Got any money left in your portfolio or 401k? If you’re like everyone else, tough times have yielded slumping stocks as the ‘Bears’ have battered stocks — a by-product of the recessionary times we find ourselves in.
With the culmination of the SEC Championship (which turned out to be a great game as advertised), it’s time to survey the SEC football landscape and see if there are any ‘stocks of interest’ that are undervalued.
Buy
Florida: Pretty pricy, but still good value here. Should win the SEC’s third straight national championship. Solid management in place for the long run. Good fundamentals. Get some of this ‘blue chip’ now and hold it.
Alabama: Almost got to the top of the mountain this year with only nine seniors. Saban has his ship out of port and moving in the right direction. With the implosion of their in-state competitor, look for this giant to regain their monopolistic hold on the recruits in the ‘Yellowhammer State.’
Arkansas: Great mid-cap stock with unlimited potential. Huge upside. Good management finally in place and great facilities at their disposal. Buy it now and watch the meteoric rise. The freshman who played this year will make this one a ‘high dividend’ producer.
Tennessee: The ‘buy low, sell high’ mantra says it all. Buy it now while you can afford this once proud company. It can’t go any lower. New leadership should provide the breath of fresh air that this sleeping giant needs.
Hold
South Carolina: We can’t tell where the ‘ole ball CEO’ is taking this company. The stock keeps trading in the same range of 6-8 wins every year. Be wary though, as Spurrier may be ready to say ‘enough is enough.’ If that happens, dump it.
Kentucky: Might be a sell as the Wildcats have peaked out at seven or eight wins for the last few years. Three straight bowls spell a bit of stability. Less volatile, but not much upside. Hold for now.
Mississippi State: With the golden parachute of the old CEO awarded, the Bulldogs start over…again. Financing may be strapped, so look for this company to hire a young ‘up and comer.’ If you own this ‘dog,’ hold it…it can’t go any lower than it already is.
Sell
Georgia: Some might hold this blue chip stock, but we say sell if Moreno and Stafford bolt to the NFL. Richt and the Bulldogs could tumble when that happens.
LSU: It may be too late to sell this stock, as the Tigers faltered from a national title to five losses in 2008. Les ‘The Hat’ has his work cut out as stockholders are grumbling. Trouble looms…so get out now while you can.
Vanderbilt: Again…remembering ‘buy low, sell high.’ And it doesn’t get any higher for Vandy. The first bowl trip in 26 years means this ‘penny stock’ has broken out…but can it last? We say sell, and look to buy in later when it dips…assuming Bobby Johnson stays as CEO.
Auburn: Talk about crash and burn…WOW. This company’s earnings estimates were for a division championship in 2008. Instead, management delivered a negative EPS. So out goes the ‘old guard.’ And with their primary competitor surging, the prospects look dim for the near term. Sell if you haven’t already.
Mississippi: And finally, our good friends down in Oxford. After years of seeing their stock almost get ‘delisted,’ new CEO Houston Nutt energized the Rebels to an eight win season in 2008. Once again, Nutt was successful with someone else’s players.
Now recruiting experts at Rivals.com and others have the Rebels’ 2009 class currently ranked in the mid-50s…which would be dead last in the SEC. For that fact, and because we believe shareholders will eventually find out what they have, we say sell.
And if you have extra cash…sell short as much as you can. You can buy it back in a few years dirt cheap and retire early.
