What do fairy tales have in common with market opportunity? Let's see if these examples give you a clue. In The Tortoise and The Hare, we discover "slow and steady" reaches the goal more quickly than "fast and furious." In The Ugly Duckling, we're reminded beauty is only skin-deep, while true character lies deep within. OK, I think you get the picture. The Brothers Grimm knew the secrets of stock-picking better than most market analysts.
It's time to step back and stop putting those poison apples into your long-term portfolios. Plug your ears to the tech sirens and spend more time with the market's ugly ducklings. Where do you start? Just wave your magic wand and conjure up a few sleeping beauties on the weekly charts.
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| Source: TC2000 |
Hospitals are unpleasant to think about most of the time. But what if you could actually make money with them? Top provider HCA (HCA - commentary - Cramer's Take) rallied to its 1997 high last year and pulled back. HCA based for a few months and began a fresh run toward the old highs. It now appears the stock may break through a multiyear cup and handle pattern, and head for much higher prices.
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| Source: TC2000 |
American telecommunication providers are caught in the worst bear market in their history. But foreign carriers still show excellent buying opportunities. Just look at Telefonos de Mexico (TMX - commentary - Cramer's Take). This highly liquid stock is at an all-time high after a strong move off the September lows. Because TMX just broke above multiyear resistance to reach current price levels, this rally could continue for some time.
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| Source: TC2000 |
Not all utilities face the wrath of accountants and the Securities and Exchange Commission. And some even remind us of the good old days, when the sector was a safe haven. Philadelphia Suburban (PSC - commentary - Cramer's Take) is a water utility with an excellent price chart. It's doubled in price since the turn of the century, and now sits at an all-time high. The stock has drawn a bullish ascending triangle in recent months. If this pattern breaks the upside, PSC should be able to continue its run for a few more years.
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| Source: TC2000 |
You may not have heard of Ecolab (ECL - commentary - Cramer's Take) but you can see its effects whenever you visit a public restroom. This provider of heavy-duty cleaning products just broke above that three-year rectangle congestion. The stock is overextended right now and could pull back soon. But this decline may offer a buying opportunity that lets you clean up on the stock when the rally continues.
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| Source: TC2000 |
Playing with penny stocks can be dangerous to your pocketbook. But it's hard to avoid, with many Internet stocks down 95% to 99% since the bubble top. So if you want to trade the stock babies, make sure they're liquid and in a strong uptrend. Net directory LookSmart (LOOK - commentary - Cramer's Take) fulfills both of these requirements. It's rallied tenfold out of penny status in a move that would look great, if it weren't for the massive decline that preceded it.
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| Source: TC2000 |
Why trade individual stocks at all? Some NYSE closed-end funds are producing excellent returns. Just look at the performance of the Templeton Russia Fund. The chart has more in common with a growth stock than a trading tortoise. But if the Russian bear keeps on recovering, market bulls may have the last laugh.
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