Great day to be looking for bargains, hopefully a few of you made the switch to Cash last week or Monday.  As always, the insightful Hilary Kramer made an appearance on the Nightly Business Report. Let’s review her commentary…

Street Critique”-Hilary Kramer, Chief Market Strategist at GreenTech ResearchWednesday, September 03, 2008

Tickers Mentioned: BMI, ZOLT, AMSC

PAUL KANGAS: Tonight’s “Street Critique” guest says this is one of the worst bear markets she has ever seen. She’s Hilary Kramer, chief market strategist at GreenTech Research. Hilary, good to see you again.

HILARY KRAMER, CHIEF MARKET STRATEGIST, GREENTECH RESEARCH: Thank you, Paul. Thank you for having me on tonight.

KANGAS: We’re still seeing a lot of volatility in this market and you said in recent visits that we’re gearing up for a major capitulation this time this fall. Are you still predicting that?

KRAMER: Absolutely, Paul. I’m expecting to see the market take another major step down. We have a lot more news to come through. Retail, for example, the specialty retailers, high-end, transportation, there’s so much more that needs to work through the pipeline. And even companies like some of the insurance companies we haven’t even seen yet the kind of hits that they are going to be taking.

KANGAS: Well, your theme for tonight is stocks that are poised for a comeback. What do you look for in beaten-down issues?

KRAMER: Paul, I look for companies that are market leaders, especially in areas where there’s growth and there will be contracts and there is demand for the particular product that’s made. And in this market, I also look for volatility, because it’s a trader’s market. It’s a trader’s world right now. So I look for stocks we get in and get a few points, and make a few dollars, and call it a day.

KANGAS: OK. So you do focus on sustainable growth, correct?

KRAMER: That’s absolutely where I focus, because if you get trapped long, as we say, then you’re still sitting in a stock that ultimately will go up.

KANGAS: All right. Let’s see what your first selection might be. What’s your time frame and price target on it?

KRAMER: OK. Badger Meter (BMI), the ticker symbol is B-M-I, is a $47 stock right now, and I have a $65 target on Badger Meter, and that is because I believe Badger Meter will be acquired and taken over, even though it has been a company since 1905, based in Milwaukee, that makes water meters, but because they do remote water metering, high-end technology, there are a number of companies that will want to buy Badger Meter, BMI, and it came off sharply, it came down 10 points in the last few weeks.

KANGAS: And you think that they’ll get that much back if it’s a buyout bid?

KRAMER: Absolutely. And BMI is one of those companies that just went down because hedge funds de-leveraged and people had to throw out the good with the bad.

KANGAS: We just have a minute, how about another selection?

KRAMER: Sure, Zoltek. Zoltek, Z-O-L-T, this is a company I do not own, but it’s $17.56. It’s an opportunity. Zoltek has been as high as $48 this year in the past 52 weeks. I believe Zoltek will go back to at least $30, and Zoltek makes the carbon fires for the wind turbines. And so all of these wind farms are being installed and so Zoltek will benefit from that. The stock has come off sharply because they also make the fire-resistant fibers for the brake pads for the aerospace industry, and we all know what has happened to Boeing (BA) recently. So I think we’ll see Z-O-L-T at least recover to $30.

KANGAS: Quickly, time for one more.

KRAMER: American Superconductor, A-M-S-C, one of my favorite stocks, the short sellers love it. The stock is down — back down to the low 20s, $23, and we should see it head back to $35.

KANGAS: Hilary, do you own any of the stocks you’ve mentioned or have other disclosure to make?

KRAMER: Yes, I own Badger Meter, B-M-I, and American Superconductor, A-M- S-C. I do not own Zoltek, Z-O-L-T.

KANGAS: Thanks for sharing your insights with us once again.

KRAMER: Thank you, Paul.

KANGAS: My guest, Hilary Kramer of GreenTech research.

SOURCE: http://www.pbs.org/nbr/site/onair/transcripts/080903c/