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Stock pick and pans for troubled times: DIS, Q, RTN, RIMM, GIS, BIDU, STE ...

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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.

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DJIA+17.4610,023.42
NASDAQ+7.122,112.44
S&P 500+2.671,069.30

Last updated: November 08, 2009: 07:15 PM

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