FinancialEdge: 5 Industries Looking Strong In The Summer

The summer of 2011 has not been one of the nicer summers in recent memories. Crushing heat across much of the country is bad enough in its own right, but it is paired up with ongoing financial trouble in Europe, an unprecedented sovereign downgrade for the United States, economic worries all around and a weak stock market. Yet, even against this dour backdrop, there are still areas of the strength in corporate America.

For purposes of this article, strength refers to the momentum in corporate sales and earnings, as well as the trajectory of analyst expectations. Curiously, there are numerous divergences between those industries showing fundamental strength and stock market strength, and these may well prove to be trading opportunities for investors.

Auto Parts
The auto parts industry best highlights that dichotomy between financial and stock market strength. With strong results from companies ranging from American Axle (NYSE:AXL) to Dana (NYSE:DAN) to Tenneco (NYSE:TEN), the auto parts industry has shown very healthy revenue and profit momentum as car sales have risen more than 10% year-to-date. Curiously, this is also one of the weakest sectors year-to-date, as stocks in this group have fallen almost 20%. Perhaps investors have been spooked by the recent slowdown in passenger vehicle sales and have decided to take profits in names that, in many cases, have appreciated several times over since the worst of the recession. (For related reading, see 2011 Cars With The Highest Resale Value.)

To read the full piece, follow the link below:
http://financialedge.investopedia.com/financial-edge/0811/5-Industries-Looking-Strong-In-The-Summer.aspx#axzz1V9d0n1Yu

Green China

Whenever you read about environmental topics in China, the news is almost always bad. Whether it is problems with air quality in Beijing or water quality in the provinces, there is no shortage of bleak reports about the degradation of nature within China's borders. 

This may not be the full picture, though. True, China has a lot of polluting industries and generates a considerable amount of electricity from older coal-burning plants. The country also has the challenge of figuring out how to provide power, heat, and transportation to a huge population with increasing needs. But China also has considerable financial resources and a political structure that can more easily mandate and advance specific technologies.

With that in mind, it may not be too long before a green China is possible.


For the complete article, please go to: 
http://stocks.investopedia.com/stock-analysis/2010/Green-China-STP-YGE-JASO-GE-CCJ-BTU-ABB0610.aspx

All Clear In Energy Services?

Here is the latest article of mine on Investopedia. I should note that there was a bit of a holdup in the editing process, so this may read as slightly dated. The basic themes in the piece are still very much relevant and timely, though, so I hope you find it interesting.

http://stocks.investopedia.com/stock-analysis/2010/All-Clear-In-Energy-Services-SLB-DO-ESV-HAL-WFT0428.aspx

The last few quarters have not been the easiest for energy services sector, as troubles in Mexico, lower activity in the Gulf, weather difficulties, and project delays have all led to lower demand and lower prices. Still, it was not as though the sector closed up shop, as many U.S. natural gas shale play are economical below the $4 natural gas price level.

On a more positive note, it looks like the operating conditions may be about to turn. The earnings and commentary we have seen from the past week was supportive, and should give fundamentally-inclined investors a bit more evidence that the turn in the business is real. 

For the rest of the article: 
  http://stocks.investopedia.com/stock-analysis/2010/All-Clear-In-Energy-Services-SLB-DO-ESV-HAL-WFT0428.aspx

If You Can't Beat 'Em, Buy 'Em

Here is today's piece from Investopedia.
http://stocks.investopedia.com/stock-analysis/2010/If-You-Cant-Beat-Em-Buy-Em-XOM-XTO-HAL-RIG-UPL0415.aspx

Interesting coincidence that the APA-ME deal was announced this morning as well, given the theme in this piece.

Although a couple of deals does not necessarily make a trend, investors should get ready for a wave of M&A in the energy sector. We saw the Exxon Mobil (NYSE:XOM) - XTO Energy (NYSE:XTO) deal a few months ago, the deal between Arena Resources (NYSE:ARD) and SandRidge Energy (NYSE:SD)about a week ago and now the announced transaction between Haliburton (NYSE:HAL) and Boots & Coots (AMEX:WEL).

I believe these are just the first moves in a larger trend. With the credit and equity markets a little closer to normal, rising energy prices and increasing pressures on large energy company executives to "do something," merger and acquisition activity is going to look like an increasingly attractive option to many CEOs. 

The rest of the story at: 
http://stocks.investopedia.com/stock-analysis/2010/If-You-Cant-Beat-Em-Buy-Em-XOM-XTO-HAL-RIG-UPL0415.aspx