"Street Critique"-Hilary Kramer, Market Strategist & Author of "Ahead of the Curve"
Wednesday, January 09, 2008PAUL KANGAS: While it has been a rough start for the year so far for stocks, tonight's "Street Critique" guest says that could change at the end of the month, when Federal Reserve policy makers meet on interest rates. She's Hilary Kramer, market strategist and author of "Ahead of the Curve." And Hilary, welcome back to NBR.
HILARY KRAMER, MARKET STRATEGIST: Thank you, Paul.
KANGAS: As a market strategist, what do you make of the markets right now and what are you expecting from the two-day Fed meeting starting January 29th?
KRAMER: OK. Well, I am a contrarian, Paul. I believe that we are going to see Fed intervention in the next two trading days, absolutely. There's too much weakness across the economy in too many areas and the market action today, the turn around late in the day showed me that they were short covering and that someone knew something, that the Fed was coming in.
KANGAS: The Fed's going to make a move of some sort and it won't be higher interest rates.
KRAMER: That's my prediction.
KANGAS: OK. Well, should investors be on the sidelines or is now the time to jump in?
KRAMER: I believe that now is the time to jump in, but on the broken stocks that have potential to really skyrocket.
KANGAS: Plenty of those. You brought some stocks for our viewers that have been beaten up badly and you think they will move higher if the Fed cuts rates late in the next month or even before. What's your first pick?
KRAMER: Goldman Sachs. Goldman Sachs is best of breed. They are supreme. They are the best financial institution out there and their bankers love to see that stock price go up. They don't like it under $200 and my prediction that Goldman Sachs (GS) will be a $250 stock.
KANGAS: OK, let's keep them coming.
KRAMER: OK, Apple. Apple is easily going to get to $220, (APPL). The reason I love Apple is that they are going to have fantastic earnings and there's no death of the consumer out there. Maybe it is tight. Maybe it is difficult. But we all still have our iPods.
KANGAS: OK. Let's have another one.
KRAMER: Jacobs Engineering (JEC). I have talked about Jacobs before. I love it. By year end '08, I see $120. It is an infrastructure company. A construction company that has a lot of contracts in the Middle East and the $100 oil is getting a lot of money to the middle easterners who are doing a lot of infrastructure building and Jacobs will have fantastic earnings in February.
KANGAS: OK, let's keep moving along with some more selections.
KRAMER: OK, Kaydon. (KDN) is the ticker symbol. This is a ball bearing company that makes ball bearings for the wind industry, for transportation and as well for the oil services arena. So they have a very, very good client list and you're going to see Kaydon be a $72 stock. But it might take 18 months to 24 months there.
KANGAS: OK. We only have a minute left. How about some more?
KRAMER: OK. I will go very quickly, Google. Google will easily get back up there and I can see Google hitting $800 by year end, '08 (GOOG). They're going to take it up. The traders are going to bring Google up. It is what we call high beta stock, high volatility. Fed cuts rates. Everyone goes into Google and the ones that they can ride on to go up high.
The other one is Applied Materials (AMAT). This is one of my favorite stocks. I have been buying it as if it's been going down. Applied Materials could easily be $24 by the end of '08. It's in the semiconductor arena and it's just gone down but only because they make the manufacturing equipment for the semiconductors. It's a phenomenal company, real earnings.
KANGAS: All right. Hilary do you own any of the issues you've recommended or have any other disclosures to make?
KRAMER: Yes. I own all of these stocks, all of them.
KANGAS: All right. That's quite a vote of confidence. Thanks for being with us again. We'll see you in two weeks.
KRAMER: Thank you Paul.
KANGAS: My guest, Hilary Kramer author of "Ahead of the Curve."
