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This journal was filed Wednesday but was not published on time. Trades are effective as of this morning’s market open.
The market has been a little skittish lately due to its old nemesis -- the credit crunch!
Kind of reminds me of a line from the movie "Casablanca" when Capt. Louis Renault, played brilliantly by Claude Rains, announces that Rick's Café will be closed without further notice as he is shocked, shocked to learn that gambling is taking place. Just as he finishes saying these words, he is handed his winnings for the night.
In other words, are any of us shocked any more by the fact that the housing numbers stink and that financial companies are being affected by all the bad loans? If this news does surprise you, then maybe the best course of action for you is to put all your cash in a mattress. For the rest of us, days like last Friday and most of today simply provide good long-term buying opportunities.
I'll take advantage of the market's uncertainty by adding 500 shares of Monster Worldwide (MNST, news, msgs). Not only did the company post better-than-expected earnings Wednesday night, but it guided revenues higher for the balance of the year. Management also increased the number of shares that it will be repurchasing.
Toss in discounted valuations and an improving technical tone, and this beaten-down Internet play is poised for a strong recovery. I planned to buy at today's open with a target price of $54.
That still leaves me with a bunch of cash that I'll try to put to work later this week or early next. With October coming to a close, investors will start to sniff around more aggressively at this year's dogs in expectation of the bounce that often comes late in the year/early the next year.
I'll also stick by Capital One Financial (COF, news, msgs), even though it has taken a beating and is testing its lows. I'm looking for a little recovery rally once earnings season passes in a couple of weeks. However, if it doesn't bounce soon the short-term nature of the lab will compel me to jettison the stock.
Strategy Lab is MSN Money's stock-picking challenge. To learn more about the game -- and the contenders -- click here.
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