Over the past several weeks the traders as well as Fast Money friends have revealed some of their top trading ideas for the second half of 2010.
But unless you had a pencil and pad handy you might have missed some of their suggestions.
And that got us to thinking...
Why not put together a feature -- all of their plays all in one place.
Following you'll find Tomorrow’s Trades – market themes to keep an eye on through the end of the year!
By Lee Brodie
Posted 28 July 2010
Although I'm bearish on the market broadly I’m bullish on IBM. Despite their disappointing earnings, I think the stock is a screaming buy. They have a great balance sheet and a lot of cash on-hand. Just on valuations, IBM looks extremely cheap.
I expect to see a rotation out of junk and into quality. Junk rallied in the first half and I think quality rallies in the second half. My play is long Hewlett-Packard, a quality stock that I think is currently overlooked.
In this environment, I’d step back and look for value. If you can own a US multi-national with a 5-6 percent earnings yield when the 10-year is hovering around 3 percent that seems cheap to me. Perhaps look at Kraft.
I like infra-red imaging company FLIR. The government is a big customer making them fairly immune to the weak economy.
Also, FLIR has a great balance sheet. On top of that, I think it’s a digestible company for someone much bigger in the defense space; rival Argon was taken out at a big price.
I’m bullish on McDonald’s. I love the growth - they're growing around the globe especially in Asia. Also, they manage themselves so well they typically profit in both the tough times and the good times.
Food companies look attractive to me. I’d look at Kellogg, General Mills and evenP&G. They’re healthy multi-nationals with attractive dividend yields.
I'd look at tobacco stocks. Check out Altria as well as Lorillard and Reynolds American. A Supreme Court decision removed huge liability headwinds and their dividend yields are attractive.
The utility space is worth watching. With a 4.7 percent dividend yield check out Dominion Resources. Talk about too big too fail—if a utility were to go down, I'm all but certain the government would step in!
My value play is Corning. As a maker of glass for computer gadgets they benefit to the whole hand-held craze. Trading at 8 times earnings how can you not love this as a play on computer growth.
Also I like Arrow Electronics. Right now its trading at seven times forward earnings, where in the past five years, it has traded at twelve times. At this valuation I'm willing to bet the manufacturing economy is not dead.
I believe we’ve reached a yearly low for the market for 2010. In anticipation of a snapback in the second half, I’d look at the technology sector for beta. Google, Amazon and Apple are three stocks in the space worth watching.