Tuesday, May 29, 2007

Charting Stocks - MVIS SU VSE & USBE

Below are 4 charts which I believe could yield substantial upside, assuming mother market continues climbing higher. Like most of the market two of these stocks have performed quite nicely, while the other two are potential bottom plays. Of them I currently hold positions in only MVIS, but will be looking to add positions into one or two of the others.

First up is MVIS and its amazing chart. Need I say more? For more information click here, or here or even here. Sorry last post on MVIS, I promise?

Suncor Inc.(SU) is a company I briefly covered here. They are, in my opinion best of breed within the Canadian tar sands industry.

VeraSun Energy, Corp (VSE) is one of the many banished corn ethanol plays. Once the darlings in early 2006, pure corn ethanol companies such as VSE are viewed by many as future less. However, these this company and other are profitable and experiencing rapid growth despite shrinking margins. The market is also in rally mode and thus very few bargains are left to pick from. I believe VSE could be one of them, that is if oil prices continue to trend higher. Some of VSE's perks include their business connections with GM and Ford, and their ability to sell directly to end customers through their chain of E 85 fueling stations. To my knowledge no other ethanol producer has this ability.

US Bioenergy Corp. (USBE) is yet another beaten down corn ethanol stock. Although I know little of this company some perks include a cheaper P/E ratio compared to VSE at 11.8 and 13.9 respectively as well as having Ronland J. Fagen as a majority share holder. For those unfamiliar with Mr. Fagen, he is the founder and CEO of Fagen Inc., currently the premier engineering firm for corn ethanol facilities. His ownership could prove to be interesting.

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