Garmin (GRMN), Research in Motion (RIMM), Apple Computer (AAPL), NUE, and China Energy Security

Hi.  I read in the news today that General Electric (GE @ $37.36) and Westinghouse Electric Co. will be receiving mega big multi-billion dollar contracts to build nuclear reactors throughout asia specifically the mother herself China.  Since I found this ETF Index Asia fund on China (FXI) I’ve been very bullish that it will continue to move in the $120 to high $140’s.  If you just look at the big picture of China building a New Yorker City every month that can add up to a lot of booming business turning China into an economic powerhouse.  China has billions of people that will be needing and wanting what American’s take for granted.  GE will be building many nuclear reactors to create energy security for these new huge cities.  Yes, there is still communisim but it is regulated and small entrepreneurship is being granted to business people.  Businesses are underway and paving the way to a better society for its people.  FXI index fund invests in many electric, water, cable, oil, and many other companies already in China that are China businesses making big profits because China is building itself, proving it wants to be number #1.

Notes on other stocks: 

Research in Motion (RIMM) was just recently at $125 and I told my sister it was a good buying level because I felt the support price and a possible stock split in the near future.  Just 3 days later it’s at $138.  That is up $13.  If you owned Call options you are looking at a 50-300% return within a week.  Pretty good if you ask me!  No I wasn’t in them because I was already in a position and didn’t have as much money to invest because I was a smart person and paid off some of my mortgage first.  I can also note that anaylst are very bullish because RIMM has been beating earnings expectations and target prices have been raised to $160-175. 

Apple Computer (AAPL) stock price has been hit by negative news on iTunes music store song downloads.  Rumors are that growth is -65%, but anaylst think differently with CEO Steve Jobs that this data is incorrect.  The rumors is spread even more because AAPL is delaying its financial reports cleaning up it’s predated stock options scandal problem.  I feel AAPL just wants to clean up the stock options error and move on as soon as possible.  Anaylst say the low 80’s stock price now is a buying position opportunity and that iPod sales are key to solid earnings.  I really think many anaylst are forgetting computer sales growth with AAPL.  There has been a buying surge on their computer sales growth and computer users are switching now to Mac’s trying them out.  This could be mega huge for AAPL sales growth adding to iPod sales and music downloads.   I own AAPL and buying more into my position going into AAPL earnings Jan 17, 2006.

Also I still feel NUE Steel maker will be dropping harder and lower soon with its warnings for earnings.  Warnings is bad and there is also been out news that Steel makers will be receiving lower profits due to new laws on taxes and imports to help lower Auto Makers costs.  So sell stell and buy auto stocks?  Maybe.  Chart indicators show a reversal to go down also.  Now patience comes into play.  The stock has moved sideways straight across since warnings more then likey it will move to the $55 zone soon.

Lastly Garmin GPS Products (GRMN) having been a hit being built into new cars like GM and although earnings weren’t fantastic they did prove the company is still in its growth stage.  GRMN is getting much media attention to I might ad and their marketing has been effective on Tv ads through posters in boat shops and add-ons in cars and trucks.  I see big things.  They will be splitting their stock 2:1 on Dec 16 (tomorrow).  The stock has moved to my target I predicted and felt it would goto by Jan 07 which is $53-55 dollars.  It currently hit $55.  Another good stock or stock option play you would of made around 10% if you bought the stock and around 100% if you owned the options.  I feel when that price hits $25-28 after it splits stock brokers will be telling their clients to buy buy buy.  The stock isn’t any cheaper, the company hasn’t changed, and now you just own two instead of 1.  But for the new investor they are going to think they are getting a steal.  I see the price going past the $30’s in 2007 for an easy 10-20% gain if the GRMN is able to keep analyst happy and a possible surprise in earnings could really boost this stock back into the $50-80’s again. 

All stocks depend on the market and where it is going.  I’m even curious.  I have no idea.  The charts show the stock market looks to keep moving up.  I feel there is a breaking point for all stocks.  Stocks like GOOG and RIMM which I feel are really expensive may actually be cheap right now, but soon oh very soon I feel where I am going to become a million is when high rolling stocks drop and that drop is going to be the key to buying Puts and make the big money coming down.  Patience and having the funds at the right time is also important.  Right now the stock market, economic reports, and attitude is optimistic to keep moving.  So run with everyone else now but don’t take advice read and be insightful because it’s YOUR money on the line.

Cheers -P