I agree with Cramer that Family Dollar will do well in a recessionary environment. According to him they have yet to expand into California...one of the hardest hit places.
I am also going to commit to very short term plays only besides those that simply make sense like this one
For example...
I recommended a bunch of oil plays a few weeks ago thinking the sector was going to turn around. Well most of those are now down 40-50%, and I haven't closed the ratings in hopes that they would rise again and salvage my rating.
From now on I'm chasing the battered in a battered market. Those that seem extremely beat up on some news (down 30-40%). I'm buying them if the fundamentals are sound and selling on the next up day. Considering that they are already beaten up, then a down day will likely effect them less. So while the rest of the market is loosing 10-15% I lose 5%. If the market is up I have the potential to gain 15-20% or more.
There is always the potential to lose, but the potential to win is greater if you make good picks, and you're quick on your feet.
J-Mac
J-Mac .
$24.52 (10/16/08)
