Looking Forward can be Profitable
Source: http://Blog.QualityStocks.net/?p=18989Posted on Monday, November 2nd, 2009 | In Investing Lessons, Small & Micro Cap
As the market has found a move in recent months many have speculated that easy opportunities for profit are quickly drying up. In a general sense, this may be true. There are, however, many opportunities available if the right perspective is used. Resource options, such as QualityStocks, can help in this regard as they use the old baseball adage “hit ‘em where they ain’t.”
The easy profits coming off the recent decline may be gone but there are sectors that are still in the doldrums and will, eventually, return to profitability. Energy and health are perhaps the best opportunities, with both returning in slightly differing forms.
At the moment, coal is very much out of favour, but when assessed in a realistic way, it is a very solid form of power that will be a driver for some time to come. From a health perspective, we need it in whatever form it may emerge. Although likely on a more narrow time horizon, bulk shipping is another opportunity as export trade begins to show a bit of life. The global nature of the world’s economy is one of the first signs of a returning economy and driven by bulk shipping in its many forms. This sector took a huge hit during the downturn and appears to be undervalued. It has moved up slightly from its lows but is nowhere near real value.
The real key to this type of thinking is to extend the time horizon of an investment. Returns may not excel for several quarters or even years, but if the investment sector chosen is sound and of real value, it will come. Considering the value is the trick. The price of the stock may be down at the moment but does the average Joe need the product for everyday life? He may not be able to afford it now but will he later?
From a structural point of view, does an industry need a particular product or service to function? The industry may be in a slow-down now but when it returns will it need to purchase more of that product or service. The more obvious answers to these questions may have already been given, there are, however, quite a few more questions to be asked. QualityStocks is one place to find them with the help of imagination.
Let us hear your thoughts below:
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Our name, QualityStocks, emphasizes our commitment to connect subscribers with companies that have huge potential to succeed in the short and long-term future. We believe strong management and vision for the future are crucial for any company to be successful. Timing is everything and we help investors succeed by providing an objective, broad-based view of the SmallCap markets on a daily basis. Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net |



