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A Quick Look at GU

Technically the stock does not look all that great, but take a look at a few stats:

This recent IPO is expected to grow 84% this year and 75% the next five (per annuum). The company blew away numbers a while back, but got dragged down by the Chinese market.

The company expects to earn .92 cents/share this year, and I believe could easily earn a buck. Given it current mutliple, meaning P/E, that would put the stock well over $20 bucks.

And if the multiple would reflect it’s growth rate, I see the stock trading north of $40.

Now with China raising gas and diesil prices, I see this benefiting [[GU]] tremendously, as the company is focused on biodiesel.

Just my thoughts.

Disclaimer: Long GU

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Oil Service

I love Fly’s thoughts on the market, long oil and short everything else–it just makes sense.

In the oil space I want to focus on the service sector. I spoke to a guy who works offshore, and his company is preparing to drill off the coast of Florida. From what I hear there is a ton of oil in this area, but the problem is that it‘s a “No Drill Zone,” until now.

With oil at record levels, Bush is giving the all clear to drill in this area. This only means more money for the drillers as everyone tries to capture this gold mine. I will be doing more work on this, stay tuned.

You can find some great ideas right here.

…..Charts tonight

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