This column was originally published on RealMoney
on June 20 at 10:15 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney,
Is there a price they won't pay for them? I am talking about the anointed stocks, the ones that won't quit. These stocks are flat on down days and up big on up days. We saw this kind of buying in the 1990s, but not in the last seven years.
Look at these:
- F-5 (FFIV - Get Report), the fastest-growing play on traffic and the Web because it is a traffic cop.
- Ralph Lauren (RL - Get Report), valuable to $120 because it is transforming from being a niche clothing company to a worldwide fashion empire that includes home goods.
- MasterCard (MA - Get Report) simply won't quit because it is the fastest-growing secular play on cash to credit.
- General Cable (BGC - Get Report), a play on putting power lines into the ground post-FirstEnergy's (FE) blackout proximate cause: a downed tree!
- Whirpool (WHR - Get Report) -- a play on a deal that should never have been allowed, Whirlpool and Maytag.
- Johnson Controls (JCI - Get Report), which remains the only auto-related play that fills the niche of growth. That will be the case whether it trades at $114 or $140.
(Of the usual anointed ones, only J.Crew's (JCG) not participating.)Behind the scenes you will simply see order after order by big shareholders, repeat orders as money comes in. Valuation concerns are being waved. They just are using these stocks as upside vehicles. You can play, too. You need to own the calls struck 5 to 7 points below the current prices on these names. I'd buy half now, and if they came in I'd buy more. There's no choice. These anointed stocks are going higher even as the absurdity of it dawns on an increasing number of players. These anointed stocks tend to be anointed for a full year. We are in month six. So get on board. Random musings: Bear downgrades FedEx (FDX) now and will never get back in. Too bad, because it was quality work about the company but not the stock! Same thing will happen with the Anheuser-Busch (BUD) analyst at A.G. Edwards. He won't be able to get back in. What's the point of being so negative?