Thursday, April 21, 2011

Great buying opportunity

Walter Industries Daily Chart (WLT)
  • I love this chart. I also love the fundamentals of the company. This is an amazing buying opportunity and I am initiating a position at the open tomorrow morning.
  • Walter Industries, Inc. produces and exports metallurgical coal for the steel industry primarily in the United States. The company also produces steam coal, coal bed methane gas, metallurgical coke, and other related products. It principally serves electric utility and industrial customers. The company was formerly known as Walter Industries, Inc. and changed its name to Walter Energy, Inc. in April 2009. Walter Energy, Inc. was founded in 1946 and is headquartered in Tampa, Florida.
  • The chart is just perfect and on top of that the last 3 quarters average EPS growth is 290% EPS Estimates for the current quarter have recently risen 93% and last quarters EPS growth year over year was an amazing 80%.
  • The debt/equity ratios is a small 26% and annual ROE is running 93.1%. The coal industry is blazing ahead, especially because of the nuclear disaster in Japan. This one looks like a golden opportunity.

Pullback in Wind Energy... Good entry point

Wind Energy Weekly Chart (FAN)

Wind Energy is offering us a good buying opportunity on the latest pullback.... I'm loading up the truck. Watch for a move back towards and a break of the 12.50-13 area and a push towards 16.5 over the coming weeks to months.


Friday, April 1, 2011

China poised to move higher.....

China Index (FXI) Weekly Chart

  • This chart of the Chinese stock index shows two very bullish patterns for the intermediate to long-term. You can see a large cup & handle pattern starting in 2008 and another cup & handle pattern imbedded in the larger one, outlined in blue.
  • These patterns are very reliable and are signaling that China might be the place for equity investors over the next few years if the patterns materialize into breakouts.
  • China's fundamentals are not very good, with the massive real estate bubble that they have created and their large inflation that they can't seem to get control of. However, price doesn't lie and it should be the ultimate decider on making financial decisions.
  • Bottom line: I'm bullish on China if these patterns breakout, which it's looking like they will relatively soon.
I'm currently long NTES and SSRX, both Chinese companies.