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Stock picks and pans for troubled times: Buy GE, F, HAIN, STP, ATVI ...

To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).

To stay ahead of the market is impossible these days, and all one can do is hope we're nearing a bottom and current picks could only benefit. Following the different events this week and the still ongoing earnings season, here are some stock picks and pans from BloggingStocks contributors:

Obama Picks:

General Electric Co. (NYSE: GE) was Amey Stone's Obama pick due to near-term catalysts as well as long term solid fundamentals -- not to mention the 6% yield.

Ford Motor Co. (NYSE: F) was Michael Rainey's Obama pick. Since Ford is the strongest of the Big Three, Obama will likely choose to save it ... and perhaps GM. Ford had just reported earnings Friday, posting a loss.


Best Buy Inc. (NYSE: BBY) was Steven Mallas's Obama pick. Retail might get a boost from Obama's policies, and tech stores could benefit, especially Best Buy given the demise of Circuit City.

Suntech Power Holdings Co. Ltd. (NYSE: STP) was my Obama pick as alternative energy is bound to get a boost from Obama's policies. Suntech is one of the biggest solar pure-plays, and it's looking cheap enough right now.

Hain Celestial Group Inc. (NASDAQ: HAIN) was Jonathan Berr's Obama pick as "Democrats are eager to push for sustainable agriculture practices and will vigorously promote organic products." Given the options, it is the better pick over the upscale Whole Food Market Inc. (NYSE: WFMI).

StemCell Inc. (NASDA: STEM) ws Sheldon Liber's Obama pick as he believes the new administration will be more supportive of all biotech companies and stemcell research. But he warns this is a small non-profitable company.

Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) -- these defense stocks may actually not fare all that well under Obama as it likely means major U.S. defense spending cuts.

More Obama picks here, more Election stocks here.

Follow (or don't) the earnings:

Electronic Arts Inc. (NASDAQ: ERTS) reported weak earnings that showed video gamers couldn't weather the economic slowdown. Competitor Activision Blizzard (NASDAQ: ATVI), on the other hand, could be a buy right now due to its powerful entertainment brands that could do well during the holiday-selling season.

Viacom Inc. (NYSE: VIA) beat estimates when it reported earnings this week and it might even be cheap, but Steven Mallas thinks there's a "downside to come given the bad advertising environment and the issues at MTV and VH1." Perhaps buy on weakness.

News Corp. (NYSE: NWS) did not deliver when it reported this week, but Steven Mallas thinks the stock is cheap on a long-term basis. Still, he sees likely pressure on the stock as the economic slowdown continues.

Goldman Sachs (NYSE: GS) may post its first quarterly loss. Doug McIntyre thinks financial stocks could be heading for another big sell-off.

Steer clear:

Circuit City Stores, Inc. (NYSE: CC) announced it will be closing 155 stores across the U.S. and even exit 12 markets completely. Brian White feels that this is the end ...
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Symbol Lookup
IndexesChangePrice
DJIA-223.328,280.74
NASDAQ-49.201,796.52
S&P 500-26.91896.42

Last updated: July 04, 2009: 01:20 PM

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