Growth stocks both in and out of the tech sector got an airing on Jim Cramer's
"RealMoney" radio show Friday, with Aaron Task filling in as host and welcoming Noah Blackstein, manager of the Dynamic Power American Growth Fund.
Task and Blackstein expressed puzzlement with Friday's action in the stock market, with the
up 150 points following a lukewarm employment report. Blackstein said other money managers had reported being "perplexed" by the big move, which comes just a day after terrorists' bombs ripped London.
Still, peculiar action is typical of a pre-earnings period. "That's going to be the tale of the market," Blackstein said. "We have to see how the earnings are going to be. So far, we really haven't seen any big-name preannouncements."
Blackstein had praise for two stocks he's owned:
, both of which have seen major runs but remain attractive to him over the long term.
"With Whole Foods, you have to wait a little while. It's a company I was buying on pullbacks with the general market," he said. "I like Urban on weakness and if the stock doesn't do anything for a little while -- if it pauses for four, five or six months to let the fundamentals catch up with the valuation."
, Task said he "can't condone" buying it, citing recent sales returns where "the trend does not seem to be your friend."
Blackstein said the company is "highly dependent on volume" while
American Eagle Outfitters
"looks really cheap." He said he'd take that stock over
and prefers Urban Outfitters to Aeropostale.
, which has made his fund money, but said he wouldn't advise against "ringing the cash register" for investors with a shorter-term outlook.
"The secular story is still there. It depends on your time horizon."
Blackstein spoke well of
, a stock he doesn't own but is impressed with after a "tremendous quarter."
"If you're bullish on small business, bullish on payrolls, if rates are going up and payrolls are going up, then they're doing well," he said. "If you've been patient thus far, you should hold on to it."
Task and Blackstein debated dividend stocks, with Task recommending the Fidelity Contra Fund to investors who want exposure to
, which some analysts believe is preparing a payout.
Blackstein was less sanguine on dividends in general, noting that valuations often depress after they are announced as investors worry management is out of ideas.
"What the company is sometimes saying is, we don't have any alternatives to invest money in," Blackstein said. The same could even be true of a genius like Warren Buffett. "If he does pay the dividend, it might mean he can't find the opportunities anymore."
In response to listener calls, Task said he liked
, which might have latent value online; and liked
, which sports a 4% yield. Task said he preferred
and recommended selling
heading into earnings.
Aaron L. Task is the co-executive editor of TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. He invites you to send your feedback to