I have found two situations that I find intriguing in the current environment; both are showing good relative strength based on the favorable tailwinds that their businesses are experiencing, notes Nate Pile, growth and value specialist and editor of Little River Investment Guide.
The first of the two new recommendations is Grindrod Shipping Holdings Ltd. (GRIN), a 112-year-old shipping company based in Singapore that operates a fleet of dry bulk carriers that can transport a wide variety of bulk commodities, including ores, coals, grains, forestry and steel products, as well as fertilizers; in addition, it operates a tanker that can cary a variety of petroleum products and vegetable oils.
Given all the forces currently at play when it comes to global supply chains, shipping stocks have been acting well lately, and shares of GRIN have been tracing out what I consider to be a quite bullish pattern for awhile now, and while it is possible that the tide may soon turn on the sector, I am taking advantage of the current situation to start a position.
The second situation that I want to bring to your attention as a result of what is going on in the world — and how the stock has been responding to these circumstances — is VOC Energy Trust (VOC), a publicly traded trust listed on the NYSE.
The trust makes its money by holding what are known as "net profit interests" in properties associated with the production of oil and natural gas in the states of Kansas and Texas.
Essentially, in exchange for the investments the trust has made, it is entitled to receive a share of whatever profits may be generated through the operations taking place on the properties it is involved with and/or through the sale of the properties themselves.
To be sure, this is a situation that we will only stay in place while the trends that we currently see remain intact. But, at least for now, I like how both of these new stocks/companies are positioned, and I encourage you to follow my lead in striking while the iron is hot for each of these companies.
