Bargain-Hunting In a Wild Stock Market

Volatile markets can eat a portfolio alive --  but they can also create real bargains for investors, according to senior editor Jeffrey Kosnett of Kiplinger's Personal Finance.

At the top of his list is Apple .

"It's been a great year for Apple's business," Kosnett told CNBC.

"Why should a stock go down 20 percent in three hours, like it did the other day?  They just had the misfortune to announce their earnings on the morning of the 'great panic.'"

Then, there's American Capital Strategies .

"The easy rap on that is that we're going to have a recession," Kosnett said.  "But if you look at the quality of their positions, and the kind of companies they're in, it's very diversified, and they'd have to have a lot of problems for that dividend to be impaired."

American Express is another victim of over-reaction, he believes.

"If you saw what happened to American Express after 9/11, it was a great time to buy it, when nobody thought that anyone would want to spend any money, or fly, or go on any vacations, and we have the same overdone negativism about business and consumer spending," he said.

He also likes AT&T : "There was a small part of their declining wireline business where they said they were having slow growth," Kosnett recalled.  "Traders picked one negative out of a pile of stories and dumped the stock."

CONTINUED: More of Kosnett's Stock Picks

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