EmerVest

The Turn

noreply@blogger.com (sailr07) — Mon, 03 Nov 2008 14:47:00 +0000

My short-term as well as long-term outlooks are now bullish. I believe that we have bounced off of a double bottom that goes all the way back to 2003. I recently put a large chunk of my money into a few funds. For me at least, now is a good time to buy in, as I have a long ways to go until I am even close to retiring.

Key Technical Points

noreply@blogger.com (sailr07) — Mon, 06 Oct 2008 18:20:00 +0000

Things are going great, huh?

A few important points to keep in mind.

If you draw a trend line all the way back from the 1995 low to the 2003 low and continue it until now we are pretty much there. If we break below this support point, I would say 950 on the S and P, then be ready for a drop to around 800 - 850, which would be a double bottom for the major 2003 bottom. That, would be a bummer. Good news though, the market hasn't been this oversold (RSI indicator) since 2003. Just because it is that low doesn't mean that the market cannot continue to decrease or stay the same. Obviously it is impossible to know exactly what will happen and I don't want to make an exact prediction, but there is not doubt that stocks are discounted right now and for younger people like myself, this is a great time to get into the market for the long haul (15-20 years).

SPX

noreply@blogger.com (sailr07) — Tue, 16 Sep 2008 20:10:00 +0000

The S and P could possibly go lower down to the long term bottom line of the downtrend and failed at creating a double bottom with July's lows. The market's P/E is once again at recovery levels of the low teens, but it has also been lower. Frankly, it just sucks right now for most of us. Sit tight, however, and buy huge drops like yesterday. Quick piece of advice, don't buy companies going bankrupt, thats real easy huh. By the way, I am starting a market outlook. I have backtested it and am very confident that it is successful in most cases.

ECOL

noreply@blogger.com (sailr07) — Tue, 09 Sep 2008 14:24:00 +0000

I am reiterating the buy on ECOL. It has pretty much reached the bottom line of the up-trend. For the past year, when this has happened it has rallied quickly, giving a quick profit. If you really want to try for the exact bottom then wait for 29 a share, but I tend to take what I can.

Computer

noreply@blogger.com (sailr07) — Tue, 09 Sep 2008 14:20:00 +0000

So I just got my computer back from the Apple store. They were surprisingly fast. I left it with them on Thursday and they called me Monday. Good stuff. I'll get back to more postings soon.

Two Waste Management Plays

noreply@blogger.com (sailr07) — Thu, 21 Aug 2008 23:27:00 +0000

American Ecology (ECOL) and Clean Harbors (CLHB) are in the business of waste management. They both have contracts with big names such as Honeywell and Tyco International respectively.

American Ecology Corporation (AEC) provides radioactive, hazardous, Polychlorinated biphenyls (PCB) and industrial waste management services to commercial and government entities, such as refineries and chemical production facilities, manufacturers, electric utilities, steel mills, medical and academic institutions. AEC operates within two segments: Operating Disposal Facilities and Non-Operating Disposal Facilities. The Operating Disposal Facilities accept hazardous and low-level radioactive waste (LLRW) and include AEC's Resource Conservation and Recovery Act of 1976 (RCRA) hazardous waste treatment and disposal facilities in Beatty, Nevada; Grand View, Idaho, and Robstown, Texas, and its LLRW disposal facility in Richland, Washington. The Non-Operating Disposal Facilities segment includes the Company's former disposal facilities in Sheffield, Illinois; Beatty, Nevada, and Bruneau, Idaho and a former hazardous waste processing and deep-well injection operation in Winona, Texas. (E*Trade)

Last quarter, their net income was up 20% and set a new high. It has strong margins and a great return on equity. The stock is up almost 50% this year. To top things off, it pays a 2% dividend. I like it at $31.5.

Clean Harbors is much like American Ecology. It is up about 40% since New Years. CLHB has fairly strong fundamentals but doesn't pay a dividend. In my opinion, it offers a little more short term trading opportunity if that's what your looking for. I would like to see it come down a tad closer to the trend line before buying in but it is still attractive as a long term play.

Oil and Stock Reversal?

noreply@blogger.com (sailr07) — Wed, 20 Aug 2008 00:33:00 +0000

Technically, oil appears that it could be bottoming and the stock market appears that it may be headed lower. The below figure shows that the S and P 500 has broken through its upward trend and that the MACD is on the verge of breaking into a downtrend. The last time there was a break, it was the indication of the beginning of the recent uptrend. There is already confirmation of the downward turn by the Parabolic SAR but I would look for a clear MACD cross to be completely sure.

