A Few Stocks I’m Loading Up On
How do I know the bottom has hit or is near? When people tell me they have stopped looking at their account statements. When people hate the markets the most is when smart money starts building positions.
No one can guess the exact bottom, so my suggestion is to build a position slowly.
I believe the bulk of the money to be made in this market will not be short term, but 6-12 months out in companies that have been beaten down by this market.
If you’ve been thinking about putting money to work start looking to your favorite companies that you’ve always wanted to buy. As long as they are not down because of financial problems or banking related I believe they are most likely on sale.
I’m buying energy related companies trading at or near 52 week lows. My positions include MEE, ANR, CF, EXM, UNG.
On your reccomend for CF. I “m retired from that company. I worked for them for 33+ years. I was stupid for not buying when the stock was close to $15. I was going to buy when the stock was going up, but it never would slow down. The last few days, I bought what I was able to afford. What I KNOW about this company from personal knowledge. They have a strong business plan. It is very well run. They have very little debt. They have enough raw material reserve for probably 15 years. They are one of only 2 or 3 large producers in the US. Most of the US reserves are in Florida. CF owns or has rights on 15,000 acres of mining land. In other words, with the other large company, Mosaic, these two companies have a virtual lock on the US market.
Something else that is not well known, or known at all–when the US nuclear program takes off again, they plan to build a uraninum extraction plant for material to make fuel rods. They already have the experience(they’ve been there, done that), and the price is about high enough. for the material that they can make. A probable capital expenditure of 200mil plus.
There is no doubt in my mind this company stock price will go up again. It’s just goping to have to ride out this down turn,. They’ll do it. The fertilizer business is a cylical business. They know how to survive.
Hi Dan, thanks for your input. CF is definitely one of those stocks you have to get into when it’s low because 10 point moves a day is possible. I will continue building my position in it.
I try to keep up with whats going on there. I talk to my friends still working there all the time. They operate from a position of strength, with the only US competition being Mosiac. They do have to fight foreign competition with government subsidies that help the foreign companies.
As soon as the nuclear industry picks up, CF will kick it in overdrive. When the nuclear industry feel out of favor, CF quit manufacturing the materail to make yellow cake. Now the demand and the price is up–just waiting on the government to kick start the nuclear industry. Cf already has exprerienced people with the Knowhow, and a track record of profitability. Keep an eye on them. I’m staying in for the long haul.