Will there be a "Second Smash" terror attack
in response to our strikes on Afghan targets today? Will it instead be a series of smaller attacks around the country? Or will the 1,000 terrorist associated individuals (per FBI estimates) just lay low for awhile while tension builds?
During the US market closure for the balance of the week after 9/11, I spent a lot of time thinking about new investment themes. It was obvious this would be the first war where the US mainland itself would be a key battlefield. So it came as no surprise that the domestic/homeland security related stocks exploded when the market reopened the following Monday. One of my trading rules has always been not to chase news related rallies. It's better to wait for a consolidation, even IF that occurs at higher prices, to give the market time to separate the leaders from the "rising tide that lifts ALL boats"<g> So it's taken nearly the entire month since then to get build positions with a reasonable basis.
First my conservative value pick.
SILW is a Canadian stock that's dual listed on our NAZ. It recently reported a minor earnings disappointment and the price has over reacted on the downside, IMO creating a good LT buying opportunity in a sector that's emerging as a major market leader.
SILW has an excellent balance sheet. PE, P/S, P/B and other ratios indicate very good value
siliconinvestor.com
Another reason I like this one is that it was showing good profits long before the 9/11 attack.
siliconinvestor.com
And the stock price chart reflects investor have recognized that for some time
stockcharts.com[w,a]dhcayimy[dd][pb50!d20,2][vc60][iUb14!Lk14!Lh14,3!Ll14!La12,26,9]
The high LT growth pick and my largest position in the sector is VSNX.
As is common for leading edge technology stocks, we see another very good balance sheet. But a quick look at a few of the common ratios make it obvious this isn't a value play.<g>
siliconinvestor.com
It's important to remember that the leaders in every sector usually show up on value screen spreadsheets as "overvalued" all the way up as they lead their sector in it's Bull Market. And IMO we've entered a Bull Market in the Domestic Security industry that's going to produce huge percentage gains in the strongest performing stocks and VSNX will be one of them.
VSNX is very volatile and should be fun for my friends here that are nimble and skilled ST traders.
stockcharts.com[w,a]dhcayimy[dd][pb50!d20,2][vc60][iUb14!Lk14!Lh14,3!Ll14!La12,26,9]
Also have smaller positions in American firearms mfg RGR and dual listed Dutch security company ICTS.
Glad I finally got around to banging this out on the keyboard. Just hard to get the time I need to post stuff like this. Ordinary posts don't require even a fraction of the time and thought.
Best to all,
Isopatch |
