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ASTRO ECONOMICS®
STOCK MARKET NEWSLETTER
A Resource for Choosing Stocks That Will Outperform the Market
Volume 16 – Issue 8 Published by Astro Economics, Inc. August 1, 2011 |
MORE FOOD AND RESTAURANTS
Jupiter (expansion) is in Taurus, the sign of Food, Restaurants and Financial. Last month we added: Coffee Holdings (JVA) and Whole Foods Market (WFM) to our Recommended List. Already on our list: Green Mountain Coffee (GMCR), Diamond Foods (DMND), Hans Natural (HANS) and Herbalife (HLF). Since Taurus is an earth sign, the Agriculture sector is also doing well. Sociedad Quimica (SQM), a Chilean fertilizer company, was also added to our list last month.
A STOCK FOR TRADERS
Coffee Holdings (JVA) looks like it may be a trading stock as was Acme Packet (APKT). We put it on our Recommended List July 1 at $15 and 10 days later it doubled to over $29. It has since pulled back. This is a stock to watch if you are willing to sell when it moves up 15-20%, then buy back after it has pulled back and starts to move again.
PICK THE WINNING STOCKS FOR 2012
Would you like to know next year’s winners at least six months ahead of everyone else? Plan to attend the Sat. Sept 17 workshop in Chicago. (Register on page 4.) Big winners predicted last year were: Chipolte (CMG), Panera Bread (PNRA), Lululemon (LULU), Priceline (PCLN), Green Mountain Coffee (GMCR), Apple (AAPL), Baidu (BIDU), the ‘cloud’ stocks, the railroads… We also said inflation would not be a problem as the Fed would still be fighting deflation. As predicted healthcare stocks did dominate in Jan. 2011 and from Feb. to June military and basic material sectors moved ahead as new wars and uprisings occurred. And in the last half of 2011 as predicted a year earlier, food, beverage and agriculture would top the sectors. Learn what’s ahead. Find out what the economy will look like, interest rates, real estate cycles, favored sectors and winning stocks.
DROUGHT AND DEPRESSION??
In the early 1930s, drought and depression were major problems as the planet Uranus (change) squared Pluto (upheaval). Now 80 years later, the same square between these two planets has begun to repeat this cycle (since June 2010) and will be exact late June 2012. So between 2010 and 2015, we find many similarities not only to the 1930s but also the 1960s when these two planets were conjoined. Cultural change occurred. Civil rights and the women’s movement were part of the 60s’ revolution. The current ‘revolution’ began with uprisings in several Arab countries, union protests in Wisconsin and other states and most recently the uproar in Britain over illegal phone taping by the News Corp. media empire. All of these situations could return to the headlines again in June of 2012.
The Theory of Probability states that if something has occurred and reoccurred many times, it is assumed it most likely will occur again. This theory is used for establishing insurance rates, advertising/marketing campaigns, etc. and we, of course, use this theory of repeating patterns as it relates to the stock market, stocks and sectors.
JUNE 2012
In our new book, How To Choose Stocks To Outperform The Market 2012 (available 9/17/11), we explore some of the possibilities for 2012, the notorious year written about in Mayan legend. Since it coincides with major configurations in the solar system, it offers a challenge to understand and make the best of an opportunity. In June 2012, the major Uranus/Pluto square will be exact. Also that month Jupiter will move into Gemini (6/12/12) with the focus on: Media, Internet, Social Media, Newspapers and Magazines. Communication and Transportation, particularly air transport, will be favored.
PUBLIC BANKING
Not a new idea, North Dakota has long had public banking and last year made a 23% profit by placing moneys (collected from taxes) in its own state (public) bank instead of private (for profit) banks. Oregon, Washington and California are following suit with bills in their state legislatures. For more on public banking, visit: www.publicbankinginstitute.org.
A NEW IPO
Dunkin Donuts (DNKN) began trading 7/27/11. It fits the favored Food/Beverage sector. We’ll wait for more information to determine if it has long-term stamina. It could have a great future or just be more caffeine on the market. Green Mountain Coffee (GMCR) continues to outperform, up 1188% since it was added to our Recommended List February 2009 issue.
FEED YOUR WINNERS
Each month look over your portfolio, add to your winners and get rid of your losers. Have a plan for pullbacks; prepare your watch list. There may be stocks on your list you didn’t buy because you thought they were too expensive. Pullbacks provide the opportunity to own those stocks. Do you hesitate to buy stocks over $100, over $300, over $500? Look at your holdings (it is best not to hold more then 3-5 stocks at one time so you can focus on them). Suggested strategy: A sample portfolio of $10,000 might contain five stocks, each valued at $2000. You might buy 100 shares of a $20 stock, 200 shares of a $10 stock, 50 shares of a $40 stock, 20 shares of a $100 stock and 10 shares of a $200 stock.
SECTORS
Sectors are made up of several related industries. When we classify sectors as favorable we are including all groups and industries associated with that sector. Using both Value Line’s designated ‘Industries’ and Investor Business Daily’s ‘sectors’ and ‘sub-sectors’, we evaluate which fit the new cycle. This headline, 3-Month Gains Scored in Ag, Coffee, Retail, exemplifies the current cycle which began 6/5/11 and was predicted last year.
JUNE TOP WINNERS
STOCK |
PRICE
Last month (06/29/11)
|
|
|
Gain % |
Coffee Holdings |
15 |
20 |
33% |
Changyou.com |
|
|
24% |
Google |
494 |
611 |
24% |
Crocs |
25 |
31 |
24% |
Alexion Pharmac |
47 |
57 |
21% |
Baidu.com |
136 |
160 |
18% |
Apple |
336 |
393 |
17% |
Silver Wheaton |
32 |
37 |
16% |
Green Mountain |
89 |
103 |
16% |
Pricesmart |
50 |
58 |
16% |
Netease.com |
44 |
51 |
16% |
ZAGG Inc. |
13 |
15 |
15% |
Skyworks Solutions |
23 |
26 |
13% |
Amazon.com |
202 |
225 |
11% |
Lululemon Athletic |
56 |
62 |
11% |
OVERALL TOP WINNERS
|
PRICE
(When Recommended)
|
PRICE (Today's 07/29/11) |
|
Green Mountain Coffee |
8 |
103 |
1188% |
Baidu.com |
13 |
160 |
1131% |
Lululemon |
14 |
62 |
343% |
Valeant Pharmaceutical |
15 |
55 |
267% |
Google |
168 |
611 |
264% |
Priceline.com |
151 |
527 |
249% |
SXC Heath Solutions |
22 |
62 |
182% |
H M S Holdings |
28 |
74 |
164% |
Salesforce.com |
56 |
147 |
163% |
Mercadolibre |
31 |
79 |
155% |
Silver Wheaton |
15 |
37 |
147% |
Acme Packer |
24 |
59 |
146% |
Rackspace Hosting |
17 |
41 |
141% |
Cerner |
27 |
62 |
130% |
Alexion Pharma |
26 |
57 |
111% |
Ebix |
9 |
19 |
133% |
Quality Systems |
43 |
90 |
109% |
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