OXY – Occidental Petrolium

Now let me tell you something about OXY, it's great! it's earned me a nice 17% in only 2 months and im not ready to sell yet. If you just compare OXY to its competitors you'll notice such a great difference; whatever they are doing there they're doing great! Go bullish on OXY! 

Oil and Energy Everywhere!

Wow i cannot begin to tell you how excited i am about my predictions of the energy hype! As i predicted in late 2005, oil is going to be the #1 concern in 2006 with runner up "Mr. Defense". So go on, keep looking at the barrel of oil rise while I smile.

Here is an article to read..
http://biz.yahoo.com/ap/060503/oil_prices.html?.v=2

After you are done with that, read my 1st post on this blog.

Then make your wise decision on how to get in on the fun, guys im calling this an easy $100 barrel oil game ONLY on tensions; just wait till the hurricanes hit, and wait till Iran cuts output!
Cheers

Josh

DEFEND DEFEND DEFEND!

About a couple months ago prior the oil crisis, I was speculating on the Aerospace and Defense sector. I compared a couple companies with each other and have 2 money making candidates that are indeed on the top of my list. My first and most comfortable position at the moment is in PPA. PPA is an ETF which is designed to have you vested in Aerospace & Defense. The sector has been extremely hot lately and I believe it’s going to continue climbing up. With Iran threatening the US & Israel PPA will keep you vested in the right amount of stocks to make you some money. PPA’s chart is absolutely amazing, look at the chart below.

 

 

 

 

Firstly, pay attention to the trend PPA is making. The stock is going up, people are selling for profit, and then again people are buying and selling for profit. So far it has recovered all it’s selling off quite quickly. Most investors think that the defense sector is over with, I think its just getting started. Unfortunately, with all the craziness in the world, the U.S. is worried on how they can protect themselves.

 

Another company which shook me was DRS. Here is what’s interesting – In 2005, the stock closed at $51.39 there was not once a piece of news that hinted the contracts that DRS were getting. Now let’s look at DRS in 2006

 

· DRS Technologies Receives $34 Million in New Contracts to Provide Power Equipment for U.S. Navy Ships and Submarines
Business Wire (Mon, Feb 27)

 

· DRS Technologies Receives $22 Million in Orders for Advanced Intelligence Equipment
Business Wire (Thu, Mar 16)

 

· DRS Technologies Receives $15 Million in New Orders for Thermal Imaging Systems for Marine Corps Abrams Tanks
Business Wire (Fri, Mar 17)

 

· DRS Technologies Awarded $139 Million Contract to Upgrade Fire Control System of U.S. Army Bradley Combat System
Business Wire (Tue, Mar 21)

 

· DRS Technologies Gets $139M Army Pact
AP (Tue, Mar 21)

 

· DRS Technologies Receives $11 Million in New Orders to Provide Logistics Support for U.S. Air Force Tunner Loaders
Business Wire (Wed, Mar 22)

 

· DRS Technologies Receives $9 Million Order to Refurbish Military Trailers Deployed in Operation Iraqi Freedom
Business Wire (Thu, Mar 23)

 

· DRS Technologies Receives $26 Million Contract to Provide Key Subsystems for U.S. Army Long Range Advanced Surveillance Systems
Business Wire (Thu, Apr 20)

 

· DRS Technologies Awarded $142 Million Contract to Produce International Naval Infrared Search and Track Systems
Business Wire (Fri, Apr 21)

 

· DRS Technologies wins $142 mln navy contract
at Reuters (Fri, Apr 21)

 

· DRS Technologies Receives $34 Million Contract to Provide Embedded Diagnostics Systems for U.S. Army Combat Vehicles
Business Wire (Mon, Apr 24)

 

· DRS Technologies Receives $222 Million U.S. Army Contract to Provide Communications Services for Multi-National Forces in Iraq
Business Wire (Tue, Apr 25)

 

· DRS Technologies Gets $222M Army Pact
AP (Tue, Apr 25)

 

· DRS Technologies Receives $18 Million Order to Refurbish Military Trailers Deployed in Operation Iraqi Freedom
Business Wire (Wed, Apr 26)

 

· DRS Technologies Awarded $21 Million in New Orders to Produce Driver Vision Enhancers for U.S. Army Vehicles
Business Wire (Thu, Apr 27)

 

· DRS Technologies Receives $20 Million Contract to Provide Electronics Test Support for U.S. Army Ground Vehicles
Business Wire (Fri, Apr 28)

 

That’s a total of $1,216,000,000.00 in just 4 months! I THINK IM BLOWN OUT! All I have to say is GO DRS! May 11^th is earnings day.

MSFT is a go!

Friday, MSFT reported some nasty earnings which disappointed lots of investors. The volume was absolutely remarkable; almost 500,000,000 shares were traded that day, with the stock closing with an 11% loss.

 

My entry price: $24.24

I’m going to make this short and sweet. Buy Microsoft! There is one important lesson to be learned here; do not underestimate the big boys. Underneath this 11% loss, there is an enormous software giant. This is a company with an EPS waiting to explode as soon as their products are released. Microsoft delayed the Vista operating system as well as some other Office products releases earlier this year. Take a look at the chart below.

(Courtesy of Yahoo!)

2 Points I want to make about Microsoft:

 

1) Microsoft is so big and full of free cash, that interest rates do not affect them like other companies. Normally we see the spur in Large Cap when interest rates go up because investors like to stay on the ‘safe’ side of things and earn their Yield and smaller EPS. Since interest rates are up, this stock should be up because investors want to run away from the smaller companies which will have a tough time meeting their EPS. But look! MSFT is being discounted rather than being rewarded!

2) Are we forgetting who Microsoft is? Microsoft is the largest software supplier in the world. Almost everyone out there uses the Windows operating system, making it almost an ‘industry standard’. With Vista & XBOX being released I cannot see how Microsoft will not recover this 11% loss in the next few months, in fact I predict this stock being in the mid 30’s in 2007 which is only 8 months away. From there it’s “ride the bull” time till the end!

Cheers!
Josh