Robbie Burns
Robbie Burns's columns :
19/05/2006Investors Feeling Flat
03/05/2006Go Away in May?
20/04/2006Spread Betting
01/03/2006My Quarter-of-a-Million Child Trust Fund
09/02/2006Time to stop on stop losses?
23/01/2006Gambling on the Indices
04/01/2006SECTOR PICKS FOR 2006 >>
12/12/2005Will You Be Ho-Ho-Hoing Your Way To The Bank This Christmas?
28/11/2005Oil be Blowed!
14/10/2005The Naked Trader Book
30/09/2005Market Downturn?
11/09/2005Soaring Portfolio Strong Markets
30/08/2005Get Rich Quick Greed
10/08/2005All about IPOs

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Robbie Burns – The Naked Trader

Robbie has been trading full-time since 2001. His book "The Naked Trader" (which also has useful information on how to use advfn) has become one of the biggest-selling finance books, reaching the top 150 books on Amazon - order it here. Trades made for Robbie's website have amassed profits of more than £300,000. You can read about his buys and sells daily at www.nakedtrader.co.uk.


SECTOR PICKS FOR 2006

04/01/2006

So first off - Happy New Year...I hope you all have a profitable 2006!

I thought I might struggle this year to make as much money as last, but the market's already got off to a flying start. However, as the gains pile on, for many investors you always have to be careful.

Firstly, the market has a habit of biting you on the bum when you least expect it, so it's important not to get smug and feel invincible. Secondly, it becomes more tempting to over-trade with money you don't have using CFDs and spread betting. Be careful! I hate forecasting the year ahead and I don't tend to do predictions (especially on the FTSE etc) as it's all just guessing.

But here are my picks from the market sectors for this year:

OIL

I have to include my three favourite oil stocks on my hit list for the year. They are: Burren Energy, Dragon Oil, and Tullow. I've already trebled my money in Burren, doubled in Dragon and I think I will soon double in Tullow. But rather than take profits, I'm holding out for more during 2006. The most exciting thing is that all three companies could be involved in takeovers just like Paladin last year.

TELECOMS

Carphone Warehouse is a must for any portfolio in 2006. It's going to be a big winner in the telecoms/retail sector as it grows to become a mighty rival of BT. Its clever acquisitions of rivals will see that it grows in stature as it accumulates customers and moves into broadband.

TECH

I like two stocks from the tech sector: CSR and Wolfson. I've been making pots of cash from both of these, but there is plenty more to come I believe. Wolfson's chips are used in iPods and it has an intelligent management - it could easily double from 300 to 600. I also bought thousands of pounds worth of CSR in 2005 and this really paid off - but the company still looks undervalued as its sector will boom this year.

SUPPORT SERVICES

VP Group is top of the list for me in the support services sector - it's a lovely little equipment rental company which continues to grow fast.

RECRUITMENT

Probably my riskiest pick but Harvey Nash looks like a ripe recovery story. The shares look to have fallen too far and could be very strong in the early part of the year.

ENGINEERING

Rotork looks the pick - it's an extremely sound company. I've nearly doubled on this one and, again, there is no reason why the share shouldn't rise further. Brammer, another top company, tends to stay quiet before rocketing up.

RETAILERS

Are you kidding?! Why buy retail?! They all look like trouble!

CONSTUCTION / HOUSEBUILDING

This is a difficult one to call but worth having some exposure. It certainly looks like the predicted house price crash isn't emerging just yet. My picks would be Bovis Homes and a recovery for Costain. Birse could be interesting especially considering the 8% yield, while WS Atkins could surprise to the upside.

DRUGS

Generally too risky for me but Vernalis looks a promising but chancy buy.

BORING STOCKS

And finally a couple of "boring stocks". Investors tend to ignore these because they do boring things and don't move much (except steadily upwards). My boring picks are White Young Green and Carrs Milling.

Whatever you choose in 2006 I wish you luck. But do beware of any downturn. We've been in a bull market since 2003. It won't last forever - so at some point remember to take profits!


You can read Robbie’s daily market comments together with his latest buys and sells at his website www.nakedtrader.co.uk

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