Sectors and Stocks to Watch in 2008

Quick Pick: 2008 Predictions It's fun to make predictions. It's more important to follow up on them, good or bad, which is the main reason I love blogging -- the accountability. You can't get away with much if you just focus on your winners. My 2006 and 2007 predictions were not too shabby and for the most part, if it ain't broke, I don't want to fix it -- or predict it breaking.

Here are my fresh predictions for 2008. Let me start by eliminating a few sectors:

Airlines: Same as always, don't even talk to me about them -- ever.

Homebuilders: Please! Why care? They are so 2005.

Oil: Does nothing for me. Other than the Oil Service HOLDRs (OIH - commentary - Cramer's Take), I have underperformed in this sector, mainly by just staying away. I need to care about what I own. I have never cared for oil and oil stocks. Without the passion, I can't stay focused on the trend.

Now that we have narrowed down the possibilities:

GPS: I've ridden this trend for two-plus years. The only such stock remaining today in my portfolio is Trimble (TRMB - commentary - Cramer's Take). I have sold Lojack (LOJN - commentary - Cramer's Take), Garmin (GRMN - commentary - Cramer's Take), Sirf Technology (SIRF - commentary - Cramer's Take) and Navteq (NVT - commentary - Cramer's Take) in 2007. Nokia (NOK - commentary - Cramer's Take) is the only other stock that interests me as a GPS opportunity in 2008, mainly because it now owns Navteq. I don't own it now.

Tech: Apple (AAPL - commentary - Cramer's Take) continues to grow and accelerate. I can't guesstimate where the stock is going because I don't make market price predictions. Gun to head, I'd say the stock will continue to lead the Nasdaq in 2008.

Dining: I believe Chipotle (CMG - commentary - Cramer's Take) will continue to grow and amaze in the restaurant sector. And I expect Starbucks (SBUX - commentary - Cramer's Take) will regain some footing and have a 30% rally (from where, God only knows).

Mergers: Will continue at a record piece. This is an easy one. I wrote about it in my 2006 and 2007 predictions. Merger arbitrage funds had another good year in 2007, and I think that at least one more good one is coming.

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At the time of publication, Lindzon was long AAPL, TRMB, NDAQ, IBKR, CME, RICK, AXP, OIH, PHO, SINA, SLW, PAAS, AMZN, WFR, JASO, CSIQ, FSLR and CMG, although positions may change at any time.

Howard Lindzon is a Managing Member of Biltmore Ventures (Venture Capital Fund), Consultant to CBS Interactive and Founder of WallStrip.com (recently purchased by CBS). He is also a Managing Member of Lindzon Capital Partners, a hedge fund started in 1998. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Lindzon appreciates your feedback; click here to send him an email.