I am retired and take educated guesses on all things financial.

October 12, 2008

October 12, 2008: Securities For "The List", Part One

As I posted late last week, it is time to begin making a list of those beaten down sectors and individual securities that may bring life back to your portfolio(s) in the future. I am not, repeat -NOT - recommending immediate purchase. The markets are still too destabilized for considered actions unless your objective is pure speculation.

I am beginning to do screens featuring the worst performing sectors over the past year. Amongst these include Energy (down 40.46%), Financials (down 38.60%), Capital Goods (down 39.80%) and Conglomerates (down 44.50%).

One could consider buying the ETFs for these sectors, perhaps through iShares. However, for the brave, looking at individual stocks for your list might be the way to obtain some very handsome returns.

Here are a few stocks within the above sectors that feature an interesting profit margin (TTM) vs. their five year profit margin average. All have been beaten to death.

ESV - Ensco International
LVMUT - Moet Hennessy Louis Vuitton ADR
LUK - Leucadia National Corp.
UTX - United Technologies
NE - Noble Drilling
SLB - Schlumberger
RIG - TransOcean
LUFK - Lufkin Industries
CNH - CNH Global NV
TMK - Torchmark Corp.
TRH - Transatlantic Holdings
AFL - Aflac

I purposely did not include any data to whet your appetite. At this juncture, I believe it is vital for the individual investor to do primary research solo to select stocks or ETFs that fit one's endurance level.

I will be adding more securities to investigate on a regular basis, with more supportive data as the market makes it way.

I have been "on the road" the past few days with real estate the focus of my attention. Granted, the market in real estate is brutal - just the right time for those with cash to make a move.