<On paper and lumber prices, we've been waiting for the higher prices and pick up in demand to wake up some of the stocks in the sector, but that hasn't happened yet.>
"With the industry 12 months into a solid cyclical upturn, stocks in this sector have sold off sharply since early January, Wilde told clients in his research note Friday. The drop-off is occurring despite the fact that fundamentals continue to improve, he said."
"Among the positives cited by Wilde for the sector are improved pricing(I mentioned P&G's earnings warning,,now we can add Dial-packaging costs are a part which was cited), the fact that the industry has broken tradition in managing the supply-demand balance (a clear positive for pricing) and continued limited global supply growth."
""The lack of new supply growth is the real key," Wilde said indicating that paper demand is relatively stable across the economic cycle while noting that most damage is usually triggered by surges in new capacity."
cbs.marketwatch.com
Obviously, one won't get a double in a week,,but IMO..IP could net a nice profit between 34/sh and 44-46/sh(next hard resistance area,once/if 38 is printed)over the next 6 months..Of course the road will not be without rocks<g>
I also think Alcoa (AA) could begin to pick up as well(I bought some),has put in a double bottom at 65 and tentively reversed up into a column of "x"'s,nothing real solid, but a start..All depends on the fed meeting,and the Dow/Nas relationship...I definitely noticed interest in the beaten down dow biggies this week..Watching HD, HDI and WMT to name a few-bought WMT...;^)
PS: IMO, at some point retaining profit made from the tech move will come into play,and tech players will not go to cash,,they will search for the next sector that offers profit...As you probably have noticed,,the move has been, out of bio-techs,,will keep an eye on it for a basing before re-entering...As Tom Dorsey puts it,,at times capitol/profit preservation is upper most,,put the defense on the field...I'm not much for shorting,,so I'll work my way down the food chain,,hopefully a step ahead of the rest<g>..My Janus funds have been moved from global tech and bio science to 50% large cap, plus 50% growth and income. |
