iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,452 Blog Posts

What is Your Favorite Turn Around Sector?

Let me know if I left anyone out.

Here are the choices:

Coal
Natural gas
Nuclear
Apple
Shippers
Steel
Aluminum
Silver
Bitcoins
Gold
Chinese stocks
Solar

I’m mixed on this question due to my overall bearish opinion on stocks. However, if forced to choose, I’d have to go with shippers, thanks to the upside potential and unsustainably low rates that currently plague the industry.

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38 comments

  1. rafq

    Shippers, DSX is best in group…

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  2. chivo

    Gas, au natural

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  3. fake amish

    Nat gas then the precious metals. Up tape natty for sure down tape the pm for sure.

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  4. Cheese

    Miners

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  5. the raconteur

    I like the idea – what’s your favorite way to play the shippers and what is your time frame for pricing power to come back?

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    • The Fly

      Dsx is the safe bet.

      But I own a million shares of FRO, so color be biased.

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      • the raconteur

        Indeed. I really do like the idea with how poor sentiment is right now. I need to do some analysis on the industry because I know close to nothing other than to have a bias towards cleaner balance sheets. Is there any good research out there or analysts you’d suggest for the sector? Also, how’s the liquidity, is it hard to get in and out?

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  6. Rob T

    Tough call; gold miners trading sub 75% of book value with no major acquisitions in the last 5 years look like low-hanging fruit just on the basis of mean reversion (those with South African operations were sold off en masse last year for good reasons, though SA mining strikes are cyclical and never last too long).

    Shippers are appealing for the reason you mention, and NatGas looks cheap, but there’s always the perpetual supply thing. I’m not experienced enough in that market to trade with any conviction.

    Always like nuclear, though it doesn’t look near as cheap as the gold miners. Most of the large cap gold miners are value traps, but some of them are just too cheap. Some are even stupid cheap enough to become acquisition targets despite the industry’s inability to consolidate over the last half decade.

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  7. Sooz

    tough question..!?!.
    (partial to some)

    I’d go with Steel..

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  8. iBitCoin

    Terrible post, Mr. Fly. Dissapointed…

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  9. Sooz

    I’ll never get accustom to moderation..

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  10. john

    apple is fucked as jobs still relevant roadmap sucks and it will only get worse. If they release iphone 5S this summer its over. Fly was right on his call re. cook.

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    • fake amish

      The apple story to run the course took awhile. Jobs died and it ripped. The correlation between that stock and the overall market now is scary. Socialism is here and growing but it must be bullish? 0care hits all in jan 1 2014 along with neverending tax hikes on everything(gas booze healthcare breathing and everything else to feed the state). Is this the sucker rally like apple last year?

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  11. Trading_Nymph

    Turn around sector, at some point the Clams will fail…
    Dollar
    VIX

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  12. Testicules

    Already have some $ULTR
    Tempted to add some $RLOG though, Water levels looking good (payloads)

    Then again ?

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  13. 88888s Account

    Consumer staples bubble stocks to ‘turnaround’ and dump 20% – making 3% divs look stupidly skinny as a crutch to buy

    Only then a real turnaround from PMs as buyers chase the precious metals to hedge Bernank going turbo charged on the printer

    Miners and shippers for that matter need global growth and the Printers are yet to conjure much of that…

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  14. Berserker

    Oil. It’s a bit of an inflation play, it’s a global recovery play, and it’s the very definition of “out-of-favor”. It could be a medium (this year) play, but it’s probably best seen as a longer term investment.

    Note that oil does not equate to Bakken etc – neither the operators nor their products.

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  15. MoonshineDelight
    MoonshineDelight

    I like your earlier theme of the day. Live by the sword, die by the sword.

    DXY

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    • 88888s Account

      Bout time this joint had a decent metal reference

      God listens to Slayer

      And is probably buying silver

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  16. Youknowitsme

    Gold and silver via CEF

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  17. Mike

    hmmmmm…gonna go with apple making a comeback to glory …not sure how (china, tv, watch) but they just make too much god dam $$$…think 420 is a bottom….

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  18. txchick57

    Dry shipping for sure. DRYS. They have the interest in ORIG as well. The rest of them are just boat companies.

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  19. Mr. Cain Thaler

    Nuclear:

    Japan economy needs the juice
    Wind/Solar too expensive to implement extensively
    Base load build required if alternative energies are to be expanded
    Environmentalists turning on nuclear opponenets in their ranks – no emissions
    Natty prices are rising

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  20. Vertigo

    I’ll go with nuclear also.

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  21. bobbin4apples

    miners via M&A

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  22. Jim

    semi conductors, like MRVL, CY, INTC

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  23. charles c

    grandpa says stay long K

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  24. Spicule

    Coal, with natty up. Utes will switch back over $4 for any length of time

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  25. Scott Anderl

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  26. Blind Read Ant

    I agree M. LeFly: $trippers should perform… well.

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