Tuesday, November 20, 2007

What I'm Looking At

There are some deals out there, and here's what I'm looking at:

Lowe's (LOW) has really taken a beating. I think this stock isn't far from its bottom, but there is no hurry to get into it. When the recovery begins for homebuilders, which appears to be at least a couple quarters away, this will be one of the first stocks to take off. It is a great company overall, but right now business is tough. If the market really sells off and it gets taken down too far then I may buy it, but for now just keeping an eye on it.

Echostar (DISH). Dish Network. They've been in the news a lot lately amid rumors of a buyout by AT&T (T). I own both these stocks for the blog portfolio. Dish reported some poor numbers a week ago, and the stock dropped hard. It rallied again yesterday when the buyout rumor resurfaced, and is trading lower today. I may pick up some shares personally just on speculation of the buyout. I typically don't get into this type of activity, but I do like the fundamentals of the company, and the valuation is decent. If I pick some up, it would be a very small amount, not near a core holding position size.

SAP Software (SAP). This is a company I've researched a lot, and have spoken about here before. I like their core businesses and the fact that they aren't focused on just one region, but are very global. There is a lot of demand for their product. I've been trying to enter the stock at or under 50/share, but no luck yet.

Financials are still brutal, and will be until they can reassure investors. Lots of deals to be had here, but I'm not touching anything yet. Citi (C) is getting really cheap, but how low will it go? They need to find a CEO, pronto. Etrade (ETFC) is getting hammered again. They've really exposed themselves to a lot of punishment from the street, and they don't have much to fight back with. They have a good brokerage business, but were too small to get into the level of mortgage exposure that they did. I bet that they get bought out in some form. Can't touch the stock.

Best performer for me has been my Ultrashort Dow Fund (DXD). No surprise there. Its one I'm happy to have held onto, and if things deteriorate more, I'd look to pick up some more shares. I'm still trying to be in the contrarian camp right now, as too many people are too bearish considering what the facts are. But as investors we have to stay flexible. One of my favorite quotes is by economist John Maynard Keynes. "The market can stay rational longer than you can stay solvent."

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