3SOF

Ok, made a more complete video analysis for JADE:



I come to the conclusion that historical dilution and the weak balance sheet pose a problem to JADE's long term outlook. Not good enough for the Main Portfolio, so obviously not good enough for the 3 Stocks on Fire Portfolio, which from now on will be the Main's "Top 3 holdings".

By the way, if you want to receive my daily video analysis on your e-mail box, please subscribe the 3 Stocks videos at www.youtube.com.

Thanks

David and all, 

Just read my last post again and it sounds like I'm totally against long term holding, sorry that's not true.  I was just trying to indicate going with the long term flow, markets go up, go down and go sideways.  Thus add and reduce positions over time as necessary and try to spend most of the time in the up legs.

The following are long term investment sectors I'm in or have liked for some time.  These are not recommendations for blind entries at this time, just sectors I've been interested in for a while and have great potential for many many years.

Internet infrastructure, Global scale.

Backbones all over the world are loading up quickly, basically driven by all the compressed video and audio being transmitted.  In the short term I hate this as I feel it's a waste of real time interactive communication,  one guy downloading one movie is equivalent to a years worth of email.  As things load up it can have a negative affect in areas such as VOIP telephone and interactive research on the internet.  I know people don't like to hear it but I see selective bandwidth requirements coming in the future as bandwidth is not unlimited.  Bulk transmission broadcasts (radio, TV, video) are best suited for the airwaves and satellite one way distribution.  Where two way high speed is required the land based internet is ideal as most of this communication cannot tolerate the time delay involved in satellite transmission.   IE just because there is a flat rate on the Concord that doesn't mean you can just get in line and airfreight bulk, some things should go by rail or boat.

Now back to the internet infrastructure commercial hardware, routers, cards, fiber optics, etc.  As mentioned before, SILC is in this area in addition to others such as AVCI, CSCO, NORTEL, LUCENT/ALCATEL, and I'll add in Corning GLW because of their leadership in fiber (and also I like the LCD glass exposure).

Internet distribution, Local area

We all desire more bandwidth to our homes and businesses, however plowing more fiber directly to your PC is very expensive and time consuming.  Recently WiFi has shown promise but is limited to about 1/2 mile between repeaters so there is still considerable infrastructure to cover a city.  Now have a look at WiMax the next generation with stated ranges up to 30 miles, well lets say we just use 5 miles for practical real life applications.   With that kind of range a city can easily be covered with just a few repeater towers.

Companies on my short list are:  ALVR and AIRN

RFID,  Barcodes for the next century

Radio frequency identification (RFID) tags, Walmart provided the insight and started the push a few years ago.  You all know them as those little tags with the little coil of wire you occasionally see on items you buy.  Now think about how bar codes have changed how companies do business, well RFID will move that performance up by several orders of magnitude.   Most companies are using them now and as the cost comes down you'll see them being used on everything.  In a grocery store you will just push the cart past the checkout and they will know everything that's in the cart and just hand you a bill, while simultaneously updating inventory and shelf re-stocking lists.  Note the military has also jumped on this bandwagon.

Companies on my short list are:   IN, RFMD, ZBRA

The following are other sectors I own or have on my short list.

O&G, but specifically domestic NA natural gas.  Big short supply squeeze coming over the next few years.

Uranium, again short squeezes starting to happen now.  Invest in companies with proven reserves and existing mining operations.  Speculate or gamble on the explorers, no reserves or production.

A little longer term I like alternative fuels, CTL coal to liquids, CBM coal bed methane, clean coal technology etc.  At the present time I'll forget about ethanol, to me its all hype as the current energy ratio is between 0.75 and 1.25, ie for every equivalent barrel of oil energy you get out 1 barrel of equivalent ethanol energy.  To me this is a no brainer bad energy strategy for the future.

Just a few sectors for your consideration.

Quasi

Indeed, those are very appealing sectors Quasi. I picked ZBRA to cover on a more or less random basis, let me make a video analysis on it (it takes about 2 hours to do it because I make those bar charts by hand).

Thanks

Video analysis for ZBRA:



ZBRA is almost perfect, see you tomorrow