Monday, July 30, 2007

KEP and NRM: Two Plays for the Asian Century

The market is a fickle lady, and that is a fact that many great books at the Barnes & Noble have detailed ad nauseum.

Some of the best on the subject are Burton Malkiel's Random Walk Down Wall Street... Edwin Lefevre's Reminiscences of a Stock Operator and of course the absurdly readable Liar's Poker by Michael Lewis.

But that is not important now.

What is important is that Kepco surged back 3.6% for us today... while Nomura Holdings continued its recent rebound by posting a 2.99% upmove during the session.

Of course we knew this would happen (yeah, right).

Well, we suspected it would happen if the markets woke up and realized how valuable these two companies are - both being key players in this, the very early stages of the Asian Century... and in the most modern of ways, too.

Kepco not only is the sole electricity provider to the South Korean peninsula... It also happens to be building the biggest wind-turbine farm in mainland China at the moment, and could soon be contributing to several other alternative energy projects in China.

Meanwhile, Nomura is at the heart of the blossoming Japanese financial renaissance... and a member in good standing of the Dow Jones World Sustainability Index.

Really keep an eye on this one... By the end of the year, our laggard could well become our sweetheart.

Another Moron Takes a Wild Guess as to Where the Market Is Headed

So what's going to happen to the markets this summer? I see continued choppiness, but an overall upward arch to the indexes. To ride this out, we'll mind our stops, widen them if necessary, and stay somewhat diversified with an additional commodity-based recommendation in the near future.

Till then, good times to you and yours,


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