4 Stocks to Buy Right Now

It's not that Bryan White thinks he's smarter than other investors. Rather, the Fool analyst has an excellent sense of when the echo chamber that is the market is distorting reality. Today, he sees four outstanding buying opportunities in which the market has missed something, read something wrong, or wildly blown something out of proportion.

A Garden party
The New York Knicks are comfortably positioned to make the NBA playoffs. Madison Square Garden is selling out with fans who are suddenly not expecting their team to implode. Best of all, Isiah Thomas seems not to be in a position of influence any longer. Things couldn't be better for the myriad assets of Madison Square Garden (Nasdaq: MSG  ) .

"I think this is one of the best possible investments for large amounts of capital," Bryan says. "Most investors are missing everything there is to this company and how all the assets are performing. If you understand all the assets and you can avoid selling in a panic if the company misses earnings by a penny or Carmelo Anthony sprains an ankle, I think the array of assets almost eliminates long-term downside risk."

The stock trades around $28 per share now, and Bryan's boldly predicting that MSG head James Dolan will take the company private in about two years at $50 per share.

FedEx ready to roll
Although FedEx (NYSE: FDX  ) isn't a screaming bargain right now, Bryan feels now is the time to start building a position in the shipping leader for long-term wins: "All three divisions -- Express, Ground, and Freight -- are ripe for margin expansion. There are an unusual number of ways for this company to increase its margins."

Additionally, the company has made a lot of investments in its overseas expansion, and it has yet to reap the benefits. "Improvement in any one of its divisions or its international operations seems likely and would mean a nice improvement in the business. If they show promise on more than one, the company could really get rolling," Bryan says.

3-D to be
But the area that really gets Bryan fired up is home electronics, particularly the purveyors of the next generation of televisions. Although the 3-D TV revolution has yet to ignite, Bryan's confident that it's delayed, not defused. Management at Best Buy (NYSE: BBY  ) and hhgregg (NYSE: HGG  ) made some assumptions about the effect 3-D TV sales would have on earnings, and they missed the mark so far.

"Don't get me wrong; they deserve the beat-down they got," Bryan says. "But then everyone started to pile on -- people aren't going to pay up for 3-D; Internet retail is going to take over; nobody goes to stores to buy DVDs and video games anymore -- and the story got a little out of hand."

Bryan makes the technological parallel to HDTV. Back in the early days, there were only a couple HD channels (primarily showing nature footage that showed off the quality but didn't exactly make for must-see TV), and people didn't immediately see the need to upgrade. Today, HD isn't optional. As Bryan puts it:

The TV cycle will happen, but they have to educate the consumers. Most people don't even know that the 3-D TVs have incredible 2-D quality -- even if you don't want to put on the glasses, you're not paying up much for the capability and you're getting the best picture. And once sports starts going 3-D, everyone is going to need to have it.

And while Best Buy has taken a hit from online retailers eating away at the smaller items on their shelves, both companies can take comfort in the fact that high-end TVs and huge appliances aren't going to be swept up by their Internet rivals for a very, very long time. "It's fun to take someone's mistake, add on rumors, make some inaccurate assumptions, and predict doom and gloom, but that doesn't make for smart investing," Bryan says. "These companies are ridiculously cheap because investors are caught up in the mythology and the innuendo instead of the facts."

Click any of the links below and you'll automatically create a free watchlist loaded up with that stock. It'll let you get to know any of these companies better and determine if they're right for you, plus you'll also get instant access to "6 Stocks to Watch from David and Tom Gardner," a free report on a handful of companies the Fool's co-founding brothers think you should be watching. The free watchlist service and the report are free when you click any of the links below:

Roger Friedman owns none of the companies mentioned. Best Buy is a Motley Fool Inside Value recommendation. Best Buy, FedEx, and hhgregg are Motley Fool Stock Advisor picks. The Fool owns shares of Best Buy, FedEx, and Madison Square Garden. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (7) | Recommend This Article (49)

Comments from our Foolish Readers

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  • Report this Comment On March 09, 2011, at 5:22 PM, mikecart1 wrote:

    Ok, not to be mean, but tell Bryan to not quit has day job.

