E. Will the Rally Continue What will Tomorrow Bring ? Don't throw away caution. Volatility remains - the sub-prime mess remains, we have no way of knowing how exposed the banks are to the credit meltdown. Look at the stocks that benefit from the global economy - as we discussed above. They are generating cash and have little to do with the subprime slime - unless an actual U.S. recession appears. In the event of further deterioration in the U.S. financial sector a Fed mandated rate cut will rescue the sector and the stock market. In the meantime - don't be a hero. Don't try and guess which bank or homebuilder or mortgage insurer will pick up the pieces of the fallen. Watch the after hours earnings announcements - positive announcements point to a positive start to the day. Don't be complacent - as we saw - a mere rumour that Goldman Sach would make a negative announcement cost the market 100 points until the rumour was announced as false.
from the stock blog www.amprogram.com
Showing posts with label stock market. Show all posts
Showing posts with label stock market. Show all posts
Wednesday, August 8, 2007
Tuesday, August 7, 2007
Stay away from Natural Gas Producers
from amprogram.com The AMP has sold out of the nat gas sector - still bullish on oil.
But - we do not like Natural Gas The number one position on the watchlist for nat gas stocks is Peyto (PEY.UN) . simply one of the best run natural gas producers in Canada. Their President's position in a recent release was although the short term price was not good , the long term price and long term reserves would do well for the Company. As an investor , I believe that analysis is correct - but my money can be working elsewhere today - and be in the nat gas sector - when and if the turn occurs. Many small natural gas exploration/producer companies rely on a " friendly " banker to stay in the business. Today’s prices do not make for great profit reports - the banks are going to be less friendly. Credit is being tightened and this sector has little to recommend it - except the potential of hurricanes and a dreadful winter. That is not much security for the bank or you and me
But - we do not like Natural Gas The number one position on the watchlist for nat gas stocks is Peyto (PEY.UN) . simply one of the best run natural gas producers in Canada. Their President's position in a recent release was although the short term price was not good , the long term price and long term reserves would do well for the Company. As an investor , I believe that analysis is correct - but my money can be working elsewhere today - and be in the nat gas sector - when and if the turn occurs. Many small natural gas exploration/producer companies rely on a " friendly " banker to stay in the business. Today’s prices do not make for great profit reports - the banks are going to be less friendly. Credit is being tightened and this sector has little to recommend it - except the potential of hurricanes and a dreadful winter. That is not much security for the bank or you and me
Subscribe to:
Posts (Atom)