Charles Payne: 3 Stocks, Charles' Choice

3 Stocks

Sandisk (SNDK) enjoyed a huge session Wednesday, up 25% on 20.0 million shares on rumors the company is reconsidering the takeover offer from Samsung. Like Yahoo the company turned down a gift when it was offered $25.00 a share. While it is unlikely the offer would be as high as before, I believe SNDK would take $15.00 or better.

Toll Brothers (TOL) reported before the bell but the bigger news may be the latest idea from Treasury to funnel money through Fannie Mae (FNM) and Freddie Mac (FRE) to get home buyers 4.5% loans. The stock was up 7.7% during the session -- maybe the smallest percentage increase in the space -- but volume was 7.2 million shares versus 6.0 million average

Target (TGT) opened lower and came on like a bandit. The stock finished the session up 9.4% on 18.6 million shares (higher than the daily average) The company isn't supposed to do very well in this environment...maybe they're bringing back Isaac Mizrahi.

Charles's Choice

Beazer Homes (BZH): this is a play on the surge on mortgage applications and the sense at some point the government will get around to buying mortgages and making loans easier to attain and pay off.

US Bancorp (USB) is the best run regional bank in the country -- the third quarter saw the bank become number one in return on assets, return on common equity and efficiency ratio. It recently got bank branches of Downey and PFF, and the FDIC ate much of the losses. Those deals gives the company 208 more branches in California and five in Arizona.

Genentech (DNA) is oversold... and the company has a history of solid execution. It's very attractive at these levels.


FDIC Seizes Freedom Bank
First Horizon’s stock recovers
More Job Cuts: AT&T, DuPont, Credit Suisse
Regional banks to sell maximum stock amount