Hot Tickets From the Alliance
Each week Alliance members submit "Hot Tickets" as a way of presenting new observations and ideas on investable opportunities to ChangeWave. Today we're focusing on resin manufacturer Cereplast, retirees reducing expenses and emerging economies in Eastern Europe, just to name a few. Read on to find out what you need to know.
*Note: These Hot Tickets are for informational purposes only. They do not represent recommendations from ChangeWave.
(1) Biodegradable Plastic
MAR01461 writes: "Cereplast Inc. (CERP) is one of the companies developing the next generation of resins for biodegradable plastic products -- an interesting niche within green investing. With the building of a large new production plant in Indiana, they should be well-positioned for future growth."
(2) Financial Downsizing
APA04160 writes: "Retirees like myself with pensions, Social Security and investment income are reducing expenses. Downsizing includes items such as travel, restaurant visits, real estate, home remodeling, long-term care insurance and electronics. Instead, we are paying off credit balances and realigning stock portfolios, and those with reduced real estate value are reassessing their total worth. Stores that offer discounted products, like Costco (COST), will benefit positively."
(3) Slower Growth in Eastern Europe
T_R1976 writes: "The move away from socialist/communist economies in Eastern Europe is amazing, especially in the larger cities where growth has been tremendous. However, the recent explosion in oil and energy prices is severely affecting these economies.
"First, all fuel prices are unsubsidized (unlike in other developing economies), which means a much higher percentage of household and business budgets are eaten up by energy costs. Second, the inflation rates in these countries have jumped to 10% on average due to spiraling energy and food costs. Since this is higher than the European Union (EU) allows for full entry and integration, there is a prolonged transition to the Euro, slower access to EU construction and trade dollars, and a huge slowing of growth."
(4) Summer Rentals
MDI04072 writes: "Summer rentals remain robust in Topsail Island, N.C., despite the weakness reported at the Jersey Shore. We could have rented our townhome six times over for each of the peak weeks. And, as a result of a little redecorating and better marketing, rental income is up more than 20% since last year. Similar units in the area also seem to be renting well based on their availability." |
