We Are in a Period of Enlightenment

There are three main drivers in this market, by which people are making fortunes in.

1. Energy

Whether it be alternative energy stocks, like PLUG, BLDP, PEIX or GPRE, investors want it. But there’s a better way to play it. We are in the middle of a renaissance in energy production–thanks to break through methods and technology. In energy, horizontal drilling has changed the game. The best way to play it is through fracking sand companies. There are lots of drillers and plenty of companies who can get the oil. But there are only a select few who supply the sand necessary to frack. Those stocks are EMES, HCLP and SLCA.

 

2. Biotechnology

I spoke to the good Dr. yesterday and asked him “Doc, if I told you 10 years ago there would be a cure for hep C and progress in NASH, would you believe me?” He said “never in a thousand years.” You may not realize it, but there is some serious and great progress being made in medicine. Look at the share prices of some of the largest biotech stocks–absolutely staggering. GILD cured hep C. ACHN is coming out with a competing drug, even cheaper. ARWR thinks they have a CURE for hep b and ICPT can reverse fatty liver. If you are invested, you must have exposure to this space.

 

3. Social Media

Humans are pack animals. We need to touch and talk to one another (no homo). When the internet was invented (thank you Al Gore) and web 1.0 rolled out, the world thought it would be used for information gathering and E-commerce. Companies like AOL, YAHOO and AMZN took the world by storm. A little later on GOOG came on the scene and revolutionized the way the human race sought information (fuck the library) and shortly thereafter venture capitalists started to fund companies who connected people. The first kind of social media was in the form of dating sites, like Match.com. You may not know it, but Match, a subsidiary of IACI, is enormously successful. Then a slew of social media companies emerged and changed the way the human race made decisions. We no longer needed a professional restaurant critic to tell us if Mel’s Diner was a dump or not. We had a consensus opinion by fellow foodies to give us the scoop. Companies like PCLN, YELP, TRIP, LNKD, FB, TWTR and Z are improving quality of life for the world.

These are ideas worth striving towards, a renaissance in productivity and innovation, and definitely worth our time as investors.

 

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