Before I get on the plane to Hong Kong for a nice two week vacation, I thought I might give you guys two value plays that are poised for 20-30% appreciation in the next 6 months. Many people are purchasing used cars or simply keeping the ones they have. http://www.nytimes.com/2006/08/19/b...8a301e4da&ei=5090&partner=rssuserland&emc=rss All car insurance companies advocate used and aftermarket parts on the vehicles that are repaired under their insurance policies. The exceptions that are made are usually if a vehicle has less then 15000 miles or same model year. As the recession comes upon us, everyone is going to be driving around yesteryears vehicles. As they crash those vehicles, the insurance companies will insist on used and aftermarket parts. LKQX and KEYS are poised for a breakout in 2007. These are the best values I see in the market at the current time and will thrive in a recession as the insurance companies force their customers to utilize parts made in Taiwan and used doors from the junkyard. KEYS appears to be an excellent swing trade in a topped out market. Recently, the stock dropped by nearly 10 dollars because of an ITC ruling over Ford F-150 parts. http://www.marketwatch.com/News/Sto...4DE8-8B57-AC7B545DB93C}&siteid=yhoo&dist=yhoo This was an overreaction in the market. Call up any insurance adjuster and ask them if they use Keystone parts. The F-150 truck is not the only vehicle that Keystone has parts for... The stock will easily recover back to 40 in time...So now I leave you for two weeks, Im on the plane right now and going to party in Hong Kong.
are u still holding that oil micro cap position? u know the one u own 5% of the float...and if so how is it doing? tia
Of course. While the market continues to pump the tech stocks up until the end of the year, now is the time to load the boat with small cap energy related stocks. ULTR is not any other small cap energy stock though. It does not deal in dollars, but Euros and other currencies. Its business is overseas in growing regions. Specifically, it consists of the following businesses: River, Offshore, Ocean and Passenger. It serves the shipping market for grain, lumber, minerals, oil, gas and lng. As well, it operates a cruise line touring the med. This company does not depend on the price of oil, but the demand for oil. It does not drill or sell oil, it makes money from transporting it. The demand for oil, minerals, and other commodities will not ever go away. The time to get into these types of companies are right now. I can tell you this much about the current tech bubble, that will go away and probably in the next 3 months.
I thought you were on a two week vacation to Hong Kong? You know, you mentioned it twice in your first post. "So now I leave you for two weeks, Im on the plane right now and going to party in Hong Kong." Did you fly back early to pump more stocks? How is that PNTR call you made on 11/25 doing: "...this is going to 100 in the next day or so. Maybe higher." Dude, you are like that Jon Lovitz character on SNL. What was he - a pathological liar? Or just a jackass? :eek:
Believe it or not, there is an internet here too. The market doesnt stop for my vacation. Im not going to simply tune it out. So I do what I have to do, but to a much lesser extent.
For the record I own a small position in LKQX and I agree with you the the long term macroeconomics of the junkyard business is very compelling especially when you can typically extract multiple thousands out of a car for and investment under $50. I think it will be a good steady performer over a multiple year period.