I Eat Bear

Buy at the open 150 shares each of BHP, DO, DSX
Buy at the open 250 shares each of IRBT, KGC
Buy at the open 100 shares each of OSK, JOYG, NE, RIO and CMI

I like the fundamentals on all of these stocks. While they may not be picks that will win the round for me, I think they are solid enough stocks to limit much downside, and present enough potential for gain to be worthy investments.

BHP is one of the largest global mining companies, and is a well diversified in the mining sector. I count on the needs of China, India, and the growing, albeit slowly, global growth. I think this is an excellent long term holding.

DO is one of the best positioned deep water drillers for oil, and I foresee an increase in drilling activity in 2008

DSX is a dry bulk shipper, and that sector, until last week has been pounded beyond belief. I may be a week late getting into this, but it still produces a nice dividend, and is in an industry that should not be ignored, until late fall anyway.

IRBT may be a good play on the defense sector and the technology sector at the same time.
I see some potential for some short term gains here, but will be very happy with 15% return.

KGC is a gold miner. With fed rate cuts there will be inflation, beyond normal. Gold is the best hedge. It is also a well run company.

OSK is another defense industry play, and another superb company. It too has taken a beating in the last year an a half or so, so I am looking for a turnaround here, and soon.

JOYG is probably a better pick for the second half of this year, but to wait that long means paying too much for it later. I will take my chances with this one now.

NE is another premiere oil drilling company. I like Schlumberger better, but the NE stock price
is not so high right now to mean it could not outperform some of the more expensive stocks.

RIO cannot be ignored because of the growing need for steel. It too, is a well run company, and had a good run last year. I expect a good run this year, at least until the olympics.

CMI is another beaten down company in a great position. With regulators limiting emmissions, and Cummins having one of the best solutions, it is hard to ignore this stock. It is also going through some post stock split blues right now, but I expect that to turn around shortly.

Comments: View Comments |  Friday February 1, 2008  |  Stocks: BHP, CMI, DO, DSX, IRBT, JOYG, KGC, NE, OSK, RIO,