Yesterday the market rallied hard into the afternoon. I see that happening because investors who were shorting financial stocks were covering because of the possibility that the Fed will cut rates to bail out the market. I don't see this happening.
I've got a few new positions to talk about.
First, lets talk about America Movil (AMX). They are a major player in the Latin American wireless industry. I see this industry catching up quickly to the wireless capabilities of many other nations. It is under control of Carlos Slim, who is now the worlds richest man, and who's investments are rapidly gaining in value. If you're looking for an investor to follow, this isn't a bad one.
Second, I'm looking at a regional restaurant play in Granite City Food and Brewery (GCFB). They operate restaurants in the Midwest, but are expanding quickly. They have a nice menu of what I'd call "casual upscale." They also brew their own beer. They have a couple of short-term hurdles, which I am willing to wait out. The price of basic food is going up, which may hurt profit margins. Higher gas prices typically don't help restaurants, but I'm not sure that its hurts Granite City a ton. They reported earnings this morning that missed, and we'll listen to what we hear in the conference call later. The stock dropped 9 percent yesterday, and with it falling this morning, I scooped up some shares. I was planning to wait it out, but I feel this is a good value at this point.