William Larsen

Are we about to hit bottom?

The economy is getting worse. Will we break the 7800 support level on the DJIA? If so will it then fall to 3800? There are some great buys out there, but will they go lower? Steal Dynamics (STLD)is down to $5 to $6 a share and it had earnings of $3.25 last year. It most certainly will see much lower profits this year, but in two to three years it could be back to producing over $3 a share in profits. This would be a great buy, but will it go to $3?

Sunpower (SPWR) makes solar panels and are know for having the most efficient panel around. There price has fallen to $13.42 from a high of $160. It has a high PE ratio still and the drop in oil prices makes alternative energy less attractive. Their largest buyers are Europe where Electrical costs are much higher. The companies goal is to produce panels that supply electricity that are competitive with other sources in five years. The raw material is silicon wafers. This certainly could go lower.

GE is now down to $13.37! I never thought I would see the day when this would occur.

Even the medical implant companies are doing poorly. People are putting of the elective surgeries as a result in the dramatic drop in equity prices.

Automobiles are not selling, but repair shops are doing much better.

The state of Indiana keeps saying they ran surplus budgets in the past two years. I only wish that were a true statement. They do not accrual costs if at all. The fire and police pensions prior to '77 still need to be funded. The unemployment fund is getting low just as unemployment is rising. The unemployment fund should be at its highest level now as we go into recession, not nearing a low. During good years you stash some away to get you through the tough years, but politicians just do not get it.

I am still hoping we are nearing the bottom. But if not watch out.

posted by William Larsen @ 12:03 PM