No, we are not dead. We are still dealing with the mysteries of the PC and why we can no longer load photos on here the way we are supposed to, as well as other matters of universal importance.
After our last stock blog, you probably thought us to be insane. All the stocks we listed went down. Well, if you look further, you will see that the whole market went down and not just in the USA but all around the world. What this does is to create a ‘buying opportunity’. When quality stocks get low in price, you do not sell them, you buy them from idiots who think they are not good, based on their perception of performance.
The market has turned from Bear to Bull today and a rising tide lifts all ships. That is an expression Mark Haines used to use a lot. He was a morning commentator on CNBC and died yesterday at age 65. CNBC tells you what they want you to hear but Haines was a regular guy and went for the cheap jokes a lot. We will miss him.
So let us take a look at the damages. The first stock we mentioned was Dow Chemical (DOW), which was around $40 a share when we told you about it. At the moment, it is up .95 cents at $36.05, digging its way back up from the correction. DOW is the least of our worries and we almost wish it would stay low until the end of June, so that we get more shares when the quarterly dividend is paid out. Watch for it to keep climbing, though. Now India has drought that threatens to make cotton even more expensive and DOW has the answer to drought.
Hercules Offshore Drilling (HERO) was $6.10 a share when we told you to buy it. It took a dive but always held above that six dollar mark, like a winner. Since then, Obama has turned around on American oil and natural gas, so expect these oil service companies to thrive. At the moment, it is at $6.43 a share, up almost 5% for the day. It will keep going up but even if you had only bought a thousand shares and sold them now, after three weeks, it would still get you a $330 profit…but that is small potatoes as you will see in days to come.
Similarly, Sandridge Energy (SD) is up to $10.88, also showing around a 5% gain today. We did not tell you about this one yet but now is the time to buy. We own it.
The casino group Melco Crown Entertainment (MPEL) took a dive, too, but is up almost 7% today on active trading. It is at $10.64 and it was $10.63 when we told you about it so, if nothing else, it held firm while many stocks floundered and continue to do so. This one is going to really take off later in the year. Their most recent yearly report, issued last week, shows that MPEL has swung to a profit, after posting losses for a number of reporting terms. It was not much of a profit, a penny a share, but it repressents the swing from losing money to making money, which is what it is all about. They crossed the threshold and are ready to rock.
Speaking of rocks, look at Denison Mines (DNN). It is holding its own, considering the badmouthing and backsassing that uranium mines are getting these days. It is at $2.12, down .07 cents from when we told you about it but this is a long term play and an entry level of $2-something is excellent. Uranium and other raw materials will be needed to help build the new world intrastructure, no matter how dangerous people think nuclear power is this month. The fact is that nuclear energy is never going away, so invest in it while it is cheap and get some oil stocks to carry you until we are past the use of fossil fuels.
Added May, 26, 2011 3:13pm EST
We are adding this note to point out the significance of Sandridge Energy (SD). At this time, the price per share is $11.97usd. If you had bought it yesterday, when we said it was up to $10.88, and sold it today (at today’s high of $12.13) you could have shown a profit of $1250.00 in 24 hours on a $1,088.00 investment. That is about a 13% gain overnight…try making that percentage on a CD!!!