Investing Ideas for 2008

Another year's end, another portfolio. At the end of each year, like most professional investors, it is good practice to look back, learn from your mistakes and try to make sense of what is awaiting to unfold. I stick to trying to make sense of my stock investments; I let fate take care of the rest of my life's circumstances. In hindsight 2007 has been an excellent year insofar as my investments are concerned. My portfolio has hitherto gained 67.3% for the year; thanks to holdings such as AAPL, STP, BIDU, DRYS, GOOG, PTR, CAF, CHN, FXI and FSLR, to name just a few. In 2007 I also, for the first time in my 10+ years in professional trading, successfully shorted many a financial equity. Along with publicly traded inverse ETFs (namely SKF, SRS, etc.), which, by the way, I use as power tools, namely, very sparingly and only when market conditions clearly demonstrate a downtrend in their respective sectors, along with such power tools I have managed to do an excellent job this year (albeit 2004 has been my best year so far: 121% returns).

For 2008, my intent is to position myself mainly in Asia, solar energy, and pick up some banks along the way as they have been totally obliterated this past year and I feel that there are some very good long-term-buy-and-holds out there which proffer investors real value. Otherwise, I expect the coming year to be exceedingly volatile here and abroad, but acutely interesting, in political and economic terms, nevertheless; for it is in such volatile times that value plays come along; fortunate for thos who can afford to grab them. I would stay away from anything having to do with U.S. Real Estate, mortgages, etc; common knowledge by now to most of us, indeed: I do not see a bottom here until 2009 or so.

So, here are some of my long-term-buy-and-holds for 2008. As with all my investments, I intend to hold on to these for a term not shorter than five years, ceteris paribus. For the most part these are not new positions here, but there are some intriguing new plays I am adding as well:


LDK: LDK Solar is my favorite. Most of my money is on it for 2008. A rarity at these prices!

STP: Solar play, again; performed exceedingly well in '07 for me; adding more for next year.

CAF: Adding more for next year; top notch closed-end fund whose dividends are extraterrestrial.

GCH: Ditto.

CHN: Ditto. CAF, GCH, and CHN's dividends alone have paid for all of my 2007 bills!

FMCN: Adding more for 2008. With the Olympics coming up, FMCN should do very well here.

AAPL: I have owned it since '97 and have been adding more each year since. AAPL is it, PERIOD.

FIW: New water ETF plays. New position, LTBH.

PIO: Ditto here. New water play. Should do better than $$ sitting in bank CDs.

IRBT: Adding more this year. This company is going places.

SWIM: If you are using anything but SWIM as your trading platform, you're missing the boat.

ETFC: E*Trade burned me in '07; adding more to average down; also, way undervalued currently.

C: As with some other big banks, at these levels, YES! Expect it to trade sideways, but LTBH.

WFC: Again, when all is said and done these bank plays will have served you well.

SLM: Incredible opportunity here. Sallie Mae, despite all appearances, is not going under.

EXPD: Excellent play; better than UPS and FDX combined.

SVA: Promising China bio-tech play; first-time owner; looking forward to owning it.

WX: Good investment; should have done better this year; adding more.

TRA: Excellent investment. In lieu of adding to my TNH position, I will pick up TRA instead.

TAO: If you want to invest in Chinese real estate, here's your chance. LTBH. New position.

XIN: Ditto.

MON: I'm adding; have owned it since 2003. Incredible returns.

MOS: New position; should outperform POT for 2008.

AKNS: Overvalued, but strong. New position; should double in 2008.

UGTH: This is ahead of its time; new position; it should be a ten-bagger by 2010; LTBH.

RIO: Has served me well for the past couple of years; so I reciprocate the favor.

AAUK: Some investments, like AAPL, are forever.

DGL: Excellent gold play. Adding to my position in lieu of adding more on GLD or IAU.

TTM: I don't like cars; but I do like certain segments of India. Adding to my position.

LTR: About to spin-off the Newports. Adding more.

GF: Adding more; closed-end fund into German mid-cap progressive entities. Safe bet.

SI: A perennial. Adding more. I'd rather put money here than GE.

KYO: Good play; undervalued at current valuations. Adding more.

GEF: One can never go wrong with packaging; albeit cyclical, a good LTBH; adding more.

SWHC: Undervalued, adding more; albeit not expecting much in '08.

EJ: A real estate broker; I'm not expecting much; but a China play nonetheless.

CEO: Adding more oil and petro-chemicals.

SNP: Adding more oil and petro-chemicals.

FLR: Progressive construction play. Very impressive with their LDK project. New position.

CMI: These guys can build, PERIOD. Adding more.

FLI: Helicopters and stuff; best of breed. New position.

YUM: Best of breed. These guys are doing well in China, too! Adding more for next year.


That's it, folks. I cannot wait for the New Year to unfold. Should be adding all my new positions during the second week of the '08 as I have invariably done each year. If you wish to know more about any one of my plays, let me know. I have expended the greater part of the past two months researching these and have lots of info saved. I wish you a healthy and prosperous New Year.