A Chance To Buy At The Bottom?

One of Wall Street's veteran market gurus, Seth Glickenhaus, thinks the selling in the market isn't over. "There's still some room on the downside, with more bad innings possible--but we're nearing bottom," he says. So what's Glickenhaus' strategy?

"We're buying heavily, but selectively--some of the ones we have always liked and some new names that have become attractively priced," he says. Glickenhaus runs a New York investment firm bearing his name, which manages more than $5.5 billion. Among the stocks Glickenhaus thinks have become compelling buys: Merrill Lynch (MER), which dove 7 1/2, to 66, on Aug. 31--way off its high of 107 on July 13; Chrysler (C), which skidded 4 15/16, to 45 1/4, down from 61 on July 24; and homebuilder Lennar (LEN), which fell 5 7/8, to 18 1/8--a far cry from its of 36 3/16 on Apr. 20.

Glickenhaus notes that for people betting on the market, Merrill is the play. It has a large in-house mutual-fund operation, with $448 billion in assets under management. The stock rose to 67 13/16 by Sept. 2.

As for Chrysler, "it's a win-win situation" because of its merger with Daimler-Benz, he says. Glickenhaus figures that if the deal flies, investors will own 47% of a more robust Daimler-Chrysler. If the deal collapses, Chrysler would still be worth more than its current price, says Glickenhaus. The stock inched up to 49 11/16 on Sept. 2.

Lennar, says Glickenhaus, is benefiting from the surge in homebuilding. On Sept 2, the stock rose to 19 1/4.

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