If you had the courage to buy last week, you made some money. All of last week’s Buy Rated stocks, except one, were up between 10-40% and Cheniere Energy doubled. Stocks were incredibly oversold with tremendous bargains and they may never be that cheap for a long time to come. Many quality tech stocks, blue chips, and speculative stocks have been making Triangle, or Head-and –Shoulders bottoms for the past few weeks, and last week many moved strongly out of those bases, which is a great sign.
Panic or not, at some point stocks just get too cheap; that is too cheap for the current financial earnings estimates for that particular stock, which is not to say that in the future, if economic conditions get bad enough, and unemployment gets a lot higher, and corporate earnings decline dramatically, and we have a Depression. Then, prices, especially of the Dow stocks and other blue chips, can go even lower.
The stocks below are up from their lows of last week, but are still cheap enough to buy, but we would be using our normal buying strategy. Our normal buying strategy is: Buy 40% NOW and 30% more on each 20% decline from the original buy price.
Our BUY RATED stocks (Friday’s closing prices): Freeport McMoran (NYSE: FCX, Stock Forum) 29.06; Boardwalk Pipeline Partners (NYSE: BWP, Stock Forum) 24.00; Kinetic Concepts (NYSE: KCI, Stock Forum) 24.21; Transocean (NYSE: RIG, Stock Forum) 82.33; Conceptus (NASDAQ: CPTS, Stock Forum) 16.20; Greenhunter Energy (AMEX: GRH, Stock Forum) 8.95; *Suntech Power* (NYSE: STP, Stock Forum) 17.50; Monogram Bio-sciences (NASDAQ: MGRM, Stock Forum) .50; Idea Mall (NASDAQ: MALL, Stock Forum) 4.48; Domino’s Pizza (NYSE: DPZ, Stock Forum) 6.95. Our OPTION PICK is: Suntech Power DECEMBER 17.50 CALL …Closed Friday @ 3.30 Ask –A BUY up to 4.00.
* Cotton’s stock of the week
** We hold a position in the stock or option