What to expect in 2010

With the closing of 2009 just ahead of us, it is time to start looking to what next year has in store for the market. However, before you get to far ahead, it would be wise to take a close look at your portfolio and determine which securities are dead in the water. Many of you have probably secured a substantial amount of gains throughout the year with the market rebounding significantly from its intra year lows. If you currently hold shares of a stock you know has a bleak outlook, it may be in your best interest to take the loss now and balance out your capital gains for 2009. This will also free up some cash that you can put back to work in sectors continuing to grow in the coming months. Let's take a look at where we believe the big gains will be in 2010.

Materials: Steel stocks have just recently begun to develop some support levels and are showing signs of increasing demand. Capital projects in the EPC sector are showing signs of increasing, with investors and fund managers feeling more comfortable with inflation fears. Keep an eye on United States Steel Corporation (X) and AK Steel (AKS) who have no current debt or supply issues and have already turned the corner by swinging into profit.

Tech: It goes without saying that the tech sector has been on a role and is showing no signs of slowing down. Some great plays with soon to be high paying dividends are Amazon (AMZN) and of course Apple (APPL). We also like the semiconductors and microchip companies, especially Advance Micro Devices, Inc (AMD). They should capitalize on some market share given up by Intel, and continue to see significant revenue growth in 2010.

Biotech: We have closely followed the biotech industry throughout 2009, and firmly believe this continues to be, and will remain, the fastest growing industry. The potential for drug and novelty health care related companies is unmatched and has the potential to yield significant gains. I prime example of one such company is Human Genome Sciences (HGSI) which BHMP has rated a buy since a $2 share price. We still firmly believe this is an aggressive buy with a target of $65. We also continue to follow Bioelectronics (BIEL), which despite its recent drop , remains a strong buy for us. It is no doubt a high risk stock, but we feel the reward could be tremendous in value. Glaxo Smith Kline (GSK) is a must buy stock with the potential to buy out Human Genome Sciences and acquire a company with substantial revenues to come.

We hope you continue to follow us through 2010, and please feel free to email us any questions or comments you may have. You can reach us at:

bhmpllc09@gmail.com

Happy holidays!