In my opinion, the market just doesn't feel right here, so I am treading lightly.
Granted, the bulls are still running a week after the
sparked a rally, fueling some profitable moves for our deep-in-the-money positions.
But when market rallies persist in times of large-scale skepticism over the direction of the macroeconomy, I remain cautious in my picks and look at investments in the core industries.
I also look for companies with insulation from the slowest sectors of the economy, such as housing. With that in mind, today I will take a look at
, a holding company in rail and highway construction and industrial leasing.
Although these businesses will continue moving forward regardless of the direction of the macroeconomy, Trinity's stock has suffered a decline of some 30% that began in late July. The company's 52-week low of $30.92, set last October, provides a solid level of support.
The stock closed trading Wednesday at $36.97, and Trinity currently sports a forward
price-to-earnings ratio of 9.91, its
PEG ratio is 0.94 (anything below 1.00 is awesome), and total debt/equity is an impressive 0.85.
Additionally, with its 10-day moving average crossing above its 50-day moving average this week, this stock has the strength to once again move forward. This is just the type of bullish breakout I look for in beaten-down stocks. Such movement tends to forecast further buying. As a result, I will place a limit order to buy 10 April 30 calls (TRNDF) for $7.90 or better.
Game of Life
With four games remaining in the regular season, it is quite possible that all three NL divisional races, as well as the wild card, may not be decided until the final games are played on Sunday. The Mets are struggling to hold off the Phillies in the NL East, just as the Cubs are having difficulty shaking the Brewers in the NL Central.
In the NL West, the Diamondbacks lead, but both the Padres and the Rockies are still in contention to win the division. Any of the aforementioned teams could be the wild-card representative, with the exception of the eventual NL Central runner-up.
In the American League, the only question that remains unanswered is who will claim the best overall record. Unless the Red Sox lose their four remaining games in conjunction with four Yankee wins, Boston will win the AL East, and the Bronx Bombers will be the AL wild-card representative. The Indians and Angels have clinched the AL Central and AL West, respectively, with Cleveland battling the Red Sox for the best record.
Individually, Prince Fielder hit his 50th home run this season, joining his father, Cecil Fielder, as the first father-son combo to hit 50 home runs in a season. Not to be outdone, A-Rod has 53 home runs and 151 RBI this year.
Speaking of home runs, Barry Bonds is playing his last games in a Giants uniform, as it has been announced that San Francisco will not re-sign him.
Major League Baseball suspended umpire Mike Winters for the rest of this season for his role in the squabble with Milton Bradley, which ultimately resulted in Bradley tearing a knee ligament, whereupon he will most likely miss most , if not all, of next season.
In NFL news, the Bears announced that Brian Griese will replace Rex Grossman as the starting quarterback against the Lions on Sunday. Grossman's demotion comes after he threw three interceptions against the Cowboys, helping the Cowboys rout the Bears.
Michael Vick's fortunes took a turn for the worse, as it has been reported that he tested positive for marijuana in a court-ordered drug test. Obviously, this cannot help when he is sentenced on the federal charges surrounding his dog-fighting operation. Furthermore, the state of Virginia has indicted Vick on different charges related to the dog fighting.
As you are reading this, the U.S. women's soccer team is playing Brazil for the right to play Germany in the World Cup final. In a wholly unexpected move, U.S. coach Greg Ryan, announced yesterday that 34-year-old Brianna Scurry will replace Hope Solo, who has been playing quite well, in goal for this morning's game. Scurry was the goalie when the U.S. won the World Cup eight years ago.
The Players Club recognizes the difficulties that coaches face, particularly when their gut and their brain may not be in synch. Nevertheless, their ultimate decision is invariably judged on the result, not the logic, or lack thereof, involved in the decision-making process.
By guaranteeing recurring cash flow through our strategic partner, the Players Club endeavors to ensure the result, thereby removing the angst associated with non-guaranteed financial vehicles.
Always remember: Life is a journey; enjoy the ride!
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."