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Next Week's Stock Picks: Tobacco to Biotech

CNBC.com
Friday, 11 Jan 2008 | 12:56 PM ET
Friday Trade
Preparing your portfolio for next week, with John O'Donoghue, Cowen & Co.; Steve Grasso Stuart Frankel; Dave Rovelli, Canaccord Adams and CNBC's Mark Haines

Time to prepare your portfolio for next week -- and Steve Grasso of Stuart Frankel and John O'Donoghue, head trader at Cowen, offered CNBC/CNBC.com viewers and readers their top stock tips.

Grasso praises tobacconist Altria Group for "standing the test of time" -- and sees more profit to come from its planned spinoff of Philip Morris International over the next few months.

He advises extreme caution with financials -- but urges savvy traders to wait for the moment when banks are ripe for a bounce. Grasso gives "Kudos to Merrill Lynch" for bringing in an outsider to lead.

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Too late for Merrill -- or too soon? Read:

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O'Donoghue likes biotechnology, and notes that the biotech index has gained 6 percent more to the upside over the past few weeks. Specifically, he recommends Genentech, due to report earnings Monday, and Millenium Pharmaceuticals. "Take advantage of short-term weakness" in biotech, he says.

For the present, he would shy away from retail, noting that even some luxury names like jeweler Tiffany have glum outlooks. But the "crescendo of selling" may already be happening -- heralding opportunities in the coming quarters. (Full Story: Tiffany Cuts Outlook After Holiday Sales Decline)

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