Beat the Street
TheStreet.com Power Stock Rankings: March 25
03/25/08 - 09:00 AM EDT
6. CitigroupC: Last week I asked if everybody else got the "same stomach-churning revulsion as I do when you type up the ticker of Citigroup." Almost on cue, the revulsion trade worked again, as Citigroup immediately rallied close to 30%. Instead of panicking out of shares, I suggested that traders take some "Dramamine for our equity nausea and hang on for a choppy ride." I reiterate those words and that recommendation. -- BUY
7. GoogleGOOG: Nothing too much going on with this newly found "value stock" pick. A couple weeks ago, I suggested starting cautious buying at the $450 price level as it went down to the $420 area. By now, you should have a nice in-the-money position with GOOG. I would sell into any strength above $465. -- BUY
8. Yamana GoldAUY: This is a simple-to-understand situation: Spot gold prices up, AUY trades up. Spot gold prices down, AUY trades down. Get it? Gold prices and AUY had a big run to start the year, but spot gold prices got crushed last week. I am not bullish on gold, as I believe the dollar and inflation are reversing course, so I am not a buyer. If you already own shares, I would wait on some strength before selling, as it has taken a big hit over the past week. -- HOLD
9. JPMorganJPM: After the JPM coup of Bear Stearns, is there any doubt that Jamie Dimon and company are the best bankers in America? What does one do to take advantage of that fact? You buy JPM. These guys are good. -- BUY.
10. Lehman BrothersLEH: To call the action in LEH shares last week anything less than raw frenzied panic would be an understatement. The stock traded to a low of $20.25 after ending the previous week at $39.26. It has snapped back to trading in the mid-$40s. So, two recommendations if you bought any shares during the downdraft: First, take a deep breath; second, take profits. -- SELL
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