Excerpt from Raymond James strategist Jeffrey Saut's latest essay:
In this whipsaw environment, trading has been difficult. However, our yield theme recommendations (read: dividends) are holding up pretty well. Some of the names that play to this theme and are favorably rated by our fundamental analysts remain Linn Energy (LINE), Alaska Communication (NASDAQ:ALSK), Embarq (EQ), Inergy (NRGY), Legacy Reserves (NASDAQ:LGCY), Magellan (MGG), and Teekay (NYSE:TOO), to name but a few.
The call for this week: Friday felt like Bear Stearns II (NYSE:BSC), since the news about the GSEs broke on Friday just like with Bear Stearns. Hopefully, this week will be a déjà vu dance of the week following the Bear Stearns’ news with the financials leading the way to the upside. Yet as Michael Steinhardt recently said, “There is rarely a moment such as this where as a contrarian, one sees so many reasons technically, [and] stock market-wise, to be bullish. I can’t imagine a circumstance where a market is more available, more ripe, for a rally than this one. Still, this time it’s different.”