Saturday, June 24, 2006

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)

Friday, June 16, 2006

Cash is King

I just opened a GMAC money market account ( 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).

Friday, June 09, 2006

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%.

Wednesday, June 07, 2006

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.

Thursday, June 01, 2006

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.