The market has reminded us time and again that not paying attention and simply "hoping" for an up move is not a sound strategy.While people can argue buy-and-hold vs. other more active strategies, we believe that the recent volatility has caused enough pain that investors are now paying more attention and searching for more active ideas. So today we offer five ideas from our stable of newsletters. Each newsletter has an array of ideas, but we will select five each week as a teaser to all the other great ideas you can get from all the different newsletters we offer. Action Alerts PLUS: Jim Cramer bought 100 shares of BHP Billiton ( BHP): "I am going to buy 100 shares on weakness around $45.90. The stock has had a nice move since I began building the position, and the pullback is a good opportunity to increase my bet in this name as well as in the materials sector in general. BHP is best-in-class with a diverse resource mix, a strong balance sheet and an experienced management team. I remain bullish on China, and this is a good way to play the recovery in that region. Material prices have stabilized, and I expect prices to gradually work higher as evidence begins to build on the global recovery. BHP is in excellent position to benefit with the turn. After my trade, I will own 1,100 shares of BHP, or 2.19% of the fund." Jim Cramer, 3/27/09, Action Alerts PLUS In the most recent Action Alerts PLUS, Jim had several other picks. Click here to check them out.
Biotech Select: Adam Feuerstein added Amgen ( AMGN) at $46 to the Biotech Select portfolio. Adam said, "The selloff in the biotech group that began with the release of President Obama's health care reform plans has hit Amgen especially hard, with shares down 18% since Feb. 25. Amgen is a bit more vulnerable to health care reform than some of the other large-cap biotech stocks, mainly due to the competitive threat from generic biotech therapies (also known as biogenerics). However, I believe that investor concerns regarding the fate of the biotech group as a whole -- and Amgen in particular -- under 'ObamaCare' are overblown. "At Friday's closing price of $46.38, Amgen is trading at a price-to-earnings (P/E) ratio of 10 times the Street's 2009 earnings estimate and 9 times 2010 earnings. Even acknowledging the multiple contraction across biotech, Amgen's P/E is attractive -- especially as we move toward the middle of the year when investors starting looking out to 2010 for valuation. Later this year, Amgen is scheduled to release important data from phase III studies of its bone-building drug denosumab in various oncology indications. Investors have tended to overlook denosumab's commercial opportunity in cancer because of all the attention paid to the drug's pending approval and launch as an osteoporosis treatment. The cancer data, if positive (and I think it will be), is therefore an important catalyst for the stock.