Large and prominent company selling at the best value in a decade. Will new legislation hurt banks? Probably not this one.
Solid Rail company. It's Chinese. I'm going to say - come up with a 1 or 2 year dollar cost averaging plan on this one. The labor right violations, the recent attacks on human rights advocates' Google email accounts, and the large amount of U.S. debt are a few of many factors which could brew the perfect storm. If that storm comes you will want to be sure you can average down your cost basis. Also the P/E on this one is a little high. I'm going to say buy until the P/E hits 19 on this one, with a mid term averaging plan in mind.
It's no surprise that the entire bank sector is selling at bargain prices. With unemployment still rising, and new bank legislation looming, many investors are concerned about how much control the government will take, if any. Proposed banking tax would certainly lower net incomes, and make it nearly impossible for many sector components to grow their earnings. I believe that the mortgage meltdown and following economic recession has largely weeded out a significant portion of the bad banks. While there are certainly more toxic assets to pan out, and more banks will go under, it's harder for a failing bank to hide anything on their balance sheets. Here are two bank stocks the Moose thinks are good buys until their P/Es reach the upper teens:
Tsakos Energy Navigation Ltd. [TNP]
This company is probably the best prospect of this quarter (Q1, 2010). Based in Greece, Taskos has suffered low pricing due to domestic and regional political conflict. Corruption is also wide spread among the region. Even though Greece is a European Union member it's been warned that it will not receive a free bailout from it's tough economic times. As bad as it looks is probably about as bad as it gets. The political, economic, and corruption problems will likely ease within a few political cycles. Tsakos has more than enough Market Capital to weather the storm.
The Stock Market Moose bought it for $15.94 a share on December 8, 2009. The Moose expects this stock to make it the the mid twenties or thirties[30 to 50% appreciation] within a few years, and sees it to continue to be a good company into the long term future.
Clouds, and mobile computing, especially smart phones have been some of the hottest topics in tech for quite a while and aren't expected to give up their spots any time soon. Some of the major selling points of the cloud are that it's decentralized, hardware independent, and supports thin clients (i.e. a web browser is all you need). It's easy to imagine how major improvements in these areas will mean major improvements for smart phones, or any portable computing device. But It's important to remember that the hardware independence is only for the user. The amount of hardware needed to keep a cloud afloat is enormous. General-Purpose Computation on Graphics Hardware[GPGPU] promises the most dramatic speed ups in computation power in decades, and at a fraction of the cost and power consumption. In the chart below you can see the red line[GPU performance] is growing exponentially compared to the blue line [CPU performance] over the past decade. The list of software applications that are engineered to take advantage of GPU performance leaps is also growing exponentially. It's no longer just gamers or artists who benefit from high end graphics cards, because they are no longer exclusively for graphics. The slightly higher price of a computer with a high end graphics card, and the level of IT knowledge required to really understand what you are really getting has hampered some of the marketing potential of these new super processors. However, the Cloud is offering regular people the ability to take advantage of the latest and greatest simply by subscribing. A person using a cloud service never has to worry about a hard drive crash or an over heating processor. Top of the line applications are just there, and they just work. Major designers of high end graphics cards are AMD/ATI, IBM, Intel, and last but not least Nvidia. In fact Nvidia recognized the potential for mainstream GPGPU speed ups before any of its rivals, and has positioned itself to make sure that it benefits from it. There are lots of technical explanations and examples of why/how Nvidia is ahead of the other graphics chip makers, but the fundamental difference is that they were on board with GPGPU 10 years ago, and the other companies are struggling to even compete. The fact is that more powerful computers are needed, one of the major reasons now is to build a more powerful and energy efficient backbone of the Cloud, and Nvidia is currently the company that would capitalize from this the most by far. The financial fundamentals of Nvidia make it far from a good deal, but the potential for an explosion in the demand for high performance GPUs make us choose it as a speculative buy.
they are good. especially 10 year ones, and on metrics besides price. its easy to cook the books once, or even spread it over a few quarters, or even years. But, Eventually, it catches up with you. this is why long term health is important. I was trying to look for something good to say about technical analysis and this was as close as I got.
ISH [International Shipholding Corporation]
good book value,
good earnings history.
The only thing this stock lacks is consistent dividend payments. Big deal.
The moose bought it at $30.31 a share January 13, 2010.