Latest Twitter Update:

Please wait while my tweets load...

Posted 1 month, 23 days ago.

Guest Post: Superman’s Second Half 2008 Stock Picks

Unlike most narrow-minded finance freaks, I like to introduce you readers to all strategies, especially proven profitable ones, no matter if they’re not right for me cuz I’ve got the patience of a paparazzi photographer trying to snap shots of ARod & Madonna. So, here are the 2nd half picks of a longer-term trader who likes to buy, not short, speculative names whom I greatly admire, Superman.

Many of you TheLion.com readers know his research/influence is legit, and I’d brag about the incredible performance of his 1st half 2008 picks, but he already does that in the solid guest post below:

I am back from vacation. What I did learn is that Vegas seems to be hit hard by the economy. Everyone I talked to there said the same thing. It has been much slower due to the economy. It was easy to see. Need to research some Vegas stocks that may have more downside for potential shorts.

The first half of 2008 was an amazing time for me. As most know, I researched and pounded the table on PDO when it was $5-$7. My first buy was $4.47 and the stock ended up gaining 929% from that point to peak at $46. Other strong gainers I researched and selected included SINO 142% NTI 138% GBR 96% and CKX 65% (Gain percentage was measured from my first buy to the stocks peak thereafter. I always take some profit when I am up and use mental stops on the rest if I still believe the stocks will go higher. As you can see I am not a daytrader, but look for quality stocks that can make strong moves in time.

The market as we all know, has been in the tank. Oil is rising, the dollar is weakening, the credit crisis continues, and hopes for a second half economic rebound is on the ropes.

China stocks have also been in the tank, EPS or not.

However, I believe, In every market, there are always certain stocks and sectors that will still do well. It is a matter of being very selective with long positions. The industries must be in demand, even in a slowdown.

My top 3 stocks for the second half of 2008, in my opinion, meet this criteria:

Taylor Devices, Inc. (TAYD) - Company is a global leader in providing earthquake protection for buildings, bridges, schools, and other structures. This is a $6 stock and it did $0.12 EPS last quarter. I believe this stock is a gem and undervalued based on last quarters EPS alone. As earnings approach, I believe we will see continued strength in EPS and future demand in this business making it a big mover in the next 1 to 12 months. This reminds me of the stock BOOM, which was an obscure stock at a similar price until industry demand put it on the map and the stock moved to over $50 on that demand and EPS. I additionally believe TAYD could be a buyout target for a larger Company wanting to get into this field.

Northern Technologies International Corp (NTIC) - Formerly NTI, now trading on the NASDAQ as NTIC. This Company has a very solid core business that provides corrosion protection with a big market reach outside of the United States. They are in the process of expanding this business into the oil and gas sector. As earnings approach, I believe this report will mainly feature this results from this core business, which has had a very respectable EPS run rate of $0.70-$0.80. I am expecting EPS in the $0.15-$0.20 range (my guess only).

That being said, I think NTIC will be the most in demand alternative energy company in second half 2008 and beyond due to two other factors. They have a biodegradable plastic that is already available for sale as well as an exciting Plastic Waste to Oil technology that they have recently placed in India and Thailand. According to SEC filings they have plans to sell the first unit in fiscal 2008 and intends to ramp up its manufacturing and service infrastructure to capitalize on global market opportunities it believes exists for the Plastic Waste to Oil solution. I believe these factors give NTIC the potential to move like the solar , wind, and other hot alternative energy stocks did and with the low float structure the sky is the limit here. When the Company rolls out this technology and announces sales I believe this has the potential to be a $30-$50 stock. Watch Video (Takes a Minute To Load)

Heckmann Corporation (HEK) - This SPAC purchased a leading Chinese bottled water company and when the deal closes in the fall and we see some reports, I think this stock is a potential double or more. The rising Chinese middle class should be big buyers of bottled water in a country where clean water is scarce.

