Friday, August 24, 2007

Adding Some Positions

The market is continuing its pattern of a steady move upward. I'm trying to think like others aren't and add some positions that have been out of favor, add beef up some others.

First off, I'm adding Novartis (NVS). They are a Swiss drug maker that in my opinion is undervalued. This is an industry that continues steady growth, and they have a nice pipeline.

Secondly, I'm adding a small company called Mac-Gray Corp (TUC). Their business is laundry equipment. They provide service to apartment complexes and college dorms. They use a card-operated business that users can control online. I see short term strength here with more people renting housing with the real estate market soft. I also see long term strength with colleges expanding rapidly.

Lastly, I'm adding News Corp. (NWS-A). This is the well-known media conglomerate controlled by Rupert Murdoch. They control a variety of media sources including Fox News, The New York Post, and Myspace. They recently acquired Dow Jones, which has The Wall Street Journal, Barrons, and a few other names. While I believe Murdoch may have overpaid for Dow Jones, I view it as a very important acquisition for News Corp. They are launching Fox Business Channel this fall, and Dow Jones companies' will complement the new channel well. I see long term strong growth ahead for News Corp.

These are positions that I currently hold that I'm adding:

Best Buy (BBY)
Capital One Finance (COF)
Echostar Comm. (DISH)
U.S. Bank (USB)

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