Stocks That Almost Made the Cut: May 2006

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May 1, 2006 | S.T.A.M.T.C | | Author Asif

I strongly considered featuring the aluminum producer Alcoa (AA) in this month’s SINLetter. Alcoa would have fitted in well with the theme of the May SINLetter as a large amount of aluminum is used in airplanes. It would have also been a play on the current bull market in commodities. However I found Eaton (ETN) more intriguing for reasons already discussed in the latest edition of SINLetter.

A friend recently started a position in Pacific Ethanol (PEIX) and suggested that I take a look at it. I looked into Pacific Ethanol briefly but decided against it on account of heavy insider selling as chronicled in this blog entry by Himanshu Pandya. When the CEO and CFO start dumping their company stock in unison, it is best to stay away from the stock. Investing in Pacific Ethanol at this point just feels like subscribing to the greater fool theory. Instead I picked CMGI (CMGI) as an alternative play on alternative energy.




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