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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (118871)	12/13/2000 11:23:33 AM
From: active22	Respond to of 120523

XOM is one of my favorite Bush stocks, I have been accumulating WXOAT whenever under 6 1/2.

To: Dave Gore who wrote (118871)	12/13/2000 11:35:34 AM
From: john	Respond to of 120523

What are your 2-3 best bets right now? Cash-Cash-Cash

To: Dave Gore who wrote (118871)	12/13/2000 11:35:58 AM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 120523

At this point, I would say most of the near-term Bush plays point us to the short side. It appears to me that the long Bush plays have already priced in a lot of their upside. My favorite Bush pick right now is short MRK. It has run up tremendously ahead of the election resolution, has said that its long-term growth rate will dip below 10 percent, and is sporting a P/E of more than 30. You can get pretty much any top-tier tech company cheaper than a P/E/G of 3 right now! I'm not holding this position right now, but I'm thinking about it if MRK starts to show vulnerability. (On the plus side for MRK is the fact that pharmas tend to be viewed as safe havens in times of economic sluggishness, so it could benefit if investors continue pricing in a slowdown.) Looking out longer term, I'm also watching the biotechs as Bush shorts: he is getting pressure from some right-wing Christian groups to reverse the Clinton Administration's support of research using fetal tissue. This would raise concerns about, for example, the stem-cell companies (GERN and the like). Finally, if the bond market shows that it has qualms about Bush (either because of tax policies or management of the dollar), then the financials could become vulnerable to a downdraft. I'm waiting for clear signs of weakness before trying anything short in the financials, though.