Ken Fisher's latest column is up at Forbes.com. If you hurry, you can read it for free (registration required) at Forbes.com before they add it to the $5 archive. In this month's edition, Ken calls Congress for the Republicans, and has some interesting stock picks, two of which I have selected below. - Ed
Link: Fear Will Fade - Forbes.com.
Readers didn't much believe me last month when I said the Republicans wouldn't lose Congress in November. If I'm right and these skeptics are wrong, fears of a big political fallout will fade--which is bullish--and you should buy now before the fear fades. No surprise that readers have this view, since the media are close to unanimous in decreeing that the probability of a Democratic victory is high.
[...]
Germany's SGL Carbon (6, SGG) has fallen 33% since May and has yet to recover as it supplies primarily the hard-hit steel and semiconductor industries with carbon and graphite products, which include electrodes, laboratory components and furnace linings. If the economy doesn't roll over, SGL Carbon is too strong not to bounce back. It sells at 80% of sales and 15 times 2007 earnings.
The Chinese stock market fell in 2003, 2004 and 2005. China Netcom Group (36, CN) didn't suffer that fate and in fact was in public hands only for the third of those years. Still, in that backdrop you can buy it at only one times revenue, seven times trailing earnings and three times cash flow (in the sense of net income plus depreciation).
With $10 billion in revenue and 120 million voice customers and 13 million broadband customers in ten northern provinces, it is one of China's biggest telecom firms and will move up smartly when the Chinese market recovers.
