To quote one of my college professors (with thick Chicago accent) "Ya pays yer nickle 'n ya takes ya bes' shot." This year I wrote over 200 stories and reviewed even more stocks. Going over all of this material I came up with the ones listed here as my four best and four worst of the year.

• Dow Jones Industrial Average: 12,501.52 is Up to 13,359.61 (+6.86%)
• NASDAQ Composite Index: 2,425.57 is Up to 2,676.79 (+10.36%)
• Standard & Poor's 500 Index: 1,424.73 is Up to 1,476.37 (+3.62%)

Continue reading Chasing Value: My best and worst picks of 2007

Chasing Value: My best and worst picks of 2007 originally appeared on BloggingStocks on Mon, 31 Dec 2007 15:00:00 EST. Please see our terms for use of feeds.

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.

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

Serious Money: This is my type of market -- watch list ready! originally appeared on BloggingStocks on Fri, 09 Nov 2007 19:26:00 EST. Please see our terms for use of feeds.

Today Alcoa Inc. (NYSE: AA) announced some restructuring plans that will trim down (SELL) some under-performing consumer packaging and automotive castings divisions. It will be taking some charges to the tune of $845 million as well, and intends to gear up for expansion into higher margin areas. Alcoa also said it raised cash by selling its 7% stake in Chalco, the Aluminum Corp China ADS (NYSE: ACH) and bringing in $2 billion dollars on what was initially a $200 million investment -- "A ten bagger."

It is this latter decision that is not smart, and without further explanation from management I have to question selling a winner. If you look at all of the things that Alcoa did in the last 10 years you will find that the Chalco investment was the smartest, and more importantly, the most profitable, thing it has done. For many years Alcoa stock has been adrift. Since it sold the stock it has only gone up further and as I write these words and look at the price now, ACH is trading up over 5% more to $75.70.

Continue reading Serious Money: Alcoa (AA) makes some good and bad moves

Serious Money: Alcoa (AA) makes some good and bad moves originally appeared on BloggingStocks on Fri, 05 Oct 2007 15:30:00 EST. Please see our terms for use of feeds.

I think you all have gone mad if you are buying stocks today just because the market is moving up, or you are planning on federal rate cuts yet to be announced, or Hilary Kramer or James Cramer said so, or you are afraid the train is leaving the station without you, or your stock broker or palm reader has become bullish. There is only one reason to buy stocks and that is to make money and secure your future for the long run. To do that you need to have solid reasons that can be accounted for and demonstrated to have a high degree of probablity. I did not see that today.

A friend of mine asked me today whether they should sell their shares of Google Inc. (NASDAQ: GOOG) and take profits after it's recent runnup. I told them I had no idea whether to buy, sell or hold. There was no concrete data that has been released since it's last quarterly report (after which it dropped by $50 in one day) so to me it is all wild speculation. If you believe that the rate cuts are good for the overall market which includes Google then perhaps you can hang your hat on that -- I won't be.

I have been touting Huaneng Power ADS (NYSE: HNP) for a long time and those that paid heed to my comments made a ton of money with me, but even though I love this stock I am not promoting it today after it's 45% jump in the last six weeks Volatile Market picks: Huaneng Power (HNP) is my pick for the next 50 years. I like to buy on dips as I wrote when it was down 20% off its high not when it is screaming forward to new highs. I think patience is in order.

Continue reading Throw caution out the window GOOG, AAPL, HNP, ACH, VLO, ISRG -- NOT!

Throw caution out the window GOOG, AAPL, HNP, ACH, VLO, ISRG -- NOT! originally appeared on BloggingStocks on Mon, 01 Oct 2007 17:39:00 EST. Please see our terms for use of feeds.

This is the fourth update on the stock price status of the first seventeen Chasing Value companies. Closing prices are from September 14, 2007.

