Monday, July 13, 2009

Time to look at the stimulus stocks

Philips (PHG) had an upside surprise in earnings today, seeing the economy in a better light. So in honor of them, here's a picture of Fred Smith's Rock Garden, in Concrete Park, outside of Philips, Wisconsin.

This morning, Meredith Whitnety goosed the financials. Now if Philips is seeing the turn lighting, and we still have a massive stimulus spend ahead of us, doesn't that mean that the recovery is getting a bit more concrete?

Maybe it's time to buy cement! After all, isn't 90% of all cement used in the US produced here?

The ones they love to goose are asphalt and cement maker Vulcan Materials (VMC 40.60) because it has a huge short base, and Eagle Materials (EXP 22.72) the most leveraged of the concrete companies.

They also sell gypsum, and who's going to buy wallboard from China? Didn't LEN just have to reserve $40 million to replace Chinese drywall?

Lennar Corp. has identified about 400 homes in Florida that have confirmed problems with defective Chinese drywall and has set aside $39.8 million to repair the homes, the Miami-based home builder said in a securities filing Friday.

Time to get busy. We have action today!!


Anonymous said...

and the fact that the market is down means noone else thinks we are getting ready to lift - but thats even better right? you can buy at better prices now. Do you think X is a good buy now at 30, full 6 bucks below first time you were so bullish on it?

palmoni said...

Spare me on X. My basis is now 33. Big deal

Anonymous said...

:-) hows AMZN short working out for you? Got stopped out?

Palmoni said...

Didn't you notice the spike on Friday morning? My stop was bait for the algorithm.

Palmoni said...

Looks like your 10:14 thesis no longer holds water

Anonymous said...

10:14 thesis
what is that?

Palmoni said...

anon poster at 10:14 this morning saying "the market is down means noone else thinks we are getting ready to lift "

that thesis!

Anonymous said...

wow, you were right about market lifting! good work!

Anonymous said...

Still have GOOG at 500 for July Palmoni?

Palmoni said...

Own the 460's also. Will be in Medillin, Colombia Thur-Sunday, so I'm sure the market will just explode because I won't be in front of the screen

Anonymous said...

Oh so now we know how you really make your money. Yuk Yuk just kidding.

Palmoni said...

Actually I'm doing some work on a mining company. Don't think that working there still isn't a hazardous occupation.

Drug trade? How about the mining trade? But the biggest beneficiary has been the Canadian companies, dealing with Colombia--they have been taking advantage of the situation for years.

Now Colombia wants some of the mining companies to come back. But what company wants to work there, when their workers can be killed or kidnapped--and then suffer all the liability?

Unless of course, the money could approach some of their other "cash" crops.

Rio Tinto is trying to get their footprint all over Colombia, along with China.

And Colombia seems eager to want to put some of their money into "legit" operations.

Obama recently said that Oribe was a "personal friend" because he was cleaning up the FARC guerrillas, touting the slowdown in the number of killings.

The killings went down, because everyone had already left!

You think Wall Stree f*cks with you?

They have no idea!

There Goldman Sachs looks like Mother Theresa!