In my previous career as a professional baseball player, being successful 30% of the time created millions of dollars worth of buying power and a legitimate shot at the Hall of Fame. But in the real world, that same 30% success rate is a ticket to bankruptcy court. Therefore, I will continue to "work the count" so I can get on base and maximize the chances for success.
With that in mind, let's take a quick look at last week's picks, and then move on to some stocks that are going to make you some "real money."
Mine Safety (MSA Quote - Cramer on MSA - Stock Picks) was up nicely before getting hit Monday along with the broader market, losing 2.8% to $41.23. This pullback (on weaker-than-average volume) gave me an opportunity to reload my position; I have successfully traded in and out of this stock previously and believe this pullback is another good buying opportunity.
Boston Scientific (BSX Quote - Cramer on BSX - Stock Picks) has come down slightly in the past week, but it just received FDA approval for its Flextome cutting balloon catheter to treat coronary artery blockages resistant to regular balloon angioplasties. It's not a matter of if the stock is going higher, but when.
Biomet (BMET Quote - Cramer on BMET - Stock Picks) is an earnings play; it announces Wednesday. I believe it will beat the number; that's why I bought 10 Oct. 30 calls. I paid very little premium to control 1,000 shares of a great company. That's the beauty of options -- leverage.
Now for this week's picks.
Leading off is
Watson Wyatt & Co. Holdings (WW Quote - Cramer on WW - Stock Picks), a global leader in personal services such as actuarial analysis and retirement plan consulting. The aging of the population makes retirement issues more crucial, thereby helping Watson. At 17 times trailing earnings, the stock is too cheap: Either the company persuades investors to make this number higher or it gets acquired. I believe
Hewitt Associates (HEW Quote - Cramer on HEW - Stock Picks) is a possible buyer.
The company's numbers are nearly as consistent as our
Fed chairman, Alan Greenspan, is incomprehensible. With no disrespect to Greenspan -- whose Fed makes another rate decision Tuesday -- his use of the English language would render
Noah Webster dumbfounded, and he's a great antidote for insomnia. Meanwhile, Watson Wyatt's zero debt, forward P/E of 14.36 and return on equity (ROE) of 21.44% offer investors the kind of "peaceful sleep" they
really want.
Lenny Dykstra
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