Brenda Buttner was joined by: Gary B. Smith, RealMoney.com columnist, Pat Dorsey, director of stock research at Morningstar.com; Tobin Smith, portfolio manager of ChangeWave Capital Partners; Scott Bleier, chief investment strategist at Prime Charter; and Gregg Hymowitz, founder of EnTrust Capital.
The Dow is making a run to finish this year with a plus sign. It would have to hit 10,800 to get out of the red. But keep in mind, two months ago the Dow was at 8,200. So can the Dow do it?
Toby thinks there will be a quick pull back, but good news will come and there is a good chance the Dow can end up for the year.
Gregg believes it will be a close call and will probably depend on earnings announcements.
Gary B. studied his charts and determined that if the Dow is able to close above 10,000, then it has a great shot at breaking even. The Chartman thinks that this will happen, but the Dow will close the year slightly down.
Scott said only the Dow has a shot at breaking even for the year. The Nasdaq and S&P 500 do not have a chance to break even. But like Gary B. he thinks the Dow will end slightly in the red for the year.
Pat said that the big picture is improving due to recovering retail sales, peaking jobless claims, and tanking oil prices. This leads him to believe that there will be an economic recovery sooner than later.
Toby advised investors to buy growth companies because these stocks are cheap right now and when the economy recovers, they will get a head higher. Gary B. added that investors should wait to buy these companies until the markets pull back.
Gary B. and Pat stayed put and each picked the one stock he says will be the best performer for the rest of the year.
Gary B. combed over his charts and came up with the world's number one provider of oil field services, Halliburton (HAL). He likes this chart because after a massive sell-off in August and September, there are finally signs of hope. He recommends buying the stock now with a stop under its double-bottom low at about $20. Pat studied the company's fundamentals, and did not come up with the same feeling for the stock. He said Halliburton has big international revenues, but the stock is cheap for a reasonit has a large asbestos problem.
Pat then checked over his fundamentals and chose the world's number one aerospace company and commercial jet maker, Boeing (BA). He chose this company because all the bad news is already in, it has good defense side money makers, and its commercial air business is better than it seems. But the Chartman was undecided on the stock due to Boeing's recent lack of movement. After Boeing hit its 52-week low in September, the stock has treaded water. The Chartman thinks the time to buy is when the current sideways action is broken to the upside.
With Thanksgiving in mind, Tobin, Scott, and Gregg picked a stock that each is thankful for.
Gregg picked Wendy's (WEN) because the company is up 15% since the beginning of the year. He said the company has a lot of room to grow, its margins are improving, and it is taking market share.
Toby is thankful for ESS Technology (ESST) due to its 214% increase in price since January 1, 2001. He said DVD's will be the number one product this Christmas, and since the company makes technology for DVD's, it will soar.
And Scott selected Affiliated Computer Services (ACS), which is up 59% for the year. He said the stock is not cheap at $96.20 (Friday's closing price), but is heading higher.
Gary B: eBay (EBAY) doubles in the next 6 months
Pat: TriQuint Semi (TQNT) a buy at current level
Tobin: Nasdaq dips to 1750 then runs to 2000
Scott: Enron (ENE) stock will be worthless; sell now!
Gregg: Fed's final cut will be 50 points in December