The Stock Market has been fairly strong since the turn of the year. However, that doesn't mean that the trend will continue upward. As always, you have to identify sectors that will grow, as opposed to individual companies. Last year, semiconductors were extremely strong due to the advent of the iphone4 and ipad. This year, it may be the rise of oil and natural resources.
Here are a few that I'm currently looking at:
XING: $2.48 - Down 12% since start 1/1/11
HDY: $4.25 - Down 14% since start 1/1/11
RIG: $80.01 - Up 15% since start 1/1/11
Going back to my analysis from last posting (from September 2010), I recommended PCS over the "Big 3" telecom companies.
Here are the results as of today:
PCS: $9.77 -> $13.57
ATT: $27.93 -> $28.73
Verizon: $30.91 -> $36.40
Sprint: $4.56 -> $4.50
As you can see, PCS rolled to about a 40% increase in 4 months. Verizon was closest with a 20% increase while ATT and Sprint both struggled.
Always evaluate the competition of the stock you want to buy and choose the companies that have the potential to break the mold and develop into, not only a stable company, but an innovative company.
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