Forbes columnist Zack O’Malley Greenburg, said that many European banks are healthy and look like innocent victims of the subprime mess, and they are less likely to cut dividends.  He recommends the following banks as those likely to bounce back:

a. Allied Irish Banks

b. Banco Santander

c. Bank of Ireland

d. BNP Paribas -4% dividend

e. Commerzbank -4% dividend

f. HSBC Holdings

g. Societe General

h. Swedbank

Track Zack’s picks at:

http://www.trackthepros.com/categories.php?category_id=270

Lisa Hess, a Forbes contributor, recommended repositioning portfolios to take advantage of new world of rising oil prices, rising inflation, and uncertain monetary policy. Stocks and Bonds do poorly, according to Hess, because bond prices go down as inflation forces up interest rates and stocks go down as companies have a hard time keeping selling prices ahead of rising inputs.

What to do:

1. Short U.S. Treasurys

a. UltraShort Lehman 20+ Year Treasury (TBT)- bets against long maturities

b. UltraShort Lehman 7-10 Year Treasury (PST)- bets against shorter term maturities

2. Invest in companies that profit from rising demand of commodities

a. Titan International

- makes huge tires for agricultural machinery

b. Hemisphere GPS

- manufacturer of GPS and steering systems for tractors

- devices improve productivity

- trades at 38x but earnings could double each of next few years

- widespread adoption of GPS for large scale farming is inevitable

c. American Commercial Lines

- barge manufacturer

- operates barges moving grain,

Ken Fisher recommended the following stocks in the July 21 issue of Forbes:

Dow Chemical:

a. superbly managed largest chemical company in the U.S.

b. Should overtake BASF someday as largest in world

c. sells only at 60% of revenue, 12 times 2008 earnings

d. 4.5% dividend

Rohm & Haas

a. owns Morton Salt

b. produces specialty chemicals

c. bought back 18% of shares in past four years

d. Sells at 1.1 times annual revenues, 11x 2008 forecasted earnings

e. 3.1% dividend

Franklin Resources

a. world leader in mutual funds

b. as stock prices rise, Franklin’s revenues rise

c. great CEO

d. should sell for more than 12.5x 2008 earnings

Ball

a. U.S. leader in metal and plastics containers

b. growing market share in a slow growth field

c. stock should do well when U.S stocks rally

d. sells at 70% of revenues and 12x 2008 earnings forecast

Merck and Pfizer

a. both are too cheap

b. congress isn;t going to kill prescription industry

c. selling at 10x and 7x 2008 forecasted earnings

Morgan Keegan analyst Brad Stephens recommended the following stocks on CNBC:

1. Warnaco Group

a. 70% of business is Calvin Klein brand, which is #2 luxury brand worldwide

b. 55% of sales outside U.S.

c. international play

2. Fossil

a. owns licensing for Burberry, Armani, DKNY

b. wholesale sales- 52% outside U.S.

3. Aeropostale

a. price structure is below competition, which should help in this weak economy

b. only U.S. retailer he likes

Track Brad’s picks at:

http://www.trackthepros.com/categories.php?category_id=840

Andrew Bary, analyst/reporter at Barron’s, highlighted Ethanol companies in this week’s Barron’s.  He basically said that although it is a competitive industry (companies have a lot of debt and potential liquidity issues) and profits are volatile, the industry has government subsidiaries (until 2010) and is saving consumers money on gasoline.  And, ethanol reduced gasoline demand by 9 billion barrels annually.

Ultimately, he believes several stocks are trading at a discount to their book value. And, he says Ethanol producers VeraSun Energy (VSE), Aventine Renewable Energy (AVR) and Pacific Ethanol (PEIX) are trading below book value. All could rally in the coming year.

Check out Bary’s stock picks at:

http://www.trackthepros.com/categories.php?category_id=322

in the January 28, 2008 edition of Barron’s, the cover story highlighted 10 stocks that they believed were oversold.  I did provide the list at the time, so let’s see how these stocks have fared since the recommendations:

http://www.trackthepros.com/categories.php?category_id=980

Gene Marcial, Business Week’s stock-picking guru, recommended Exxon Mobil (XOM) on 6/3/08:

a. It has been piling up billions upon billions of dollars each year in eye-popping profits.

b.The real story here is why Exxon Mobil is a must-own for long-term investors.

c. You can’t expect spectacular returns going forward, but predictable profitability is attractive in a volatile market.

d. According to Marcial, the company is still very much undervalued.

e. The stock now trades at just 10 times 2008 estimated earnings of $9 a share. That is about in line with, or less than, its smaller peers.

f. The company’s return on equity went to 34.5% last year from 26% in 2006. And dividend growth is at a yearly clip of 9.1%, with the shares yielding 1.7%. Exxon Mobil bought back about $8 billion of its stock in the first quarter of 2008.

g. oil and gas production accounted for only 7.3% of revenues

Jim Corridore, analyst at Standard & Poors Equity Research raised his opinion on UAL (UAUA) from hold to buy:

1. UAUA is cutting 100 aircraft, and 2009 capacity will be down 17%-18% and Corridore believes it is near the level needed to get yields up enough to suit this oil price environment.

2. He believes oil could drop from current levels.

3. He expects unit costs to rise on lowered capacity in the short term, but expect the capacity cuts to help revenue growth in 2009.

4. 12-month target price is $12.

Personally, I don’t think I would put too much faith in the Airline industry; it is a horrible business (high capital costs, and low returns).  If oil prices drop substantially, the stocks will go up, but I would rather bet elsewhere for the time being.

See stock picks from S&P analysts at:

http://www.trackthepros.com/categories.php?category_id=382

Kristine Koerber, analyst at JMP Securities, recommended the following stocks on May 30 on CNBC:

1. Sotheby’s (BID)

a. global wealth creation is helping company (especially petrodollars)

b. buyers from 58 countries

c. overseas oil buyers investing in art

2. Tiffany (TIF)

a. Strong international sales- 40% of sales are international

b. Tourism in U.S. helping support weaker domestic sales

c. no cracks in international business

d. bottom line is strong

3. Movado (MOV)

a. 40% of sales are overseas

b. global watch market is very healthy

Check out Kristine’s other picks at:

http://www.trackthepros.com/categories.php?category_id=764

Other JMP Securities picks are at:

http://www.trackthepros.com/categories.php?category_id=716

Deutsche Bank Securities analyst Jorge Beristain wrote that 2008 guidance “remains on track” and upbeat. Beristain maintained his Buy rating on Cleveland-Cliffs and raised his target price to $115.

Track Beristain and other Deutche Bank analyst picks at:

http://www.trackthepros.com/categories.php?category_id=420

The stock has almost tripled in the past 12 months on the demand for steel and its rising price. However, a major shareholder just plunked down $102 million, an average of $92.75 a share. Harbinger Capital now owns 13.9 million shares of Cleveland-Cliffs, a 15.3% stake. Harbinger has nvested more than $275 million in Cleveland-Cliffs.