The first quarter produced amazing results but the second quarter was downright sad. No one will be surprised to see that anything touching constuction or finance took a bath. I own most of these stocks, so if you do too, I feel your pain. Anyone considering my commentary should "do their homework" too, as James Cramer says on his Mad Money TV show. These recommendations are from the first and second quarter 2007 and I have linked to the original stories.

February 16, 2007: Chasing value: Wells Fargo: Wells Fargo & Company (NYSE: WFC) closed at $35.66 down from $35.76: a loss of -0.02%, even money.

February 23, 2007: Chasing value: Anadarko Petroleum - got it! Anadarko Petroleum Company (NYSE: APC) closed at $50.58 up from $40.84: A gain of 23.85%.

March 3, 2007: Chasing value: Aluminum Corporation of China ADS: Aluminum Corp. of China (ADS) (NYSE: ACH) closed at $60.95 up from $22.98: A gain of 165%

March 20, 2007: Chasing Value: Anglo American - Inflation hedge & more: Anglo American plc (NASDAQ: AAUK) closed at $28.90 up from $24.65: A gain of 17.24%

March 23, 2007 Chasing Value: Cemex and LaFarge look solid: CEMEX S.A. B de C.V. (ADR) (NYSE: CX) closed at $29.17 down from $34.92: A loss of -16.47%. LaFarge (ADS) (NYSE: LR) closed at $37.80 from $39.02: A loss of -3%.

Cemex sank with the continuous reports of the deteriorating housing market in the United States. In the meantime it continues to move forward with the integration of Rinker, the largest supplier of construction materials in Australia. This makes Cemex the largest in the world and sets the stage for continued growth in Southeast Asia. It also is continuing to focus on reducing debt.

Of all the stocks I have written about in the Chasing Value section, I feel that this one suffered the most from guilt by association. I believe it was fairly valued before and it is on sale now. This company, with it's PEG ratio at .83 and lowered, P/E, P/S, P/B (SEE: AOL Money & Finance) has a ROE over 22 and pays about a 2% dividend yield.

Continue reading Chasing Value update 4: Some great some not: ACH, BSC, CX, DUK, JNJ, USG

Chasing Value update 4: Some great some not: ACH, BSC, CX, DUK, JNJ, USG originally appeared on BloggingStocks on Mon, 17 Sep 2007 10:36:00 EST. Please see our terms for use of feeds.

It just keeps rolling along. "China Inc." keeps beating it's own trade records. It posted a trade surplus of $24.97 billion for August, up from $18.8 billion a year earlier, the customs administration said today, according to CNBC. That's not all, China just passed Canada as our number one trading partner, which although not unexpected, is just another example of the export steam roller that shows no signs of slowing down. All this despite numerous product safety recalls.

We are buying Chinese products at an ever increasing rate. It should also be noted that they are buying our goods and services at an ever increasing rate too. The problem is that they are getting the better end of the deal for now and the gap between imports and exports is increasing. When I wrote Stop blaming China - partners win, whiners lose, I addressed some of these issues, and readers added many more. Some categorized the situation as a Chinese trade war but I take exception to this. I think we are facing very strong Chinese competition and the question is are we prepared?

Our trade deficit is only part of the problem. While China is creaming us with very low labor rates and worse environmental, safety, and legal (piracy) issues, all of which need to improve to level the playing field, there are other issues that we should fear more. That is our failure to compete in producing math, science, and engineering graduates or even having a plan to stimulate improving our graduate rates in these areas. If we do not remain strong in these areas we will be exporting more and more engineering jobs, and worse, the things China imports now might slow down drastically. Many of the things China manufactures now are designed and engineered in the United States. Nothing guarantees this situation will remain as is. It is all very fluid and will become more so. We face the same dilemma with regards to India and eastern Europe.

Continue reading China hits $25 billion record surplus: Exports + ACH, HNP & PTR

China hits $25 billion record surplus: Exports + ACH, HNP & PTR originally appeared on BloggingStocks on Tue, 11 Sep 2007 16:15:00 EST. Please see our terms for use of feeds.

