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There are some unbearable values in certain equities, considering the fear in the markets yesterday, and the indications that recovery is on the way, mid-day. Following are some thoughts going across my mind as to drivers determining where to place some monies.

  1. Summer is low volume and the fall will be better in volume and optimism.
  2. Economy is not going to collapse. See this view by Roger Nausbaum.
  3. China is slowing down, but will still grow by 7-8%.
  4. Fear always drops the stock price quickly, while rises back will be slow. However, the price drop is overdone, so there are values out there.
  5. Revision to the mean, may mean the probabilities are with the optimistic buyer.

Buy for Revision to the Mean

XIV Aug 5 2011.png
(Click to enlarge)

The world is not falling into another recession.

Still a China Bull at Heart

YINN Aug 5 2011.png
(Click to enlarge)

Three times leverage to large cap Chinese issues that consists of mainly financial companies traded on the American exchanges.

The World Needs Iron and Coal

CLF Aug 5 2011.png
(Click to enlarge)

Well run ambitious company with iron and coal assets in U.S. and Australia, diversified to U.S. and Asia.

Come Heat or High Water the Casinos Prosper

BYD Aug 5 2011.png
(Click to enlarge)

The title says it all.

Growing Producer in Gold Sector

GBG Aug 5 2011.png
(Click to enlarge)

See this recent opinion by Free Markets. Great Basin just released operating news.

Yes, there are many values in the markets presently with the recent sell off. Above are certain ones, that I consider relatively secure and good values.

Disclosure: The author may purchase XIV, YINN, CLF, BYD, GBG within the next 72 hours.

Important Disclaimer: The information and opinions contained within this document reflect the personal views of the author and should be viewed as food for thought and amusement only. The author may from time to time have a position in any of the securities mentioned. There are no guarantees of the accuracy, reliability or completeness of the information contained herein. Independent due diligence and discussions with one’s own investment and business advisor is strongly recommended. These writings are not to be construed as an offer or solicitation with respect to the purchase or sale of any security or as an endorsement of any product or service. We do not request or receive compensation in any form in order to feature companies in this publication. It is prohibited to copy or redistribute this document to any type of third party without the express permission of the author. This document may be quoted, in context, provided proper credit is given.

Source: 5 Contrarian Plays