With current financial situations: sub-prime crisis, inflation fear, higher unemployment, slower expected retail sales, and recession fear; I believe all the tradable rallies are opportunities to reduce your holdings. Even companies with good earnings, (JDSU), (DIS), and (MA) are down from its earning announcements. The big gainers are becoming the shorting candidates as the market rally from the lows.
A prime example is (ACL). It is up almost 10 points today. If the rally failed, I would predict the stock will get hammer with the trend. The only one I really like is (SIRF). Its market is about $400 millions now after it crashed from the high of $34. It has no long term debt and a lot of cash $200 millions. It would be interesting take out companies by the bigger cap tech company. GPS is still in demand. I believe within a few month, we may see the announcement.
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