Popular Investment Letter Predicts "New Downward Trend in the Broader Market," Likes UAX, GE, Google

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Mitchell Clark, writing in a popular on-line investment and market letter, warned that the "dead cat bounce" rally of November is coming to an end, but advised investors that current market conditions have left some solid stocks seriously undervalued.

Mitchell Clark, B. Comm., writing in today's Profit Confidential, a popular on-line investment and market letter, warned that the "dead cat bounce" rally of November is coming to an end, but advised investors that current market conditions have left some solid stocks seriously undervalued.

In his report released today, Clark states, "It looks to me that this is the end of the dead cat bounce and the beginning of a new downward trend for the broader market. The economic data coming out isn't very good and the layoff notices are really piling up. The Bank of America layoffs are no big surprise. You're not going to have a big bank takeover of Merrill Lynch and not have job losses."

Clark worries that the U.S. stock market's prospects for early 2009 are steadily worsening. "I don't know where the stock market is going to go over the coming months, but I think it's very likely we'll retest the lows set in mid-November," he writes. "This is when the S&P 500 Index broke the 750-level, which is truly significant. I remember writing that if that index broke 1,200, we'd be in for some real trouble." He adds further, "The opportunity for some great buys in the stock market is coming, but I think we'll see the main stock market averages move much lower first. We're still in a period of liquidation and a period where cash is king."

Despite being bearish on the market at large, Clark is bullish on some particular stocks. "One bellwether stock that's always worth following is United Technologies Corporation (NYSE/UTX). This huge conglomerate recently announced that, while its cash flow is looking solid for 2009, its revenue base is deteriorating." Clark is similarly enamored of General Electric, writing, "I can't believe this stock is trading below $20.00 per share. Currently, it's trading around $17.00 per share, and its 52-week low set in mid-November was $12.58 per share. This stock is now yielding well over six percent, and has corrected significantly from its 52-week high of over $38.00 per share." Clark also likes Google, stating, "…Google…is trading below $300.00 per share. You could almost argue that this is a value stock at its current price."

For the full report, please visit: http://www.profitconfidential.com

About Profit Confidential:

Profit Confidential is Lombardi Financial's free daily investment and market e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, other investments and the economy. Lombardi Financial is a division of Lombardi Publishing Corporation, one of the world's largest newsletter companies, now with over one million customers in 141 countries.

For more information, visit: http://www.profitconfidential.com

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