Thursday, October 2, 2008


So lets see, ags are dead, solars are dead, tech is pretty much dead, coal is dead, steel is dead, oil is dead (and still has a bit to go IMO), refiners are continuing to bleed, shippers are dead, casinos are dead, china is dead. Whats next? Rails! The only problem with these is that they move so slowly (except today!) compared to coals, ags, etc.

KSU - 1 year

Looking at the 1 year chart, we see that KSU looks very oversold. It has fallen below every DMA that I show. This stock does not look like a good short here!

KSU - 5 year

Now, that does not look oversold! In fact it still looks very overbought. I would love to short this on any push up. This is my favorite since the fundamentals look the worst:
Debt to Equity: 1.04, PE: 18, FPE: 13, P/B: 2.0

If you look at any of the rails, they look very oversold after today's action. I will only post 5 year charts to show how they are in fact very overbought longer term.

One more note: take a look at any of the ags, coals, steels to see how far just how far these 'growth' stocks can correct!

I will try to list these in order of my favorite looking by chart + fundamentals. Feel free to stop when you have seen too many charts.


Debt to Equity: .71, PE: 22.5, FPE: 16, P/B: 2.9


Debt to Equity: .71, PE: 18, FPE: 14, P/B: 3.7


Debt to Equity: .65, PE: 22, FPE: 16, P/B: 2.4


Debt to Equity: .64, PE: 11, FPE: 11, P/B: 2.4


Debt to Equity: .88, PE: 13, FPE: 10.5, P/B: 3.69, P/B: 2.4


Debt to Equity: .78, PE: 15.8, FPE: 11.8, P/B: 2.7


Debt to Equity: .71, PE: 26, FPE: 12, P/B: 2.3