This week, the short-term rally of the last few days of the holiday season was over. While many hope the economy would start rebounding toward the end of the year, more voices are now heard saying the recession will be longer and deeper than estimates. The only thing that could help is a proper stimulus plan.Indeed, President-elect Obama's transition team and his chosen staff have already been working on a plan, trying to push legislators to act swiftly. As investors received news of one dismal economic report after another -- from retail sales, auto sales, housing, manufacturing and employment -- the corporate side also continued to show considerable weakness with earnings warnings coming nearly daily.
The real question is whether the stimulus plan and the Federal Reserve actions, alongside similar moves taken around the world, could give the boost the economy so desperately needs. It seems several BloggingStocks contributors believe this might be the case as they looked at long-term investment ideas. Here are some of their picks from the past week:
Buffalo Wild Wings (NASDAQ: BWLD) actually saw an increase in value of 62.3% during the quarter. It has a strong capital position and is nearly debt free. It has actually seen a third-quarter same-store sales growth of 8.3%. There has been some pressure on the stock following an earnings miss due to growth, creating an opportunity for astute investors, says Jamie Dlugosch.
Bristol-Myers Squibb (NYSE: BMY) has both quality and potential. Myriad Genetics (NASDAQ: MYGN) could be a "big winner in 2009." Pfizer (NYSE: PFE) is a solid buy thanks to its cash and yield. These are just three of the ten drug and health care stocks Steven Halpern brought from different advisors.
United Parcel Service (NYSE: UPS) may not bounce like some of the worse hit stocks, but on a risk-reward basis Sheldon Liber thinks it remains a good bet.
Family Dollar Stores (NYSE: FDO) increased nearly 30% in 2008, defying analyst expectations and short sellers. Steven Mallas thinks it could be a buy after a pullback, and expects the stock to reach its 52-week high of over $32 per share, especially if economic conditions continue to worsen. Jamie Dlugosch adds that it is in a strong capital position with the capacity for significant future growth.
The Mosaic Company (NYSE: MOS) sold off during the summer, but rebounded Tuesday after reporting earnings Monday. Jamie Dlugosch believes this one could be "in prime position to ride a global boom in agricultural crop demand that resulted in its shares skyrocketing more than $130 from trough to peak." He thinks this is the time to buy before momentum players jump back in.
Devon Energy (NYSE: DVN) shares fell in parallel with oil prices. But, says Jamie Dlugosch, "oil prices can be expected to rise as global economies recover during the year." Long-term, then, DVN is a buy.
Finally, Jim Cramer is actually bullish on the Dow. In a series of five posts, Cramer did a bottom up analysis of each of the Dow Jones Industrial Average stocks. While he wouldn't go near General Motors (NYSE: GM), his top five picks are: Citigroup (NYSE: C), Alcoa (NYSE: AA), Bank of America (NYSE: BAC), Du Pont (NYSE: DD) and JPMorgan Chase (NYSE: JPM). Check out the posts:
- Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part I
- Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part II
- Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part III
- Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part IV
- Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part V
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Reader Comments (Page 1 of 1)
1-10-2009 @ 2:13AM
ConcertGuy said...
I'm always down for a great deal, so I hit up Buffalo Wild Wings on Tuesdays for their 40c wing nights. It's also nice to get in a game of trivia or two.
1-10-2009 @ 1:27PM
Nick Miller said...
It is amazing how much we have spent that we have never earned, looking at the federal deficit is truly shocking and so is consumer debt... It will be interesting to see what our nation looks like in 10 years.