"Street Critique"-Hilary Kramer, Personal Finance Editor at aol.com
Wednesday, December 27, 2006JEFF YASTINE: Chinese stocks top Hilary Kramer's list of best bets for 2007. She's the personal finance editor at aol.com and my "street critique" guest tonight. Hilary, welcome back to NIGHTLY BUSINESS REPORT.
HILARY KRAMER, PERSONAL FINANCE EDITOR, AOL.COM: Jeff, thank you.
YASTINE: So tell us some about these Chinese stocks. Why do you like them so much as we head here into 2007?
KRAMER: There's great expectation that many of these Chinese companies that have been listed outside of China are now going to go on to the Shanghai exchange. We've seen some of that but companies like Petro China, PTR, there's expectation that they're going to come around and list as well. And China in general has a 9.5 percent growth projection for 2007, only 2 percent inflation. And there will be so much strength and demand when it comes to fuel, energy, infrastructure, transportation.
YASTINE: Speaking of fuel, the oil services field is another of your favorite sectors. Tell us a little bit about that.
KRAMER: I believe that we will have strength when it comes to 2007. Oil prices will probably go up before they're going to go down. And therefore the oil service providers and companies like Ipsco, IPS that go out there and help with the efficient extraction, make the steel tubing. They're also in other areas such as transportation, infrastructure. They are going to be very strong players as we go into 2007 and we see oil on the upswing.
YASTINE: Now one area that has lagged pretty much throughout the past year or so has been the general technology sector. Part of that is the hangover from the, you know, the 2000-2001 dot com bust. But you believe that that sector may be finally getting some move behind it.
KRAMER: Wall Street has forgotten about 2000 and the Internet bust and technology and now the money is moving back into technology. There's real cash flow there. There's opportunities. I love Cypress Semiconductor, $16 and change stock, could go to $25 in the (INAUDIBLE) whether it be a take out or just simply because they're part of the new cycle of upgraded technology. They make the brains that goes into computers and hand-held devices and all sorts of technology.
YASTINE: And there's another area you like that's called specialty chemical and engineering, the companies in that sector. Exactly what is it that those companies do in that group there?
KRAMER: Well, particularly it's the pollution control chemical companies like ADA-ES. These are the companies that go in and they have chemicals to reduce whether it be mercury emissions, the other emissions that the states are now regulating and forcing companies to control. On the national level it's not going to be until 2012, 2018 we're going to see emissions standards, but right now companies like ADA-ES Fuel Tech are going to be very, very strong in 2007 because there's tremendous demand for the products and the services they provide.
YASTINE: Hilary, do you have any of these stocks that you mention here, do you have any disclosures to make about them?
KRAMER: Yes. I own Cypress Semiconductor
YASTINE: All right. That's good enough for now. Hilary, thanks for being with us and we'll see you again in a couple of weeks.
KRAMER: Thank you Jeff.
YASTINE: Our guest, Hilary Kramer, personal finance editor at aol.com.