Other stocks that I believe have big potential in the second half of 2008 include:

Metabolix, Inc. (MBLX) - A leader in bioplastics, plant to open in 2009. Partner is ADM
Hudson Technologies, Inc. (HDSN) - Earnings should be stellar this quarter and beyond due to a huge demand in their refrigeration business. More research to come
American Electric Technologies, Inc. (AETI) - Serves the oil, gas, and wind energy business
New Concept Energy, Inc. (GBR) - 520k Float - waiting for them to buy something in the oil/gas field
TEXAS VANGUARD OIL (TVOC) - I expect blowout earnings this quarter due to higher oil/gas prices
Energy Recovery, Inc. (ERII) - Recent water IPO , watching for a dip

I will continue to provide my personal research on all of these companies and any new ones I find.

Disclaimer: Superman, and many other readers here probly are invested in a lot of these…(happy SEC?)–I wish everybody would join Covestor so all positions/entries & exits can be verified, but I’ve got a ways to go in convincing everyone to signup!

Get Tim's pre-market watchlists, real-time trade alerts & access to subscribers-only website all for just $1/day -- sign up for TIMalerts today!

Alternatively, get all blog posts emailed directly to your inbox by signing up below:

Related Reading

Penny Stock King Guest Post: A Few Stocks I’m Watching and The World’s Oldest Pump and Dump June 9, 2008
20 Stocks To Watch This Tuesday The Twelfth August 12, 2008
12 Hot Stocks For Manipulation Monday, Wish It Was Supernova Sunday May 12, 2008

34 Responses

1soldtoyou(TIMBUCKS: $3)

July 7th, 2008 at 4:29 pm

YO
2soldtoyou(TIMBUCKS: $3)

July 7th, 2008 at 4:30 pm

Where did everybody go?
3Adam

July 7th, 2008 at 4:44 pm

Economy is def getting hit hard. I encountered Zero traffic this 4th of July heading to our lake house and back. Could have shot a cannon down the interstates. Also there was about 1/6th of the boat traffic as well during this typically extremely busy time of year
4Smok

July 7th, 2008 at 4:54 pm

Holding UVSE overnight. And om kicking myself for selling FRTL, but a gain is a gain :/
5YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 5:07 pm

Hey, Smok, I’m holding UVSE right along with you.
6noobtrader.08(TIMBUCKS: $160)

July 7th, 2008 at 5:10 pm

Tim/Superman,

As always thanks for the information. I’m hitting the books hard trying to cram as much information as possible into my brain…

I gave myself a test last night, but failed; thinking I identified a potential Supernova, twas a real company! Doh! Granted I only looked at the charts and briefly at the financials… so back to the books (& DVD) I go…

With your information above, it gives me some comparison/ contrast to work with against the plays Tim likes… It will hopefully help me with the research end of my EDU.

Anyhow, thanks for looking out for the little people and keep up the great work! (both of you)
7vo

July 7th, 2008 at 5:20 pm

Was in Vegas this last week too myself (Tue - Sat). Tuesday wife and I were 2 of >4< people on the bus between the airport and car rental place, and that was at 5:30 pm! The town was the most quiet I’ve ever seen (trip #9 for me), including compared to December midweek trips in the past with no conventions taking place.

And I read Timmy the whole time I was there on my cell. :-)
8JeffMoates(TIMBUCKS: $258)

July 7th, 2008 at 5:21 pm

Adam, yeah, everybody was at the local lake instead of the BIG lake 4 hours away. We always go to the local lake cause it’s totally dead there during the 4th. Not this year…it sucked, way too choppy to do any decent wakeboarding.
9YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 5:23 pm

Jeff, that’s why you need to take up kiteboarding like me :) No boat gas needed, can take my gear anywhere in the world, and chop is no problem :)
10noobtrader.08(TIMBUCKS: $160)

July 7th, 2008 at 5:28 pm

Yng…

what is the url to your blog?
11YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 5:32 pm

welcometothegutter.blogspot.com

Just made a post on UVSE
12Smok

July 7th, 2008 at 5:42 pm

Steve, didnt know u had a blog..very nice! Well good luck to us and others who are in UVSE.
13noobtrader.08(TIMBUCKS: $160)

July 7th, 2008 at 5:43 pm

cool, thanks.

