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Doug Kass: These Stocks Are Stupid Cheap

He’s said it before and on Thursday strategic investor Doug Kass said it again. Go long.

Although the president of Seabreeze and CNBC contributor concedes he was early when he told us on August 9th that the market had made its lows, he’s convinced that Tuesday’s lows will, in fact hold.

And he suggests putting money to work in non-bank financials. “Life insurance companies are stupid cheap,” he says.

Trader Pete Najarian agrees. “I saw a lot of activity that suggests bulls are stepping into names like Hartford .”

But in this space, Kass tells us he’s most excited by an online broker.  “My largest position in this space is in E*Trade ,” he says.

Kass is betting that published reports prove prescient and that billionaire hedge fund manager Ken Griffin, who is E*Trade's largest shareholder, will successfully agitate for the company to sell itself. "And I think Ameritrade or Schwab will buy the company around $16," Kass says.

The Jobs Report Trade

And that's not Kass' only play. For those of you who are very nimble he also suggests going against current momentum and shorting the S&P – especially if the jobs number comes in stronger than expected.

”I would be a seller of a jobs related bounce,” he says. That’s because the odds are against the market holding all the gains. ”This is the 5th time since August 15th that the S&P has made at least a  75 point move from low to high. They were all given back.”

But make no mistake, Kass is making trading calls.

“If anything this is a market that’s conducive to opportunistic trading at the expense of the buy and hold crowd,” he says. “In this market, if anything, you have to be nimble.”

* As you may know, Doug Kass is widely followed for his market timing. Last year -- on July 6, 2010, Kass said the market had made its lows for the year and his call proved to be extremely accurate.

And less than a week before the S&P 500 hit a generational low of 676 on March 9, 2009, Kass went on CNBC and predicted the bottom. (You can click on the links in the preceding sentences to go to those posts.)

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