Friday was certainly interesting, oil prices shot through the roof and managed to take all of the stock market down with it. As it stands right now, the portfolio could do a lot better. Right now, 32% of the portfolio is invested in alternative energies, and as of Friday all of them look to be in sad shape. Why? This is because as oil goes up, these companies should be rising in parallel, however, given the decline, the worry is if oil comes down, there wouldn't be nearly as much urgency in the success of these stocks.
The only thing to do now is to wait for a bit, the most obvious target to divest are the solar stocks. Having had some success with these last year, it's looking more and more like these stocks have hit the top, and there isn't much more left to go before they tank. This leaves a potential wind play and a clean diesel company. Both of these are somewhat speculative. The wind play will move ahead if the US congress pushes through the PTC (Production Tax Credit) for renewable energy. The clean diesel is as much a China play as it is an alternative energy play, that's something worth keeping since energy needs will continue to be there for China no matter what happens in the US.
Moving on, the little stake in financials was probably not the best play, but it's only a small stake. The question is how much more does Citi have to drop, with the news out of Lehman Brothers, it certainly seem like there is more room to fall for the financials. This could also be divested when it gets above water, this would be especially true given that the US economy will likely still end up in a recession this year or early next year. Visa is still a good bet, but probably need to come down a little from present levels.
On the biotech side, DNA is fairly solid if not spectacular right now, Dendreon on the other hand is just a pure speculation play. The Provenge drug is its only shot for Dendreon, so if there is any positive news, this stock goes up. For now at least, the portfolio can stand a rather small percentage of biotechs.
The dry bulk shipping stocks is just a simple play on continued Asian expansion. A majority of that is with China. Given the recent earthquake and the need to rebuild, this is a safe play although one that's losing a lot of money right at the moment. The event that could derail this is if China's economy go into the drain, then the commodities are no longer the best play and the commodities transport sector would go down the tubes as well.
WWE for entertainment stock is a bit dangerous, certainly the US market will be a slow one for WWE. But there is an advantage in having a not so bad dividend. But this stock is probably not quite the keeper like an Apple. This one will probably see some profit taking once the ex-dividend date passes.
Finally, Intuitive Surgical is more of a medical devices stock than a technology stock. This is a real momentum stock, and one that has stalled a bit of late. The best chance is for Intuitive Surgical to expand its sales internationally, but the prospect of reduced costs on surgery will still have some appeal going forward
in a down economy.
The only thing to do now is to wait for a bit, the most obvious target to divest are the solar stocks. Having had some success with these last year, it's looking more and more like these stocks have hit the top, and there isn't much more left to go before they tank. This leaves a potential wind play and a clean diesel company. Both of these are somewhat speculative. The wind play will move ahead if the US congress pushes through the PTC (Production Tax Credit) for renewable energy. The clean diesel is as much a China play as it is an alternative energy play, that's something worth keeping since energy needs will continue to be there for China no matter what happens in the US.
Moving on, the little stake in financials was probably not the best play, but it's only a small stake. The question is how much more does Citi have to drop, with the news out of Lehman Brothers, it certainly seem like there is more room to fall for the financials. This could also be divested when it gets above water, this would be especially true given that the US economy will likely still end up in a recession this year or early next year. Visa is still a good bet, but probably need to come down a little from present levels.
On the biotech side, DNA is fairly solid if not spectacular right now, Dendreon on the other hand is just a pure speculation play. The Provenge drug is its only shot for Dendreon, so if there is any positive news, this stock goes up. For now at least, the portfolio can stand a rather small percentage of biotechs.
The dry bulk shipping stocks is just a simple play on continued Asian expansion. A majority of that is with China. Given the recent earthquake and the need to rebuild, this is a safe play although one that's losing a lot of money right at the moment. The event that could derail this is if China's economy go into the drain, then the commodities are no longer the best play and the commodities transport sector would go down the tubes as well.
WWE for entertainment stock is a bit dangerous, certainly the US market will be a slow one for WWE. But there is an advantage in having a not so bad dividend. But this stock is probably not quite the keeper like an Apple. This one will probably see some profit taking once the ex-dividend date passes.
Finally, Intuitive Surgical is more of a medical devices stock than a technology stock. This is a real momentum stock, and one that has stalled a bit of late. The best chance is for Intuitive Surgical to expand its sales internationally, but the prospect of reduced costs on surgery will still have some appeal going forward
in a down economy.
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