Dykstra: The Heat Is On

Single: Fannie Mae (FNM Quote). I believe I may have found the only company in America operating in the residential home industry that is a bargain, with a forward P/E of 7.35, ROE over 35% and a debt-to-equity ratio under 0.6.

Fannie Mae's stock has been taken apart in the past year by accounting scandals and because of increased regulatory scrutiny. But I believe the pain is just about over -- at least as far as heading south -- back below its 52-week low at $45.56.

My recommendation would be to again buy deep-in-the-money calls. I had a limit order in Monday to buy the January 35 call at $11.90 and didn't get filled. On Tuesday, I plan to take a stab at some January 2007 calls; this is not the kind of stock or option I would chase, so if it doesn't come my way, so be it. And remember whom you're dealing with; those operators on Wall Street will "carve you up" unless you put a limit order in.

And now, a quick word about some prior picks:

Biomet (BMET Quote): As I predicted here, Biomet's earnings blew away expectations. But after a brief rally in reaction, the stock is now lower than it was before the Sept. 21 earnings report. I have a lot of faith in this company and bought more of the Oct. 30 calls. In this treacherous market, who knows, maybe next time it will miss and the stock will rally.

Walgreen (WAG Quote): Last week I predicted there would be some adjustments because of Hurricane Katrina, so I wasn't really surprised when the company reported disappointing results Monday. I don't want to sound like I'm making excuses after a 2.4% decline, because I'm not. I just want people to know that this is a great buying opportunity for a "best of breed" company.

GFIC (GFIG Quote): I recommended the stock on Jim Cramer's "RealMoney" radio show on Sept. 19, and it continues to run, rallying another 5% Monday with almost no coverage in the mainstream press.

Down to the Wire

As of Monday, all of the division titles in the American League, as well as the wild-card berths in both the National and American leagues, were still unsettled. The pressure to perform intensifies dramatically as the number of games dwindles. Every at bat, every out, every man left on base is magnified and scrutinized to a level that can be overwhelming. Some will succumb to the pressure while others will punch through it, refusing to be "punched out."

Fair or unfair, careers can be defined by one moment under the microscope. Just ask Kirk Gibson or Bill Buckner.