"Street Critique"-with Dick Green, President of Briefing.com
Wednesday, December 20, 2006PAUL KANGAS: Tonight's "street critique" guest agrees with the general consensus on Wall Street and sees a favorable outlook for 2007. He's Dick Green, president of the trading analysis web site, briefin.com. And Dick, welcome back to NIGHTLY BUSINESS REPORT.
DICK GREEN, PRESIDENT, BRIEFING.COM: Thank you, Paul.
KANGAS: So you think the markets will continue their march higher next year. What's your bullish reasoning?
GREEN: Well, the fundamentals are all pretty good right now. We have decent economic growth and we think it will pick up in the second half of next year. Earnings growth will be good and most significantly inflation is back under control. It's moderated over the past six months.
KANGAS: The last two times we talked you liked a handful of sectors, namely the financials industrials and select health care issues. What sectors do you see leading the way higher in 2007?
GREEN: Paul, we'll stay with those. We still like the financials. The selected medical companies are very good choices, but we also think that technology will pick up here in 2007 as well.
KANGAS: Now when you first joined us back in September, you gave our viewers four recommendations. Let's see how they've done since then. Home Depot up 5.3, Bank of America up 3.4, General Electric, 9.5 percent gain and Immucor up 33.4. What caused that?.
GREEN: Immucor is a very strong, well run company. They've got tremendous cash flow and rising margins and they've had good earnings reports and the outlook is fantastic.
KANGAS: Are you still going with all four? You are?
GREEN: Yes, we stand by all four and look for Home Depot and Bank of America to catch up some.
KANGAS: OK. How about some new recommendations?
GREEN: Well, on our list right now is Coach. They do a fantastic job staying ahead of the fashion curve and they're an extremely well managed company. We also like Cisco through 2007. They're still on the forefront of what's happening in technology.
KANGAS: This has had a good move recently.
GREEN: Yes. We still like the stock quite a bit though.
KANGAS: OK. Go ahead.
GREEN: Finally I'd like to mention Verizon which is a long-term fiber optic play. They have a good, strong dividend and if you think the economy is going to slow down a little bit in 2007 in the first part, they're a good defensive play.
KANGAS: OK. So you still like all four that you recommended the previous time when you were with us. Now these new three, any other sectors that you like? We have a little more time left.
GREEN: Well, 2006 saw a broad increase in sectors. What we have going on is a broad increase in the market. So we think good diversification in 2007 will work as well as it did in 2006.
KANGAS: Dick do you own any of the stocks that we mentioned or have other disclosure?
GREEN: I own six of the seven. I don't own Coach at this time.
KANGAS: OK. All right, well, listen, I want to thank you for being with us again and we'll see you again in the New Year.
GREEN: Thank you, Paul.
KANGAS: My guest Dick Green of briefing.com.
