This week was saved today as the White House finally approved a $17.4 billion auto bailout package using TARP money. Stocks were stable after two days of decline, but all-in-all the week wasn't bad. It's the third week now that stocks, while perhaps having big swings daily, end up not so bad.Once again, this stagnant time could be exactly the time investors may want to look for long-term deals. They may have to hold on to them for a while as the markets continue their up and down swings. But eventually, if it's a few months or a year from now, stocks will start to recover and cheap deals bought today may be big gainers.
But where are the deals? BloggingStocks contributors added some ideas this week:
The Walt Disney Company (NYSE: DIS) is one of Jamie Dlugosch's favorite blue-chip names. Analysts expect the company to make $2.12 per share in the current fiscal year ending in September. If the company earns $3 per share down the road with a 15 multiple, Disney shares could double. In the meantime, it pays 1.5% dividend yield.
Qwest Communications International (NYSE: Q) has many shortcomings to be sure, but "the company also has very valuable assets and strong cash flow" and the stock "would command a good premium in a takeover." according to George Putnam.
Raytheon Company (NYSE: RTN)'s first serious battlefield ray gun is now being deployed and another one in development will come soon. Sheldon Liber explains how "this defense contractor is basically a tech company trading at a low P/E, P/S and book value while sporting almost a 2.5% yield."
Research in Motion (NASDAQ: RIMM) reported earnings Thursday after the close and surprised investors with an upbeat outlook on strong demand for its newer models. Doug McIntyre says that investors have beat down the stock thinking IT investment is dead, but the BlackBerry is a much cheaper pocket PC in a sense that increases productivity. Companies might decide to spend on that instead of big IT expenditures.
General Mills (NYSE: GIS) is a stock that has been mentioned here a few times before. The company reported earnings this week and blew past estimates. Steven Mallas thinks this one could be a long-term good play, but short-term he fears the stock will pull back and could present a better entry point.
Baidu.com, Inc. (NASDAQ: BIDU) was noted by Elizabeth Harrow after it was started with a Sell rating at Pali Research. While "option players remain relentlessly bullish on the shares [...] and the bullish case for BIDU looks curiously compelling," it's unclear just how long before the shares start declining.
Steris Corp. (NYSE: STE) is "the world's leading maker of sterilization and decontamination equipment" and "is a fast-growing company in a recession-proof industry," according to Alexander Green. With a solid balance sheet, great management and excellent growth prospects, this one is a buy now.
Annaly Capital Management (NYSE: NLY), a real estate investment trust, is one of the stocks mentioned in Fortune Magazine's Ten Promising Stocks for 2009 and is currently paying almost a 15% yield. Sheldon Liber pulled the trigger on this one this week.
Apple (NASDAQ: AAPL) this week announced 2009 would be the last year it participates in Macworld and that Steve Jobs would not give the keynote address. This didn't concern Doug McIntyre at all. What did was the fact that Mac sales declined last month while PC sales increased. Going against most other BloggingStocks contibutors, he thinks AAPL is going to $50.
Goldman Sachs Group, Inc. (NYSE: GS) this week reported a greater loss than analysts expected and the stock still went up. Jamie Dlugosch warns against buying the "bill of goods" analysts are expecting when it comes to Goldman Sachs.











Reader Comments (Page 1 of 1)
12-19-2008 @ 9:05PM
cruisenot said...
The quickiest way to earn a 20% plus return on your money is to payoff your credit card debt. Guaranteed to work every time. Now is a great time to invest in paying down debt and hoarding piles of cash. CASH! Piles of cold hard cash is the best way to weather the current economic situation. I discovered one of the best books you'll ever find about finance, "How to Become Filthy Rich on Your Current Income" at www.how-to-become-rich.com. If people read books like this one we would not have the current situation we do.
12-20-2008 @ 8:50AM
Embassy49 said...
There arre many stocks in today's market that appear to be a good value for long-term investments, however, one has to be very cautious in making a determination of what to buy regardless of what the experts are emphasizing. I have followed their advice, and subsequently, I have lost thousands of dollars paying attention to their suggestions. Do your own homework, and research, and do not necessarily take their advice to the bank and think you can make a loan on it!
12-20-2008 @ 9:46AM
thomas said...
The last quarter results should be out by mid Feb. 09'. Expect the market to swan dive to the 5,500 - 6,000 range by July 09'. Close 09' 4,000 - 4,500. 2010 will be much worse. There is no stopping the next GREAT depression now. Just like the international banksters, who control the Federal Reserve, planned. Read "The Creature From Jekyl Island", by G. Edward Griffin to get a documented overview of what has and is going to happen.
12-20-2008 @ 10:07AM
thomas said...
The last quarter results should be out by mid Feb. 09'. Expect the market to swan dive to the 5,500 - 6,000 range by July 09'. Close 09' 4,000 - 4,500. 2010 will be much worse. There is no stopping the next GREAT depression now. Just like the international banksters, who control the Federal Reserve, planned. Read "The Creature From Jekyl Island", by G. Edward Griffin to get a documented overview of what has and is going to happen. This has all been planned to happen. The New World Order, ruled by the banksters, is on our door step. Stalin, Hitler and Mao would be proud.
