"Street Critique"-Hilary Kramer, Personal Finance Editor at AOL
Wednesday, June 20, 2007PAUL KANGAS: Tonight's "street critique" guest has some small cap stocks with potential upside in a scary market. She's Hilary Kramer, market strategist and personal finance editor at AOL. Hilary, welcome back to NBR.
HILARY KRAMER, PERSONAL FINANCE EDITOR, AOL: Thank you, Paul. It's a pleasure to be here. KANGAS: The markets have been particularly volatile in recent weeks. What's the average investor to do? What do you see happening in stocks over the near-term?
KRAMER: I think we're going to see another market correction come through. Individual investors should be careful and careful to make sure they have plenty of cash on the side lines.
KANGAS: No summer rally?
KRAMER: Not in this particular case. Wall Street is spooked and the big, big money is running for cover.
KANGAS: Let's get right to your stock picks. You've brought our viewers some small cap issues with what you call up-side potential. Tell me about your first pick.
KRAMER: TRC Companies. The ticker symbol is TRR. This is an infrastructure play, engineering and construction company that is poised to win some of the $1.3 trillion of infrastructure mandates that are out there in the U.S. It's a great play because potentially if the Democrats are in the White House, we're going to see a lot more of these projects come down the pike and TRC is in a very sweet spot to win them.
KANGAS: Coincidentally the program has been running a special this week called "State of Repair" on just that subject. Give us another pick.
KRAMER: Darling. DAR is the ticker symbol for Darling. Darling is an Irving, Texas company founded in the 1860s. They get paid - they have the best business model - they get paid for picking up the French fry grease at diners all over the country, and then they get paid for turning it into bio-diesel and we may see a nice announcement of a joint venture with an oil company with Darling, and Darling is well positioned. Nothing better than getting paid on both sides of the deal.
KANGAS: You call it Darling. You must love this stock, is that right?
KRAMER: I love Darling. Darling's got it for bio-diesel.
KANGAS: There you go and you like Metalico? Why is that?
KRAMER: Metalico, MEA is the ticker symbol on Metalico. This is a scrap metal company. Again, I always look for companies with the right business model and in this particular case, they get paid for picking up or accepting scrap metal and then they get paid again for shipping it off to the emerging markets that are demanding metal and aluminum. It's a wonderful company.
KANGAS: Quickly, one more.
KRAMER: Kaydon, Kaydon, KDN is the ticker symbol on Kaydon. Kaydon is a ball bearing company that is number one in their respective markets including wind farms, some of the oil services. Kaydon could be taken out. They have lots of cash and amazing new management team. It'll take time but I love this boring company.
KANGAS: And MetreTek you like that.
KRAMER: Yes, MetreTek is a great way to play natural gas. It's a metering company. They service the natural gas companies.
KANGAS: Very good and MEK. That trades on the American does it?
KRAMER: I believe it does, MEK.
KANGAS: Hilary do you own any of these issues or have other disclosures to make?
KRAMER: Yes, in this particular case, I own the first four stocks.
KANGAS: Very good. I want to thank you for being with us and we're going to see you again next month on July 11th.
KRAMER: That's right Paul, thank you.
KANGAS: My guest Hilary Kramer, personal finance editor at AOL.
