2Q Stock Picks

Dow is up 121 points ... Surprise in a way, considering that the Dow has a habit of going up one day and down another. Now all the news reports are positive about the economy, etc. When the Dow comes down, the news reports will invariably quote fund managers saying all the negative things about the economy. It\'s a case of .... write this angle, then find people opinions to back it up.

A day after Kevin Scully said the US markets are likely to go higher..... the Dow lost nearly 300 points! Monday there could be some correction in Spore stocks.

Seems like not advisable to chase electronic stocks, going by a sense that their business has peaked. DMG said: After gathering feedback from close to 40 SGX-listed corporates in our 19 Jul DMG Corporate Day, we went away with the view that global electronics demand growth may have peaked, but industry players expect Asia demand for food and beverages to remain robust on the back of more resilience in Asia economic growth. We maintain our view that the STI could see short term weakness, with as much as 15% downside to 2530 level. We recommend clients to stay defensive. Best picks remain M1, Sembcorp Industries and ComfortDelgro. DMG organized a Corporate Day on 19 Jul where we invited SGX-listed corporate to share with our institutional fund managers on the prospects for their respective companies. The companies operate in sectors ranging from electronics, oil and gas, tourism, property developers, consumer, commodity supply chain managers to conglomerates. Strong food demand from Asia, but global electronics demand has peaked. We got mixed feedback from the corporates during the conference. Most food-related companies expect Asia food consumer demand to remain respectable (suggesting still good economic growth in Asia). Players such as Cerebos, SuperGroup and Petra Foods all expect demand from Asia to remain robust. On the other hand, global electronics demand growth may have peaked, even though the headline revenue growth number for 2010 is seen to be close to ~20%.

U.S. stocks jumped 100 points! that means it is not in a loss position for 2010. The Dow climbed 100.81 points, or 1 percent, to 10,525.43 cos sales of U.S. new homes rose in June more than forecast. This is the meaning of volatility - up and down. And it also means that we cannot read too much into one month\'s data. who knows next week out comes a negative figure for something else?

I see that there is a report on this website on NRA Capital being bullish on tech. They acknowledge that 2H wont be as strong but would still be good for tech. Ok, let\'s see the results coming out in the next 1 or 2 weeks, and read the guidance from the companies.