Our Best Value Plays Now: Strategists

Stocks were higher Thursday as GM shares surged in their trading debut and optimism grew for a deal to ease Ireland’s debt crisis. Sarat Sethi, partner and portfolio manager at Douglas C. Lane & Associates, and Patrick Becker, principal at Becker Capital Management, shared their best value plays.

“One of the stocks we really like is United Continental,” Sethi told CNBC.

“The whole industry—just like the auto industry—nobody likes, but this industry has consolidated."

"United Continental has the biggest roots, they’re going to cut costs and they’re trading at 5 times earnings.”

Sethi said UAL is a “great stock” to own and plans to hold onto the shares for the next 3 to 5 years.

Meanwhile, Becker said he favors Microsoft.

“As a stock, it hasn’t moved, but we think the multiple’s compressed enough that earnings can grow this stock,” he said.

Scorecard—What They Said:

  • Becker's Previous Appearance on CNBC (Oct. 28, 2010)
  • Sethi's Previous Appearance on CNBC (Oct. 13, 2010)

More Market Intelligence:

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Thursday's Top Dow Gainers:
(as of this writing)



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Becker owns more than 1.5 million shares of MSFT as a firm in the Becker Value Equity Fund.

No immediate information was available for Sethi or his firm.