"Street Critique"-Hilary Kramer, Market Strategist & Author of "Ahead of the Curve"
Wednesday, December 12, 2007PAUL KANGAS: Tonight's street critique guest has some stocks she says have been left for dead in this crazy market. She's Hilary Kramer, market strategist and author of "Ahead of the Curve." And Hilary, welcome back to NIGHTLY BUSINESS REPORT.
HILARY KRAMER, AUTHOR, "AHEAD OF THE CURVE": Thank you, Paul.
KANGAS: Before we get to those stock selections, tell me your thoughts on the Fed and the current volatility in the market.
KRAMER: OK. Well, there is extreme volatility. Everyone on the Street is blaming the Fed but their message is true. We're in for a rocky time. There's concern over inflation. So everyone just has to wait and be patient. The Fed is doing the best they can and in the meantime, you might see some of your stocks fall.
KANGAS: More volatility in other words.
KRAMER: That's right.
KANGAS: Now, Hilary let's get to those stock selections. By "left for dead," do you mean beaten down stocks with big upside potential? Is that right?
KRAMER: That's absolutely right, stocks that can make you money if you're a patient investor.
KANGAS: What is your first issue and what do you like about it?
KRAMER: Aecom Technology. The ticker symbol is ACM. ACM is a $28 stock that I see going back to at least $35 over the next 12 months. It's an infrastructure environmental company that is in just the right spaces, has big contracts coming along and the stock fell just simply because they lowered guidance. But it might have been the way the company just managed the street and that brought that stock way down.
KANGAS: Let's have another selection, Hilary.
KRAMER: OK, Anadigics, ANAD is a ticker symbol. This is a company that went from $19 and now it's at $10. It's in the perfect area I think semi-conductors are going to come back in 2008. And Anadigics, ANAD, makes semi-conductors for wireless and cable companies.
KANGAS: That stock has really taken a fall. That's for sure. I understand you also like a company called Itron. Tell me about that one.
KRAMER: Itron, one of my favorite companies. The ticker symbol is ITRI. I watched Itron just simply because they disappointed the Street just a bit. I watched this stock on October 31 over a two-week period go from $170 down to $73. It's wonderful buying opportunity because I believe Itron may benefit from the pending energy bill because they make smart meters for the electric and water utilities.
KANGAS: OK and we have time for a final selection. It's a toy maker I guess.
KRAMER: That's right. I really like Leap Frog (LF) and as you know, Paul, I don't usually talk about toys or (AUDIO GAP) not that bullish. But on Leap Frog I love it. This is the best of breed. The ticker symbol is LF and this is a great one for any patient investor who wants a turn-around two years from now and see their money double because this is educational toys. Leap Frog came down. The Street saw that the company is faultering, but really was a pricing issue. There's no problem with the company. All the stocks in that whole sector came down with the lead recall scare. And Leap Frog is one you could see even get up to $20, but you have to wait two years at least to see LF get there.
KANGAS: Hilary, do you own any of those issues or have other disclosures to make?
KRAMER: Yes, I own Itron, Anadigics and ACM and on Leap Frog, I do plan over the next few weeks to build a position.
KANGAS: I want to thank you for being on with us again and we'll see you in a couple of weeks.
KRAMER: Thank you, Paul. Thanks for having me here.
KANGAS: My guest market strategist is Hilary Kramer.
