i don't have a strong opinion on gold stocks right now. GLD itself seems tired and I wonder why the stocks would go up now with GLD stagnating and cost rising faster then revenues.
Do want to bounce off a few ideas:
Short: defense companies like LMT and NOC. Catalyst: fiscal cliff talk, pension gap (somewhat alleviated because they rules for the allowed discount rates have changed, but the cash outflows are still real.
As a pair trade, I do like ESLT (EBIT Systems, israel defense contractor, strength in drones,electronics, strong export business, cheap)
Long: DWA (Dreamworks)! Cheap by some metrics, decent balance sheet, low market cap given the franchise, the near term challenge is to overcome the loss in DVD sales? DWAis building a stable of franchises overtime (Kung Fu Panda, Shrek etc. that they should be able to monetize.) They want to get into cable channel programming which if auccessful, should create reoccuring revenues. A catalyst could be the November release of "Rise of the Guardians", if successful. Many ways, i can see this working outin the long run...
I don't own any of the above but ESLT and DWA look enticing. |
