Barron’s cover discusses Jim Cramer, of
TheStreet.com (TSCM), and his stock picks that seem to underperform. Article is highly entertaining, so I decided to post it fully.
Read here.An interview with fund manager highlighted, only US listed stock he likes in
ANF.
It's time to peruse the financial sector because inexpensive shares are plentiful. Battered stocks like
Countrywide (CFC) and MGIC (MTG) could be bargains. Thrifts could be takeover targets. Other mentioned stocks include CIT, GNW, COF, ABK, MBI, BSC, JPM, TRV, WB, WM, MET, ETFC and LEH.
The shares of
Marshall&Ilsley (MI) look like a steal at around 44, and could be worth as much as 55. In M&I shareholders get a bank with solid prospects and a slice of a potentially hot tech stock.
The
Cabela’s (CAB) stock, which took a thumping during the recent credit-market squeeze, could climb 30% in the next year as store openings, big money makers, continue apace.
EMC (EMC) will benefit directly from
VMware's (VMW) rising profits, and will also enjoy gains in the sale of storage-area networks, thanks to virtualization's growth. It could be a $22-23 stock.
Nabors' (NBR) shares look enticing. Bulls think that the stock, now below 30, ultimately could hit 50. A big wild card: the possibility that it eventually will be an acquisition target.
“The Trader” column discusses
WaMu (WM), saying that the co will presumably pick up share in a chastened mortgage mkt with healthier lending standards when the dust settles. WaMu also has the liquidity to absorb newly originated loans onto its balance sheet, having pared its loan portfolio by some $28bn and increased core deposits by $5.2bn. A 28% slide this year had sent shares below 33 last week and lifted the co's yield toward 7%. "While I would not call the dividend yield well protected, I see no reason that it would be cut," notes Punk Ziegel analyst Richard Bove. If this holds true, investors might make more money on the WaMu yield than from the overall mkt's gain this year.
“The Trader” also highlights
Vail Resorts (MTN), whose shares have skidded nearly 20% since July peak. But Vail has many things going for it. For a start, it is a standout among peers for generating free cash flow. Even in a bad winter, its resorts generate more than $100m in FCF. That figure could rise to $140m in ‘08. That's not the only reason that Rochdale Securities analyst Hayley Wolff likes the stock. Pricing power is strong, and earnings comparisons with prior warm winters have grown easier. The co's private clubs also are cash gems.
