Five Stocks for the Next Bear Market Rally

The market is poised for another intense bear market rally. So I scoured the penny stock panorama for 5 mega-poppers: Stocks that can easily pull a 3-bagger in a very short time, and those that have a history of blowing up in sympathy with broad market short-squeezed-fueled exuberance.

1. Beazer Homes USA (BZH): This one has been punked down along with the homebuilders. Big short-squeeze potential. The homebuilders run up big as a pack, just as they have fallen as a pack. Beazer has been beaten down to a Wednesday February 25, 2009 close of 56 cents. This one can easily jump to $1.70, where it was at only a short while ago.

2. Russ Berrie & Co. (RUS): During the close of 2008's bear market rally, this stock exploded from $1.11 to the $4.50 range in a couple of weeks (and tripled in 3 days). Russ Berrie also happens to be a very solid company. They make infant and juvenile products.

3. Las Vegas Sands (LVS): Yes, Vegas is dead (will the last conventioneer out of Wynn-town, please turn out the lights). But, LVS is just one of those stocks that loves to run if given the right broad market pop conditions. It closed today at $2.16. It was in the mid $6's only 4-5 weeks ago. Enough said.

4. Libbey Inc. (LBY): Libbey is somewhat on the rocks, given the recent market meltdown part 2- but its popper potential is valid. This one's an easy double, but it could triple with a little momentum. It likes to jump on a dime.

5. Bank Of America (BAC): I expect this Little Big Man Bankaroo to be the next true runner in the financials- an easy double decker. Thank Countrywide and Merrill for the ride. Yet, if the bear market rally has claws, BAC could head back to its December 2008- $15 range- in style.

(Disclosure: Author holds no positions in any of the stocks mentioned in this article. He's too busy trying to get the Uptick Rule restored and Mark-To-Market modified)

Comments

[PeteK:]

LVS ? Are you sure ?
They still look to borrow more and more money.
Move too fast with too many imcompete projects.

Feb 26 04:56 AM

[mrtaxx:]

LVS is a great example of a stock thet can get going up quickly. The company has about $5.1 Bil in cash including a credit facility of about 1.5 Bil. Bethlehem PA will open in a few months and Singapore in less then a year. They have cut costs and the stock has been decimated. It may rally soon. Sheldon his wife and others recently backed the co. with a big investment indicating their comittment to LVS. Debt covanants are not due till 2011 so they have plenty of time to turn things around. Oh! lets not forget short interest is at an all time high which is a perfect reason or a short covering rally. The stock was $9 less then 2 months ago.

Feb 26 08:57 AM

[HChang:]

LVS has to shut down its Macau project
So not LVS, but BAC. It will climb back to $15 to $20 soon within the next few weeks once the stress test result is out. It was the short sellers and hedge funds who keep telling you to sell so that they can pick it up at $1. Many who sold and took a lot, it's a pity. Now those guys will be scrambling to buy in to protect their profit or reduce losses, over the next 2 months. Just look the option numbers.

Ken Lewis had said BAC does not need any more money from the government and lending activities is growing while he quitely spend $1.5M to buy up his company's shares. But most people don't listen and turn a blind eye. For those who bought during the last 3 weeks, congratulations.

It's a national icon, I had repeatedly said that Obama will not let the national icon be nationalized, three times in the last two weeks. And also the chain effect of nationalizing BAC is too huge and widespread globally. The whole financial system will collapse, money will run from America. I believed many foreign government leaders including those state-owned SWF who holds BAC had spoken to Obama before he gave the market a definitive "No Nationalization" yesterday. If you listen to me, congratulation again. But it's not too late to buy now. Sit tight and watch your money grow.

And don't be in a hurry to sell, some idiots who had missed the boat will spread rumours again so that they can get onto the boat again to reduce their losses or make money from your ignorant. They will use the same scare tactics again, in what form I don't know but will know when it surface. Just think about who was buying when the price went below $5, there were not just a lot of sellers but also equal amount of buyers. If it was really going to be nationalized, who will buy even if it's $1, then you will figure out the fear trap setup over the media and internet to force the long term investors to sell.

Positon: Bought twice in the last 3 weeks after Ken Lewis did so.

Feb 26 10:48 AM

[JonL:]

Wish you'd mentioned LVS yesterday.

Feb 26 11:20 AM

[Urbane Gori...:]

You may or may not be right, but if you read the article, all the author says is that in a bear market rally, LVS should pop. he never said that you can't hold long time, nor did he indicate anything about the financial position of the company. Personally I only like it as a trading vehicle.

jegan ;-)

On Feb 26 09:16 AM Richard Collins; Claremont, CA wrote:

> G T McDuffy,
>
> Do you know anything about LVS??
> This company is so oversold and the potential is ten-fold. Why would
> you want to do anything but buy and hold for the long term.
>
> Let me educate you :
>
> 1. The company is 70% owned by insiders. The founder of the Sands
> is one of the wealthiest men in the country.
> 2. LVS owns the largest casino in the world in Macau, the largest
> gaming area in the world (they passed up Las Vegas last year).<br/>3.
> LVS is opening in Singapore December of this year or January 2010.
>
> 4. Do you really think Las Vegas is dead?? Do you also beleive all
> politicians are honest?
> 5. You and Cramer (who also flunked out of clown school) are16 months
> too late with silly worthless journalism. Enough said.
>
> Dan Kowkabany

Feb 26 08:28 PM

[PeteK:]

You are right about BZH.
It's getting there real quick.
Up more than 300% since march 12th.
Thanks for your info.

Mar 25 05:19 AM

[gtmcduffy@g...:]

You're welcome- in addition, since my calls (which came when the market was extremely fearful- and I was met with severe skepticism) - LVS and BAC have already doubled, and RUS is up about 40%. Only LBY is straggling. Let's see how that one rolls over the rally. I will be doing a new stocks to watch article shorty.

Apr 03 07:26 AM