The next figure tracks the oil ETF USO. Like the first chart, the MACD is on the verge of crossing. USO has broken through its downward trend, but does not have Parabolic SAR confirmation. These next few days will be important to see if oil has developed a bottom or not. If the MACD begins divergence and Parabolic SAR confirms, I plan on buying into stocks heavily affected by oil. I like CF Industries (CF) and Chesapeake Energy (CHK).

Fertilizers Bounce Back

noreply@blogger.com (sailr07) — Wed, 13 Aug 2008 18:09:00 +0000

Along with oil, fertilizers are bouncing back, making CF look more and more like it has hit a support level. If you look back at past recoveries by CF, you will see that they are initiated by a large advance. Today, we have seen just that and I am considering buying in with a 8% trailing stop or so.

In other news, the market itself, specifically the S and P 500 is right on the 50 DMA and we will see if it has the strength to pass through it or if this is another resistance point. The market is not overbought and shows no sign of slowing so for the time being, I bet we will see 1325 in the coming weeks.

Important Technical Levels for Fertilizer Co.'s

noreply@blogger.com (sailr07) — Tue, 12 Aug 2008 23:33:00 +0000

The fertilizer industry has been hit hard along with other commodities in the last month. Although many of the companies are down more than 20%, there is no clear bottom. Many stocks such as CF Industries (CF), Mosaic (MOS), and Potash (POT) are at or nearing resistance points that if clearly broken, will likely head down towards January lows.

When the fertilizers were booming, I was a big supporter of CF over others. It was valued better yet still had strong growth. Although it has declined, it has declined less than the more notable POT since their highs. CF is now trading around 126. If you look back to May, it bottomed out at about 124. If it breaks through 120, I expect to see it continue to fall toward its April bottom of 104. It is important to note that 120 to 125 area is also around the 200 day moving average, which is another major indicator.

Potash is approaching its March low levels of around 145. If it breaks below that, there is a good chance it is heading toward its January low of just 109. Like CF, POT is also hovering around 200 MDA levels. MOS, on the other hand, has already broken through its 200 MDA and is nearing its March bottom of 92.

Just thought I'd give a heads up on some important technical levels.

Disclosure: I do not own POT, CF, or MOS

Icon Clinical (ICLR)

noreply@blogger.com (sailr07) — Fri, 01 Aug 2008 23:56:00 +0000

Icon Clinical Limited is an Irish contract research organization that provides development services to pharmaceutical, biotechnology, and medical device companies. This company has continued to produce stellar results. It recently reported a 49% increase in revenue and a 52% increase in operating income. It has also announced an upcoming stock split, a chance to get in cheaper than its current price of around $80. More importantly, three years ago, the price was just $20 and has steadily grown since (it's a beautiful thing). Icon Clinical has beaten earnings for the past eleven quarters. This is a company well worth looking into and I plan to buy on the next dip.

Disclosure: I don't own ICLR... yet.

Market Poised for a Great Comeback

noreply@blogger.com (sailr07) — Fri, 01 Aug 2008 03:32:00 +0000

So GDP didn't exactly explode, but what's the big deal? Those GDP figures represent the past, not the future. The market is down almost 20% since it's highs last year and that has seem to have been somewhat of a resistance level with the exception of the last major sell off. The good news is that things are cheap.

As I pointed out in an earlier article, market Price to Earnings ratio is an important indicator. While the average runs around 17, it has been higher than 30 and lower than 10 (1932 if you're wondering). If you look at the past corrections, the market seems to bottom out when forward Price to Earnings ratio is around 13 to 15. The current market P/E is around 14.25, very attractive. Given that it is nearly impossible to know the precise bottom, I would have to say that this is as good as time as any to begin buying back into the market. While I will be buying into SPY on the dips, I will also focus on indexes that really took a hard hit in this bear market.

Specifically, I like iShares Brazil (EWZ), and First Trust Chindia (FNI). Both have taken a hit of more than 20%, but are still in huge growth areas that offer a lot of long term potential.

