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Quick Stock Hits For August 7, 2008: PM, VE, CHK

7 August 2008 0 views No Comment

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Well, the stock market continues to move up and down in the low to mid 11,000 range (DOW). Economic conditions still remain weak, however, the decline in oil and other commodities has definitely helped boost stocks in recent days. I’m still fairly pessimistic regarding stocks and the economy. Time will tell if I’m right.

Veolia Environment (VE)

My favorite water stock got a nice boost today after the company reiterated guidance this year and announced some plans to cut costs and sell some assets to boost profitability. It seems a dividend increase is also in the works. I like the long, long term potential for water companies especially this huge player. Check out my previous posts on investing in water if this is of interest to you.

Philip Morris Int’l (PM)

PM has gone up in the last few days and has actually held on to most of its gains which is great for fans of PM like myself. The company has great potential for any investor and should announce more dividend increases and share buybacks in the near future. I think PM has a place in everyone’s portfolio.

Chesapeake Energy (CHK)

I have been talking extensively about my favorite natural gas company. It seems the momentum has definitely swung in the negative direction with all experts and analysts now predicting sub $100 oil and lower natural gas prices (even though just a month ago people were predicting $150 oil). How easy the projected targets change when the momentum changes direction.

I think natural gas has a bright future in our country regardless of the short term natural gas price fluctuations. That’s why I continue to load up shares of this company. Long term, government policy should favor this company and in the short term, any spike in natural gas prices will result in huge, quick gains.

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