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2 Under-Valued Stocks In An Over-Extended Market

With the Dow marching toward 11,000 and the S&P trading about 7% higher for the year, should you remain broadly bullish?

For a growing number of market pros, the answer is a resounding, 'No!'

They say the sectors of the S&P aren’t moving in tandem; that stocks are not moving in sync. In fact 124 stocks in the S&P are down for the year.

That’s not to say they’re bearish, they’re not.

But instead of betting on a broad rally, they say it’s a stock pickers market.

"The trick is to find undervalued stocks in a market that’s over extended like this one is," explains, says Hillary Kramer, the chief market strategist of A&G Capital.

She brought two names to the Fast Money desk that meet her criteria. They follow:

SuperMedia


--Parent of Superpages.com

--Formerly known as Idearc

--Emerged from bankruptcy in Jan.

--Down 59% YTD

This is an undervalued stock that's flying under the radar because it came out of bankruptcy in January, explains Hillary Kramer. They're trading at 2.5 times cash flow and the P/E is 4. But they're going to do over $2 billion in sales.

I think the stock easily has 25% upside and over the long-term more than that, she says. And their largest shareholder is Wall Street whale John Paulson. I like that too.

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Dendreon

--Develops cancer treatment drugs

--Up 45% YTD

--Up 534% over the past 1 year

I think Dendreon is a triple over the next 18 months, says Hillary Kramer. And I think in this quarter alone Dendreon will trade above $50.

If their cancer drug Provenge is approved I think the stock flies. And I believe it will be approved.

And in case you'rew wondering Hillary Kramer puts her money where her mouth is. A&G Capital Owns (DNDN) and A&G Capital Owns (SPMD).




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Trader disclosure: On Apr 5, 2010, 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 (AA), (AAPL); Finerman's Firm Is Short (IYR), (IWM), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's firm Owns (TJX); Finerman's Firm Owns (WMT), (SKS); Terranova Is Short (SHLD), (EL), (CAL), (UAUA), (FDX); Terranova Is Long May 2010 Crude Oil Futures; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (STLD) Call Spreads; Jon Najarian Owns (X) Call Spreads; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (CREE) Call Spreads; Jon Najarian Owns (DF) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (AAPL), Is Short (AAPL) Calls; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (IGT), (IGT) Calls; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (RS); Jon Najarian Owns (TJX), Is Short (TJX) Calls; Jon Najarian Owns (WMT), Is Short (WMT) Calls; Jon Najarian Is Short (RIMM) Puts; Karabell Owns (FCX), (AAPL), (RIMM), (SLB); Edwards Owns (UUP); Edwards Owns (TM)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (ANF) For Clients
Edwards Owns (BMY) For Clients
Edwards Owns (BRK.B) For Clients
Edwards Owns (FCX) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (JCG) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (RIMM) For Clients
Edwards Owns (VZ) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (WMT) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (PGM) For Clients
Edwards Owns (TM) For Clients
Edwards Owns (BKE) For Clients

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (IGT)

For Hilary Kramer
A&G Capital Owns (DNDN)
A&G Capital Owns (SPMD)

For Will Landers
BlackRock Latin America A Fund Owns (ITAU)
BlackRock Latin America A Fund Owns Cyrela
BlackRock Latin America A Fund Owns (VALE)
Landers Owns BlackRock Latin America A Fund



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