Unlike most narrow-minded finance freaks, I like to introduce you readers to all strategies, especially proven profitable ones, no matter if they’re not right for me cuz I’ve got the patience of a paparazzi photographer trying to snap shots of ARod & Madonna. So, here are the 2nd half picks of a longer-term trader who likes to buy, not short, speculative names whom I greatly admire, Superman.
Many of you TheLion.com readers know his research/influence is legit, and I’d brag about the incredible performance of his 1st half 2008 picks, but he already does that in the solid guest post below:
I am back from vacation. What I did learn is that Vegas seems to be hit hard by the economy. Everyone I talked to there said the same thing. It has been much slower due to the economy. It was easy to see. Need to research some Vegas stocks that may have more downside for potential shorts.
The first half of 2008 was an amazing time for me. As most know, I researched and pounded the table on PDO when it was $5-$7. My first buy was $4.47 and the stock ended up gaining 929% from that point to peak at $46. Other strong gainers I researched and selected included SINO 142% NTI 138% GBR 96% and CKX 65% (Gain percentage was measured from my first buy to the stocks peak thereafter. I always take some profit when I am up and use mental stops on the rest if I still believe the stocks will go higher. As you can see I am not a daytrader, but look for quality stocks that can make strong moves in time.
The market as we all know, has been in the tank. Oil is rising, the dollar is weakening, the credit crisis continues, and hopes for a second half economic rebound is on the ropes.
China stocks have also been in the tank, EPS or not.
However, I believe, In every market, there are always certain stocks and sectors that will still do well. It is a matter of being very selective with long positions. The industries must be in demand, even in a slowdown.
My top 3 stocks for the second half of 2008, in my opinion, meet this criteria:
Taylor Devices, Inc. (TAYD) - Company is a global leader in providing earthquake protection for buildings, bridges, schools, and other structures. This is a $6 stock and it did $0.12 EPS last quarter. I believe this stock is a gem and undervalued based on last quarters EPS alone. As earnings approach, I believe we will see continued strength in EPS and future demand in this business making it a big mover in the next 1 to 12 months. This reminds me of the stock BOOM, which was an obscure stock at a similar price until industry demand put it on the map and the stock moved to over $50 on that demand and EPS. I additionally believe TAYD could be a buyout target for a larger Company wanting to get into this field.
Northern Technologies International Corp (NTIC) - Formerly NTI, now trading on the NASDAQ as NTIC. This Company has a very solid core business that provides corrosion protection with a big market reach outside of the United States. They are in the process of expanding this business into the oil and gas sector. As earnings approach, I believe this report will mainly feature this results from this core business, which has had a very respectable EPS run rate of $0.70-$0.80. I am expecting EPS in the $0.15-$0.20 range (my guess only).
That being said, I think NTIC will be the most in demand alternative energy company in second half 2008 and beyond due to two other factors. They have a biodegradable plastic that is already available for sale as well as an exciting Plastic Waste to Oil technology that they have recently placed in India and Thailand. According to SEC filings they have plans to sell the first unit in fiscal 2008 and intends to ramp up its manufacturing and service infrastructure to capitalize on global market opportunities it believes exists for the Plastic Waste to Oil solution. I believe these factors give NTIC the potential to move like the solar , wind, and other hot alternative energy stocks did and with the low float structure the sky is the limit here. When the Company rolls out this technology and announces sales I believe this has the potential to be a $30-$50 stock. Watch Video (Takes a Minute To Load)
Heckmann Corporation (HEK) - This SPAC purchased a leading Chinese bottled water company and when the deal closes in the fall and we see some reports, I think this stock is a potential double or more. The rising Chinese middle class should be big buyers of bottled water in a country where clean water is scarce.
Other stocks that I believe have big potential in the second half of 2008 include:
Metabolix, Inc. (MBLX) - A leader in bioplastics, plant to open in 2009. Partner is ADM
Hudson Technologies, Inc. (HDSN) - Earnings should be stellar this quarter and beyond due to a huge demand in their refrigeration business. More research to come
American Electric Technologies, Inc. (AETI) - Serves the oil, gas, and wind energy business
New Concept Energy, Inc. (GBR) - 520k Float - waiting for them to buy something in the oil/gas field
TEXAS VANGUARD OIL (TVOC) - I expect blowout earnings this quarter due to higher oil/gas prices
Energy Recovery, Inc. (ERII) - Recent water IPO , watching for a dip
I will continue to provide my personal research on all of these companies and any new ones I find.
Disclaimer: Superman, and many other readers here probly are invested in a lot of these…(happy SEC?)–I wish everybody would join Covestor so all positions/entries & exits can be verified, but I’ve got a ways to go in convincing everyone to signup!
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