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'Worst' Stocks Will Be 'Best' Performers: Analyst

Friday, 28 May 2010 | 9:46 AM ET

The 50 worst performing stocks during the previous correction in February are the best bargain stocks during this recovery phase, said Cleve Reuckert, senior equity analyst at Birinyi Associates. He shared his investment strategies with CNBC.

Big Fall, Bigger Recovery?
Checking out a list of bargain stocks, with Cleve Reuckert, Birinyi Associates.

Reuckert is still bullish on the markets and said the recent correction due to the euro zone problems is only a “short-term crisis.”

“There have been other sovereign debt crises in the past and the market has gotten over it and moved on and that’s what will happen now,” he said.

“It’s more likely that we’ll see more gains once we get through it.”

How He Invests:

“This is a case where you want to buy the losers,” Reucker told CNBC.

“It’s difficult to buy the stocks that have gone down and it’s difficult to hold positions that you have a significant loss on, but we found that the worst performing stocks are the best performers in the ensuing recovery.”

So where are the best sectors for these bargain stocks?

“With the currency issue, the materials, energy and commodity names have sold off significantly and probably present the best opportunity,” he explained.

Reucker's Bargain-Stock Recommendations:

Financial Stocks:

Genworth Financial

Marshall & Ilsley

Citigroup

Aflac

Energy Stocks:

Massey Energy

Rowan Companies

Anadarko Petroleum

Cameron International

Scorecard — What He Said:

  • Reuckert's Previous Appearance on CNBC (May 18, 2010)

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Opposing Market Views:

Bulls:

Bears:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Reuckert or his firm.

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Disclaimer

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