This post is going to serve a dual purpose.
1. To remind myself of my best ideas.
2. To remind you of my best ideas.
We’re gonna do this by listing 3 stocks per sector, so here goes.
Financials
BX: The largest owner of residential homes in America, boss of all bosses in private equity space. They are to finance today what Goldman was to finance 10 years ago.
WETF: They are the best closed end fund operator in the country, manager of the Wisdom Tree funds, innovative and savvy. Their Japanese ETF, DXJ, has attracted billions in new money–making WETF a prime takeover target for other ETF players, BLK and IVZ.
APO: Here is another extremely savvy LBO shop, second fiddle to BX–but smartly run by industry legends.
Basic Materials
PBR: I like this name short. It is run by clowns who know as much about oil as virgins know about fornicating.
WNR: I’m not a big fan of the materials at all here. However, the refiners should weather the storm and continue to thrive due to lack of pipeline infrastructure.
KWK: This is a high leverage play on the resurgence of natural gas and their ability to divest from some very valuable properties at premium prices.
Consumer Goods
KORS: In my opinion, they are the best retailer in fashion right now, punching the bozos from COH in their flaring nostrils every single day of the week. Ultimately, the stock will trade over $100.
GNRC: I am a big fan of their products and know that many will be buying their generators, for years to come, as hurricanes ravage America’s aging electrical grid.
TM: I should’ve bought this stock at $90 when I published my Japanese thesis trade idea. Even though it’s up, the stock is in the sweet spot of a 2nd half automobile boom, coupled with insane Abenomics.
Healthcare
PCYC: Crazy people for the win, on the dip!
ATHN: I like this stock as a short. Their CEO is a loose cannon, someone I could see featured on American Greed one day.
LLY: The stock is barely up 10% this year, while all of their nerdier peers are up 20%. That’s a stupid reason to own a stock. Then again, some people buy stocks simply because they’re down. LLY is a quality company that will not castrate me me if they post an earnings shortfall.
Industrial Goods
BZH: This is the riskiest play in residential construction. Although they’re currently focusing on firming up the balance sheet instead of growth, I believe they will turn up the volume, going into 2014, making BZH a must own stock into a housing boom.
USG: People have this stock all wrong, punishing the shares to a 8 percent deficit for the year. Shame on the sellers. This is your #1 wallboard play heading into a hurricane season/housing boom. When earnings power comes back, this will double.
LNN: I’ve been trading this stock, in an out, since the $20’s. Like a moron, I always end up selling it. This is a long term play on water irrigation. This and VMI are going significantly higher over the long term. Now if I can just remind myself that the next time I buy it.
Services
OSTK: I’ve been talking to myself and to people inside of The PPT about this company since $5, yet have not purchased a single share. I find the website to be much better than AMZN for a variety of items. The next time it pulls back, I am getting in. I actually chose this stock over WFM, my #4 stock in the services sector.
FBHS: One of the best ways to play the housing boom in a number of ways. It is the one stop shop for home remodeling/renovation.
ULTA: My wife is always in this stupid store. There is no way this stock doesn’t trade way up, over the next few years.
Technology
YELP: Words cannot express the emotions I felt when I saw this stock gap up today. It’s everything I knew would happen, once the company found its legs and ran. Well, they are running and someone is going to want to buy them out.
ANGI: I am hearing too many positive anecdotal reviews from contractors to ignore it any longer. This is yet another name that I’ve talked about in great lengths, but failed to pull the trigger. I believe their model works and will only get better as the housing boom solidifies itself.
CREE: LED lighting is a juggernaut and CREE is the godfather of it. There are many ways to play it, from AIXG to VECO down to RBCN. However, CREE is the direct beneficiary of the move away from antiquated incandescent lighting. I swapped out all of my incandescent high hats, in exchange for LEDs. Eventually, people will catch on and CREE will become a beast.
Notable mentions:
TRIP, RBCN, FRO, SBH, WDAY, AAPL, FSLR, MU, WFR, EXP, KKR, HMC, AMKR, RAS, NMR, WFM, VMI, MIDD, Z, TRLA, BREW, HIG, AMBA, GTAT, PIR, NXPI, FCS and NSM.
Comments »