From Aron Task on Street.com:
Then Again
"That afternoon spike in the Internet stocks yesterday was more than a coincidental bounce," Charles Payne, president and chief analyst at Wall Street Strategies, wrote in an email to clients late today. "It was an omen of the possibilities and potential of the overall market. We are convinced that the market wants to trade higher, it just needs a catalyst."
"Old-line, white-shoe wirehouses and their big-pocketed institutional investors have just watched the little guy get crushed," Payne wrote. "They could have come to the aid of the average investor, but choose to let them rot in the sweltering Internet selloff. Sort of as a punishment for thinking independently. Once the big boys decide to pick over the carcasses, we could see a quick 20% to 30% reversal in stocks like Go2Net (GNET:Nasdaq), DoubleClick (DCLK:Nasdaq) and RealNetworks (RNWK:Nasdaq)."
Payne also foresees a rebound in retailers such as Best Buy (BBY:Nasdaq) and Circuit City Stores (CC:NYSE).
For "aggressive" accounts, he recommends Stamps.com (STMP:Nasdaq).
But Jack be nimble: As we reported yesterday, Payne recommended Stamps.com last Thursday at 33. Monday, the stock traded as high as 43 1/4 before closing off 12% at 31 11/16. Today, it rose 4.3% to 33 1/8. |
