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  • Still Bullish on Exxon Mobil as Commodity Prices Should Climb Higher  [View article]
    I ment to be interpreted on LT oil importance that it will continue to be a significant commodity for as long as we have autos that use that type fuel but it will decline in total importance to disposable income. As incomes increase, the amount expended for petroleum products should decline. For example, expenditure for cell phones and mobile computing is increasing more rapidly than oil consumption.
    Feb 9, 2011. 12:19 PM | 1 Like Like |Link to Comment
  • Think Sirius XM Is Overvalued? Take a Closer Look  [View article]
    Same thing happened to Apple - got dumped bad from Windows competition but look where it is now. I was a SIRI skeptic when it was pennies but not now. The sky is the limit. Its buy now and cost average up strategy that I followed. I expect it to break 100/share in 30 years time.
    Feb 9, 2011. 09:43 AM | 1 Like Like |Link to Comment
  • Would Benjamin Graham Buy These 16 Deep Value Stocks?  [View article]
    Got to look at the man behind the curtain. For UVV they are losing suppliers markets to direct sales to manufacturers. Their div. Coverage is declining. They had a bad scandal re: bribing foreign gov. Officials and were fined. I continue to reduce my position. Better to invest in an improving business rather than one that is declining.
    Feb 9, 2011. 09:38 AM | Likes Like |Link to Comment
  • Under the Hood of the CPI: Transportation Inflation  [View article]
    Well, the next step is to start using it to increase my annuity. This year I got nothing - but my medical insurance premium increased for a net decrease in my discretionary income.
    Feb 8, 2011. 12:26 PM | Likes Like |Link to Comment
  • 10 Bold Predictions for 2011  [View article]
    This would be an interesting chart to look at:

    Silver has been spiking up but can quickly collapse. A better bet would be with a mining equipment manufacturer. CAT will make money regardless of the price of the metal.
    Feb 8, 2011. 11:35 AM | Likes Like |Link to Comment
  • 10 Bold Predictions for 2011  [View article]
    Any view on stopping the fracking pollution. Will this hold back future production and spike prices higher? My DOM has been rebounding.
    Feb 8, 2011. 11:27 AM | Likes Like |Link to Comment
  • Will Junior Mining Stocks Be the Investment of 2011?  [View article]
    With the prices going up, it becomes more economic to go after marginal mineral deposits. This means digging deeper. A low risk way to play on the mining boom is CAT.
    Feb 8, 2011. 11:24 AM | 1 Like Like |Link to Comment
  • Free Market Investing: The Hayek Fund's Six Top Holdings  [View article]
    CAT broke 100 yesterday and I believe won't be fully valued until it hits 120. Article in today's paper explains the effect of global warming on snowfall. This will continue to increase. CAT's sales are estimated too low currently because government procurements for snow removal equipment will start hitting latter in the year because funding lags. They need to prepare for next year. Road resurfacing for pothole filling becoming obsolete will also add to sales.
    Feb 8, 2011. 11:19 AM | Likes Like |Link to Comment
  • 10 High Yield Dividend Stocks With Decreasing Short Interest  [View article]
    On UVV, the shorts were right and they are now covering. I had a substantial long position and sold half based on sluggish earnings growth and problems with international suppliers who are now selling directly to manufacturers. Q reports are becoming an old song claiming temporary distortions to earnings but the mantra scares me. I recently sold some additional shares and switched to VZ that has a higher yield and better prospects, IMHO. UVV continues to lose dividend coverage.
    Feb 8, 2011. 11:14 AM | Likes Like |Link to Comment
  • Still Bullish on Exxon Mobil as Commodity Prices Should Climb Higher  [View article]
    I think you are on track for prices to increase but short-term they will continue volatile. Then with long-term prospects with alternative fuels, electric cars and Hybrids, the demand for oil will stabilize. On the supply side, we have seen a price spike on the Egypt situation where I commented during the price rise that this was only a reaction to headline news - not much oil goes through the Suez Canal.

    Intermediate term in the Middle East, with the liberalizing of governments, the cartel may start to lose its grip on production. If the cartel is broken and the people demand more food, they are going to have to sell more oil.

    The good news is XOM's volume of business will increase but the price will be lower.

    Look for a continued decline for oil prices in the short-run and possibly stabilization during the next year with a long-term price rise along the lines of inflation in general. However, the importance of oil to the economy should continue to decline.
    Feb 8, 2011. 11:04 AM | 1 Like Like |Link to Comment
  • Sirius XM: Great Company, Overvalued  [View article]
    My strategy is to continue to add to my position as long as I have a 10% profit on it. Cost averaging up is the way to go on this one. The low price and traders galore make it very speculative. This is why a good strategy toward ownership is needed. If it ever produces a 10 percent loss - then I would sell as long as its short-term to write it off on my taxes and wait for a lower entry point on the tax savings.
    Feb 8, 2011. 10:48 AM | 2 Likes Like |Link to Comment
  • Sirius XM: Great Company, Overvalued  [View article]
    I heard the same type of advice when I sold my Apple. They said the IIe would not make it because of the lack of software, LOL. That was almost 30 years ago.

    Looking at the financials right now for SIRI is not the way to project future valuation.

    SIRI has the potential of going way past the 100 mark in a similar 30 year time frame. Less certain is me being around to see it.
    Feb 8, 2011. 10:07 AM | 3 Likes Like |Link to Comment
  • Insider Buys and Sells: Cirrus Logic, GameStop  [View article]
    These guys at CAT are buying. We broke 100 today. Next goal 120+
    Feb 7, 2011. 10:29 AM | Likes Like |Link to Comment
  • Insider Buys and Sells: Cirrus Logic, GameStop  [View article]
    Form 4s can be found at
    Feb 7, 2011. 10:28 AM | Likes Like |Link to Comment
  • Stocks Remain Poised for Steep Decline  [View article]
    Eric - Your headline with some readers interpreting as alarming has attracted me and it is a fresh view for those into the bull frenzy of the market. The fact is that we are still recovering from a terrible decline and it may have a way to go. Secularly for the longer term as you point out, returns are not expected to be as robust as in the past year and a half. However, positive returns including dividends are expected to remain positive but your adjective of poor I believe is correct in comparison to the returns of the recent past. But what is the alternative?

    On a risk reward basis, waiting for stock and bonds yields to increase with a cash position going into a bear market loses interrum returns and stocks (at least today) continue to rise. For this reason, I believe it is prudent to keep high yielding stocks and bonds and otherwise remain diversified to allow reinvestment of portfolio cash flow into the best alternatives as they become presented.
    Feb 7, 2011. 10:22 AM | 1 Like Like |Link to Comment