Inventors Still Jittery as Potential Market
Correction Looms
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Stocks started the week up slightly as the dollar weakened, but the technology sector led a broader sell-off Thursday, as profit warnings in the chip and telecom sectors dragged the Nasdaq down. Investors already nervous from last week’s drop seemed ready to sell. The Labor Department's unemployment report was more positive than expected. There were 470,000 initial job claims filed in the week ended Jan. 23, down 8,000 from a revised 478,000.
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Heading into February, we focus on the upcoming spring and summer season and look at companies that are poised to surge during this time of the year. Our Bullish pick fits, as the price of oil tends to rise during the middle of the year. This week's pick is a solid company that should be part of any long term portfolio. The fact that its fallen 10% recently is yet another reason we feel the buying opportunity is now, rather than later. The Bearish pick this week is a complete opposite, it's had a recent 18% surge and it's financial numbers are still a mess, speculation will no doubt keep this company's stock volatile all year. The fact that it's on everyone's top 10 worst companies to own in 2010 list makes this an easy pick for this week. |
 Chevron Corp (CVX) -
We liked Chevron in 2009 and don't see a reason not to in 2010. The stock has taken a hit in the recent weeks, creating a buying opportunity for the 2nd largest US energy company. At the rate world markets are moving towards alternative energy, the impact felt by big oil won’t come for years. Their financial picture is still impressive and the insider ownership seems to be growing, going over 2%. Chevron also pays out a healthy dividend that will keep your money growing faster as the demand for gas goes up in the summer months.
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 Eastman Kodak Company (EK) -
This company has been on a nice rally the last few months, up more than 150%, but the financial picture is still bleak. It seems that speculation will keep Kodak's stock price drastically up and down all year. Sony, Canon and Nikon still lead the camera market and photo paper won't be enough to carry Kodak for the foreseeable future. The Research department at Kodak has not put out anything of real substance in years and if this continues, bankruptcy is a real possibility.
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