Monday, August 20, 2007

Barker bites off a chunk of fundamental wisdom

This well constructed piece by Bill Barker at Motley Fool is worth reading for all of us who rely on fundamentals.

Barker: The best buying opportunity in 12 years

Though the piece is more than a week old, it's still timely. The market has rebounded, as expected, with positive news from the Fed, but today's slowdown in a sizable segment shows me that there will still be underpriced stocks worth watching this week. (Like a lot of us, I regret not having a lot of dry powder when the market hit its recent bottom last week.)

As far as low P/E stocks go, CNOOC (CEO) still blows me away with its 11 P/E, huge growth and upside potential in Asia. Oil and natural gas are not going to die there. The stock is up from its recent low of 92, but even at 104 is at a discount to its all-time high. Before the recent selloff, CEO hovered around 120.

CEO would make an interesting 'handcuff' buy along with a growing alternative energy play in Asia like Yingli Green Energy (YGE).

Pupule Paul has no position in these stocks.

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