Bob Auer of the Auer Growth Fund has some definite standards for choosing stocks. He gets a chance to use them every earnings season — and this tough time is no exception.
"What we're looking for, when this earnings season unravels, we want to see if we can find any companies that had an up-25-percent quarter, an up-20-percent on revenues, that we can buy at reasonable valuations, usually below 12 P/E," he told CNBC. "We're looking for fast, explosive-growing companies at very cheap prices."
"We own a stock called Hudson City Bancorp," Auer said. "They just issued their annual report, (saying) 'We operated in 2008 in a totally different world than the rest of the world.'"
Hudson City, a regional bank in the Northeast, is in the mortgage business — but it does not make any mortgages it is not willing to hold itself.