More Stocks to Watch in 2009

Includes: FXY, PCLN, TIF
by: Faisal Laljee

The first part of this post was published last month. Please click here to see the Top Stocks to Buy in 2009 - Part 1. As I said before, these lists are guides for you to do your own research. We are living in a particularly horrible time for stocks, so please do NOT go out and buy these picks blindly. Wait for the market to have a couple of bad days before you buy some and as much as possible, indulge in some dollar cost averaging.

Yen (NYSEARCA:FXY) - The Yen has been moving strongly against the US dollar for the last 6months, climbing some 20%, while the Pound and Euro have declined over 30% each. Having said that, I believe the Yen will continue to improve against the dollar through 2009. Don't get me wrong - the Japanese market has problems of its own, but the US currency will continue to weaken against the Yen in light of the liquidity crisis in the US. Jim Rogers, in his appearance at the Russia Forum last week, spoke about his position on Yen.

Being that Jim Rogers has been spot on in his forecast for the Pound, the Dollar and for the Yen, I would agree with him on the Yen's prospects.

Tiffany (NYSE:TIF) - Thats right! I like retail. Why? Because everyone else hates it. I recommended Abercrombie and Fitch (NYSE:ANF) earlier and now I pick Tiffany. The color has been cut off this stock (haha) as it sits around the $20 mark, trading at 10 times earnings with a dividend payout of 3%. Do you really think that people will stop shopping at Tiffany? Is the economy going to suck for 5 years? Is Tiffany a fad that is over? If the answers to any of the above is a No, please go buy some Tiffany. The company has a brand that while susceptible to economic conditions, still carries a great deal of sex appeal. The next couple of quarters will stink, but this is priced into the stock. I would buy it at these levels.

I also like Coach (NYSE:COH) here but there is only room for so many luxury retailers on my list. (NASDAQ:PCLN) - I have made no bones about Priceline. It has been one of my favorite stocks for a few years now, specially lately, when it fell from a high of near $150 to the $40-50 range. Since then, the company announced great earnings despite the economy, which sent the stock up into the $60's. It currently sits near $75 and while there is still short-term risk (which might emerge in their earnings call on Feb 18th), I like this stock for the long run. The company is growing in leaps and bounds, and will emerge from the economic downturn with a larger user base and customers from varying levels of income - people that got acquainted with the discount travel services provider during this belt-tightening. I have written extensively about Priceline in the past and I encourage you to read my analysis.

These 3 picks should keep you busy over the next few weeks as the stock market teeters between 7500 and 9000. Meanwhile, I would encourage you to look at Google (NASDAQ:GOOG), China Mobile (NYSE:CHL), Apple (NASDAQ:AAPL) and commodity plays as they will likely make the next round of picks for 2009.

Full Disclosure: I do not own any of the stocks listed here but my position can change anytime without notice.