Good day for growth stocks
Monday, July 30, 2007, 10:57 PM
Stocks by John
I am always loath to say I agree with Jim Cramer. of course, this has nothing to do with the man's opinion. It is an inherent prejudice against his delivery.
But, Jim is right, growth stocks are a great place to hide during market downturns.
For my part, I'm looking specifically at NTRZ and BRLC. I recently loaded up more Nutracea stock after the downturn, and tada! NTRZ is up 7.77% today. People who bought at the $2.50 low have made a killing. Anyone who bought below $3.00 isn't doing too shabby either. Advertisements
I admit I went a little technical in my view and thereby missed out on a buying opportunity I was sure of. The lesson: if you really, really, really know the stock is undervalued, BUY!!!
As to Cramer...
Right now reminds me of nothing so much as 17 years ago...
1990. The last time the banks had a real collapse...
So, let's go over what happened then... It could happen again...
First, we had the banks go from peak to trough... June 30th of 1990 through October 30th of 1990... peak to trough... a basket of banks you've all heard of went down more than 50%...
That caused the Dow to go down about 10% and the S&P was down slightly more...
I know, it sounds disastrous but, again... no one wants to believe this, but do the work...
The disaster was contained.
I went looking for the stocks that do well, even in an environment where everything financial goes apart...
There were plenty of drug or healthcare stocks that were flat or, better yet, went up...
The softgoods - the stuff you find in supermarkets or drug stores - mostly flat or up!
High-growth stocks, like Amgen (AMGN) or EMC Corp. (EMC)... roared!
The oils - during that period - were up huge!... Schlumberger (SLB), Exxon (XOM), Halliburton (HAL), Baker Hughes (BHI)...
The food and beverage stocks were all up nicely or just flat... Kellogg (K), General Mills (GIS)...
That's right. They were up and flat...
Amen Jim. That's why I put 'em together, and what did I get? NTRZ. A growth play. A food play. Oh, damn. I'm sneaky.
BTW, BRLC closed at $6.50 today. Not bad for folks who bought at $4.60. BRLC's got a lot of upside to go, and folks who held through the greatest shorting nightmare in recent history will be rewarded for their patience. I promise.
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