This Week's Economic Events

noreply@blogger.com (sailr07) — Sun, 27 Jul 2008 19:24:00 +0000

I realize that this isn't really an article, but it is just a reminder of what's going on this week.
This week is a big week for economic news and could likely represent a possible turning point upward or a continuation downward. On Tuesday, Consumer Confidence will be released at 10. Unless there is a big difference from the expectation of 50, there will likely not be a big move. Crude inventories and ADP Employment come out Wednesday morning so I'll be watching oil stocks closely. A slew of numbers come out at 8:30 Thursday morning. GDP, Chain Deflator Adv, Employment Cost Index, and Initial Claims all come out. Friday will focus a lot on employment numbers with the unemployment rate and hourly earnings.

Algae for Oil-- Why Not?

noreply@blogger.com (sailr07) — Wed, 23 Jul 2008 21:54:00 +0000

Algae production is not often the first thing people think of when they think of alternative energy, but it’s quietly catching on. The numbers are very supportive and a few companies are already in production mode.

The first thing to consider is that more fuel can be produced per acre than corn or any other crop. One acre of algae production currently produces 1850 gallons of oil per year compared to corn’s 15 and soybean’s 48. It is important to consider that this is not ethanol, but oil, literally squeezed out of the algae. So why isn’t it more popular?

The government seriously researched algae as a source of oil from 1978 to 1996 but eventually concluded that it wasn’t economically competitive enough with fossil fuels. The price of oil in 1996 was about $23. Why this administration doesn’t research it now? I think you know why.

Thankfully, we have the market to take interest. A press release Monday announced that Continental Airlines (CAL), Air New Zealand, and Virgin Atlantic are backing Boeing (BA) in algae based alternative fuel research. General Electric (GE), United Technologies (UTX), and Rolls Royce are also involved in the research.

There are two main methods of producing algae. The first is pretty straightforward, lots of ponds to produce lots of algae. The second is more of a factory type method. It is composed of huge greenhouses filled with tubes of water that cultivate algae. One advantage of this is that carbon dioxide can potentially be infused to promote the growth. While the second method seems more productive per acre, price will be the ultimate factor.

There are not a lot of options to consider when looking at algae companies, but the one I like most is OriginOil (OOIL). Although I have never endorsed buying stocks below $5, if I were to bet on algae, this is where I’d be. The company uses the second method of production and has a management team seasoned in the development of small companies. Today at the National Algae Association quarterly conference, it was proclaimed as one of the most promising producers of renewable oil. The stock has be gaining steadily since its IPO in April. This is a great opportunity to take advantage of huge potential long-term upside.

The Oil Correction and CHK

noreply@blogger.com (sailr07) — Mon, 21 Jul 2008 19:59:00 +0000

Oil's correction has presented a good buying opportunity and its not too late to get in. A good way to get in on the recovery and hopefully continuance of the oil rally is Chesapeake Energy (CHK).

CHK has seen decent growth in the last year. To be honest, however, it is not normally a stock that I would consider. It's fundementals are decent, but not great. What got my attention was how much the CEO, Aubrey McClendon, has invested in the company owns. Overall, he has over 33 million shares, or $1 billion dollars of his own money in the company and more importantly, increased his holdings on July 18th, by adding $43 million dollars. I'm not sure if he planned that buy point or not, but he got a pretty good deal. That kind of investment in the company for which one works gives me a lot of confidence, as well as the fact that it is in a sector heavily influenced by oil.

The story in which I am referring is from MarketWatch @ http://www.marketwatch.com/news/story/chesapeake-energy-ceo-buys-43/story.aspx?guid=%7B9DFC0FE1%2D1304%2D45A4%2DA54C%2DA4D03C06C75E%7D&dist=TQP_Mod_mktwN

Disclosure: Long on CHK

A Look at the Week Ahead

noreply@blogger.com (sailr07) — Sat, 19 Jul 2008 18:34:00 +0000

This is a busy week for the market. The market is at a couple of technical levels of resistance, but it is also becoming overbought. If we see a substantial gain this week, it could be a sign of better performance for a few more weeks. However, this week is packed with earnings that could move the market substantially either way. Below is an overview.

Monday- Bank of America and Apple, among others release earnings. Watch both of these, they should produce some substantial moves.

Tuesday- Broadcom, Yahoo!, as well as several other companies release earnings.

Wednesday- Ambac Financial, Amazon, Anheuser-Busch, and 140 other companies release earnings.

Thursday- 267 earnings announcements!!! Notables include POT, OXY, GNW. Also, existing home sales and initial claims.

Friday- New home sales and durable orders. Earnings include TROW, CVH, NFLX.

