Wednesday, October 29, 2008

Bull Market?

I am beginning to like what I am seeing with the trading of these markets. The futures are up nicely and I think there are still some real values out there.

Lets take one that I have been wrong on for quite some time. ICOC has been cut to below $4. This is a great little stock that has traded well over 10. They started getting hammered when oil prices headed up over $100. They have not seen any rebound as a result of the drop in oil prices and I believe that they will start to show improving earnings.

Northern Trust NTRS traded nicely today and then just fell right at the last minute. I believe this one will be trading over $75 within 18 months. They are strong and if they go much lower---any number of companies should be looking at them as a takeover candidate.

I said that I wanted to see an extension of the Tuesday rally and we just couldn't hold it. I think we may be poised to add to it tomorrow. We are seeing most central banks around the world join the rate lowering party and I beleive that this will get the global economy firing on all cylinders in the very near term. The one thing I do know is that the stock market will rebound sharply before we see improvement in the economic indicators. I don't want to miss the move and am considering allocating some of my cash to equities if we see a rally tomorrow.

I have mentioned Stericycle SRCL before and think this thing is headed to $80. In short, I believe they are a very well run company that has a history of making the right acquisitions and doing a good job of integration. There is going to be plenty of Medical Waste in the coming years and I don't see any relaxation of the regulations governing the handling of that waste. SRCL benefits from handling that waste---enough said.

Tomorrow is key. We need to open strong and finish strong. If we don't---I will have a different attitude tomorrow night!