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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (21355)	5/21/2005 5:41:08 PM
From: E_K_S	Read Replies (1) of 78685

Hi Paul - I added to my pharmaceutical stocks by buying a position in PFE in the $27 range. I bailed out on MRK earlier this year but never re-entered when it was lower. I also like C and JPM and have been trying to set up a long term straddle with both companies. I missed adding to C when it was around $45 and will do so if we see a check back. My thinking is that once the Fed signals that they have reached the end of the interest rate hikes, these money center banks should be able to generate good profits from the spread in rates. My special situation bank "NYB" should also benefit when rates stabilize because they borrow long and lend short. They can lock in their loan returns w/o the risk of higher long term rates. I continue to like the shippers and believe both the bulk and oil carriers will continue to do well as they service the growth in China and India. I own both DRY's and SFL in this sector. =================================================================== I have noticed in my neighborhood many remodel projects. There are four or five houses on my street that are doing large projects and just driving around many more are in process. It appears that you either are remodeling or have bought a new house or 2nd home. Any idea on a value play that will take advantage of this trend? We talked about cement companies, home builders, the box stores (Home Depot & Lowes) and even some of the specialty vendors (bathroom and fixture suppliers). Can you or anybody else think of "Value" companies that would benefit from this remodel upgrade trend. Based on the housing sales numbers and new housing starts, this trend will continue for many months (maybe even a few years) as long as interest rate remain near their all time lows. It's a global economy as when I remodeled my bathroom, my toilet was made in China, the fixtures came from Germany and my shower glass doors were made in Canada. Even my new travertine stone was shipped from Italy. The only common thread in this theme is that the shipping carriers will continue to see more activity. That is why I added dry bulk carriers to my portfolio. Maybe I missed something but you always seem to be alert to new "value" opportunities so if anything comes up on your radar that fits in with this "remodel" theme let's hear about it. EKS

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