PS - nice blog name. lol!
14YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 5:44 pm

Haha, yeah I owe the blog name to Timmay as he always talks about trading in the gutter of the stock market.
15Amzzz(TIMBUCKS: $14)

July 7th, 2008 at 5:50 pm

Ha. Awesome name indeed and good Blog. I bookmarked it. Thanks Yng.
16Smok

July 7th, 2008 at 6:22 pm

My Watchlist for tomorrow, not a buylist lol so dont get it confused:
MOSH (Very high, More?)
BSCG (More?)
NSOL (Early News)
ZVUE (News, Too low imo, Pre-Mar hit?)
XJT (AftHrs +13%, News, Pre-Mar hit?)
AVNX (Just added this cuz I like watching after bad news)
TMA (AftHrs +8%, On my watchlist for the 4th time)
ZHNE (AftHrs +12%, Pre-Mar hit?)
IMH (Nice Gap up, Late News, More?)
17noobtrader.08(TIMBUCKS: $160)

July 7th, 2008 at 6:27 pm

Yng…

Did you get my message(s)?
18investorslive(TIMBUCKS: $217)

July 7th, 2008 at 6:29 pm

Here’s a stock that should move tomorrow….
http://www.investorslive.com/b.....gain-paso/

Join the pump?
19YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 6:30 pm

Yep, got it…I’ll be getting back to you later tonight
20ricky marteen

July 7th, 2008 at 6:48 pm

why did UVSE get hit so hard in Mid-June??!?!?!
21YngvaiMalmsteve(TIMBUCKS: $588)

July 7th, 2008 at 7:03 pm

Here’s an overly simple explanation.

To raise capital, UVSE sold convertible debentures. Investors buying those debentures may short the stock, causing a decrease in stock price. They then convert those debentures to stock where they look to cover at the lower price and take a profit. The resulting dilution of the stock also causes the share price to decrease. Add in some panic sellers, and you get a 1-2-3 punch…stock drops off a cliff.
22noobtrader.08(TIMBUCKS: $160)

July 7th, 2008 at 7:14 pm

Thanks
23UFgemini(TIMBUCKS: $177)

July 7th, 2008 at 7:28 pm

Well, I sold some UVSE and that puts me up 47.4% in my mission to flip my tax rebate check. I documented every trade on http://www.collegepennystocks.com
24timothysykes

July 7th, 2008 at 7:47 pm

new post:

http://www.timothysykes.com/ti.....reakdowns/
25thebabyfacedtrader(TIMBUCKS: $24)

July 7th, 2008 at 7:52 pm

Hey UFgemini, I checked out your website. How did you arrive at your plays on those picks? Also I noticed that you started trading during the summer, is that because your on semester break for the summer? I am asking because I am in school too and I wanted to get some recommendations on balancing classes and watching the market.
26T-Money(TIMBUCKS: $26)

July 7th, 2008 at 8:06 pm

Moi Aussi,I’m going in to my Junior, year trying to learn.
27T-Money(TIMBUCKS: $26)

July 7th, 2008 at 8:38 pm

Hey does anyone know if there is anyway to get these comments, or replys sent to my google blogger?
28PR Superstar

July 7th, 2008 at 8:52 pm

“I am back from vacation. What I did learn is that Vegas seems to be hit hard by the economy. Everyone I talked to there said the same thing. It has been much slower due to the economy.”

A 12-year-old child could right a better paragraph. Way to give superman a bad rep Guest Blogger. What crappy structure.. finance big-gun or NOT.

On the positive side… I like the Vegas-twist to this story. Who doesn’t love Vegas?

And thumbs-up to the addition of guest bloggers.. kind of.
29timothysykes

July 7th, 2008 at 8:54 pm

haha thats the beauty of trading, we dont need grammar, hell, some of the people on here cant even read…its all about the numbers
30PR Superstar

July 7th, 2008 at 8:56 pm

touche skyes, touche.
31teger

July 8th, 2008 at 12:37 am

“A 12-year-old child could right a better paragraph.”

You mean WRIGHT, right? Double touche!
32YngvaiMalmsteve(TIMBUCKS: $588)

July 8th, 2008 at 12:58 am

No, he actually means “write.” Triple touche!
33teger

July 8th, 2008 at 1:28 am

o dears! tim wuz right…we tradrs relly r dum!
34PCola(TIMBUCKS: $64)

July 8th, 2008 at 10:01 am

Oh Jesus, people. You just set spelling and grammar back 100 years.