Serious Money: This is my type of market -- watch list ready!

Posted Nov 9th 2007 7:26PM by Sheldon Liber
Filed under: After the Bell, Other Issues, Deals, Competitive Strategy, Johnson and Johnson (JNJ), Nucor Corp (NUE), Reliance Steel and Aluminum (RS), Valero Energy (VLO), Huaneng Power Intl ADS (HNP), Bargain Stocks, Serious Money, Anglo American (AAUKY), Aluminum Corp of China ADS (ACH), Stocks to Buy, Intuitive Surgical Inc (ISRG), General Dynamics Corp (GD)

Shopping List You all can worry about whatever you want to worry about. You can follow the bulls or bears, day traders or CD holders, Wall Street pundits or the guy next door, it does not matter to me. I am looking for opportunity in the rubble.

If you are a true investor, you have a watch list -- when there is fear and negativity in the market like there has been the past few days, there will be opportunities. It is not a time to jump in with both feet, and it is not a time to speculate. It is a time to pick and choose among the companies and stocks you know well.

I would like to own more Intuitive Surgical (NASDAQ: ISRG) but it has run up so fast it has escaped my grasp, although I sense an opportunity is in the wings. I would like to own more Anglo American PLC (NYSE: AAUK) but it jumped up after recent acquisition talks in the mining industry and has not settled down yet. And it may not, but I will be patient. My regular readers know I love Huaneng Power Intl ADS (NYSE: HNP), which hardly moved today but has come down significantly in the past week, and that is very, very tempting.

Others on my watch list include:

These represent just a handful on my list, and I have written about all of them. There are many more I'm watching -- most of these are in defense, health, commodities or energy. There will be opportunities in the financial sector and housing too, but not until they come clean, and so far it seems they are only releasing information sparingly when they have no other choice.

It is not my intention to make light of a difficult market, or those of you that are getting queasy stomachs right now. I just want to make two points in closing. Both points I have made numerous times before and will again in the future.

First, if the current volatility of the market has you worried, and you fear the worst, you must adjust your portfolio until you are comfortable -- in the future do not let it get out of proportion to your level of tolerance.

The second point, and one that has allowed the most successful investors to make big money, is to buy when there is fear in the market, and only buy strong companies with solid balance sheets, that have experienced managements demonstrating a high level of integrity.

To find potential opportunities and verify my track record, read Chasing Value or Serious Money.

DISCLOSURE: I own shares of ACH, AAUK, GD, JNJ, HNP, ISRG, VLO (NUE I do not own.....yet)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.

Tags: Aluminum Corp of China ADS (ACH), AluminumCorpOfChinaAds(ach), Anglo Amer ADR (AAUK), AngloAmerAdr(aauk), featured, General Dynamics Corp (GD), GeneralDynamicsCorp(gd), Huaneng Power Intl ADS (HNP), HuanengPowerIntlAds(hnp), Intuitive Surgical Inc (ISRG), IntuitiveSurgicalInc(isrg), investing, Johnson and Johnson (JNJ), JohnsonAndJohnson(jnj), Nucor Corp (NUE), NucorCorp(nue), Serious Money, SeriousMoney, Sheldon Liber, SheldonLiber, Valero Energy (VLO), ValeroEnergy(vlo), watch list, WatchList

Print this

Reader Comments (Page 1 of 1)

11-09-2007 @ 7:56PM

Linda Wright said...

Iam sick sick of China first they try to kill our animals then our children what next? When do you think we are going to wake up. Then of course having people from India take our orders Credit cards are mixed up, address, name what the heck is going on Wake up American!!!

11-09-2007 @ 9:16PM

Jjjaaazzzyyy said...

Sheldon, I agee they say "buy when theres blood in the streets". I just don't think it's as bloody as it's going to get. I don't think it's bottomed out yet. But I think most people are watching and waiting.

11-09-2007 @ 10:03PM

LQ said...

That's a nice watchword "integrity". If all investors were serious about applying that measure we might clean up a bit of the mess we've made of this country. Never happen of course.