THE BEAR
OK the futures are up between 4 and 5% as I type and foreign markets have put in a big up day so far. And lots of at/near the bottom calling in Barrons this weekend led by everyone's favorite bear Fred Hickey.
According to Barrons:
"Fred remains skeptical about the outlook for techs generally. He sees the sector as immediately vulnerable to a blizzard of lowered earnings estimates in the weeks ahead. And what impressed him most about IBM 's (IBM) third-quarter report, released last week and somehow overlooked by investors starved for a scrap of bullish fare, was that the company missed its revenue target by a bunch, not the most favorable of omens.
An old Boy Scout, Fred staunchly believes in being prepared. So he has drawn up a list of what to buy comes the post-capitulation rally. Since he's convinced we're heading into a deep and extended recession, his picks are restricted pretty much to companies boasting high cash flows, clean balance sheets and hefty gross margins.
Microsoft (MSFT) is at the top of his list if it can be snared in the low 20s (he bought a little last week). He considers EMC (EMC) attractive in the single digits, reckoning that demand for storage equipment will hold up even in a recession; its software business has been growing rapidly, and it owns most of VMware , No. 1 in virtualization. For that matter, he likes VMware (VMW) itself, plus a bunch of other software companies from Adobe Systems (ADBE), Sybase (SY) and Oracle (ORCL) to Lawson Software (LWSN) and JDA Software (JDAS).
He thinks Nokia (NOK) might be worth a look, thanks to its status as the leading mobile phone maker and the stock's 5% dividend.
And if you can buy Cisco Systems (CSCO) in the teens, you probably won't be sorry. Why, perhaps a tad giddy, Fred even suggested Apple (AAPL) in the 70s or low 80s might be worth a fling.
But mind, he's proposing these as stocks strictly for a rebound, if and when, but not to fall in love with."
Fred is usually as bearish as they come and usually is pretty good when he says buy - like MSFT now.
According to Barrons:
"Fred remains skeptical about the outlook for techs generally. He sees the sector as immediately vulnerable to a blizzard of lowered earnings estimates in the weeks ahead. And what impressed him most about IBM 's (IBM) third-quarter report, released last week and somehow overlooked by investors starved for a scrap of bullish fare, was that the company missed its revenue target by a bunch, not the most favorable of omens.
An old Boy Scout, Fred staunchly believes in being prepared. So he has drawn up a list of what to buy comes the post-capitulation rally. Since he's convinced we're heading into a deep and extended recession, his picks are restricted pretty much to companies boasting high cash flows, clean balance sheets and hefty gross margins.
Microsoft (MSFT) is at the top of his list if it can be snared in the low 20s (he bought a little last week). He considers EMC (EMC) attractive in the single digits, reckoning that demand for storage equipment will hold up even in a recession; its software business has been growing rapidly, and it owns most of VMware , No. 1 in virtualization. For that matter, he likes VMware (VMW) itself, plus a bunch of other software companies from Adobe Systems (ADBE), Sybase (SY) and Oracle (ORCL) to Lawson Software (LWSN) and JDA Software (JDAS).
He thinks Nokia (NOK) might be worth a look, thanks to its status as the leading mobile phone maker and the stock's 5% dividend.
And if you can buy Cisco Systems (CSCO) in the teens, you probably won't be sorry. Why, perhaps a tad giddy, Fred even suggested Apple (AAPL) in the 70s or low 80s might be worth a fling.
But mind, he's proposing these as stocks strictly for a rebound, if and when, but not to fall in love with."
Fred is usually as bearish as they come and usually is pretty good when he says buy - like MSFT now.
posted by DAVID at
7:57 AM
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