Dreman Management's David Dreman wrote a piece for Forbes.com. While acknowledge all the problems in the world, he considers now a great time for long-term investor to do some selective buying.
In particular, he recommended oil & gas companies that have been beaten down by the the gulf oil spill and a bank that is based in London. This is what he said:
Read David Dreman's complete column here
In particular, he recommended oil & gas companies that have been beaten down by the the gulf oil spill and a bank that is based in London. This is what he said:
Oil Services Holders Trust (OIH) is an ETF that has been even harder hit than IEO. The stock is down 27% from its late-April high. Its largest holdings are Baker Hughes ( BHI) (14%), Schlumberger (SLB, Financial) (13%), Transocean (RIG, Financial) (12%), Halliburton (HAL, Financial) (11%) and Diamond Offshore Drilling (DO, Financial) (7%). It is a good bet for anyone who doesn't believe offshore drilling will be banned indefinitely in the U.S. and globally.
HSBC (HBC, Financial), the former Hongkong & Shanghai Banking Corp., is a bank holding company with a base in London, a global reach and $2.36 trillion in assets. Its business is mostly in Europe, the Far East and North America. Despite the European crisis, the company reported strong first-quarter results, led by loan growth resuming in Asia and credit-quality improvement. HSBC should earn $3.40 a share this year and trades at 14 times that amount. It will probably earn at least $4.50 a share next year.
Read David Dreman's complete column here
