Starbucks stock retreated in heavy volume after a report suggested the coffee chain's growth may be losing some steam.» Read More
Paul Justice, Morningstar Equity Analyst
-Expects positive results from utility companies this week.
-A few headwinds in the regulatory space.
Constellation Energy Group , Public Service Enterprise Group , NStar.
Wish you bought into Warren Buffett's Berkshire Hathaway before it was $130,000 per share? *
James Altucher, managing director at Formula Capital, told CNBC about three stocks that just may be "the next Berkshires."
If he's right, investors will want to make like the billionaire investor Buffett and buy'em fast -- while they're still low.
Altucher's top pick: Pacific Northwest electricity supplier Otter Tail.
"They invest in medical, snack foods -- anything undervalued," the strategist said. Otter Tail has raised its dividend every year for the last 33 years.
And one more plus for the power company: its No. 2 shareholder happens to be Microsoft founder Bill Gates.
Next is insurer Markel, which is "like a mini-Berkshire," Altucher declared. The firm's portfolio has "regularly" returned 20 percent yearly, and its chief investment officer is "top quality."
"I almost think Markel could be a Berskhire acquisition target," he said.
Don't worry about the collapse of the Microsoft-Yahoo deal, says Jason Trennert. The chief investment strategist for Strategas Partners says it's definitely the season for corporate weddings.
"If you're if you're thinking about M&A, I think this is the year to do it," he told CNBC Monday.
A lot of that, he says, has to do with the political climate.
"There's a lot of questions about the sustainability of the Bush tax cuts on dividends and capital gains," he said. "If you're thinking about selling your company, obviously you can do it at a much lower tax rate, and also you know what the regulatory regime is."
Trennert sees attractive takeover targets in the technology sector.
"It has very little debt, tons of cash...[and] it's not dependent upon the debt markets," he observed. "In this environment, cash is king, and I think technology is well positioned."
The top targets he's spotted are SanDisk and Commscope .
Niche companies, such as alternative energy or unconventional products, are becoming more attractive as stock markets volatility continues, Alexis Dawance, fund manager at Global-Cap, told CNBC Europe.
A solar module manufacturer, a Brazilian beef company and energy efficient light-bulb group are the stocks that Dawance recommends.
Solar module and specialty glass manufacturer Centrosolar was acknowledged by the market as a German module-only company.
Banks are a good long-term investment, but in the short and probably medium term fears of further writedowns will still send shockwaves through the market, analysts said on Tuesday.
Credit Suisse provided the latest evidence thatinvestors are spooked even by good news from banks. The company's shares slipped although it reduced total writedowns caused by the subprime crisis.