Spirit AeroSystems Holdings Inc.  (SPR) Trade Now »     Rate SPR  -  Discuss SPR  -  Add to Watch List        

Very Low PEG ratio.

We recommended this around $35 a few days back...though we had it sine the IPO last year as one of our holdings.

Unlike airline stocks, manufactures and suppliers to the aviation industry have not been amongst the most popular stocks with short sellers. This partly reflects longer order lead times, but also the more diversified range of market serviced by these companies. The index of short interest, shows a rising trend until early August and is now in decline.

Alex’s Notes: Hat tip to Simon Heapes who pointed this article out to me this morning.

I certainly found the amazing drop in oil price strange when it occurred. When I see an amazing rise or drop, I have learned (ok call it being cynical) that many times it might just be someone tinkering in the markets.

I have seen far too much evidence of this kind of tinkering PERSONALLY to just dismiss it anymore. So when a massive shift occurs, not only do I look at market fundamentals, what the technical traders are saying, but also I look for motive and manipulation.

• The following trend shows that the quality retailers are showing signs of a come back due to cost cutting. Health-care is again a winner and a much safer bet in this environment.
• House-hold products have seen in-line earnings, so has the defense sector.
  
• Losers have been retailers who have huge debt and are not innovating to attract consumers. Real-estate operations again show up in this category which is not a surprise anymore. Lower oil prices have lead to energy companies to struggle as well.
  

The latest Barron’s has run a good article against an obvious oil bubble, which is really worth reading. By reaching $135 a barrel from $20ish in 2000, just 8 years ago, the trajectory of oil prices looks very similar to the Nasdaq’s eight-year run to a peak of more than 5,000 in March 2000. Today, Nasdaq sits on ~2,400. Most believe that the hike of oil prices, up 40% simply this year, doesn’t reflects fundamental changes in supply and demand caused by the economy, but by some other factors.