Bally Technologies—“We think the casino industry is underinvested over the past few years and they’re going to have to make up for that in 2010-2011,” Kestenbaum said.
“They’re picking up a lot of market share and yet it’s valued at a 15 to 20 percent discount to its competitors. They’re all over the globe [including Macau].”
Great Lakes Dredge & Dock—“We like this because of the Jones Act," which eliminates foreign competition from entering the market, he said.
“They’re the leader with 50 percent market share and the industry grew 30 percent last year. We think they’ll continue to dominate that and a lot of the stimulus spending is going to help them in 2010.”
Nuance Communications—“We think voice recognition is ready to take off,” he said.
“Hospitals will be able to use it for health care to cut costs. On the mobile side, there’s real opportunity because some states may pass regulations against texting, so we think voice recognition becomes even more compelling.”
Pep Boys—“It’s a turnaround story—they have a service center business, which is growing, and in the core business they’ve cut a lot of costs this past year and we think it will continue to do that,” he said. “So you’ve got some growth with value in that stock.”
Raytheon—“We like that part of the defense industry because they’re platform-independent and they’re growing internationally,” said Kestenbaum. “So we think there’s solid growth there.”
Volcano—“It’s a way to cut costs for hospitals—over $2,000 per procedure—and they’re going to be rolling over several new products over the next year and it should help the stock,” he said.
Kestenbaum’s 2009 Picks: (c. 9/9/09)
“We have lowered our rating on IMAX and Flir,” said Kestenbaum. “We still like RCN a lot, and we think Garmin has issues [in the] long-term.”
- Watch Kestenbaum's Previous Appearance on CNBC (Sept. 9, 2009)
More Market Views:
- Cramer's 12 Stocks to Play the Recovery
CNBC Data Pages:
No immediate information was available for Kestenbaum or his firm.