Dow Dips Under 10,000 This Week
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The Dow fell under 10,000 for the first time since November 4th on Monday, but rallied Tuesday as growing bets that the European Union will rescue Greece from its debt problems reassured investors after a four-week selloff. The rest of the week could be described as volatile at best as investors showed nervousness based on the news of the hour. A government report released Thursday showed that there were 440,000 initial jobless claims filed in the week ended Feb. 6, down 43,000 from a revised 483,000 the previous week.
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Wall St is showing signs of a market pullback. It may be slight or severe but we've decided to look at some companies that would be ok in a bear run and even better if the current drop is just a bump and the market keeps rising. The Bullish pick this week has been a solid performer for years with its great management and recession proof products. All this stock does is continue to grow and pay out a nice dividend. Our Bearish pick is an alternative energy company that once looked promising but now is just looking to survive in a very competitive market place. Alternative energy is a young industry that has no room for companies that take too long to figure out how to turn a profit. The company has a horrible debt-to-profit ratio and may need a rescuer or will face insolvency. |
 H.J. Heinz Company (HNZ) -
This consumer company has always been considered a safe play because of its great dividend and the international exposure. Its main products are basic to most meals and the brand identity is strong enough to ensure consumer loyalty. The company has managed to continue growing through one of the worst years for brand name consumer products, while keeping its price points steady. The stock may not rise as fast as the S&P on sudden rallies, but the steady 3.8% dividend makes up for that and with analysts looking at a market correction coming, Heinz is a safe long term buy.
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 Evergreen Solar (ESLR) -
Evergreen Solar has serious problems. It burns over 8 million dollars per month and its profit margins are thin if non-existent. The company has too much debt but may have to take on more to make it thorough this year. The solar sector is very competitive and the once promising opportunity to exploit China as a market has taken too long. Losing ground to First Solar, and other competitors in China and other global markets, will make them more likely to be taken over or they’ll cease to exist.
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