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  Wednesday, 9 Jul 2008 | 2:35 PM ET

Stock Picks: Word To the Ys (Part III)

Posted By: Andrew Fisher

They may be young, but members of Generation Y can profit from the stocks of some older companies, according to Ralph Shive of First Source Investment Advisors.

His themes include emerging market growth, consumer staples, and strong prospects for prosperity for those with long time horizons -- like Generation Y.

"They're companies where we're confident enough about the stability of the business, that (they're) something you can own and make money with, from the dividend and price appreciation," Shive told CNBC.

Recommendations:

His first pick is Archer Daniels Midland.

"They are truly a global supplier of the basic food ingredients," he said. "We think they do a very good job of -- no pun intended -- squeezing the margin out of corn, delivering commodities, creating higher-value products."

He also likes International Paper.

"Paper, pulp; we need them, and it's a global market," he said. "We think the company is setting up for some very powerful earnings in two to three years."

Third on his list is Verizon, which he sees as a defensive play, moving forward with mobile communications and text messaging: an oligopoly with good pricing power.

»Read more
  Wednesday, 9 Jul 2008 | 2:05 PM ET

Media Stocks: High Marks for Low Prices

Posted By: Andrew Fisher

If you ask Miller Tabak's David Joyce about media stocks, it might be easier to ask which ones he does not recommend than which ones he does.

Joyce has "buy" recommendations on no fewer than 21 media stocks, and it's all in the valuations.

"In a recession, in a bear market, you can be amazed at the kind of valuations you see," he told CNBC. "If you can be patient, this is a great time to accumulate these shares."

Which companies does he regard as most worth accumulating?

Recommendations:

"I think Disney is great," he said. "They've got phenomenal assets that they grow across all their platforms."

Valuation has also turned a former media pariah into a destination stock.

"Time Warner has a lot of things going for it, with a $9.25 billion dividend coming to them this year," he said. "They could buy back stock; they could be an acquirer; so there's turnaround possibilities there for their AOL division as well."

»Read more
  Wednesday, 9 Jul 2008 | 12:14 PM ET

Top Manager Sticks with Oil Stocks

Posted By: Andrew Fisher

Ken Heebner thinks the current cellar-dwelling market sentiment is overdone.

"Housing will continue to get weaker in a few of the states," the Capital Growth Management portfolio manager told CNBC. "But you're going to see the economy look better a year from now."

His CGM Focus Fund is up a stunning average of 32 percent per year over the last three years.

So where does he see opportunities in equities?

Recommendations:

Heebner has been enthusiastic about Brazilian petroleum producer Petrobras for a long time. He's no less enthusastic now.

"Petrobras continues to surprise on the upside," he said. "I continue to believe that this company, with 14 billion barrels of reserves, five years from now, we'll be looking at reserves of 100 billion."

He also likes gas and oil drilling equipment company Schlumberger.

"When there's a shortage of gas and oil, this company is doing very well," he said. "Earnings growth is going to accelerate during the second half of this year, because natural-gas prices have risen, and the oil services business in North America, which had been in a lull, is going to accelerate."

»Read more
  Wednesday, 9 Jul 2008 | 10:56 AM ET

Screaming Buys for Generation Y

Posted By: Krystina Gustafson

For Generation Y investors, deciding where and when to invest should be all about the time horizon, according to Bob Sullivan of Satuit Capital Management.

"They are certainly young enough to be involved in a lot more riskier type of equity allocations," he said. "They have more time to invest, and they have more time to get good, solid returns over the long run."

Here are Sullivan's recommendations for the estimated 70 million 14- to 28-year olds:

»Read more
  Wednesday, 9 Jul 2008 | 10:37 AM ET

Go For the Gold (Stocks)

Posted By: Andrew Fisher

The gold medal in the stock market's late-summer games will go to gold stocks, according to Thomas Winmill. Copper stocks are likely to show up on the medal stand, too.

The president and portfolio manager of The Midas Funds urges commodity-stocks investors to be keenly aware of the fundamentals in those markets. He says the world is looking at a huge deficit in copper production, and the market will get even tighter as the U.S. economy emerges from recession.

He says recent retreats in commodity stocks make them even more attractive.

"The second half is usually more favorable for gold," he told CNBC. "This is when you want to load up, when there's a lot of blood in the streets, as it were, and then perhaps lighten up when things are best for gold."

Recommendations:

"Look at Freeport (McMoRan)," Winmill told CNBC. "It's got huge growth in its unit production of copper, moly(bdenum), and gold, and it's a nice company, with a diversified asset base."

