weiwentg

What to Buy and Why: Barron's 2009 Roundtable, Part II

As for AMAT, semis are cyclical, but AMAT is probably the best among all the semi stocks. It has larger scale than its competitors as well as an emerging solar business. I think we're around the bottom of the cycle - this is the time to buy AMAT.

As to Abby's pick of BAC common, I have to say that BAC (which I bought around $48) is starting to look like a deep value play. Ken made a blunder with the Merrill acquisition. However, BAC is not as scattered as Citi. Merrill's brokers are a solid asset. The bank has a dominant and stable retail presence in the US. The terms of the last aid package were not onerous. BAC is also too big to nationalize. I would prefer that Ken Lewis step down in atonement for the Merrill fiasco, but I think the bank will survive. $7 a share is not reasonable, either.

Why Airline Stocks Are So Often Bad Investments

In response to Burkey,

Are you serious? Can you tell how long a supposed turnaround for airlines will last? What if oil prices remain volatile and fluctuate between $70 and $100? What if they don't stay below your $80 mark for long enough for the airlines to recover? What if the airlines have trouble being profitable with $80 oil (which is exactly what was happening in 2005)?