This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fund Managers' Black Friday Stock Deals

Intrepid All Cap Fund's performance since inception corrected in this update.

BOSTON ( TheStreet) -- Investors may regard Wal-Mart (WMT) and Target (TGT) as the best Black Friday stock picks, but fund managers say International Speedway (ICSA) and Microsoft (MSFT - Get Report) are among sale items to buy.

Black Friday kicks off the holiday shopping season this week with retailers offering special deals and promotions to draw shoppers into stores. Similarly, money managers are highlighting company stocks to lure value investors.

Value investors try to buy, as is a common saying, $1 for 50 cents. But with the stock market's recent run, investors say it has been harder to find true value picks with the promise of price appreciation. Since the start of September, the S&P 500 has rallied 15%, the Dow Jones Industrial Average has climbed 11%, and the Russell 2000 Value index has jumped 17%.

"The market has moved up pretty sharply since the end of summer, and that makes my job harder as a value analyst," says Greg Estes, manager of the Intrepid All Cap Fund (ICMCX). Estes says cash is at 17% of assets and has been creeping higher as investment ideas dry up.

"As the market runs up, everyone is happy. But I'm not happy. I can't find things," Estes says. "A lot of the names I liked several months ago, those discounts have shrunk."

Just as retail shoppers need to be aware that some red sale tags aren't necessarily a good deal, value investors need to manage the risk of buying a cheap stock that won't rise -- a so-called value trap.

"It's important that you get what you pay for," says Mike McGervey of North Canton, Ohio-based investment-management firm McGervey Wealth Management. "Or perhaps on Friday, you get a bargain on a quality stock with promise for price appreciation. A stock at a great value may not provide significant price appreciation."

TheStreet spoke with four investment managers who take a value approach -- along the lines of Warren Buffett and Bruce Berkowitz -- to get their own Black Friday value-stock selections. Read on to see which stocks they believe trade at an attractive discount, much like the LCD televisions at Wal-Mart this holiday weekend.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BBT $38.56 0.00%
GD $133.98 0.00%
ISCA $32.31 0.00%
MSFT $40.72 0.00%
TRW $104.98 0.00%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs