Posted by lae2 on December 08, 2008 at 09:13:03:
Vultures who picked up CHK last week despite all the doom and gloom surrounding the stock ought to be rewarded today. JP Morgan upgraded CHK to overweight. Time for the sharks to feed. Still think CHK is going broke?
Meanwhile, GS downgrades PXD to sell and DVN was upgraded by Jefferies. The vultures may circle PXD. Natural gas companies ought to be interesting in the coming weeks. Especially with OPEC promising a "severe" cut in crude production. We may see the whip of a lifetime in energy and in alternative energy.
Green is the talk these days. Nevertheless, green stocks are depressed. Watch domestic solar (SPWRA, FSLR, ESLR), grid (AMSC, ETN), wind (WGOV), and metering (ITRI, ENOC, TTEK). Capitol Hill is pressuring the automakers to bias their capital spending toward domestic suppliers. Capital hill thinks they can run a multinational company and put strings on my tax dollars. What egos and what ignorance. Capitol Hill relunctantly leans toward a bridge loan but then wants strings (fire Wagoner) that assure failure. Crazy. Regardless, vultures and sharks ought to be circling ENS, ENER, OMG, and HEV.
Vultures who picked up FCX last week are apt to become sharks today. The new administration is putting forth a stimulus plan in the form of infrastructure rebuilding. Sharks may feed on DE, CMI, TEX, and CAT.
The favorable bias toward an automaker bridge loan may dampen retail parts and repair. Vultures may circle AZO, AN, SHLD, and AAP.
AUY received two downgrades this AM. Generally, the analyst speak long after the horse is out of the barn. I don't know what to make of it. I may lighten up the position a bit depending on the price of gold.