Two Water Transport Plays... Besides DryShips

noreply@blogger.com (sailr07) — Fri, 18 Jul 2008 00:14:00 +0000

The water transportation sector has seen incredeble growth over the past years and has spawned well know success stories such as DryShips (DRYS). Like much of the rest of the market, the industry has been hit by the recent slowdown. There is no doubt in my mind, however, that when the market begins to recover, the water transport industry will be very attractive. That being said, I have found a couple of alternatives to DRYS, just in case you don't like it for one reason or another.

Genco Shipping and Trading (GNK) is a stellar company and big investors have noticed. It is almost 75% institutionally owned and is slightly undervalued when looking at its P/E ratio. It has a strong return on equity of 33% and shows very strong margins and aggressive management of its debt. On top of all of this, it pays a 6% dividend. Definitely worth a look.

Diana Shipping (DSX) has just about doubled in the last three years. While this may not sound as impressive as some of its competitors, it has the potential to make you much more than that in the next three. The stock currently pays an 11% dividend and has one of the highest EPS growth rates in the industry. It's P/E is on par with its competitors and it boast a profit margin higher than 92% of its competitors.

While both of these may be attractive, it is important to understand that we are experiencing a slowdown that has affected the entire global economy. The slowdown is likely not over and I would, therefore, wait on buying into the shipping industry. Nonetheless, these are two great companies that will be even more attractive as the market bottoms.

Options Action

noreply@blogger.com (sailr07) — Thu, 17 Jul 2008 19:03:00 +0000

This recent rally has sparked a lot of action in the options market. My personal belief is that this rally is temporary and that the market has further to fall. Options trading seems to support this.

There is a large volume of August SPY calls near the money, but an even larger volume of August SPY puts. This, as well as other factors in the market such as market PE ratio, lead me to believe that we will see the market edge lower in the coming months before a long term recovery.

If you look forward to the December options, however, the volumes of calls and puts are much more even. Further ahead in the June options, there is an overwhelming indication that the market will be recovering due to the high ratio of calls to puts being purchased. To sum it up, the current options trading indicates a continuance of this market slowdown through later this year and the beginning of a recovery sometime between late this year and mid next year.

Disclosure: I do not own SPY or any of its derivatives

Dollar Cost Averaging 2.0

noreply@blogger.com (sailr07) — Thu, 10 Jul 2008 14:00:00 +0000

Given the certain conditions of the market, now would be a good time to address the subject of dollar cost averaging. Dollar cost averaging is an investing technique intended to reduce the amount of risk exposure to a market. The basic idea is to invest a fixed amount of money on a regular schedule, usually monthly or quarterly.

The system works especially well with mutual funds because they generally allow additional investment in increments of $100. For example, if you bought into a particular mutual fund, you could increase your principle by adding $100, $200, or more. It is simple to do this with dollar cost averaging, because you can choose an amount you feel comfortable with, such as $100 and invest it monthly, which would add an additional $1200 to that fund per year. It is harder to do this with individual stocks because stocks are generally bought in increments of 100 shares, not dollars.

Although dollar cost averaging increases your chances of buying into the market when it is low, it does not guarantee that you will not buy into the market just before a correction. If you are comfortable with this fact, then there is no problem, but if not, there is a way to further reduce risk exposure, which is only slightly more complicated.

I use a modified system of dollar cost averaging. I'd like to think I came up with it myself, but I'm sure there are several techniques identical or similar to mine that have been around for a long time.

Many people consider the Price to Earnings ratio of a company, but it is less common to consider it of the market. As seen in the chart below, the PE ratio of the market fluctuates just as the market does. Notice that it was fairly high before the '87 crash. It was in excess of 30 before the bubble burst earlier this decade.

Applying this to dollar cost averaging is not all that difficult. I use a scale that dictates how much I invest monthly into my mutual funds. The current average PE ratio for the S and P 500 is around 17. I use this as a base. At this point, I invest 100%, or what I usually would invest using a non-fluctuating dollar cost averaging technique. This is fluctuating, however, because how much I invest depends on how high or low the market P/E is. I decrease the amount I invest as the market PE increases, eventually investing no additional money per month as the PE becomes higher than 20. The money that is not invested monthly when the PE ratio is higher is not spent. It is saved so that I can access it when the market falls. As the market declines, so does the PE ratio. As the ratio falls below 17, I begin investing more than 100% using the savings that were a result of the market at a high PE ratio. Doing this helps you increase your gains and decrease your losses.

