Brenda Buttner was joined by: Gary B. Smith, RealMoney.com columnist, Scott Bleier, chief investment strategist at Prime Charter; Tobin Smith, portfolio manager of ChangeWave Capital Partners; Gerri Willis, SmartMoney senior financial correspondent, and Peter Cohan, president of Peter Cohan & Associates.
 
Trading Pit

After the terrorist attacks of September 11th, the Dow hit a low of 8,235, but on Friday, it closed at 9,545.  That's an increase of more than 1,300 points or 16%.  If you had bought on the dip, you'd have made a nice profit.  So is this a strategy investors should now use?

Gary B. does not think that now is the time to buy on war dips.  He said that he does not like buying on dips unless the dip happens after a long downtrend with extremely high volume.  He continued that the overall trend is down, and if investors start buying on dips now, they'll be early.

Tobin said that investors should be buying quality companies because these companies will benefit when the economy grows from the stimulus it will get next year.

Gerri believes that investors can buy on the dip, but they must buy very carefully.

Scott thinks that the dips are going to be "short and shallow" and the new trend he sees is buying weakness, especially morning weakness.

Peter recommends buying on dips, and that this trend will last for the next 12 months. 

Stock X-Change

Tobin, Peter, and Gerri all stayed put and picked a stock that is not a buy just yet, but if it dips to a certain price in a market sell-off, then it's time to get in.

Peter picked Microsoft (MSFT) at $55, which is a fall off of 12%, but he said he thinks that can happen if there is another attack.

Gerri selected Kohl's Corporation (KSS) at $49.  She said retail stocks tend to sell-off in December, and that this is the blue chip of retail stocks.

Tobin likes LSI Logic (LSI) at $16 because it makes the most margin of any company that sells chips to storage companies.

Chartman

Pat Dorsey was off again this week, so Scott Bleier took on the Chartman with two stocks that his firm recommends to buy.

Up first, Progress Energy (PGN).  Scott's firm recommends it because it is the Rolls Royce of regional power producers, it is not that dependent on oil, and it has a 5% dividend.  Gary B. did not like this stock's chart and compared it to buying a stock in quicksand, because it is stuck in the muck with no clear direction.

Next up, Terayon (TERN).  Scott said the company is setting the standard for cable modem technology, it has a strong foothold in the cable bandwidth battle, and is well positioned with lots of cash.  Gary B. was undecided on this one.  He said it has built a beautiful base to build on, but only buy it if it can close above $11.50, which would be above its current resistance.

Predictions

Tobin: Nasdaq hits 2002 before 2002

Gerri: Revised earnings hurt stock market

Scott: Worst of earnings behind us; markets rally

Gary B: Gets worse for Kodak (EK); $15 by April