Saturday, August 30, 2008

Pipelines from Alaska; Sarah Palin and Energy Independence; Profit from this

While reading a New York Times article on recent Republican VP Selection Sarah Palin of Alaska, I discover this:

Her intense pursuit of a pipeline to deliver natural gas from the North Slope of Alaska to market in the Lower 48 led to what her administration has claimed as a major triumph: the Legislature this summer approved her plan to give a $500 million subsidy to TransCanada, a Canadian company, to help build the project.

I discover TransCanada is trading in the US as TRP.

TransCanada is $22 billion Canadian Company focusing on Pipelines and Energy.

There is a lot of natural resources in Alaska (even if there is controversy regarding drilling there). There is also a trend where the U.S. is trying its best to not have to depend on foreign oil.

These trends are good for Pipeline companies such as TransCanada, because eventually, Natural Gas and other resources could be marketed to the lower 48 states.

TRP has a forward PE of 16.58, and a yield of around 3.70%.

Saturday, August 23, 2008

Chinese Demographic: Lonely Young Tech Savvy People Looking for Friends, Fun, and Games Online

Pearl Research Calls them the "Phoenix Generation". These people are China's 16 to 30 year olds who have $135 billion in spending power.

These young people have grown up during China's economic boom, and they are very tech savvy.

Many of these young people are also lonely. Because of China's one child per family policy, these people have no brothers and sisters and are looking for friends. Since Chinese don't normally organize around sports or church, China's Phoenix Generation uses the Web and Social Networks to Fill that void.

According to a joint study by advertising companies JWT and IAC, 16 to 25 year olds in China:
  1. Using the Internet to make friends: China, about 75 percent; U.S. 30 percent.
  2. Going online to find, share opinions: China, about 75 percent; U.S., 43 percent.
  3. Expressing personal opinions or writing about themselves online: China, 72 percent; U.S., 56 percent

Many ideas above from this article.

Profit from this

Chinese Social Networking would be one way to play this.

Chinese Online Games

However a more interesting way is through Chinese Online Games especially MMORPG, Massively Multi player Online Role Playing Games such as Activision-Blizzard's (ATVI) very popular World of Warcraft game.

Many people around the world, especially, East Asians and Chinese, have taken these online games and MMORPGs to a new level.

  1. Activision Blizzard (ATVI): Aside from making the popular Guitar Hero and Call of Duty Games, ATVI also owns the World of Warcraft MMORPG franchise. As of 2008, World of Warcraft has a subscriber base of 16 million.
  2. Shanda Interactive (SNDA): Chinese Online Game Company. They too have MMORPGs.
  3. The9 Limited (NCTY): Chinse Online Game Company. They have MMORPGs games as well, and they are allowed to operate World of Warcraft in China.
  4. Perfect World (PWRD): Another Chinese Online Game Company that provides MMORPG (and other) games.
  5. Giant Interactive (GA): Chinese Online Game Company including MMORPG games.
  6. NetEase (NTES): Chinese company has an Online Game Service, Advertising services, and Wireless value Added Service Departments.

Stock Performance Now

Stock Performance: Aug. 11, 2008 to Aug. 22, 2008

  1. SPY (S&P 500 ETF): -0.81%
  2. QQQQ (Nasdaq ETF): -0.54%
  3. ATVI: +2.88%
  4. NCTY: -13.35%
  5. SNDA: +13.81%
  6. GA: +5.92%
  7. PWRD: +0.92%
  8. NTES: +17.54%

Tuesday, August 12, 2008

Time for Healthcare Information System Stocks?

For some time now, I have been watching Healthcare Information System stocks. All around the world, there is a trend towards digitizing medical and patient information. Healthcare Information System companies have a bright future.

However over the last three years, the stock price of several of the companies I have been watching have gone nowhere.

Over the last 6 days (August 5, 2008 to August 12, 2008), I've noticed good performance from these stocks:
  1. SPY (S&P 500 ETF): +0.77%
  2. IWM (Russell 2000 ETF): +3.27%
  3. IYH (Healthcare ETF): +1.33%
  4. QSII (Quality Systems): +24.2%
  5. MDRX (Allscripts): +26.69%
  6. CERN (Cerner): +4.11%

Over the last 97 Days (March 27, 2008 to August 12, 2008), the performance has been similar:
  1. SPY: -2.1%
  2. IWM: +7.56%
  3. IYH: +7.06%
  4. QSII: +30.36%
  5. MDRX: +73.4%
  6. CERN: +21.3%

The Three Companies, QSII, MDRX, and CERN have been outperforming recently.

Stock Performance Comparison

Quality Systems (QSII)

Market Cap: $1.1 B
Forward PE: 19.57
5 Yr Est Growth: 20%
PEG: 0.98 (less than 1 is low!)

Allscripts (MDRX)

Market Cap: $890 M
Forward PE: 20.95
5 Yr Est Growth: 22.27%
PEG: 0.94

Cerner (CERN)

Market Cap: $3.78 B
Forward PE: 18.09
5 Yr Est Growth: 23.66%
PEG: 0.76

With a long term future, these stocks are the growth stocks of the future, and maybe these stocks will finally break out and do something over the next few years.

Thursday, August 7, 2008

Two More Quality Growth Stocks from Screen (CELG, MR)

I recently ran a Growth Screen and found two stocks at the top of the screen.

  1. Celgene (CELG): Biotech company has a forward PE of 33 and a 5 year estimated growth of 35.79%, for a low PEG of 0.92. Stock is near very near its 52 week high or has just broken above recent high.
  2. Mindray Medical (MR): Chinese Medical Device Company that operates in three segments: Patient Monitoring and Life Support, In-Vitro Diagnostic Products, and Medical Imaging Systems. It has a forward PE of 28 and a 5 year estimated growth rate of 39% for a low PEG of 0.72. The stock which has been public for less than 2 years, is near or has passed its all time high.

Monday, August 4, 2008

Two Stocks on My Screen in a Bad Market (OSIP, ISYS)

I recently ran one of my stock screens, looking for new ideas.

In this market, I managed to find two interesting companies.

  1. Integral Systems (ISYS) builds satellite ground systems and equipment for command and control, integration and test, data processing and simulation. The stock is near its 52 week high despite the bad market. The company has a forward PE of 19, and a 5 year estimated growth rate of 22.5% for a PEG of 0.85 which is very good, having a PEG of less than 1.
  2. OSI Pharmaceuticals (OSIP) is a biotech company that discovers, develops, and commercializes molecular targeted therapies for oncology, diabetes and obesity. Its flagship product is Tarceva, used to treat advanced non-small cell lung cancer, as well as other forms of cancer such as pancreatic cancer. OSIP has a forward PE of 18.4, and a 5 year estimated growth estimate of 34%. It has a PEG of around 0.5, which is very low. The stock is near its 52 week high despite the bad market.