"Street Critique"-Kevin Depew, Executive Editor at minyanville.com
Wednesday, December 05, 2007JEFF YASTINE: Tonight's "Street Critique" guest says, even with today's market pop, sentiment on Wall Street is pretty negative and overdone right now. He's Kevin Depew, executive editor at the financial education web site minyanville.com. Kevin, welcome back to NIGHTLY BUSINESS REPORT.
KEVIN DEPEW, EXECUTIVE EDITOR, MINYANVILLE.COM: Thanks so much, Jeff.
YASTINE: So we have negative sentiment, all the stuff about the credit markets and also worries about the holiday sales season. We've already finished up five, six weeks worth of selling between October and November. So you think there is a year-end rally still ahead.
DEPEW: Absolutely. It doesn't matter where you look, whether you're talking about the newspapers or television, whatever is coming into your home right now is telling you that Wall Street is a mess. You have sub- prime credit problems, foreclosures. It's just-- it's just a nightmare if you pick up a newspaper or watch the news. But ironically, that's the time we want to start becoming bullish and the indicators I look at are telling me now is the time to begin buying certain stocks.
YASTINE: All right, with that in mind, what certain stocks would you be looking at here?
DEPEW: Well, the first one that I picked for the program is Aetna, AET. And again, all these stocks that we're going to talk about are ones that are positive technically. So Aetna, a diversified managed health care company has great fundamentals. The technicals have shaped up nicely and I think that this stock is one you can own into the year end.
YASTINE: What's your next one?
DEPEW: Next we're going to talk about Monsanto (MON). This is a company that really is focused on helping farmers increase their productivity. We've been focused on oil and people have talked about even water shortages across the globe, but agriculture is certainly an area that, if you want to own a stock that benefits from a demand for agriculture, it's going to be Monsanto.
YASTINE: We've seen a couple of big mergers already, one this week that was announced between two very large farm retailers. So then what's the third one here?
DEPEW: The first one is Union Pacific (UNP) and this is a stock that -- the company goes back to 1860s and it's an old-fashioned railroad play. There's a shortage of rail freight containers in the United States and this is a company that investors like it. All these are best-of-breed stocks that are best in their sectors.
YASTINE: Kevin, just to get the disclosure aspect out of way, do you own of any these? Do you have any positions here?
DEPEW: No, not on these Jeff.
YASTINE: All right and just to put this briefly in perspective, are you saying this is a resumption of the bull market or just a tradable rally that goes on for weeks or a couple of months.
DEPEW: No I think this is a tradable rally and it's very narrow, confined to large-cap stocks. These are stocks that are going to benefit from that migration into large caps.
YASTINE: You think that it does have some legs here? We can look at in January and we won't be back down near the old lows on the S&P again.
DEPEW: Well, January, I don't know. But next week, people are going to start talking about a Santa Claus rally. The indices are going to continue to move forward because these are large-cap stocks that move those indices.
YASTINE: All right, Kevin, thank you very much.
DEPEW: My pleasure.
YASTINE: Our guest, Kevin Depew, executive editor at minyanville.com.
