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Jim:
While other
people were
having the time
of their lives
this weekend...
munching on
Doritos... glued
to their HDTV
sets... watching
the SuperBowl...
I was curled up,
fetal
position-like,
reading
transcripts of
conference
calls, looking
for patterns,
searching for a
broader theme...
hunting...
hunting for
something that
could overwhelm
the prevailing
nonsense of that
Greek credit
default swaps,
dollar-yen carry
trades, and the
downfall of the
euro, control of
all thought
patterns...
Nonsense that,
once again,
played havoc
with our
markets, as
the Dow
shed 103 points,
and
the S&P
gave up a
percent...
Sure enough! I found
it... right in front
of me... in my socks
drawer of all
places! A subject so
purloined as to make
Edgar Allen Poe roll
over in his grave...
Quote the Raven...
Buy some
Phila. Semiconductor Sector Index
(^SOX)!...
But forget the
s-o-c-k-s... I am
talking about the
wondrous
Philadelphia
Semiconductor
Index... which is
the repository of
many companies that,
right at this very
minute, are having a
renaissance... one
of the most amazing
that I can recall.
But, judging from
the lackluster
reaction these
stocks have had
after their
incredible
quarters... nobody
cares. So, tonight,
in the interest of
actually trying to
help you make some
money in a really
down, crummy day,
I'm going to make
you care.
First, to fully
comprehend the
importance of what's
happening with the
semiconductor
companies, you must
understand two
arcane investing
concepts: cyclical
and secular!
These terms describe
the kind of growth a
company might
have... Cyclical is
a curse word in our
game of stocks...
it's a sign of
weakness... It
refers to a company
that is not in
control of its own
destiny, one that
grows according to
the slings of arrows
of economies around
the world. When
those economies are
good, cyclical
stocks go up. When
they're bad, the
stocks go down.
Secular, on the
other hand, means
that they have
something else going
for them besides the
economy... a trend
that's bigger than
anything the
business cycle can
throw at them. These
secular growth
companies can trump
the noise of a
Chinese bust, or a
Grecian Formula
hairball... and
that's why investors
will pay a premium
for them.
So what does this
have to do with the
SOX?...
I want to tell you
tonight that, after
reading and
listening to dozens
and dozens of
conference calls,
there is a
tremendous
disconnect between
what the analysts
are seeing and
what's actually
happening when it
comes to companies
in the Semiconductor
Index. Almost every
semiconductor
company, from
Intel (INTC*)
and
Xilinx
(XLNX),
to
Marvell
(MRVL),
Cypress Semiconductor (CY),
Broadcom (BRCM),
Avnet
(AVT),
Altera (ALTR),
Texas Instruments (TXN),
and so many
others... have
reported simply
"blow away"
numbers...
Read more from this
segment
Read all of
Monday
night's complete
recap
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Lightning Round
Picks: |
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Potash (POT)
Jim:
Oh, you know that I like it… POT is my favorite because I like the yield, however, once again, as I saw
Monsanto (MON) just wilt today, we have to understand Potash is what I call a high beta stock… meaning that it could go up or down in a heartbeat… I want you to be careful with that one… I think, even though I like the fundamentals in 2011 for a return in fertilizer, POT is going to be a difficult one… as difficult as owning
Electronic Arts (ERTS), another one that blows up again that I still like... POT is a stock that I like, but I do not expect it to go up anytime soon. |
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All Lightning
Round picks |
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See
entire week
of Lightning Round
stock picks on
one page,
here
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Church & Dwight (CHD) Jim:
Very good company in this environment, but let’s not forget
Clorox (CLX) reported last week and so did
Colgate (CL), I actually prefer both of them to Church & Dwight… but Church & Dwight has got good fundamentals… it is the right kind of stock in this choppy environment.
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All Lightning
Round picks |
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Gilead Sciences (GILD*) Jim:
I just put out a note today for
ActionAlertsPlus.com, my
charitable trust, Stephanie Link and I, who works with me… we both agreed that Gilead has got a new, there is going to be a new formulation of the new anti age drug coming out soon, we think that it is very powerful… Gilead had one of the best upside surprises this whole quarter… there is only a penny per share problem if the dollar stays this strong… I think that Gilead has everything that you want in this market… and I am a huge buyer… by the power of nine. |
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All Lightning
Round picks |
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