Barry James of James Advantage Funds likens the current market to a ball bouncing downstairs. Sharp drops are followed by rebounds that can make money for shrewd stock market investors.
"A number of stocks are very, very cheap today," he told CNBC. "About a quarter of them are trading below book value...we think that this particular rally could be significantly stronger and longer than the last couple we've had."
He has statistical evidence to back up his claim, too.
"Today, we have 22 of our indicators positive...versus only four negative," he said. "Sentiment certainly swung over to one side; you certainly have the money flow...so you've got a lot of things that are stimulative."
Recommendations:
With that in mind, what stocks are on his radar?
"I'd be buying BJ's Wholesale, Boston Beer, and Amtrust Financial, all cheap, good earnings, little debt," James said. "They don't have too much expectations, and they're buying back shares."
Disclosures:
Disclosure information for Barry James was not immediately available.