"Street Critique" with Dick Green of Briefing.com
Wednesday, September 13, 2006PAUL KANGAS: When it comes to the stock market and the economy, tonight`s "Street Critique" guest says pessimism abounds, even though he believes both are doing just fine. He`s Dick Green, president of briefing.com, a web site known for its market analysis and commentary. Dick, welcome to NIGHTLY BUSINESS REPORT.
DICK GREEN, PRESIDENT, BRIEFING.COM: My pleasure.
KANGAS: As a market strategist, what is your outlook for the market right now?
GREEN: We`ve turned bullish for the first time since early this year. We think the pessimism, particularly with regards towards the economic outlook as overdone in the market and that there`s some excellent buying opportunities.
KANGAS: What makes you so bullish?
GREEN: Well, originally or for most of this year, we have been concerned that the Fed would go too far in raising rates and we think that the market is still a little bit concerned about that. It appears the Bernanke Fed is showing great patience here and we don`t think that will happen.
KANGAS: So interest rates have topped out in your opinion?
GREEN: Fed might raise rates one more time, but even if they do, the interest rate outlook is good. It`s not going to be so bad as to cause asignificant economic slowdown.
KANGAS: You`re not worried about inflation?
GREEN: Inflation`s probably going to up tick a bit in the months ahead and the Fed may have to address that, but no, we`re seeing now the soft landing that the Fed desires, the economic slowdown is having the desired effect on inflation and the inflation outlook will improve.
KANGAS: Well, in this bullish environment in your opinion, what sectors do you favor?
GREEN: We like the financials. We like industrial stocks at this point. We also like selections in the health care industry.
KANGAS: Let`s get specific, Dick.
GREEN: Well, Home Depot is a stock we really like. It`s a good example of where the excessive pessimism is overdone. The company`s been putting up great numbers. The metrics throughout the business are excellent. They have not been rewarded in the stock market for that and we think there`s a lot of upside potential on a stock where the risk/reward ratio is very good.
KANGAS: It looks like the chart is telling us it`s bottoming out. Would you agree?
GREEN: We think so. We think it will definitely be higher six months from now.
KANGAS: OK, let`s go for a second choice.
GREEN: Bank of America is a stock we like in the financial industry. It`s well diversified, very well managed and again, a case where the excessive pessimism, for example towards their mortgage portfolio, is we fell, overdone. It`s a high-quality company.
KANGAS: OK. Let`s go for number three.
GREEN: General Electric is another stock we like. It`s not a very exciting stock, but again the risk/reward ratio here is very good. We think that it has not been rewarded for the growth it`s shown and there are concerns about the global economic outlook there that we think are overdone.
KANGAS: OK. Some big cap names there. One more, we`ve got time for one more. GREEN: Well, for one with a little more pizzazz, well draw up the name Immucor (BLUD). It`s an excellent company. They make blood, medical blood devices and sell products for that and we think it has a lot of upside over the next year.
KANGAS: Dick, do you own these stocks personally?
GREEN: I own three or four. I do not own Bank of America.
KANGAS: All right, very good indeed and thanks very much for being with us, some interesting choices there. My guest, Dick Green, president of briefing.com.
