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Financial Gem Stocks Amid Lumps of Coal

Tuesday, 7 Apr 2009 | 11:48 AM ET

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."

Recommendation:

"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.

Maneuvering the Markets
Market strategy for investors who are waiting for the economy to recover, with Bob Auer, Auer Growth Fund and Andy Bischel, SKBA Capital Management.

Disclosures:

Disclosure information for Bob Auer was not immediately available.

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Hudson City vs Other Regionals:

Fifth Third Bancorp

KeyCorp

PNC Financial Services Group

First Niagara Financial Group

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Disclaimer

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HCBK
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KEY
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PNC
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