13 Lucky Growth Picks...in This Market?

10/04/2011 4:19 pm EST

Focus: STOCKS

Jim Collins

Chairman and CEO, Insight Capital Research & Management, Inc.

Not everything is sinking to the bottom and there are a number of attractive opportunities for bargain seekers as part of the market's general pullback, says Jim Collins in this exclusive interview with MoneyShow.com.

You’ve got some thoughts about some good opportunities that are ahead. It’s not all gloom and doom.

No, it’s not all gloom and doom. In fact, there are some very interesting situations in the market today...but don’t go out and chase these stocks. Let them come to you a little bit because of the volatility in the market.

I like the restaurant area at the moment. People still go out and dine, and even though McDonald’s (MCD) is a very large company, it looks good for the future, if you want to stay with a large company.

If you want to go with a smaller company, take a look at Chipotle Mexican Grill (CMG) or take a look at Buffalo Wild Wings (BWLD). Those two companies are growing earnings very, very rapidly.

While we are in the consumer area, think about some shoes. You eat a little bit; you need to walk a bit. Crocs (CROX) and Steve Madden (SHOO) are two companies there doing quite well in this market, and are likely to continue to do well, right on into 2013, or further, beyond that time period.

Another area that we like at the moment, you can get into good investments in the energy sector. Even though the price of oil may be coming down right now, longer-term it's going to be going back up.

Some smaller companies that we like in this area is Basic Energy Services (BAS). This company will go out and complete a well for you, unplug the drill pipe if you want to, and get it up and going.

Another company that has about 350 drilling rigs is Patterson-UTI Energy (PTEN). Drilling is going to continue. This is an onshore drilling firm.

While we are in the energy sector, take a look at Baker Hughes (BHI), take a look at Schlumberger (SLB) and Halliburton (HLI)—all of these companies, the future bodes well for them. We are not going to see energy disappear, and we’re still going to have to produce some energy.

Anything else?

Yes, we see some more opportunities in the healthcare area. Cerner Corporation (CERN), which is a information-technology company for hospitals and others in the healthcare field. That looks very attractive. Alexion Pharmaceuticals (ALXN); which is a biopharmaceutical company that provides treatments for blood disorders.

In addition to that one is Questcor (QCOR). This one is really a marketing machine. Sales and earnings are going at about 30%-plus per year. They have a treatment for multiple sclerosis that can be applied to other areas. Because they’re doing such an excellent job on marketing and sales, the company is, I think it’s in a very attractive position right now.

So Jim, once again, there’s opportunities on the forefront.

There are opportunities out there. Just be a little patient. We will get through this extremely volatile period. This country has tremendous rebound and we will rebound out of this.

Jim, thank you very much.

Hey, it’s been great being with you. Let’s give investors a lot of hope here. This is not the end. This country is a great country. Let’s keep the faith.

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