Today, for the first time in well over a month the group had weakness. As I mentioned in the past, have your shopping list ready and when the stocks fall, buy them on sale. This doesn't mean these are the lowest they will get, but layer in and layer out - just don't layer out too early like I tend to do. Remember when Shaw Group (SGR) reported and you sit and think, why the heck did I ever sell any of these - well times like this give you the beginning of an opportunity to get back in. Middle East petro dollars, and huge energy/infrastructure deals from governments the world over are not going anywhere. (as an aside Shaw Group barely sold off today, didn't get past $67)
So with this sell off, not major, but the stocks have returned (in most cases) to their 20 day moving average or near - I took the cash I flipped out of the short ETFs and applied it to a basket of 4 names.
- McDermott (MDR) my old friend - welcome back; I'm sorry I ever doubted you. Took this position up from 1.2% to 2.95%.
- Foster Wheeler (FWLT) - they still don't respect you - cheapest valuation in the group. Took up from 1.6% to 1.9% (was buying some yesterday as well)
- KBR (KBR) - I realize you have the government in your back pocket, and as much as that peeves me, I can at least make money off it. KBR up from 1.1% to 1.4%.
- Jacobs Engineering (JEC) - we never established a good relationship - I doubted your valuation so I never jumped in too heavy. I will try to correct my past mistakes (but I need you to fall some more please?)... took up from 0.4% to 0.7%.
Gosh I remember saying yesterday how boring things were, and talking about parrots. Is it wrong to have so much fun on days like this? Even if my #1 position LDK Solar (LDK) is treating me like a bad ex ?
Long all names in fund; long McDermott in personal account
