Oil Is Down 15% Since July

Today is another decent day for our Buy List. Since we don’t have any energy stocks, whenever oil falls, the Buy List tends to beat the market. The price of light sweet crude has now dropped over 15% since Bastille Day. I wonder if there will be a Congressional investigation into manipulation from the big oil companies. Eh…prolly not. I think the energy sector has even more room to fall.
Our big winner today is Fiserv (FISV) which is up over 6% thanks to an upgrade from Prudential. Harley-Davidson (HOG) is inches always from a new 52-week high. The stock, however, is having trouble making it through $60 a share.
In April 2005, Harley warned of slower sales and stock plunged. Since then, the shares have made an impressive comeback. The company is still doing well, although profits may not grow at quite the same rate as before. The stock is going for about 15.6 times this year’s earnings. Not a bad deal.
Donaldson (DCI) is still looking good. After Wednesday’s big surge, the stock pulled back some yesterday, but it’s up again today.
Another overlooked stock is Danaher (DHR). The company will report third quarter earnings on October 19. The current estimate is for 82 cents a share, which is probably too low.
The big news next week will be the OPEC meeting on Monday, and the CPI report on Friday. The year-over-year headline rate of inflation should have a big drop due to the large number from a year ago. This should happen again next month because last September’s CPI was gigantic. This is a good example of why it’s sometimes important to focus on the core rate of inflation, instead of the headline rate.

Posted by on September 8th, 2006 at 3:53 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.