12-20-2008 @ 11:12AM
worldsbestwriter said...
The War in Afghanistan was the main cause of the shut down the U.S.S.R.
Doesn't anyone wonder how spending $10 billion dollars a month on The Wars in Iraq and Afghanistan are effecting The Economy?
12-20-2008 @ 11:22AM
worldsbestwriter said...
WHAT'S HAPPENING:
All of those Aging Babyboomers are cashing in on "the rainy day" that they were told to save for.
or
Americans are simply tired of "investing" in things like overinflated real estate and don't want to buy another crappy automobile.
12-20-2008 @ 11:50AM
Bill said...
Stocks that will survive will be staples like kroger, walgreens, most banks, gov is in business with the banks , no way they dont go up, auto zone, stem , hcn, and I believe rite aid is a buy out stock .
bh
12-20-2008 @ 11:56AM
David said...
The Wall Street stock hucksters will not stop until you have lost your money and your future. Stocks have been overvalued for the same reasons as housing. Too many people trying to get rich quickly driving the prices up. Stock valuation models are designed to intice buyers.
This economy is nowhere near the bottom and 2009 looks to be a disaster. Keep your money in cash and let the Wall Street wizards place bets with each other. There may be good buys out there but until the real economy shakes out and people realize that they have been duped into what has happened the past few years, only a fool would place money in Wall Street's hands. They have lied to you for years and they will continue to lie to you to get their hands on your money.
12-20-2008 @ 1:44PM
David said...
Rite Aid is a buy-out stock? For who? The other pharmacy chains with stores on the opposite side of the street? More of the Wall Street con game.
Rite Aid is dead and bankruptcy is the next step.
Idiots are still hyping stocks they want to unload.
12-20-2008 @ 5:57PM
uster said...
I see some of the dumbest comments here that it boggles the mind.
I am into drug companies stocks and from the sickness of america today its the right place to be. Most of you should be on Prozac or something to improove your IQ
12-20-2008 @ 6:28PM
Kurt Garmaker said...
This economy would get better and fast, if the government would make banks make loans or if they wont, just take them over. The problem is that many items, that the consumer can afford to buy, that they still have jobs to be able to afford, is that they cannot get loans to buy them... and that is the problem. Yeah credit is easy for people with credit scores of 780 or so.. but the problem with the whole credit score thing, is that people with money tend to have the best credit scores, because they can pay their bills. People who do not earn much money or who have had to struggle, like small business owners do not have great credit scores.. so they cant borrow money. Not that I want to anyway. And i have paid off my credit card bills. Big deal.
12-20-2008 @ 7:04PM
larch said...
I BOUGHT NOKIA AND MOTOROLA YEARS AGO MADE QUITE A BIT OF MONEY OFF THEM WHEN I SOLD THEM 2 YEARS AGO, AM NOW BUYING THEM AGAIN-ESPECIALLY MOTOROLA --A STEAL IN THE $4.40 RANGE
12-27-2008 @ 11:17PM
mama mia said...
Just wait till after Christmas when, the crap hits the fan. If you were to put everything into place that the news media has release to Americans it brings us down to another great depression and history does repeat it's self. Just take a look back in history 1929 and move forward to our present date. A lot changes right. I , think not. Thank you Mr. Clinton for bluffing your way to the White House. Arkansas hates you for not doing a good job for the people . You admitted you failed at the health care issue you admitted your part in Freddie mac and Fannie mae and god knows what else you have your hands in beside your foundation. Make sure you sign on the dotted line so your beloved wife can keep her new job. Thanks to House and Congress on your advice you said all americans should own a house did that include illegals? No money down, No questions asked (hum) you had everyone thinking the economy was great so, we work 2 jobs and our butts off. Now when the big layoffs came, No more house, no more jobs. Plenty of real estate just sitting there rotting. But you sir put a lot of things to the back burner so you could fatten your wallet like the rest of your fellow democrats. OH, ALSO i WANT TO THANK YOU FOR LETTING THE TERRORIST ROAM FREELY FOR 4 years planning their attacks on us. Remember the first bombing of the trade center garage the USS cole, Black Hawk down in Somalia yup, those were your years in office. You left office and George Bush said in his speech that he didnot create this mess, he inherited it. Maybe a lot of bad calls on this war but, the country has been safe for 8 years. There will always be wars has been since the beginning of times. Thank you for creating such a mess it took just 16 years for your so called good judgement and the greed of wall street investors to make us poor people suffer. No Job, No food, No money
Merry Christmas to all Happy Holidays
1929 is just around the corner.
12-21-2008 @ 10:01AM
lawrence5819@aol.com said...
Buy all the gold & silver you can buy and put it in a safe place. When the USA stops giving our money away an when things get better in a few years cash it in. silver going to be $50oz an gold $2000oz soon very soon.There is a shortage of gold coins now thay have been over sold but it is not to late.Don't let anybody invest your money there are investors out there that will run with your money an you can't do anything about it.DO NOT BUY STOCKS LET THINGS GET BETTER