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!!
Posted by Palmoni at 8:44 AM