I Eat Bear

Before you go any further, be sure you have read my prevoius post, on "stock to invest in",, and I mean NOW.

These are stocks for the BRAVE, that are not likely to have much downside. But, in a volatile market, like we have now, they are risky at best. But, still, I would bet on them.

My thesis is here is much as before. They did something right before, and will again. They are just too good to count out.

Leading my list is,,

NE - a good sound oil driller. I like the management. Weak dividend, but the stock will appreciate, and if oil gets over $80 a barrel, this stock will soar. Not near as big as RIG in market share, but bigger is not always best. This is the best. DO (Diamond Offshore) will be hard to beat though.

POT - A truly scary stock. Nearly a monopoly on potash, especially in certain segments. How long can they hold agriculture down? Let me see you quit eating for six days in a row, and we can discuss it later. Not a necessity for agriculuture, but it increases productivity by a huge percent.

DE - again, and agriculture industry leader, this time in equipment. A good stock, well run by management. Beaten like a red-headed step-child lately. Can only be called a buy,,,, and hold.

MT - who but a fool would invest in steel right now. I would. The industry is just too abused. The concepts of buy end to end supliers will pay off in time. Management is no fool.

AXAS - Losing money lately, but still a good investment. Why? They maintain one of the lowest debt ratios anywhere. Give it time, and profits will overtake the debt margins. One of the very best acquisitions targets on the market today. You can't beat the price on this stock, at anywhere under a $1 a share.

If my stocks for the brave has not scared you off so far, my last two might,then I will give you one freebie (buy).

WDC - just too beaten up. The world need computers, and data storage. Not the biggest, maybe, the best, in a niche market. RISKY,,, highly RISKY. But, it will prevail.

WMT - wow, do I hate retail, as a market segment. But, Wal-Mart, is hard to deny. The middle class, and lower-class, will ALWAYS, outnumber the upper class. You simply have to put money on that. And, they are the best at what they do.

And for the freebie BUY.

IBM - yes big blue, will return, as a market leader despite stuck up management, and snobby employees. I have never seen a company so much in need of an overhaul, but the technology lead they have, well, it can't be caught. In an information devouring world, as we have today, BIG cannot be ignored. I fully expect, IBM to buy out GOOGLE. Yes, dinosaurs eat each other.
And, it is hard to beat an old dinosaur that has learned to fight. Especially, if it is big, and has an edge. It would be bloody. Even without the fight over dinner, IBM is a buy. Too hungry. Too lean. And not all together bright. The making of a serious fight. Then again, T-rex died too.
Would you bet against one, if you saw it today?

Comments: View Comments |  Monday December 15, 2008  |  Stocks: AXAS, DE, IBM, MT, NE, POT, WDC, WMT,