At Home And Abroad
The macroplay is a very powerful investing strategy
designed to capitalize on a wide variety of fast-moving news events — from war
in Afghanistan and the war on terrorism, to interest-rate cuts and, yes, even
rain in Brazil. Such macroeconomic
events or “macrowaves†can ripple through both the economy and stock market
and cause large, quick movements in stock prices.
This week, let’s take another look at two stocks riding different macrowaves.Â
Pec Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating)
Three weeks ago, this column pointed out that PEC Solutions
might well benefit
from the homeland security macrowave. It
builds software that can transform our balkanized local, state, and federal law-enforcement agencies into a seamless identification-and-detection network.
If you speculate on this one, just set a nice loose stop loss.
It seems to be a solid company on both fundamental and technical grounds
offering moderate risk.
Â
Pemstar
(
PMTR |
Quote |
Chart |
News |
PowerRating)
Two weeks ago, this column introduced Pemstar, a company leading the charge on
developing the prototype “digital soldier†for the land warrior program. Seems that “digital
soldiers†on the ground in Afghanistan are using very advanced technologies to
guide smart bombs towards key strategic targets — from arsenals and tanks to
members of the Osama Bin Laden’s own high command. Â
It wouldn’t come as a surprise to this columnist for Pemstar to get a
big boost from this military advance, as more and more news filters out about how
Afghanistan is being won. Still,
looking at the chart, the gains thus far have been modest. So be careful. It’s a
stock with low liquidity, big spreads, and high risk.
Â
If you have a favorite macroplay you would like me to feature in this column,
send me an e-mail at or
go directly to my web site.
I’d love to hear from you.