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Dykstra: Doubleplay With GE and Sanofi

Lenny Dykstra

During my playing days, a doubleheader was always a great way to pick up ground in the standings, take a few extra cuts at the plate, and hopefully notch two wins.

I'm bringing that excitement to this playing field today by publishing two picks today, one more than usual. Regular readers of my column know I typically publish columns on TheStreet.com twice a week. (I will also be launching a newsletter, Nails on the Numbers, that will have three exclusive columns and picks each week, as well as some other great features.)

For my first play today, I'm picking a stock I'm very familiar with and that has treated me well in the past. General Electric(GE Quote) has delivered two wins in my columns on TheStreet.com. I most recently picked the company in mid-April and it stayed in play for only nine days.

I had picked the stock after the company reported first quarter earnings that disappointed the operators on Wall Street. In fact, the stock took an absolute beating in the days following the announcement. The shortfall came as a surprise, especially since the bellwether almost never misses its targets.

Since that time, CEO Jeffrey Immelt has come under pressure to rationalize the company's business lines. It has already shed its insurance and plastics businesses. And last week GE said it plans to spin off or sell its appliance business.

The stock price is still in bad shape, which is bad news for GE but good news for us. Wednesday, the stock fell 73 cents, or 2.3% and hit its 52-week low of $30.91. It eventually closed at $30.99, which is well below its highest point in the last year of $42.15.

The stock hasn't been this low in almost four years. It's a Major League company and a great buy at this level. It has $48 billion in operating cash flow and $15 billion in the bank.

I am placing an order to buy 10 January 2009 $22.50 calls (VGEAX) at $8.70 or better.

My second play is Sanofi-Aventis(SNY Quote) today. I'll keep it short and sweet.

Shares of the healthcare research and development company are trading near their lowest point in the last year. The stock closed at $37.17 on Wednesday, just a couple of bucks above the bottom of its 52-week range of $35.06 - $49.04.

It released some bad, but not unexpected news yesterday when it said its cancer drug, Aflibercept, failed to achieve its goal in a recent study. However, I like this company and think it'll pump out a win.

The specifics: I'm going to buy 10 January $30 calls (OYCAF) at $8.20 or better. Don't forget that if either of these orders is filled, I will place a good-till-cancel (GTC) sell order $1.00 above the fill price.

Always Remember: Life is a journey, enjoy the ride!