It is necessary to note that while this is not dollar cost averaging in the sense that I invest a fixed amount per month, I do follow the scale religiously. Leaving emotion behind and sticking to your rules is very important in maximizing gains.

Transocean Inc. (RIG)

noreply@blogger.com (sailr07) — Sun, 08 Jun 2008 19:05:00 +0000

The market has certainly taken a turn for the worse, but it still presents a great long term buying opportunity. Transocean Incorporated (RIG) is a great company. It is a company that is attractive to both value and growth investors.

Transocean is the world's largest offshore drilling contractor. It has over 50 years of experience and its performance shows. In the past three years, it has steadily doubled from about $70 to more than $140. In that same period, the company has missed earnings only twice (both in 2006) and has solidly beat estimates since then. It is an aggressive leader in its industry in several ways.

In addition to being the largest contractor of offshore drilling services, it has a presence in every continent of business. The company boasts a return on equity of 36%, better than 93% of its competitors. The company is aggressive with debt and has a price to earnings ratio of just 9.5, lower than 94% of its competitors. RIG's operating margin is better than 96% of its competitors at over 50% and its trailing twelve month earnings growth is 89%.

These aspects make Transocean a great buy. It is a relatively cheap company with great credentials and surely worth a look.

Green's Two Meanings

noreply@blogger.com (sailr07) — Mon, 02 Jun 2008 15:14:00 +0000

Let's face it, green business is huge. Think five years back and it was still something that several companies were skeptical about getting into. Today, it seems to be becoming the norm. People feel that they want to help the environment, and businesses want to help the people. The rising price of oil has only aided the need for alternative and generally cleaner energy. Either candidate for the Presidency, liberal or conservative, plans some sort of action that encourages reducing our carbon footprint with clean energy. Even if there is a lack of subsidies for clean energy, the fact that oil is pricey and that it will likely continue upward due to basic supply and demand factors means that clean energy is getting more competitive and attractive. These factors are shaping up to make clean energy a great investment in the coming years.

Several funds have emerged with the wave of thinking green. I prefer a couple that have been around for at least a few years. The first, Winslow Green Growth Fund (WGGFX), was started in 2001 and has had the same manager since 2002. Although the expense ratio is a little high at 1.49%, it has shown annualized returns of about 25% over the last five years. Unfortunately, it's not cheap with a minimum investment of $5,000. A good, more flexible alternative is PowerShares Wilderhill Clean Energy (PBW) ETF. It was started about three years ago. The index that it follows has had five-year annualized gains of over 18%. With an expense ratio of .60% and a minimum investment of only one share, PBW is a great way to invest in clean energy for a small amount of money. PBW is currently trading around $22 a share.

I would also recommend a couple of individual stocks. The first is conglomerate giant, General Electric (GE). GE has been hit incredibly hard recently-- and for good reason. Growth has gone flat and things currently look bleak. GE will, however, inevitably recover and has shown it has good intuition about green growth in the past. Well known for its Ecomagination marketing campaign, the company has put its money where its mouth is. In 2007, the company's energy efficient and environmentally advantageous products and services brought in over $14 billion in revenue, up 15% from 2006. They continue to make promises such as reducing their water consumption by 20% by 2012 that are both good for the environment and good for business. GE is a great long term option at around $30.

Evergreen Solar (ESLR) is a unique solar panel company. It has found a production process, called String Ribbon manufacturing, that not only makes a more efficient solar panel, but also make it cheaper for them to produce. Evergreen Solar produces wafers, cells, and panels. The stock signed its most recent sales contract of $1 billion on May 22nd. It is a good long term investment at $10.

Disclosure: I own GE

Oil and Opportunity

noreply@blogger.com (sailr07) — Wed, 21 May 2008 18:43:00 +0000

Oil has had an incredible run, and it is by no means over. So why not buy now? First off, it is long overdue for a pullback. Oil has skyrocketed, but is overbought by far. I do see oil moving to $140 or $150, but not before a pullback to $125 or so. Second, there is nothing wrong with walking away with what you have already made. If you own oil stocks, I would recommend getting out. If you are in them, you have already likely made a healthy profit. Other stocks have been beaten down by oil. This has presented the perfect buying opportunity.

