Nuclear Energy Stocks

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There are many different stocks out there that fall under the term “speculative”, of course that not really the case when it comes to the electric utility stocks. I just want to write about a sector that seems to be building up steam (literally and figuratively) later that needs to be addressed.
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A little over a month ago I started looking for a new speculative stock to trade (oppose to invest in) and I happen to stumble over a company that is in the electric utility sector, but because it is mainly a nuclear play, I thought it would be a decent opportunity. I looked around at other companies that are also trying to expand their nuclear plant output, but this one stuck in my mind.
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I invested a small amount (like I always do on speculative stocks) in the company after reading their earnings reports and reading the transcripts from their conference calls. Since then the stock price has moved up over 30% in just 5 weeks.
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What really made me think that I had to write a post on it, was the fact that the company was profiled on a CNBC special this week titled Nuclear Option. In the show there was a lot of positive talk about the use of nuclear power being used in this country. There hasn’t been a nuclear power plant built in the United States in over thirty years, but now there are two being built as I type this post. One in Texas and the other in Maryland.
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The company that I’m referring to is NRG Energy Inc. (NYSE:NRG). The company looks good to me and I will be buying more of it on the dips. I do expect it to lose some value because of profit takers as well as the overall market taking it down some as the DOW and the economy take a roller-coaster ride throughout the remaining part of the year. The chart looks healthy and with the price of oil expected to go back up, it will continue to rise.
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As with any stock you look to invest in or trade, you need to do your own research to see if it’s right for you.
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Happy Trading.

Tags: Alternative energy, Earnings report, Economy, Investments, NYSE, Stock investments, Stock market news, Stock trading

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Pork Barrel Spending Stimulus Package

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The stimulus package was passed last week and Wall Street is letting Washington know that they are not happy. Since the package was passed, the DOW has dropped nearly 500 basis points, reaching a twelve year low of 7077.35 and closing at 7114 on Monday.
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The current stimulus package will cost American tax payers $778 billion. That’s after they’ve cut out all the unnecessary spending that was originally in the plan. Unfortunately, the Democrats that control the House are now in the process of passing another bill that will add up to about $410 billion in what they are calling “needed to fill the gaps that the first stimulus package left out”.
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This administration has only been in office for one month and they have already passed bills that will spend more money than the previous one did in it’s last year. Something that this administration campaigned on not doing.
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All this spending is going to have to be covered by some sort of tax increase and the one that will be hit first will be the capitol gains tax. It presently sits at 15%, but as President Obama stated on the campaign trail is that he feels that it needs to be raised to 25%-30%. If that is to happen, then expect the stock market to drop well below the 7000 mark.
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As this administration start to show their true agenda for this country, Wall Street will have no choice but to pull out their money to avoid unnecessary tax burdens.
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As for the economy, it won’t be any better. How can a company increase their profits, as well as their work force, if they become more tax burdened. If a business can not make a good profit, it will not attract stock holders. It all ties into one another.
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For the last couple of months, I’ve only been trading stocks that have taken a beaten because of the market as a whole has dropped. I don’t have the confidence in the stock market any longer and will do what I can to pull out the capitol that I have out of it. I stated before that I don’t typically short stocks and in times like this it too doesn’t sound like a great idea, but in bad economies, it’s much easier to make a profit shorting stocks than it is to go long.
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Whatever you decide to do with your trades, be aware that this economic turmoil is far from over.

Tags: Economy, Government spending, Stock investments, Stock Market, Stock trading, Treasury Dept.

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Stock Prices Are On The Rise

After the year we had I the stock market, it’s nice to see stock prices on the rise. Today the DOW closed at 9015.10, up 62 points for the day. I know that 62 points isn’t really much, but I’ll take whatever I can get on the positive side.
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Stock prices have been rising steadily since the end of November. The Dow is up 19% since it’s November lows as well as the S&P 500 is up over 24% within the same time frame. I hope to see this continue. Especially after the news of Alcoa’s plans to cut 13,000 employees, roughly 13% of the work force, I look forward to see what will come in the next month.
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it seems that everyone globally has plans to pass out a stimulus plan of some sort. China is now reporting that they will have a stimulus plan of over $600 billion. Germany has released information that they too will have a stimulus plan. Everyone is getting happy with someone else’s money to stimulate their own economy. I don’t know about you, but doesn’t it sound odd?
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With all the news coming out that the U.S. can possibly see the light at the end of the tunnel sooner than expected, many traders are moving their capitol out of the consumer staple and health care sectors, which is what happens once the economy starts to show signs of improvement. To me I think it’s just been a good 5-6 weeks and I’m not expecting miracles of the stock market going up from this point without any temporary set backs and corrections.
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On top of all this news (particularly positive), it seems that another billionaire committed suicide. German billionaire Adolf Merckle stepped in front of an oncoming train in Berlin after leaving a note to the reason of his actions. It’s a shame that these wealthy people end their lives after they lose all their wealth. It just goes to show you that money can only make you so happy. This is the fourth person since September to end their lives because of their financial woes.

Tags: Economy, Stock investments, Stock market for beginners, Stock market news

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Stock Market News For The Week

It’s amazing how this week has turned out for me and for some investors that I talk to. I’m not talking about the traders who buy and sell everyday or even the day-traders. I’m referring about investors who have more of a buy and hold mentality. I’ve spoke before in another post about how in these trouble times that the buy-and-hold system isn’t really working. There’s too much volatility in the markets to do that type of trading, but with the moves (or lack of) of the markets this week…who knows.
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In this week the markets have held up quite well and I’ve made some good gains because of the strength and stability in the markets.
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News came out late last week about the Ponzi scheme that Bernard Madoff was running for some time. Taking over $50 billion dollars from many people. I would have figured that more people would have pulled out more money on that news.
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I guess that the Federal Reserve basically removing the lending rate this week help. That really got the markets fired up on Tuesday afternoon. It seem to continue throughout the week as well as news came out about the condition of the financial industry. The dollar has weakened in the last few trading days, which makes me a little confused to how the markets have been moving, but I’m not going to complain at this point.
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It seems that the stability is coming back to the markets as the VIX levels drop to more of a normal and acceptable area. Yes, the markets were flat, but with all the bad news that came out, we should be happy on the performance of the markets.
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Quite a few of the positions that I’ve taken in the last week were down from my core, so I did buy more of those stocks and from Monday to Friday, they’ve all made moves to the upside. With weeks like this when things could have gone worse than they did, It makes me wonder if we’re basically at the bottom already. I guess next week will give us a better clue on the answer of that.

Tags: Economy, Financials, Stock investments, Stock market news

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Stock Trading Insight

So far today in the morning trading hours, the markets are on a tear. The DOW has been up big since it opened and if things continue in this manner, we will have a great day and the DOW should close above 9000 today.
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Talks of the stimulus plan has caused some positive trading throughout this morning’s trading.
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With the moves that have happened this past week in the markets, many think about moving their capital out of the equities out of some of the less favorable sectors and look for the tried-and-true sectors during a recession period.
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We heard last week that we are officially in a recession, but the real question hasn’t been answered. That question is “how long have we been in a recession?”
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With that in mind, you have to take into consideration that the smart money have been positioning themselves in those sectors for sometime to protect their assets.
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An article that I found today talks about the fact that the time to get into some defensive plays, like consumer staples has past and you may want to do something else.

The article is from CNN Money.com, I hope you you find it interesting.

Tags: Economy, Getting Started In The Stock Market, Investments, Stock investments, Stock market for beginners, Stock market news, Stock trading

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