This is the third update on the stock price status of the first six Chasing Value companies. Closing prices are from July 5, 2007. I keep track of my recommendations and thought I would share the results as I do most everything else in my posts. Anyone considering my commentary should "do their homework" too, as James Cramer rants on his Mad Money TV show. These recommendations are all from the first quarter 2007.

February 16, 2007: Chasing value: Wells Fargo: Wells Fargo & Company (NYSE: WFC) closed at $35.32 down from $35.76: a loss of 1%.

February 23, 2007: Chasing value: Anadarko Petroleum - got it! Anadarko Petroleum Company (NYSE: APC) closed at $52.40 up from $40.84: A gain of 28.3%.

March 3, 2007: Chasing value: Aluminum Corporation of China ADS: Aluminim Corp. of China (ADS) (NYSE: ACH) closed at $46.16 up from $22.98: A gain of 101%

March 20, 2007: Chasing Value: Anglo American - Inflation hedge & more: Anglo American plc (NASDAQ: AAUK) closed at $30.98 up from $24.65: A gain of 25.68%

March 23, 2007 Chasing Value: Cemex and LaFarge look solid: CEMEX S.A. B de C.V. (ADR) (NYSE: CX) closed at $37.38 up from $34.92: A gain of 7%. LaFarge (ADS) (NYSE: LR) closed at $45.56 from $39.02: A gain of 16.76%.

Some day I will have to eat humble pie, but not today. As you can see, 5 of the 6 stocks are up and beat the market indices and most funds, individually and collectively, by a very large margin, and I have not included the dividends.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

Disclosure: I own APC, ACH and CX in several portfolios.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.

Chasing Value update 3: SCOREBOARD BABY! originally appeared on BloggingStocks on Fri, 06 Jul 2007 14:30:00 EST. Please see our terms for use of feeds.

I was recently asked about a potential value opportunity in a certain Russian stock and thought I would share my current view. I am not ready to invest in Russian stocks. I do not trust the current government to protect investors. I do not expect the court system to play fair. I do not expect the rules, be they legal, banking, ethical, politcal or anything else to stay the same two days in a row. I have no confidence in Russia and everything I know about the subject leaves me with too many questions and not enough answers. The government of Vladimir Putin practices it's own ambiguous economic system.

From the International Herald Tribune: "President Vladimir Putin sought to reassure investors and foreign leaders that Russia remained committed to free trade and investment for businesses that work here, in spite of a chill in political relations with the West. But Putin said "Russia would integrate with the world economy on its own terms - and possibly not by embracing the current rules of the global economic order."

In China we aquired the stocks of four companies: Aluminum Corp of China ADS (NYSE: ACH), Huang Power International ADS (NYSE: HNP), PetroChina Co Ltd ADR (NYSE: PTR), and Shanda Interactive Entertainment (NASDAQ: SNDA). In India we own ICICI Bank (NYSE: IBN) and last week acquired Tata Motors (NYSE:TTM) We only buy stocks of companies listed on U.S Exchanges.

Continue reading Serious Money: China yes, India yes, Russia not yet

Serious Money: China yes, India yes, Russia not yet originally appeared on BloggingStocks on Mon, 18 Jun 2007 18:43:00 EST. Please see our terms for use of feeds.

Last week, Aluminum Company of China (NYSE: ACH) had a spectacular time, closing Friday at $42.51. I have been banging this drum all year long to friends, family, our readers and even my broker. I hope some of you made some money. On Friday one of my brokers (and friends) that did one of the transactions at $22.00 called to pat me on the back. He remembered the conversation we had where I exclaimed that ACH was so cheap it seemed impossible. The day I bought it I kept asking, what I'm not seeing, why is this stock which seems like a screaming buy being passed over by the market?

There are many reasons I am laughing about this stock. One is that I wrote Chasing Value: Aluminum Co. of China driving me nuts on May 31, 2007 when Chalco was $32.93, stating that it still looked cheap. I wanted to buy more, but it was hard to do when I was already passed a 50% return in a few months. Well, now it's up another 30%+ and it still looks cheap and I remain cautiously optimistic. (The original story was Chasing Value: Aluminum Corporation of China ADS, which I still think is worth a read today.)

