'Packaged' profits from Owens-Illinois (OI)

"Though we welcome the recent gains in the market, we caution that the selling pressure has not diminished," notes BizRadio host Daniel Frishberg.

In his MoneyMan.com Market Newsletter, the advisor reviews the outlook for the economy, the need for patience and offers a top pick among "very cheap" stocks -- Owens Illinois (NYSE: OI).

"In fact, we have actually seen selling pressure increase in the face of new demand. This worries us because most bull markets usually start from the opposite situation.

"We anticipate that the buyers will eventually wear out and the remaining strength in selling will drive the market lower.

"As far as we can tell, the current market upturn looks like a typical temporary buying episode in a bear market, so do not be misled. We have not yet had the cathartic selling episode that normally signals a bottom.

"Slower growth and higher unemployment will dominate the headlines in the next few months. The economic factors will be a drag on the stock market until investors correctly anticipate the inevitable recovery.

"Overall, this is a good time to be patient. We do not need to chase what we think is a short-term rally in order to catch up with the market. We know there will be better buying opportunities ahead, particularly for U.S. stocks, and are waiting for those opportunities.

"We are, however, finding select opportunities among stocks. One sector that was doing very well until early May of this year was the packaging and container companies. Since then, many have fallen 20-30%.

"At the same time, their businesses have remained very robust and the fundamentals continue to improve.  We believe these stocks are very cheap.

"There is not a specific exchange traded fund or mutual fund for the group. Therefore, we’re buying the biggest and the cheapest one of the group, Owens-Illinois.

"Owens-Illinois manufactures plastic and glass packaging products. This includes glass bottles, plastic containers and closures, plastic prescription containers, labels, and multipack plastic carriers for beverage bottles.

"This is a globally diversified company. In the last two years, revenues and earnings have begun to accelerate. With the recent pullback to the previous low in early July, the stock has good upside potential."