Small Investor? Play Like the Big Guys

Andrew Fisher

John Buckingham is just like the average investor -- only with the volume turned way, way up. 

The chief portfolio for Al Frank Asset Management finds himself owning a lot of stock caught in turbulence -- and he's looking beyond it to find finding some novel opportunities.

Buckingham's firm owns both JPMorgan Chase and Bear Stearns.

"We do have mixed emotions here, because we own more JPMorgan, and they were getting a phenomenal deal for two dollars a share," Buckingham told CNBC.  "Ten dollars a share is also a phenomenal deal in my view, so we're going to continue to holds both of those stocks."

Other financials which Buckingham's firm owns -- and which he recommends -- include Citigroup, AIG, and Hartford.

"Absolutely, I'd be buying these stocks today," he said.  "But, to be fair, we have owned them for a long time, and that's why you've got to diversify your portfolio.  You can't always have your sectors go up...Lehman Brothers is up 100 percent from the low last Monday, so the phenomenal gains are out there.  You've just got to be patient and get yourself placed in advance of that big move up."

What about names nobody knows...yet?

Buckingham likes Chinese online gaming company The9.

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"We like companies with great balance sheets," he said.  "The9 has over ten dollars a share in cash, a profitable company, P/E's around 15, and we think online gaming in China is a great growth area."

He also likes American Software.

"The fact that it's lost a third of its value this month alone, the fact that it's got about three dollars a share in cash, and a 6-1/2 percent dividend yield, and a P/E of 16," he said.  "You can get phenomenal gains on these companies, but you've got to have a strong stomach,'ve got to diversify."