Filed under: Major movement, Expedia Inc (EXPE), Stocks to Buy, Garmin Ltd (GRMN)

Experience has taught me that catching falling knives in the stock market is incredibly dangerous, but some of these speculative names are really beginning to test my resolve. So I thought I’d share them with you.

Investors have been punishing these plays not because business has fallen off a cliff, but because they are some of the most speculative stocks around — other than penny stocks — and in this kind of market environment, investors prefer safety. That creates opportunity, if you’re willing to take on some risk. After all, these companies still have solid business fundamentals, so there will be a bottom somewhere, and I think we’re getting very close to it here. For now, put these on your watchlist, for when they do bounce, they’re going to bounce hard, think 15-20% within days.

Garmin (NASDAQ: GRMN) — At $64, this navigation system maker is down 35% on the year, but revenue growth is far greater than its current P/E of 15. Sure, there’s some margin concerns, but the chart has solid support at $60.

Continue reading How to catch these four falling knives (GRMN, MELI, FSLR, EXPE)

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This entry was posted on Friday, January 18th, 2008 at 3:03 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.