Here are five ideas from five of the best in the advisory world. Larry McMillan looks at a suspicious duo, Mark Skousen sticks with income winners, Richard Rhodes and Jim Oberweis offer energy plays, and technician Martin Pring highlights the top sector ETFs. (Click on each advisor's photo to read his bio.)
(For more information, please click on each advisors' photo.)
"We don’t normally
mention situations such as these, but there are two stocks whose implied
volatility has been so high—and
whose stock action has been so bullish—
that one suspects 'somebody knows
something'," says options specialist Larry McMillan, editor of The
Option Strategist. "They are Internet Initiative Japan (IIJI NASDAQ) and Esco Tech
(ESE NYSE). IIJI has been a takeover rumor before—nearly
two years ago. ESE may just be an 'engineered' momentum play. But the increase
in implied volatility and the stock activity, when combined in this manner,
often foretell corporate events. Both are overpriced, and would be appropriate
only for the most speculative traders, but—for
those who do consider themselves aggressive—
these can be bought on pullbacks."
"I remain very bullish on our income
plays, especially our real-estate positions," says Mark Skousen, editor of
Forecasts & Strategies. "Muni Mortgage & Equity Mae
(MMA NYSE) is yielding 7% nearly tax free and
Novastar Financial (NFI NYSE) is yielding 16%. Allied
Capital ( ALD NYSE), a business development company, declared its
regular 57 cent dividend last week, giving us a steady 8.5% annualized yield and
should be accumulated now. With oil remaining solidly above $50 a barrel, our
favorite Canadian oil & gas trust is Pengrowth Energy (PGH NYSE),
which is paying a generous 10% dividend."
"The ‘overweight’
oil-patch theme is working quite well for us—
a circumstance we don’t expect to change in the very near
future," says technician Richard Rhodes, editor of The Rhodes
Report. "Integrated oil producers
such as ExxonMobil ( XOM NYSE) and Chevron Texaco (CVX NYSE) are still well off their
highs, even as crude oil approaches its highs between $55-$60 barrel. Meanwhile,
natural gas, heating oil, and unleaded gasoline all showing bullish technical
patterns that suggest new highs are ahead. This is a ‘core’ position we want to
sit with for quite sometime. Hence, rallies are not to be sold, but pullbacks
are to be bought."
"Dawson Geophysical (DWSN
NASDAQ) is an oil and gas field services company that
acquires and processes seismic data," notes Jim Oberweis, editor of
The Oberweis Report.
"Similar to how a doctor will look at a MRI prior to surgery, energy companies
use seismic data to help them decide where and how to drill a prospective well.
Dawson’s growth is driven by overall exploration activity, which has
reaccelerated in recent quarters as crude oil and natural gas prices have moved
higher. Clients of Oberweis Asset Management own 190,000 shares. These shares
may be appropriate for risk-oriented investors. "
"There are three sectors that currently stand
out as showing
