Friday, July 30, 2010

Stocks and Sectors

Delivering Hot Stock Picks

jason kellyJason Kelly submits:

Boston Scientific (BSX) announced Monday that it’s halting sales of its implantable cardioverter defibrillators (ICDs). The suspension was due to filing errors and not safety issues, but the company says it still has no idea how long the suspension will last. For a firm fighting to recover back to former glory, this is another setback.

Yet, the stock’s price chart suggests that bottom feeding might not be a bad idea one of these weeks. The news is bad, true, but the news around cheap stocks usually is bad. I watched the stock fall from $45 in 2004, patiently waited for some kind of base to show up, then built a position in 2007 and 2008 at a cost basis of $12.98. Boy, did that look cheap.


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