Ask Vendit Off Topic Questions

[Donna]

Hi Alex, and welcome to the board.

I was under the impression energy and real estate was more of a value play with dividends for the long term.

They may well be, but I'm not a long term investor. At times, I will hold for an intermediate term time frame (1-6 months). I can tell you that I honestly don't even look at whether a stock is paying dividends.

Are you looking at these more in terms of growth stocks or just a day or two play?

This market has made it difficult for me to think too far ahead. However, these particular stocks (JEC, EME, and to a lesser extent EPG) appear to be good intermediate -long term plays because of the way they have been able to trade above their 50 day moving average in a miserable market this year. They are in an attractive niche because they are growing based on a longer term trend of building out energy resources, where money is actually being spent in a corporate environment of "belt-tightening." I expect this to continue, with even more attention focused here during the summer months when we will routinely hear of power blackouts here in the west.

Would it not be better to wait for the dow to pull back and buy these lower?

These often behave contrary to the movement of the DOW, as money rotates. That said, if I were looking for a long-term entry, I'd probably wait for the periodic pullback to the 50 day moving average and take my position there. For example: if you look at this chart of EME, you'll see that it bounced off it's 50 day yesterday, and is edging up today.

http://www.askresearch.com/cgi-bin/chart?symbol=eme&exchange=USA&size

Hope this helps.
Donna