This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Melvin: Specific Stocks for a Frightening Market

Alpha and Omega Semiconductor (AOSL - Get Report) is struggling along with the economy as well. The company makes chips used in batteries, smartphones, computers and gaming systems. The shares fetch just 70% of tangible book value, and this company also has more than half of the share price in cash. The company has done a solid job of increasing shareholder equity over the past few years and should see strong results in a better economic backdrop.

I included all the resource and mining stocks we have talked about in the past few months. If we ever do have an economic recovery, and I am confident that at some point in the next few years that we will, then we will need the companies that dig stuff out of the ground and provide the basic materials. I include Resolute Forest Products (RFP - Get Report), Pan American Silver (PAAS - Get Report), Cliffs Natural Resources (CLF - Get Report) and Arcelor Mittal (MT - Get Report) in the group.

While some of those are foreign, they are not part of a maximum-pessimism trade such as I have suggested in Brazil and European banks. All of them are very cheap on a price-to-tangible-book-value basis. I am aware that if the economy does collapse, so will these stocks, but I am more than willing to buy more at a deeper discount.

I still like Brookfield Properties (BPO) as well. It is rare to be able to pay a portfolio of global world-class real estate at this type of valuation, and I feel that this could be a huge winner for over time. The market is too focused on the space that Brookfield has to lease in Lower Manhattan and is not looking at the quality of the portfolio of premier office space around the world.

In spite of the space available in New York, the overall portfolio is 91% leased, and Brookfield is renewing many of its leases at higher rates. Trading at 70% of tangible book value, this REIT is too cheap not to own, in my opinion. The company should close on its acquisition of MPG Office Trust in this quarter, giving it a nice chunk of the Los Angeles skyline at a very good price.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs