|My Wealth Builder Buy List - 7/7/08|
|Stock||System Used||Target Price||Target Shares|
|Potash (POT)||Top 5, Modified|
less than 200
|Research in Motion (RIMM)||Top 5, Modified|
less than 90
|10 to 20|
|Bucyrus (BUCY)||Top 5|
less than 50
|20 to 50|
|Williams Cos. (WMB)||Top 5|
|Southwestern Energy (SWN)||Top 5, Modified|
|Range Resources (RRC)||Modified|
Unlike previous buy lists, I plan to wait for a further market correction before buying any positions. Potash is currently $215, down from $241. Research in Motion is $117, down from a high of $148. Bucyrus is at $65, down from $79. I think these stocks may go down further before the next rally.
At this point, I do not plan to buy any of the other four stocks. Williams, Southwestern Energy, Hess and Range Resources are oil and gas stocks, which seems to me to be close to a speculative bubble, and may correct in the next year. My reasoning is that too many energy stocks are being identified by these two stock picking systems. In 2005, the system picks were over weighted with housing stocks, which was then followed by the major decline of these stocks.
Disclosure: At time of publication, I did not own shares of any stock mentioned in my trading accounts. Hess and Range Resources are owned in accounts managed by our financial advisor.
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