Monday, September 25, 2006

Donald Rowe, Wall Street Digest newsletter - Prepare for the Next Great Bull Market

Donald Rowe, editor of the Wall Street Digest newsletter, says speculators have left the housing sector and will join the 78 million baby boomers to create a bubble boom in the stock market between now and 2010. Read about other indicators that are signaling the arrival of the next great bull market. Then check out some of the stocks that this featured expert is touting as buys.

Commentary from September 15

The price of oil, lumber and gold are below their 200-day moving averages. Nationally, the price of homes continues to inch higher even though home sales were down 21 percent during the June, July, August period. The flippers and the speculators have left the housing sector. They will join the 78 million baby boomers to create a bubble boom in the stock market between now and 2010.

With the market 32 percent undervalued, the market P/E ratio at 13.6 compared to 24 in January of 2000, and corporate cash at record levels, the stock market will provide us with unusual profits this fall and well into 2007. Your patience will be rewarded.

A more fully invested position is warranted. The next great bull market should be ready to unfold by mid-October.

Buy recommendations include:

Gorman-Rupp Co. (GRC) designs, manufactures and sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, military and other liquid-handling applications.

Psychiatric Solutions, Inc. (PSYS) offers an extensive continuum of behavioral health programs to critically ill children, adolescents and adults through its ownership and operation of freestanding psychiatric inpatient hospitals and its management of psychiatric units within general acute care hospitals owned by others.

PW Eagle, Inc. (PWEI) is a leading extruder of PVC pipe and polyethylene tubing products. The Company operates eight manufacturing facilities in the midwestern and western United States.

This article highlights the commentary of Donald H. Rowe for the Zacks.com audience. Donald H. Rowe provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Wall Street Digest" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Wall Street Digest" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now.

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