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With weak futures this morning and panic selling at the end of the trading day yesterday, it is time to start looking at buying some stock. The market is so oversold it could mean we are due for a pretty good short term rally. Stocks to consider include:
- Home Depot Inc. (NYSE: HD) -- Barron's was on target this past weekend writing that the home-improvement retailer could have considerable upside in the years ahead. The company still has a tender on the market between $39 and $44, the record day of which may have passed, but there is $10 to $12 billion in buybacks still to come.
- National Semiconductor Corporation (NYSE: NSM) -- iPhones are selling and the move to wireless is still the rage, which fits into this wireless semiconductors sweet spot. Following a strong earnings report and a huge share repurchase agreement, the stock rallied to $29.60, but it is now down below $26, essentially erasing all the gains for the good earnings. This is a good entry point.
- AES Corporation (NYSE: AES) -- The Fly blogged about this one the other day, with the stock down 15% from its recent high, and continuing to trade poorly, this stock may be worth scooping up.
We
blogged about a trading opportunity in
Level 3 Communications Inc (NASDAQ:
LVLT) the other day, and the stock rallied from $5.00 to $5.40. For those who were nimble enough to sell into yesterday's strength, that trade worked out well. The trades listed above should also work out well as this oversold market has a short-term rebound.
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Reader Comments (Page 1 of 1)
8-01-2007 @ 6:11PM
Moe Man said...
This guy pumps the same things when the dow is 14k+ as he does at 13k.
8-02-2007 @ 11:00AM
Burt H.` said...
In this market, MO is a good of a buy as it gets. Nice dividend, cash cow, and goes up each and every year. I always buy on a dip and have been buying it at a low of $19, again at 30, in the forties, again in the 60's, and recently at 70. It is my favorite.