Watchlist Explained: A mix of large cap, energy, and biotech stocks I will regularly monitor. When price and investing conditions are appropriate, I will draw from this list to buy stocks for The Griffper Fund. As circumstances change stocks can be added or removed from this list but it will typically be between 40 and 60 stocks.
The Griffper Fund Explained: The Griffper Fund will be comprised of stocks held in the Bulls n Balls Wall Street Survivor portfolio. The objective of this fund is to maximize profit and minimize risk. The Griffper Fund will provide the basis for our trading experiment here at BnB and all successes and failures will be shared with the BnB community.
Bulls n Balls Trading Rules:
1. Rules are subject to change as trading strategy is refined and new lessons are learned.
2. Stocks are chosen and analyzed based on fundamental and technical analysis in conjunction with key observations regarding the current economic environment.
3. Use stop orders and limit orders to minimize risk and maximize gains. We will learn about how these can be used together.
4. Check emotions at the door. Sound investing and trading requires we keep emotional decisions out of money-making. This will require discipline as we will pre-determine when to exit trades (whether for a loss or a gain)
5. Be self critical. This trading adventure will be fun but more importantly it will be a learning experiment (hopefully for me and you). So here at Bulls n Balls we vow to be ruthless in our self criticism and we will share all of our education on this website.
Alright, let's get crackin with our list!
First we have a few Large Caps to keep an eye on:
| Stock Watchlist | Symbol | Comments |
| 10 Undervalued Big Boys | ||
| GOOG | Set for explosive growth over the next 10 years even with a PE Ratio near 30; 2007 traded above $700; number one in Tech | |
| Bank of America | BAC | BAC will lead the pack as financials pick up steam; |
| Target | TGT | Good financials; a company on solid footing when the economy picks up steam; tops in retail |
| Pfizer | PFE | Provider of critical drugs to an aging population; strong growth for years to come; watch health care legislation to see how it impacts PFE |
| General Electric | GE | Diversified conglomerate weighed down by media segment but has sound management; at the forefront of new energy technologies |
| Conoco Phillips | COP | PE ratio of 4, refining giant, great value |
| Chevron | CVX | Watch this bargain oil giant move as oil heads back towards $80 |
| Coke | KO | Solid past performance and sound management makes it an a safe play; stands to benefit from international growth |
| Paychex Inc | PAYX | Payroll servicing company that is an interesting play off of jobs numbers and interest rate moves; |
The next segment of the watchlist includes energy stocks or equities that could be impacted by changing energy legislation or technology implementation.
| Stock Watchlist | Symbol | Comments |
| Energy-related stocks | ||
| Devon Energy | DVN | Solid oil and gas producer; stock will go up when oil goes back up; it is a bargain around $60 |
| Echelon Corp | ELON | Creates control systems including electricity metering system; stands to benefit when the energy grid upgrades begin in the US |
| Comverge | COMV | Producer of software and hardware that helps control energy load |
| Enterprise Products | EPD | Natural Gas company up 33% so far this year but still has potential |
| McMoron Exploration | MMR | Oil and gas exploration company on the rise; 2 execs made sizable stock purchases on June |
| UGI | UGI | PA energy services company |
| Cree Inc | CREE | LED light manufacturer stands to benefit from increased energy regulation |
| Wabtec Corportation | WAB | Manufacturer of parts for railroads; down from a year ago but up 10% in the past 3 months |
| Trinity Industries Inc. | TRN | Maker of boxcars and structural towers for wind turbines (among other things) |
| Ashland Inc | ASH | Chemicals company up nearly 200% the past 6 months |
| Ormat Technologies | ORA | West coast geothermal play |
| Baker Hughes Inc | BHI | Oil drilling company with low PE ratio and great potential |
| Noble Corp | NE | Deep water drilling, undervalued |
| Altair Nanotechnologies | ALTI | Battery technology with great upside, currently product is cost-prohibitive |
| SunTech Power | STP | Chinese company that makes solar panels and dominates the Chinese market |
| Arena Resources | ARD | OK based oil drilling company rated one of Fortune Magazine's fastest growing companies of 2009 |
Last but not least my list of biotech bulls. An explanation as to why I love this sector can be found here:
| Stock Watchlist | Symbol | Comments |
| BIOTECH | ||
| Vanda Pharma | VNDA | Company has drug that may treat bipolar disorder and got FDA approval this year; stock is around $13; could have had it for 50 cents in January |
| Rigel Pharma | RIGL | Prospects for drugs that treat cancer and arthritis |
| Cephid | CPHD | Molecular diagnostics firm that tests DNA and could perform tests on possible bio-agents |
| Gilead | GILD | Makes drugs that treat AIDS and hypertension |
| Abbot Technologies | ABT | Makes baby formula and also has drug that treats obesity |
| Cephalon | CEPH | At a 52 week low as it faces new competition but has promising drugs in the pipeline and good financials |
| Questcor | QCOR | Small firm that makes drugs for MS but had sales growth over 90% last year |
| Geron | GERN | Up over 50% in the past 3 months this company is at the forefront of human embryonic stem cell research |
| Curis | CRIS | Employing innovative research to search for cancer treatments |
| Illumina | ILMN | Genetic testing company with several new products that recently led profits to double |
| Affymetrix | AFFX | Strong company that analyzes genetic information; insider buying recently |
| Incyte | INCY | Maker of inhibitor made recent progress with FDA approval process |
| Ardea Bioscience | RDEA | Develops therapies for HIV and cancer; up almost 100% in past three months |
| Spectrum Pharma | SPPI | Makes drugs that treat non-Hodgkin's lymphoma and cancer |
On September 1st Bulls n Balls will publish The Griffper Fund. If you want to compete with Erik and share your experiences in the comments section sign up for a free virtual trading account with Wall Street Survivor!
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