CNBC Stock Blog
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Option Bulls Take Another Shot on Idenix
- Top 20 European Stocks for Crisis Time: Strategist
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- DuckDuckGo Cooks Google’s Goose: Analyst
- General Electric’s $4.5 Billion Dividend Slated for Buybacks
ABOUT THE CNBC STOCK BLOG
ART CASHIN
RSS FEED
Market Is 'Below Fair Value'—Here's How to Play It
Text Size 
CNBC.com Writer
This market is bound to grow and so investors should take advantage of these following sectors, agreed Sarat Sethi, partner and portfolio manager at Douglas C. Lane & Associates, and Craig Callahan, founder and president of ICON Advisers. They shared their best investment plays.
“The market is about 30 percent below fair value, so stocks are on sale and we expect the rally we had over the last year to resume through the remainder of this year,” Callahan told CNBC.
Callahan favors the transportation sector.
In the meantime, Sethi said although the markets will be volatile in the next six months, investors will eventually be glad two to three years down the road if they bought "companies that are cheap" now.
“Stick with really good balance sheet companies that can grow, like linear technology that makes analog products—they’re supplying all the autos and the iPads," suggested Sethi. "These are companies [whose] multiples have come down by 50 percent—and people are pricing this market as if this company’s not going to grow anymore."
“So I like the semi space, especially the specialized semi-space, the consumer space and staple space.”
Sethi Likes:
Cypress Semi. [CY
Loading...
()
]
Fairchild Semi. [FCS
Loading...
()
]
Lattice Semi. [LSCC
Loading...
()
]
National Semi. [NSM
Loading...
()
]
Pericom Semi. [PSEM
Loading...
()
]
Callahan Likes:
Transportation
Railroads
Air Freight
Airlines
Machinery Industries
Scorecard—What They Said:
- Callahan's Previous Appearance on CNBC (Jul. 13, 2009)
- Sethi's Previous Appearance on CNBC (Jun. 16, 2010)
______________________________
Market Views—Across the Board:
- Earnings Surprises Will Be Mostly Nice: Strategist
- Expect 'Range-Bound' Market for Next Few Years
- Art Cashin: If S&P 'Stalls' Now, Bears May Seize Market
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
______________________________
Disclosures:
No immediate information was available for Callahan or Sethi.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes
