ALL YOUR MONEY GOING. I am in the trenches with you and we have to work even harder to win the war against debt, bill collectors, and crazy spending habits.

To win the battle we have to have a great strategy and understand what we are up against. If you are living in the same world that I am, we are fighting higher oil prices, declining home values, and a slumping economy. Here is a quick summary of our opponents:

People are losing jobs: The financial capital of the world, New York City, estimates job losses to the financial industry which also represents their highest-paid workers and a huge source of tax dollars. They are estimating the losses are very similar to the 2001 time period another time when the economy felt the impacts of a recession.

People ain't paying loans back: The Federal Reserve reported that more people are delinquent across all industry except agriculture (probably because they are making big bucks on high food prices). Some people have stopped paying their credit card bills and those numbers ironically are roughly around the same mark to the 2001 recession. They are watching closely to see if we reach levels that were similar to 1991, another period of economic recession.

Mortgages and the housing industry is a mess: Not only did buyers take on houses they could not afford but how many people do you know that bought huge places way out in some random suburb. These were incorrect bets because most jobs are not located in these remote suburbs and long commutes are very expensive and its harder to sell your home when times get tough...all bad miscalculations that have caused home prices to decline.

People are not pimpin their rides: Car industry experts are predicting people won't be buying as many new cars and threw a chance of a rebound in 2008 out the window. Need proof take this weeks forecast by Ford (F), then yesterday's comments by General Motors (GM). Both said car sales will be horrible and imagine that, GM's stock is trading a levels that haven't been seen in 26 YEARS!! So if you are buying a car, enjoy but do you really want that Range Rover now and all the gas it guzzles.

The Repo man is tired: When people were buying houses they had to keep up with their neighbors and also buy boats. As houses dropped people stopped those boat rides which take gasoline and diesel and cost hundreds and thousands to fuel. And when you can't sell because no one want to buy then you stock paying...and people have stopped paying on boats, cars, bikes and any other thing that you buy with a loan and that means that banks are calling on the REPO MAN.

POSSIBLE PLAYS
On to my recommendations after understanding your Hot Topics. The repossession industry is finally a sexy business because banks want their stuff back. Oddly enough a company came up on my screening this month (which makes sense) and we have a few stock picks for you:

Credit Acceptance Corporation (NASDAQ: CACC)
Asset Acceptance Corporation (NASDAQ: AACC) - Search Urbanomics for the recent recommendations about this stock. And notice how it has been scorching hot since then. I am waiting for any pullbacks and loading up on the REPO MAN

Urbanomics ~ A site where the average person can learn to invest, manage their finances, ask stock and retirement questions in a format that easy to understand.

Touch My...

Now I would love to finish the title of this post with a song I can't get out of my head..."Touch My Body" by Mariah Carey. What's crazy is people will say she's too old for me but whats wrong with a mature older woman thats seems to get better with old age. And to make matters worse the remix ain't half bad either!

But I know you're thinking, this is way too much information (TMI) and what does this have to do with stocks. Well...nothing so how about I let you into my mind and let's elaborate a little bit more on some of the stocks that are lighting up my radar. I call this the "Touch My Stocks" portfolio, even though they will never replace my Mariah. And what better to start my list off with then a truly gentlemen stock, Rick's Cabaret. As always I emphasize, only buying stocks at great price points that give you the opportunity to jump in a favorable discount. Its tough to wait for these levels but we must be patient.

Touch My Stocks Portfolio:

Ricks Cabaret (RICK)
Superman Price: 14.80
Accumulate from anywhere below 16.90

New York Times (NYT)
Price: 18.68
Accumulate from anywhere below 19.87
Note: Eager to see that private equity firms have pushed and obtained 3 seats on the NYT Board of Directors and may look to push strategic alternatives; also NYT is a proud family owned members and they may want to sell before the private equity firms begin to call the shots...do I hear another media firm sale to Rupert Murdoch

Move Inc (MOVE)
Accumulate from anywhere below 3.05

Asset Acceptance Capital (AACC)
Accumulate from anywhere below 10.89

Coinstar (CSTR)
Accumulate from anywhere below 29.04
Thinking about pulling out my cape and supermaning the stock @ (28.50)

H&R Block (HRB)
Accumulate from anywhere below 19.26

Jeffries Group (JEF)
Superman: 14.82
Accumulate from anywhere below 17.59