    1) MSG varies very slightly to who plays for the Knicks. MSG also makes money from the Rangers and also concerts and performances. The stadium will only start to shine once the Knicks are consistently good and playoff/championship contenders. See Cavs for explanation. Cavs took 7 years to nearly double in value.

    2) Fedex....no. More companies are using UPS now due to costs.

    3) BBY and HGG will get crushed by online vendors. HD to 3D is not even close to SD to HD. 3D looks like trash on most channels is unnecessary. There is no reason to watch something in 3D unless the movie was designed to be watched in 3D like Avatar. I don't see watching sports in 3D ever being cool. 3D also requires a dimmed picture and glasses. Show me people that are willing to do both and I will show you the moon.

    Article should be called "4 Stocks to Watch Right Now"

  • Report this Comment On March 09, 2011, at 5:45 PM, NewsTrend wrote:

    Don't you think FEDEX will suffer from continuing rise in oil prices?

  • Report this Comment On March 09, 2011, at 7:40 PM, Rowants wrote:

    HGG? Thanks for recommending it above $20, closed a hair above $14 today. With results like this, I should go to HGG and get a box to live in before I'm totally broke.

  • Report this Comment On March 09, 2011, at 10:56 PM, archibaldduke wrote:

    I just have to add that Best Buy has the worst customer service I have ever experienced. So I did some research online to see if it was just me. No, thousands agree with me, and thats just the ones who bother to post. Best Buy consistently chases away customers with its lack of basic customer service and by not honoring its extended service plans.

    They seem to be clueless on how to run a customer service oriented company and are digging themselves a deep hole. People are talking a lot and its all bad.

  • Report this Comment On March 10, 2011, at 12:46 AM, GovWalkerISadBag wrote:

    I have to agree with the other commentators. These picks all see pretty poor. I know little of MSG but probably would not feel safe investing in a venue for any sort of stable gain. FedEX seems to be dying a slow death as more and more important online vendors are going with UPS. I would have to say that Best Buy is the nail in the coffin for these picks.

    Just the other day I read an article that said Best Buy is taking heavy losses again. It's no real surprise to me since I have been skipping B&M retail stores for a decade now in favor of online vendors like Amazon and Newegg. Don't get me wrong, best buy is nice when im in a pinch and need something that day, but I know going in that I am paying much more than I would if I bought online. Best Buy will be another one of the large chain stores that will endure a painful long death and will probably be one of the last hold outs.

    There is just no place in today's economy for large box stores that charge you extra because of there overhead. Big box store and variety stores such as Sears will be the quickest to go. Not understanding the market will be the key to there demise. Obviously it still can be done when you know the market and can offer competitive pricing. B&M stores such as Costco, Fry's, and Microcenter are places that seem to offer real competition to online vendors because of competitive pricing. How long they can sustain this while enduring the cost of running a retail store are beyond me.

    Also 3D is a fad that will soon be out of the public's perception. It is a niche market created by fickle hollywood that has been tried before. Sure the tech is better and much more well suited for it but I don't see it gaining mass appeal even with all the advertising it gets. Sure Avatar was cool but not it is just getting lame with how hard they are trying to make it popular.

  • Report this Comment On March 12, 2011, at 9:10 PM, gecko0522 wrote:

    Hilarious, I was going to comment about how bad these picks were but it seems they beat me to it. I couldnt sit back, what fluff.

  • Report this Comment On March 13, 2011, at 2:16 PM, muggsm1 wrote:

    I couldn't agree more about the comment of poor customer relations at Best Buy.

    Not only usually over-priced, but salespersons don't even try to assist you, and often offer no real help when you finally get someone to try answer a question.

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