Another reason I am laughing is because the financial powerhouse Goldman Sachs Group (NYSE: GS) upgraded ACH from neutral to buy months later, and Chalco jumped to a new high after Goldman's upgrade. That, after spending how much money on research? They should just read my Chasing Value column (link below) -- they will find loads of bargains.

Continue reading Aluminum Company of China -- laughing my head off!

Aluminum Company of China -- laughing my head off! originally appeared on BloggingStocks on Mon, 18 Jun 2007 15:03:00 EST. Please see our terms for use of feeds.

This is the second update on the stock price status of the first six Chasing Value companies. Closing prices are form May 29, 2007. I keep track of my recommendations and anyone considering my commentary should "do their homework" too, just as James Cramer rants on his Mad Money TV show. Since I was tracking these picks I thought I would summarize the findings for our readers. Yes, the time frame is rather short, nevertheless here is the data through the end of May.

February 16, 2007: Chasing value: Wells Fargo: Wells Fargo & Company (NYSE: WFC) closed at $35.32 down from $35.76: a loss of 1.5%.

February 23, 2007: Chasing value: Anadarko Petroleum - got it! Anadarko Petroleum Company (NYSE: APC) closed at $52.40 up from $40.84: A gain of 28.3%.

March 3, 2007: Chasing value: Aluminum Corporation of China ADS: Aluminim Corp. of China (ADS) (NYSE: ACH) closed at $46.16 up from $22.98: A gain of 101%.

March 20, 2007: Chasing Value: Anglo American - Inflation hedge & more: Anglo American plc (NASDAQ: AAUK) closed at $30.32 up from $24.65: A gain of 23%

March 23, 2007 Chasing Value: Cemex and LaFarge look solid: CEMEX S.A. B de C.V. (ADR) (NYSE: CX) closed at $38.88 up from $34.92: A gain of 11.34%. LaFarge (ADS) (NYSE: LR) closed at $43.23 from $39.02: A gain of 10.78%.

So far so good; 6 of the 6 stocks are up and 5 of the 6 beat the market indices and I have not included the dividends. Not bad after all.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

Disclosure: I own APC and ACH in several portfolios.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.

Chasing Value Update 2: doing well with WFC, APC, ACH, AAUK, CX, and LR originally appeared on BloggingStocks on Fri, 01 Jun 2007 16:37:00 EST. Please see our terms for use of feeds.

This is a follow-up on one of my favorite companies. By any measure I can come up with, the Aluminum Company of China Ltd. (ADS) (NYSE: ACH) -- sometimes referred to as Chalco -- is one of the best stock buying opportunities on planet earth, short of having insider information and not getting caught. The numbers are so good that it is driving me nuts trying to figure out how this or any company could be so under-valued. I already own it and advised my readers to jump in at $22 about two months ago (see Chasing value: Aluminum Corporation of China ADS). Those that did have seen over 50% growth in eight weeks. Not bad!

Well, I would like to buy more but there has not been much of a dip. When it went to $26 per share I thought I would buy more if it dipped to $24. You know the drill . . . it keeps staying just out of my reach because I want a deal, I want deep value. So yesterday it closed at $32.93 after reaching a high of just over $35 earlier in the month. So is now the right time?

I keep asking myself what is wrong with this picture? What is it that I do not see? If I buy more of this stock am I going to get broadsided by some accounting scandal? Have they been cooking the books? It is just not possible to be so cheap. When I was crowing about it before I thought it was a screaming steal at $22.98 and I was right. But looking at it today, it still seems like it is.

Continue reading Chasing Value: Aluminum Co. of China driving me nuts

Chasing Value: Aluminum Co. of China driving me nuts originally appeared on BloggingStocks on Thu, 31 May 2007 11:25:00 EST. Please see our terms for use of feeds.