Energize Your Portfolio

With the Anadarko's recent acquisitions of Kerr McGee (KMG) and Western Gas (WGR) it is time to look at energy stocks again. Conoco Phillips (COP) has a compelling valuation but with a $100 billion dollar market cap it will be hard for it to be considered an acquisition target. I own some shares of Chesapeake Energy (CHK) which trades at 8 times earnings and only has a market cap of 11.7 billion. I also think Marathon Oil (MRO) looks attractive at 8 times earnings and yields over 2%.

Energy Stocks Under $16 Billion With A P/E Under 9
XTO Energy (XTO)
Chesapeake Energy (CHK)
Noble Energy (NBL)
Cimarex (XEC)
Pogo Producing (PPP)

Cash is King

I just opened a GMAC money market account (gmacbank.com). I am very pleased with their customer service. The web site is user friendly. I also just bought some shares of United Dominion Realty (UDR). UDR is an apartment REIT and should be less volatile than the broader market. Last Friday I sold my positions in America Movil (AMX) and Bema Gold (BGO).

Searching For A Bull Market: REITS

Yes, a bull market in REITS! No, not the mortgage REITS but the apartment and rental REITS. There is nothing better than owning cash generating assets that increase in value over time. I am not interested in mortgage, shopping mall, or business rental REITS. I want apartments! Three companies that I am looking at are United Dominion Realty Trust (UDR), Equity Residential (EQR), and Apartment Investment and Management Co. (AIV). These three stocks are off their 52-week highs but have held up very well in a bear market. Plus all three yield over 4%.

Bear Market?

Things have been real ugly lately if you have been long. I have seen a lot of nice gains slip away but there is little that I can do now. I still think the market heads lower until Bernanke stops and oil retreats below $70.

Comeback for United Health (UNH)

I sold UNH too early back in October. I still sold it at a higher price than where it is trading at today. I am thinking about re-entering a position right here or at least buying some September $50 calls. UNH sure has one ugly chart.