• Stock Smarts: What’s Hot?

    So what is hot in the summer of 2003? Whether it’s Arnold (search) in California or low-riding jeans in the streets of America, there is plenty of heat. But what about Wall Street – what’s hot there that can help to make you money?

    Charles Payne of Wall Street Strategies says in addition to technology stocks, which have been hot all summer, cyclical stocks, semiconductor stocks, and small cap stocks are very hot right now. As for what’s going cold, he thinks housing’s going to cool off. Wayne, and Hilary agree.

    Hilary Kramer of A&G Capital says that the fact that the cyclical stocks are rising is a sign that the market is ready to rally. And she says financials are going cold.

    Jonas Max Ferris of MAXFunds.com says there’s too much heat in the market. He says some of the hottest sectors, like biotechnology, could get cold very quickly, and that makes him a little wary of what’s hot right now.

    Wayne Rogers of Wayne Rogers & Co. says he agrees there are areas of the market that may have heated up too fast, but there are some specific stocks that are hot for a good reason. In the retail sector Nordstrom (JWN) heated up before reporting strong earnings, and in technology Intel (INTC) surprised to the upside as well.

    Jonathan Hoenig of Capitalistpig Asset Management says he’s worried about some of the things he sees heating up like commodities, and he’s very cautious on the stock market right now as a result.

    Be$t Bets: Stocks Ready To Catch Fire!

    “Get ‘em while they’re hot” – not always the best advice when it comes to stocks. But so far in 2003, the hot stocks have been getting hotter.

    Which stocks are doing that right now?

    Wayne: AirTran Holdings ()

    Friday's close (8-22-03): $13.36

    Charles thinks the stock is expensive and offers very little reward potential for too much risk. Hilary thinks the margins are too thin and is concerned about owning a stock in the airline industry. Wayne owns AirTran shares.

    Hilary: Eli Lilly (LLY)

    Friday's close (8-22-03): $62.80

    Jonathan says Eli Lilly is a great company but he doesn’t see a catalyst that will make the stock move much higher here, and he says some of the smaller biotech firms with more “enthusiastic” pipelines have performed better in this market. Hilary owns shares in LLY.

    Jonathan: Citigroup Investments Corporate Loan (TLI)

    Friday's close (8-22-03): $14.11

    Charles says he thinks TLI is a relatively safe play, but he thinks the market is on the cusp of a major breakout in the fourth quarter and he says if you are holding too many “safe plays” you could be left behind. Wayne says TLI is a good long-term play. Jonathan owns shares in TLI.

    Charles: Corning (GLW)

    Friday's close (8-22-03): $8.21

    Hilary says Corning’s LCD market will help sales. Jonathan says Corning’s got everything that seems to be working these days: low price, high volatility and it’s a former high flyer. He says the stock could trade higher. Charles’ children own shares in Corning and so do some of his clients.