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Dykstra: Winning Formula

On the south side of Chicago, in the baddest part of town, if you go down there, you better just beware, that the White Sox finally wear the crown. -- Adapted from Jim Croce's "Bad, Bad Leroy Brown"

The White Sox's coronation, 88 years in the making, was the culmination of a postseason performance that was truly majestic. For their efforts, they are the Kings of Baseball for one year. In contradistinction to true sovereign ties, where reigns are inherited and virtually limitless, baseball royalty has to be earned each year.

In the investment world, there are precious few crowns. Certainly, my competitive drive dictates my desire to ultimately be crowned. At this point, however, I have to make sure I am not the court jester. With that in mind, here are my picks for this week.

Salt of the Earth

Jacobs Engineering Group (JEC), an engineering and construction firm with a $3.6 billion market cap, could be considered the ultimate global infrastructure play. This engineering group is well positioned to profit in a big way from the frenetic activity ahead.

Because it is scheduled to announce earnings on Thursday in a market that puts the "v" in volatile, I am going to get a little more technical with my buy recommendation. I am also considering this a long-term investment, which is not the norm for me. That should tell all of you how much I believe in this experienced, savvy company, which offers exposure to infrastructure, energy, and globalization trends that should support the company's 15% annual growth target for many years to come.

Now that the stock has come down a bit from its post-Katrina spike, here's the way to play it for those technically savvy buyers out there: Buy at the 50-day simple moving average at $61.70 or better. If the stock closes above its 50-day, its first target should be $64.70, where you take your profit. If Jacobs Engineering trades down for some reason, be patient and wait until it retests $58.70, the recent October low.

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