Economics 101

The best economic advice that you will ever receive - maybe.

Tuesday, January 02, 2007

More analysis and a 3 profitable picks

First off, I hope that everybody had a happy new year, and that 2007 will be an even better year for you, the markets, and above all, stocks. I've been working hard toward finding some new picks and I've found 3 very profitable ones.

Pick #1 is: Sirius Satellite Radio (SIRI)

These guys are going down, and I think that they are a great buy. Even Jim Cramer gave the OK to buy. And for all you that hate Cramer and the "Cramer Effect" Sirius is still going down, so nothing for you to worry about, even though you should always take advantage of the so-called "Cramer Effect." These guys recently reached their 52 week low, and I think it's time to cash in. I don't think these guys can go any lower than $3.40-$3.45, but then it is time for them to kick butt. Sirius is one of those up and down stocks. Take a look at their charts and you'll know what I'm talking about. Sirius will go from $3.60 all the way to $4.25 and come all the way back again. You could just keep making money off of these guys forever.

Pick #2 is Kookmin Bank (KB)

Their balance sheet may worry you a little bit, especially since they are only making about a $12,000 profit, but things look very bright for this stock & its company. They were actually in debt not too long ago but have now come out of that stage and arecontinuing to maximize their profits. Two other healthy things are this stock's market cap and price-to-earnings ratio (P/E). You will notice that this stock has a market cap of $27.11 billion and a P/E of only 8.90, which is magnificent for any stock. But you look at the 52 week range and you start questioning my judgement on this stock. You think, "What is this guy smoking?" Well, I definetly hope you aren't thinking that and I don't smoke, or drink for that matter, and so I am 100% healthy. However, if you look at this stock's chart, you'll notice that it is moving in an upward direction.
Bottom Line: These guy's are a great buy!

Pick #3 is Whole Foods Market (WFMI)

These guys have definetly bottomed. Whole Foods just can't go any lower. In 2006 alone, they went down 39-40%. Whole Foods, how low can you go? Well, I'm calling a bottom on Whole Foods and I think that the stock has simply nowhere to go but up. I really can't say anything but BUY! BUY! BUY! I'm giving these guys a triple BUY!

Back to my analysis...
I think that 2007 is all about the banks. You have to watch takeovers. The banks are going to either take-over or be taken-over. You got to watch the regional banks as well. I also think that this is the year where many of the foreign stocks, many of which went extremely high in 2006, will bottom, maybe even mid-way through the year, and you must buy them. You have to watch 2 things: regional banks and foreign regional banks. Both of these are bound to cool off. Foreign money center banks should take a chill pill as well. And some tech stocks should cool off too. AT &T will definetly go down in the next year. You should also watch fashion and apparel. I don't mean to sound like a fashion geek, but a lot of last year's fashion are either going out the door because people aren't buying their fashions and the fashion market is changing or because they're being copied. And when their fashion gets thrown out of the window so does their stock. So I say you have to watch fashion & apparel and banks. I'm also telling you to watch Boeing especially since they had their best year last year. Check this out, they even beat Airbus, even though its only because Airbus was busy with the A380, but that is besides the point. According to the analysts (a.k.a. : ARGUS RESEARCH CORP., BANC OF AMERICA SECURITIES LLC., BEAR, STEARNS &; CO., CARIS &; COMPANY, CIBC WORLD MARKETS CORP., CITIGROUP, COWEN AND COMPANY, CREDIT SUISSE - NORTH AMERICA, D. A. DAVIDSON &; CO., E.K. RILEY ADVISORS, GOLDMAN SACHS &; CO., JEFFERIES &; CO., JPMORGAN, JSA RESEARCH INC., LEHMAN BROTHERS, MERRILL LYNCH, MORGAN STANLEY, PRUDENTIAL EQUITY GROUP, LLC, RAGEN MACKENZIE, A DIVSN OF WELLS FARGO, SANFORD C. BERNSTEIN &; CO., LLC, STIFEL NICOLAUS &; COMPANY, INC., THOMAS WEISEL PARTNERS, UBS (US), WACHOVIA SECURITIES), Boeing is a buy. However it is your call on whether or not you want to buy. If you do, I think Boeing is a long-term stock. Cramer thinks its going to $100, but I think that is a bit of a long-shot.

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