One company that I have recently been watching is General Cable (BGC). General Cable works with the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets. The Company offers competitive strengths in such areas as breadth of product line, brand recognition, distribution and logistics, sales and service, and operating efficiency. It is an international company that has expanded from North America to Europe and North Africa. The company hasn't missed earnings estimates in the past 12 quarters and has a Price to Earnings ratio that is comparable to its peers. The company also has a Return on Equity of around 36%, better than most of its peers. It makes products for infrastructure such as bridges, telecommunications, and electric grids. Not only has it seen steady growth in the last three years, but it's earning are projected to continue to grow well in the future. The CEO has both public and private experience, but more importantly has been with the company since 1994. At around $70, the stock is oversold and poised for a good run.

Even if you do not want to get your feet wet in specific stocks, I would at least get in the market. Buying opportunities likes the correction we have seen in the last few months only come once in a while. Buying into an index fund such as SPY or another mutual fund that follows an index such as Vanguards 500 Index Fund (VFINX) will not leave you unhappy in a couple of years, not to mention five or six.

Disclosure: I own VFINX

Why CF is better than Potash

noreply@blogger.com (sailr07) — Thu, 15 May 2008 00:57:00 +0000

Potash (POT) has no doubt taken the stage when it comes to agriculturally related stock successes, but is it justified? Probably, but that does not mean that it's really the best. CF Industries (CF) is worth a look. I would first like to point out that while I am not comparing apples to oranges, I am comparing different kinds of apples. Both companies are related to agriculture, but Potash is classified in the Non-Metallic Mining sector while CF is in the Chemical Manufacturing sector. I simply believe that CF is a better investment.

The price of Potash's stock price has multiplied by about 3, certainly not a bad take for any investor in the stock. The stock has a substantial Price Earnings ratio of 45.7 and has an impressive return on equity of over 27%. Although it is small, the company does pay a .2% dividend. Potash does have a relatively high profit margin of about 24%. Those are impressive numbers, but nothing compared to CF Industries.

CF has also tripled in the last year, but is much cheaper, with a Price Earnings of around 16.5. CF has a return on equity of over 40%, much better than Potash. Its dividend of almost .3% is also higher than Potash. Where Potash does currently lead CF is profit margin. CF's profit margin is about 16%. The fact that the countries are in slightly different industries should be noted here, however.

These differences, in my opinion will help CF perform better than Potash in the long term, which is why it has earned my respect as a buy at $136.27

Manitowoc Inc (MTW)

noreply@blogger.com (sailr07) — Wed, 14 May 2008 18:10:00 +0000

Although it might be hard to say the name, it is not nearly as hard to see why this company is desirable. Manitowoc makes construction and agricultural machinery. It is divided into three sectors as follows: cranes, foodservice equipment, and marine. Additionally, they are a global company, operating in 20 countries and six continents. The international market, especially those of much of Africa, Asia, and Latin America, have not yet gone through population transitions that developed countries have gone through. This leads to a rapidly growing population which requires the building of infrastructure to accommodate it. On July 19, 2007, the Company made its most recent acquisition of Shirke Construction Equipments Pvt. Ltd (Shirke). Manitowoc is in the perfect position to be a large provider to those countries, as well as continuing work in North America and Europe.
Manitowoc also looks very attractive both fundamentally and concerning growth. The stock has seen steady growth in the last 3 years and has not missed earnings since then. It has a below average Price Earnings ratio of 14.84 and has a high Return on Equity of 31.83%. I am looking to get into the stock and would definitely recommend it at its current price of 41.73.

Thank You Oil

noreply@blogger.com (sailr07) — Tue, 13 May 2008 18:44:00 +0000

Central European Distribution Co. (CEDC)

noreply@blogger.com (sailr07) — Tue, 15 Apr 2008 00:25:00 +0000

Eastern Europe could easily be considered the South America of five years ago. Central European Distribution Company makes something everyone loves... alcohol, specifically vodka. It makes the most popular vodka in Poland and several other brands. Last year it produced almost 8.5 million 9 liter cases of vodka. It is also a distributor of other alcoholic beverages such as beer. The Company produces vodka at two distilleries in Poland and is a distributor of alcoholic beverages. The Company is also an importer of spirits, wine and beer in Poland. Its products are also exported out of Poland. CEDC offers a portfolio of alcoholic beverages with over 700 brands. In July 2007, the Company acquired 100% of the PHS Sp. z o.o., an alcohol distributor located in western Poland.

It has shown steady growth over the last two years and I don't think it's too late go along for the ride. It's a buy at $60.15.