Since I began this blog on May 15, 2007 the markets have been all over the board. Over all the stocks I have portrayed on Market Anomalies have been successful, up almost 9%. Some of the leaders are Under Armor (UA) up 38.32%, Apple (AAPL) up 15.40%, Whole Foods Market (WFMI) up 10.65%, Lifetime Fitness (LTM) up 11.14%, and Wynn (WYNN) up 31.29%. I still like all these stocks and think they will go even higher under the right conditions.
With the good comes the bad and I have covered some losers like IMH (a real estate REIT) down 62.53% and FIG down 39.7%. Both of these stocks have been beaten down with either bad news or sector collapses.
The housing market is weak and is going to take a long time to repair, so if you are a long term investor there are some great buys out there. If you are looking at picking up some housing or lending stocks I would go with the big players like Countrywide, KB Homes, or DR Horton. All have been beaten down and although they could still go lower they look pretty cheap right now. Financials also have taken a hit this past month. In a downward trending market I like to buy the biggest of the bunch, so Goldman Sachs, Bank of America, and JPMorgan Chase are the financials I like right now. To see a big rate of return on most of these companies you are going to have to hold them for at least 6 months to a year. In the short term here are three stocks I am looking at right now that have momentum:
1. ADBE – Adobe has some great products out on the market right now and has the PDF market covered. Trading around $42 currently I have been buying this stock in the high 30’s and I think it has potential to go higher.
2. PEP – Pepsi is a great stock to own in a rollercoaster market like we have been experiencing lately. You will not see huge fluctuations in this stock which can help you sleep at night in today's market.
3. CHK – I like Chesapeake Energy in the natural gas sector and think it could move much higher.
So there you have it a little recap of the past few months and a look toward the future. I will be looking at some new stocks coming up soon, so check back often.