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Random thoughts



June 16, 2007 – Comments (0)

Just tossing out a couple of random thoughts to keep the blog active in case TMF decides to pass out the pencil charms any time soon.

Thanks to Tim Beyers for using part of my write-up on NNBR in his "5 More Top Growth Stocks" column last week.  I picked up some NNBR for my IRA portfolio at 11.94 last week, didn't quite grab the low, but did get it in time to enjoy Friday's nearly 5% gain.

I added Union Pacific (UNP) to my CAPS picks as an outperform last week when it dipped under $115.  This is the second time I've picked this one, ended the pick too early the first time.  Nice run up at the end of last week.  I believe the agriculture/ethanol shippng boom along with strong trade will be positive for the rails, but suspect much of this is baked into UNP now that it's back to $120+.  The other rail stock I've got in CAPS is American Railcar Industries (ARII) - I owned this one earlier this year and enjoyed a great gain around the earnings report back in May.  I've now sold it and it seems stalled out in the 39-41 area.  Not sure which way it will break out of that range and may very well end up kicking myself for selling it.  At this price, fundamentals are still pretty good - but not as good as they were at $31.

Next week should be interesting if you've been following the private equity buyout of Accredited Home Lending (LEND).  The tender offer should hit the table Monday.  If the offer goes smoothly and as planned, expect LEND to trade up close to the $15.10 tender price minus the discount rate to the closing date.  If there are problems, expect it to trade down.

Disclosure:  I own shares of NNBR but do not have positions in any of the other companies mentioned. 


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