Raw Greed morning update

Posted on January 27, 2006 , filed under Stocks | Print This Post

Good morning, lets get started. The great thing about investing in Asian ADR’s like TSM, Taiwan Semiconductor Manufacturing Company Limited and UMC, United Microelectronics Corporation is that you can semi-predict how the stocks will perform the next day by tracking how the stocks perform in their own market. You can see TSM’s performance by tracking 2330.tw and UMC by tracking 2303.tw. TSM was up in pre-market trading and I expect the stock to continue posting strong gains. I believe investors are digesting the recent earnings report by TSM and only starting to jump on the bandwagon. If you believe in a Taiwan semiconductor rally, TSM and UMC are two of the best stocks to invest in. If you browse my archives, I’ve written extensively about the reasons behind a rally for TSM and UMC.

In early January, when the market started a strong rally, I wrote about my strategy of selling WHI, NT, and LU in order to purchase additional shares of UMC. If the market continues to rally I may still decide to sell NT and LU. Cash is not a bad place to be at the moment. Here is what I am predicting will happen in the next 1-3 months. I believe the price of crude oil will rise and consequently I am looking to short shares of AMR and CAL to low teens. I anticipate F, Ford Motor Company to trade below $8 again and I will consider purchasing shares of the company if it happens. I am also watching NAVR, Navarre Corporation, a company engaged in the publishing and distribution business for video game and television content. I’ve written briefly about NAVR in considering various investments in the video game industry. I prefer to invest in the distribution end of the video game spectrum instead of the development end. I would like to pick up shares of NAVR under $5 or at low $5’s. I see NAVR at $6-$6.50 a few months post launch of the Sony Playstation 3 console. Finally I am also considering investments in silver mining companies and I will post a few stocks that I am currently tracking.

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