Top 6 Industries for the Past 2 Weeks
1) Nonmetallic Mineral Mining
This industry begins and ends with Potash
Company of Saskatchewan (POT). The stock had a very nice 5 day run to end the
previous week up 6.5%. The three month chart doesn’t look as nice but this
stock could move up quite a bit in the near future with earnings season
starting and Potash announcing on the 24th of April.
2) Independent Oil & Gas
This
industry was on fire this past Friday. The big two companies here are both China oil companies
in CNOOC (CEO) and China Petro & Chemical (SNP). CNOOC had a break away
week reversing a long trend to the downside. Analyst have downgraded the
current year but have upgraded their earnings estimates for next year. China
Petroleum wasn’t as wonderful for the week with Friday making up for four days
of nothing. This stock is still trying to break out of a bad trend. Both stocks
are scary at this time and could continue their longer term trends down.
3) Specialty Chemicals
I haven’t
written about Specialty Chemicals before but the top two large caps in this
industry are somewhat attractive at this time. Sigma Aldrich (SIAL) is a much
better trade than Braskem Aldrich (BAK). I like the charts much better on Sigma
and the majority of the analyst like the earnings going forward better from
Sigma also. Three analysts have raised Sigma Aldrich’s earnings estimates for
the current year in the past seven days while two have raised next quarter’s
earnings estimates in the past seven days.
4) Aluminum
Alcoa Inc (AA) has been stuck
between 35 and 40 for 6 weeks and I am not convinced that it will breakout
above 40 in the near future. Earnings are right around the corner and the
company could surprise sending the stock higher. That would be the one case
where you could get some upside. The other large-cap in the Alumni industry is
Aluminum Company of China (ACH). Many of the big China stocks reversed trend this
past week and moved significantly higher. I don’t buy the reverse and look for
most of these stocks to move down again and continue the longer term trend.
5) Agricultural Chemicals
One of the
last bull markets to loose its luster during the recent correction. Companies
at the top of the list are Monsanto (MON), Mosaic (MOS) and Du Pont (DD). The
earnings still look great for all three. Monsanto recently forecasted better
than expected earnings for the year and announces their most recent quarter on
Wednesday. All three stocks could move up leading to the announcement and jump
if the numbers are good for Monsanto. Then follow-up the Monsanto earnings
announcement with a Friday Mosaic announcement and this industry looks like a
very good place to be the coming week.
6) Industrial Metals/Mineral
Put both
BHP Billiton Limited (BHP) and BHP Billiton SP ADR (BBL) into the China reserve
for the week with a long-term trend down category and move on. A third company
Teck Cominco Ltd (TCK) did well this past week and has a strong three month
chart with an upward trending price but the earnings aren’t anything to get
excited about. I would pass up the Industrial Metals/Mineral industry and focus
elsewhere.