No one seems to be in the stock market lately. The Dow industrials and the S&P 500 reached 1997 levels Monday as investors lost confidence in the government plans to pull the economy out of its doldrums and fix the financials markets. Is now the time to be contrarian?
If you think so, here are a few picks and warnings from BloggingStocks and around the Web:
Apple (AAPL) -- with tech and healthcare enjoying (relative) success as investors believe they don't need access to credit, Mark Fightmaster had Apple in mind. But he warns that it faces quite a bit of technical resistance. Never mind the continuing health concerns of Steve Jobs, the stock could continue to bounce between the $80 and $100 levels, and even in a tighter trading range.
Immucor (BLUD), the automated blood testing equipment maker, is the choice of Brandon Clay and a Alexander Green as a recession-resistant buy. Immucor has state-of-the art technology, plenty of cash and little competition. If you're looking to profit from essential blood testing equipment with little competition, go with BLUD.
General Electric (GE) continues to be one of Shledon Liber's picks as he sells naked puts three years out. He "bets GE will still be in business in three years. Even losing it's AAA rating and cutting it's dividend does not portend this kind of dour outlook."
Celgene (CELG) is a buy under $73, says John McCamant. Following its strong fourth quarter and year end results, the growth prospects and management's ability to deliver the goods seem promising. With its Revlimid drug, Celgene could be a potential target.
Perrigo (PRGO) makes cheaper versions of over-the-counter drugs and it is a Barron's pick as it could be the right medicine in this economy. The company dominates the market for over-the-counter, store-brand medications. The recession seems to be helping sales, without hurting the bottom line. Shares are inexpensive, "making it a decent bet for investors looking to capitalize on the changing nature of retail."
Baldor Electric (BEZ), Merck (MRK) and Phillip Morris International (PM) are three stocks for bottom fishers from SmartMoney. BEZ, with its 5.4% dividend yield should be part of the environmental push. MRK, with a similar yield, should be able to replace revenue of drugs coming off patent soon. PM offers -- other than cigarettes -- growth, a 6.1% yield and a company in strong financial position.
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