For a week now, I have been talking about how cheap stocks are. And while I have been meaning to write about individual stocks in great detail, I figured I should at least go on record and list the stocks that I like right now at these low prices. I will try to post more detail on these stocks but for now, here are my picks:

 

Stocks to Buy Now

 

Hologic (HOLX) - Medical device maker for women (mammography etc.). Has found support around its 200 day moving average after a 35% correction since April. Solid growth - medium risk stock at these prices.

 

Netflix (NFLX) - VOD does not threaten Netflix as predicted by some. This stock has been one of my oldest holdings and has never failed to impress. I believe it is a long-term play and I think it can double from here over the next 3 years.

 

Eagle Materials (EXP) - This gypsum/cement company now trades for around 7 times earnings. For a company thats suprised to the upside every quarter for at least the last 4 consecutive quarters, I think this is one of the most undervalued stocks around.

 

Nastak Pharmaceuticals (NSTK) - Bill Fleckenstein rarely ever ventures into speculation or biotech. But he has bought this for his fund recently and that leads me to believe there is a story to be told here. I like the stock specially considering it is receiving royalties from P&G and has a possible obesity drug that if approved could be very big for NSTK. Finally, the stock is down some 45% from its recent highs.

 

Tenaris (TS) - Demand for Tenaris' steel products are high. The stock is one of the cheapest, yet fastest growing in its sector and has easy access to international markets considering that its based in Argentina. With a dividend of almost 9% and a P/E of 10, I can't see a better play out there period.

 

Portfolio Recovery Associates (PRAA) - With national debt on the rise and homes running out of equity, this debt collection services company has been doing extremely well and is a good way to play those shopping binges that we are so used to.

 

Start Nibbling

 

Allegheny Technologies (ATI) - In the most recent quarter, it beat analyst estimates by 43%. Demand for its products continue worldwide, and the stock trades at only 10 times earnings. I would buy a little now and more if it pulls back some more.

 

Yahoo (YHOO) - Yahoo has severely underperformed in the internet sector and is sitting at 18-month lows. However, its new search/bid placement model will rake in higher revenues. Granted that its no Google, but its a good value play at these levels.  

 

Andersons, Inc (ANDE) - By the time most of you read this blog, the stock will have touched its 200 day moving average around 66 and started to move back up. I recommend a buy on this stock. It not only takes part in ethanol production, but also ethanol transportation and delivery - something not too many companies do. The stock has already corrected 40% and trades at a modest 12 times earnings.  

 

Genesee and Wyoming (GWR) - This small railroad services provider is among the best in the transports sector. It shows over 20% increase in May traffic and operates in modern economies like Australia and Canada. I highly recommend you start buying bit by bit before this train departs.

 

Joy Global (JOYG) - Finally, the stock is at its 200 day average and ripe for the picking.The stock has risen before my eyes and I have missed the boat on it one too many times. I recommend buying a small amount and waiting for more.

 

Reiterate/Watchlist

 

Since I have already talked about Garmin, Omnivision, Apple, AMD and a handful of retailers, I won't write anything about them here except that they are all buys. I am also watching Itron (ITRI), Nutri-Systems (NTRI) and Monsanto (MON) for accumulation.  

 

-- Faisal Laljee

P.S: If you need a more detailed explanation of any of these picks above, please feel free to post your comments. I will respond as soon as possible.