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Stock Notes

From time to time I have mentioned stocks that I am involved with.  Here is an update on some of them:

Energy Conversion Devices has taken a beating in recent market sessions and the stock is selling well below book value.  Solar in general has been weak as the energy muddle continues.  I may really being missing something here but I believe ENER is very attractive at these levels given a 12-month time horizon.

It has now been three years since I have been involved with Evergreen Energy and the stock continues to be a big disappointment.  Over three years the leadership has changed three times, K-fuel has become a joke, and the general feeling on the Street is that the company never delivers on promises.  Perhaps the new regime can turn things around, however, I'm not hopeful. 

BioSpecifics Technology has shown increased trading since being added to a couple of key indexes and the more exposure the company gets more likely that the valuation will approach far in excess of the current price.

It's still pretty rotten out there

Remember all those "green shoots" that were supposedly sprouting in the economy?  Well, we just can't see them.  Indeed, just by talking to people you quickly realize that the economy is still in terrible shape.  Virtually everyone in my universe knows someone who is out of work and unable to line anything up because there are just no jobs out there.  People still can't sell their houses or apartments because the real estate market is dead in the water.  Now the stock market has corrected by about 8% from the mid-June high and that will further thwart renewed consumer confidence.  Now the political winds are beginning to turn on the Obama Administration because the stimulus in the eyes of many (particularly the right wing) is not working, which has brought up the prospect of still more stimulus, i.e. more government spending. In my opinion this would be an utter disaster.  What the economy needs is an immediate personal tax cut and real business tax incentives.  The quickest way to get money back into the economy is to put it directly in the hands of consumers via more money in their pay checks.  Also, although I think President Obama is a great ambassador for the U.S. I would prefer seeing him at home talking more about economic issues.  Against this back drop of horrible news it's really hard for me to get excited about the prospect for stocks in general. 

King of Creeps

I know this is primarily a financially oriented blog but I just can't help myself in commenting on Michael Jackson.  Indeed, there is some financial relation in all of this since everyone- particularly his horrible family - is seeking to cash in on Jackson's death.  Reports are circulating that there will be CD made of the memorial service and that even the London tour will go on with other artists taking the place of the gloved one. And of course, there is the media, which is having a field day with the whole affair.  For my part, this whole scene is grotesque and obscene and just fuels the notion that American society is a cesspool.  I was particularly pleased that NY Representative Peter King called this whole affair for what it was yesterday.  I hope that Michael Jackson - the King of Creeps- has a special place in Hell that is reserved for child molesters.

Too Negative??

Some readers believe that I have been too negative on the prospects for the stock market.  However, if you look back on my comments of the past several weeks you will see that I have been correct in my assessment of the economy and by default the stock market.  Moreover, I will continue to sing my song of discontent because I believe economic conditions will continue to deteriorate in the months ahead and that while there may be some trading opportunities in stocks the overall trend will be downward.  Wish I could sing a different song but the empirical evidence is so negative only a cockeyed optimist could believe that the market is headed higher.