He also likes Kinross Gold.

"That's a gold-mining company that's been way sold down on overdone fears about Russia," he said. "[Russia has] come out today basically limiting stock that can be sold overseas, but not limiting ownership by foreign countries of resources in the country."

»Read more
  Wednesday, 9 Jul 2008 | 10:16 AM ET

Trader: Sell That Rally!

Posted By: CNBC.com

Ben Lichtenstein at tradersaudio.com offered CNBC his strategy for a mild rally like the one U.S. stocks enjoyed on Tuesday.

"I see most rallies as 'sell' opportunities," he said, explaining that the market needs to flush out to the downside.

Disclosures:

Disclosure information was not immediately available for Liechtenstein or his company.

Disclaimer

»Read more
  Tuesday, 8 Jul 2008 | 5:10 PM ET

Finding Wealth In Health

Posted By: Cadie Thompson

Look to health care stocks to find stable earners and diamonds in the rough while the market bottoms, said Connor Browne of Thornburg Value Fund.

Although Browne said his fund believes in a balanced portfolio with consistent earners, Browne said the market's volatility makes it a prime time to stock up on early growth stocks.

Recommendations:

Browne’s stable health-care play is Gilead Sciences, a drug company that provides antivirals for HIV/AIDS patients.

For a more risky move, Browne recommends buying stock in the health club industry, specifically Life Time Fitness.

»Read more
  Tuesday, 8 Jul 2008 | 4:37 PM ET

Health Care Picks: Big Winners

Posted By: Krystina Gustafson

Health care stocks can earn investors big bucks, so long as they know which ones to pick, said William Muggia, portfolio manager at Touchstone Mid Cap Growth Fund.

"Health care is a very diverse group, so there's big winners and big losers," he said.

His fund's two largest holdings are Celgene and Elan, whose multiple sclerosis drug Tysabri is "annualizing at $800 million" after being relaunched only two years ago.

But the company's biggest potential lies in its Alzheimer's treatments, Muggia said. Elan recently presented phase-two data on the disease, which will "potentially be the first disease-modifying agent ever in Alzheimer's," he said. The company will present the full data set on the drug July 29.

Muggia placed Elan's market cap at $16 billion.

Disclosure

Disclosure information was not immediately available for Muggia or his fund.

Disclaimer

»Read more
  Tuesday, 8 Jul 2008 | 4:25 PM ET

Gartman: Where Steel is Going

Posted By: JeeYeon Park

Dennis Gartman, founder of The Gartman Letter explained the reasons behind U.S. Steel’s recent slump.

1. The auto companies are not taking any of the increased prices.

2. China is coming off their Olympic build-up.

3. There is an overall global slowdown in steel demand.

“All of those things were priced into the steel prices. It’s just a normal ebb and flow of the economy.”

»Read more
  Tuesday, 8 Jul 2008 | 2:55 PM ET

Get Y's: Stock Picks for Gen Y

Posted By: Andrew Fisher

Technology and textiles offer some unique opportunities for investors under 30 -- the demographic known as "Generation Y" -- according to Romeo Dator of U.S. Global Investors.

The co-manager of the All American Equity Fund gave CNBC some likely picks for the laid-back, tech-savvy set: Buy what they know.

"I think (they) should look at this as an opportunity to buy after a sell-off, because I think (they) have a very long time horizon," he said of the current market environment. "We're starting to see very attractive valuations."

Recommendations:

Topping his list is Apple.

"You have a group of people with Generation Y who have grown up using Apple products -- the iPod, the Macintosh computer or the iPhone -- and I think they'll be fairly loyal to Apple; I think they'll continue to introduce very good products that they want to use," he explained.

Near-term, Dator notes that the newest-generation iPhone is to be introduced on Friday.

He also likes videogame retailer GameStop, despite the availability of online games for downloading.

"You're not going to be downloading games, because they're just so big, and we don't have the bandwidth to do a lot of that downloading, so I think videogame sales will still be fairly strong until we get that bandwidth built out, which I don't think will happen in the next five years," he said.

His third pick is premium jeans merchant True Religion.

"Fashion is also very important to the Generation Y crowd, and I think that's the best pure denim play," he said. "Denim is still selling well at Bergdorf, Saks, and Nordstrom."

»Read more

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  • The CNBC Stock Blog is a cross-section of expert opinions and insights from our TV and Web site coverage. This blog includes posts written by and about top analysts and strategists, super-investors and CNBC's own market mavens. You'll find stock picks, news about publicly-traded companies, commodities, hot sectors, ETFs and the latest options action.

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