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John is 30 years old and resides in SW Folrida. He is currently working towards his Bachelors Degree in Economics and plans to become an investment adviser. His desire to help others combined with his passion for researching and investing in the global markets led him to create Street Justice.

Thursday, July 3, 2008

Street Justice: Happy 4th!!!!!

Hey everybody! I hope you're all ready for fireworks and BBQ(I know, I am). We didn't have many fireworks in the market today, but I'm bettin that'll change(as usual). That being said I wanna get right to today's goodies.
I wanted to blow the dust off of 3 stocks I had sittin around. They didn't go unnoticed on my watch-list due to performance, I simply have so much going on that I miss things sometimes. These are some great companies and even better buys. First up is MAM/Maine and Maritime. They provide and distribute electricity to Aroostook and Penobscot counties in Northern Maine. They own aprox. 380 circuit miles and 1800 miles of distribution lines. MAM focuses on transmission infrastructure to support renewable generation, utility asset maintenance contracts and other utility related services. They are also involved in real estate development and redevelopment. MAM doesn't have the best relative safety, but the relative value and timing are excellent. Their forecasted earnings growth rate is 30%. Sales for MAM are up 14% from last quarter and 6% from last year. They have also maintained steady growth in price and earnings. Next up is RBN/Robbins and Myers. They supply engineered equipment and systems for various applications in energy, industrial and pharmaceutical markets worldwide. They operate in three segments Fluid Management, Process solutions and and Romaco. Fluid management manufactures equipment and designs systems used in oil+gas exploration+recovery, specialty waste-water treatment and various other industrial applications. Process Solutions designs, manufactures and services gas-lined reactors and storage vessels as well as systems for the chemical and pharmaceutical markets. Romaco designs and manufactures packaging processing equipment for the pharmaceutical, health-care, nutriceutical, food and cosmetic industries. These products and services include dosing, filling and sealing vials, capsules, tubes, bottles and customized packaging. RBN's relative value, safety and timing are all excellent and they have a forecasted earning growth rate of 19%. As for sales they are up 8% over last quarter and 11% over the last year. RBN has a return on equity of 17% too. Their price momentum adds weight to my buy recommendation and I think they'll do great. Last but not least we have CRMT/America's Carmart. They sell cars. I know what you're saying "sell cars? Why would I want to invest in them? I'll tell you why. They sell the kind of cars people buy, the ones they need. CRMT sells used older model cars and they sell most of them buy here pay here. Having owned a car which I had to pay that way, I know they get their money. Through subsidiaries CRMT operates 92 stores in 8 states Arkansas, Oklahoma, Texas, Kentucky, Missouri, Alabama, Indiana and Tennessee. Carmart looks good across the board for relative value, timing and safety and has a forecasted earnings growth rate of 19%. My favorite number is the 18% sales increase over last quarter. I don't know many car companies that can say that. They're up 21% last month and 28% over the last week. Can I get a return on equity of 12% to boot, I think so!
It would appear the "experts" were right. Not many of the stocks that got knocked of their horses have bounced back. I guess it's time to load up. I'm bankin on the"real deal" companies that are down this week, to show why they're "real deal" companies. I don't expect it to happen right away, but I think some good stocks just got put on sale.
Well, it finally happened(and not a second too soon). The Dollar got some ground back. The biggest beat down went to The Euro, thanks to a rate hike overseas. I knew if I betrayed King Dollar it would come back. Lucky for me I took my profits from being long the Euro Thursday and shorted it again right away(I didn't wanna close my short position in the first place, I was goin broke). I'm long the USD/JPY and short the GBP/USD in my practice account. I'm leaving my real money in the EUR/USD short till after the weekend. I hope our Dollar rally isn't short lived.
O.K. everyone enjoy the fireworks and have a safe holiday. I'll be back with another post before Monday with some insight to enlighten, cause we're all in this together. Thanks for reading.
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