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 ...
Cramer on BloggingStocks: Sanofi has lots of upside catalysts 
New 'Twilight' movie dominates weekend box office 
Before the bell: Stock futures higher as gold sets another record, dollar slumps
Reader Comments (Page 1 of 1)
11-07-2008 @ 9:09PM
bt said...
Merge the (Former) Big Three, (into)
Chevrolet & Cadillac, Ford & Lincoln, Dodge & Jeep. Lose the other brands as they are a very expensive overlap. This allows for the present dealer group to exist but in fewer numbers. Consolidate plants and suppliers. Part of the multi billion dollar merger savings will allow to buy out ineffective dealers to insure the remaining dealer group has the volume to survive. Share technology and management. If the Unions refuse to assist with the survival of the US auto business, they should declare bankruptcy and outsource. No one is entitled to a guaranteed subsidized employment.
11-07-2008 @ 10:01PM
Carlos Arvizu said...
GM,Ford, and Chrysler employ a lot of workers, but there also many supporting companies that will be affected if they go under.
What these automakers need to do is conscentrate on is what seems to be everyone's problem, not enough sales to support itself.
So what do you do? You cut expenses. That's an enivetable fact of life.
The trade unions have made it vertually difficult to keep these automakers in business.
They must realize it may be necessary to make concessions or lose their workforce to foreign automakers who can afford to build outside the US and sell here in America.
Short term loans may pay the bills temporarily, but that can also be a prescription for disater also.
Possible solutions to fix the cash flow problem are;
1. Reduce the workforce by early retiring older workers without a golden parachute, trade stock into a 401K in liew of a golden parashute. That ultimately would be adequatle to reward the retirees for their hard work and sacrafice of an early retirement.
Union consession to allow New replacement workers at a lower paywage to start over the next 5 years. Giving these companies breathing room to survive.
2. Government to allow a tax credit or deduct the interest for those buying an American Made vehicle. That would be a stimulus.
3. Workers who can give management ideas that can lead to money saving ideas that can lead to increase production or cost savings to be rewarded.
4. Management needs to workabke solutions for the good of their workers and stock holders.
If the company can't survive, no one survives.
Carlos R. Arvizu Sr
theDon1950@aol.com
11-07-2008 @ 11:35PM
j-dog said...
who in their right mind would be dumb enough to buy stocks based on what some blogger for AOL (#1 employer of India) has to say?
11-08-2008 @ 9:59AM
JBGabriel said...
The investment banker crooks on Wall Street and in Washington who securitized those toxic loans, and the mortgage broker crooks on Main Street who originated them, coupled with the needy and whimpy US auto executives looking for a government handout, are all a disgrace to our country.
11-09-2008 @ 1:49AM
j.ski said...
How about if the americans that borrowed more than they could payback were partially responsible for this mess as well. It's not solely wall street and the gov't.
11-09-2008 @ 7:56PM
John said...
Buy defense company stocks. Obama's tax policies will force a recession into a depression. World War III will follow; it's the 1930's all over again.
11-11-2008 @ 12:22PM
jeff said...
Invest in cigarettes and cell phones. Every broke dick that's crying about not being able pay their bills still has a cell phone and a pack of smokes.