Money stocks for May - Big Bucks, No Whammies!!

"Sell in May and go away". Better yet Doomsday in May approaches, think Cocaine. The guys at the StockMasters felt it was time to revisit investing ideas for May and think big bucks, no whammies. The last thing you want is some Whammie of a stock that after you buy it - it falls 9% and your left with a whammie dancing around on your screen. However, your brokerage account and 401(k) life savings can't be treated like your playing some 80's game show. Its real dollars, I know I don't have to remind you of that, so let's think what we can do with our precious savings.

It looks like May is going to be a good month, the Federal Reserve Bank didn't touch the Interest Rates so people are all excited like they won a free spin. The FOMC voted unanimously to keep interest rates at 5.25 per cent, the accompanying statement maintained a mild tightening bias. It looks like that Soft Landing is coming home, but despite all the good news housing looks terrible and so where does that lead us? Let's make some money in the next few weeks and take a look at stocks that fall into a three categories:

Undervalued stocks that have taken a beating and will most likely improve even if the economy craps out

Safe stocks that your old man would buy that you normally would pass on

Some fun plays that could get you into trouble but after all, we are shooting for big bucks here

So get ready to....

A few Undervalued stocks that have been hit hard are the following:

Pretty much any of the airlines stocks but we would only play a few. Airline stocks - but they suck?! Yes they do, but they are trading at a low discount and they have taken a beating. Here they are, in order of preference:

1. US Airways Group (LCC) trading around $34.30 - 52-week low of $34.11
2. Southwest Airlines (LUV) trading around $14.50 - 52-week low of $14.14
3. JetBlue (JBLU) trading around $10.40 - 52-week low of $9.15

We just recently ran an article titled: Nobody likes JetBlue (JBLU), but that will change. The stock is already moving up, yes they suck right now but this stock always seems to comeback, it's ridiculous but they have been blessed by American's love affair with JetBlue. US Airways had a bad quarter last week, but they are way undervalued. Southwest is perhaps the diamond in the rough with the best hedged fuel position for 2007, plus everyone hates them right now. Pretty much everyone hates the airline stocks, and as our boy Frank Lara Jr. pointed out: Delta and US Airways hit new 52-week lows but they will win back their Freedom.

Another undervalued beat up stock is Clearwire Corporation (CLWR). There are two players in the Wi-Max game, Sprint (S) and Clearwire. Clearwire already has the technology and Sprint keeps talking about it and spending billions to make it happen. CLWR is trading at $18.25 a share with a 52-week low of $15.81. They just reported a big loss of $92.6 million, but revenue, including fees for service, equipment and other sales, rose to $29.3 million from $22.8 million last year. CLWR signed on about 52,000 new subscribers in the first quarter, bringing its total customer base to roughly 258,000. Clearwire said it ended the quarter with networks in more than 375 cities and towns in the U.S. and Europe. Their CEO Craig McCaw is a downright pimp, the dude is all big bucks and no whammies. Want to bet on a company with a solid CEO? There's your play -- Clearwire baby.

So now we move on to Safe stocks, here's one that's a no-brainier:

King Hal - Halliburton Company (HAL) trading at $33 with a 52-week range of $26.33 to $41.58. Come people, they recently moved their corporate headquarters overseas, forget relying on the American economy, let's go East. They bring in countless of billions in revenue - 2005 was $20 billion and in 2006 revenue hit $22 billion. They got their hands in everything: oil, government contracts, drilling, and more. Halliburton's oil-field-services business performs a variety of tasks for oil and natural gas producers, such as managing geological data, well construction and completion, and has benefited in recent years from a global boom in exploration. King Hal is planning three research and development centers in Singapore, Malaysia and India, and will hire 13,000 employees this year, many of whom will be added in Houston. About 60% of Halliburton's business now comes from North America, with the balance from the Eastern Hemisphere. Their plan is to get the Eastern Hemisphere to represent at least half of the business going forward, these dudes are all about the C.R.E.A.M. (click to enter the 36 Chambers).

Anheuser-Busch Companies, Inc. (NYSE:BUD) - Budweiser the King of Beers, maybe its the King of Stocks? At $49 bucks a share and only $4 away from it's 52-week high, you may say forget about it. But if the hard times come, these guys will still make money and mo money because America will be drinking their sorrows away with a bottle of Budweiser. In February , Anheuser-Busch reported profit rose 31% in the fourth quarter on renewed growth in domestic beer sales. They got international growth, particularly in China going on and in 2006 BUD sold 102 million barrels of beer in the U.S. and 22.7 million internationally. They report solid revenue every year and brought in $15.7B in 2006 and $15B in 2005. They make the best commercials every Superbowl and more importantly, they can afford to buy the ad time during the whole game Take it from Homer:
Beer... Now there's a temporary solution. The solution for big bucks is BUD.

So now let's have some fun, let's play the bonus round and go after the fun plays.

Microvision, Inc. (NYSE:MVIS) recently reported Q1 earnings that were nothing short of crap-tacular. Do we care about that? No, because they still haven’t signed a major deal with a big-name for their PicoP technology. In their conference call, they alluded that a major deal could be struck in the next 3-6 months. If that happens, we’re talking about a 100% gain quicker than you can say "Cash, Rules, Everything, Around, Me - C.R.E.A.M. - Get the money Dollar, dollar bill y'all." MVIS is already up 33% in the last 3 months so it's going to take a a buyer like Apple (AAPL), Nokia (NOK), Motorola (MOT), Palm (PALM), Ericsson (ERIC), or Research in Motion (RIMM) to buy their technology and install it in a new and exciting product.

Whole Foods (WFMI) because hey...

Despite them hitting a new 52-week low yesterday and everyone hating the stock, Whole Foods isn't just for hippies my friends, they are a monster-money-making supermarket machine. Shares of WFMI are around $41 and that's a far cry from its 52-week high of $71.30. The only reason we aren't calling this an undervalued stock is because Wall Street hates them with a passion right now. Whole Foods reported disappointing second-quarter results on Wednesday and blamed it on increased competition and the high cost of new store openings. The Street is split on whether the slower sales growth in the second quarter is the rock-bottom for Whole Foods or an indication of what is to come. Morgan Stanley said that things could look up for the chain if and when the Wild Oats acquisition is closed. None the less, Whole Foods is a Fortune 500 company and operates 194 stores in the U.S., U.K. and Canada. Support your local hippy by shopping at Whole Foods because hippies are people too.

Then there's the ultimate speculation - Sirius Satellite Radio Inc. (SIRI)
We don't need to remind you about this company, everyone knows who they are, we all know the stock has performed horribly over the past few years and just when you think it's headed up, back down it goes. Now shares of Sirius are under $2. Howard Stern, merging with XM, Satellite Radio is the future, Tom Lykis - blah, blah, blah. CEO Mel Karmazin has been on a wild ride with Sirius and despite the company's faults, Mel is on a mission to get the U.S. Senate to approve the Sirius-XM Merger. If anyone can get congress to approve a merger, it's smooth talking Mel, he puts the Joe Camel to shame and he doesn't even smoke. Just think if that merger goes through, what the impact will be to the stock? Hello $5 a share - overnight. Call us crazy, but if that deal goes through, well, smoke em' if you got em'.

And now - a shameless plug. If you really want to get serious about what the StockMasters have to offer, think about picking up our newsletter for just three months. The analysis we provide for you will save you time deciding what stocks are right for you and which one's will make you money. Thanks for reading.

Article written by: Frank Lara Jr. and Eric Cheshier
Article posted on: May 11th, 2007

Disclaimer: The Authors do not own any shares or hold any short/long positions in the securities mentioned in this publication.