Whirlpool knows emerging markets won't be down-and-out forever

Financial institutions have already started to incrementally add to positions in WHR, which suggests a substantial year-over-year revenue decline for FY 2009 is not likely. Look for FY 2009 revenue to decline, but by about 4-7%, not at a double-digit decline rate. Another positive: Whirlpool's well-known brands and distribution network positions the company to increase market share in emerging markets, once global growth resumes.

True, weakness in Latin America, North America, Europe and Asia is expected to continue through much of 2009, but any hint of a recession bottom, particularly internationally, but also in the U.S., will get institutional investors hitting the buy button, hence the time to start this appliance party is now, not in a year. The First Call FY 2009/FY 2010 EPS estimates for WHR are $2.82 to $3.93.

Stock Analysis: Whirlpool is a moderate-risk stock. Consider buying a 25% position in WHR now; then buy another 25% in three months, if U.S. economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your WHR position in the first half of 2009. Sell / Stop Loss if you were to buy shares in this company: $17.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.