The latest GDP results sent the stock market surging. But with government stimulus largely driving growth in the economy as well as the stock market, who will keep the mojo going?
Many investors aren’t sure. They’re concerned that strength was bolstered by things like Cash for Clunkers and first time home buyer tax credits.
With those incentives gone or at least only temporary, how should you game stocks?
It’s a valid question and one we posed to Louis Navellier chief investment office at Navellier & Associates. He told us to focus on companies that will grow no matter what happens with stimulus.
Here are Navellier's Plays:
- Tessera Tech
Navellier: They’re helping patent all the technology on the smartphones. And I’m very comfortable with their business model. But let the dust settle. I think this is a buy in a few days.
Navellier: They’re in the diet business. Sales and earnings have been strong and it too is a very well run company.
Navellier: They’re in the oil services business and service a lot of turbines. I expect about an 8% up-side earnings surprise. And they have a great international business that should benefit from the weak dollar. I think it could easily go up 20%- 30%
- Southwestern Energy
I’m expecting at least a 17% earnings surprise. They’re a horizontal driller down in Arkansas and the reason we have more nat gas then we know what to do with. But the price of nat gas is starting to rise.
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Trader disclosure: On October 29th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (AA), (BAC), (BX), (EEM), (MYL), (INTC), (MSFT), (VALE); Seymour Is Short (FXI); Grasso Owns (AAPL), (ABK), (BA), (C), (COST), (PFE), (WMT), (FAZ); Terranova Owns (IBM), (QCOM), (GS); Finerman Owns (BAC), (PDE), (TGT), (WMT); Finerman's Firm Owns (PDE), (FLS), (RIG), (TBT), (YUM); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (UNG), (TLT); Jon Najarian Owns (INTC) Calls, Jon Najarian Owns (AMD) Calls
For Steve Grasso
Stuart Frankel Owns (MSFT)
Stuart Frankel Owns (PFE)
Stuart Franked Owns (SDS)
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