Rande, Merry Christmas and let's now talk about the next week or two. By Monday Y2K week will be upon us, only one tax-selling day left. High-fliers are near all-time highs. Beaten-down sectors are as bad as ever.
I'm talking about my faves, retail, e-commerce, disc drives, software, computers, banks and on-line brokers, drug stocks and cyclicals. (I don't play cyclicals or natural resources but these may be worth looking at now).
First of all, this Xmas numbers will be huge and that news will soon be reported. Retail earnings should be great for this quarter. Traditionally retailers get beaten down in October, make a partial recovery then stay low until January, then really spurt up. That means the best of the best value candidates, ANF, BEBE, CPU, LE, ETYS, BNBN which I own at low prices, plus BBY, BYND and others you mentioned.
Software has started recovering for the post-Y2K boom but values I like are UIS, IMRS and TSK. Missed NOVL and PSFT but have played them profitably before.
Dis drive stocks are right where they were before the good news started coming out about the sector recovery. They're all great tax-sale canddiates which has probably kept them from rallying much. All buys now HDD, MXTR, KMAG, WDC.
On-Line trading is at a zenith which should help the ailing EGRP, SCH etc.
Computer sales should boom now which will help box makers (CPQ, DELL, IBM) plus disc drive stocks again, semis should stasy strong but have rallied recently. Beaten down computer sales companies like CPU are sure thing bargains.
Drug stocks are stioll a great buy but were a better buy three days ago when I loaded up. MRK LLY, JNJ etc. Bio-techs if you know what you're doing.
Finally, the dog of the year XRX. Wish I hadn't bought it but now that I have it where can this possibly go but up?
Watching CIEN also, wondering why it's going down. And T^ as it comes into my buy range.
These next few months are the time when fortunes can be made, especially as beaten-down sectors catch up to the high-flying part of the market. What does best in January (with January effect)? Beaten-down internets, e-commerce, specialty retailers, retailers with excellent Xmases and cyclicals. In other words, all the previous year's losers.
Happy investing everyone. May you buy low and sell high. |
