BOSTON (MarketWatch) -- David Brown, chief market strategist at Sabrient Systems, says investors should be prepared to let winners run rather than taking quick profits at a time when the company is "pounding out earnings" and when price doesn't exceed forward-looking estimates.
California-based Sabrient is an independent research firm that takes a quantitative approach to analyzing stocks; Brown said that rather than fearing the numbers, investors should embrace gains because "you can't get a 10-bagger if you get out of it when it's a two-bagger."
In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Brown said that technology stocks are an area investors might look to for their next winner "because they are trading at relatively low P/E ratios and sporting 35% growth rates."
To that end, he put buy ratings on Vasco Data Security International , Apple /zigman2/quotes/202934861/composite AAPL -2.27% , Brocade Communication Systems , Silicon Motion Technology /zigman2/quotes/203091999/composite SIMO -0.84% and Gigamedia /zigman2/quotes/204964238/composite GIGM +2.46% . He also put buys on energy stocks Pride International and Tesoro Petroleum , as well as shipping and cruise companies Diana Shipping /zigman2/quotes/210428135/composite DSX -4.14% and Royal Caribbean Cruises /zigman2/quotes/208854639/composite RCL +1.96% .
Brown suggested selling Barrick Gold .
In another interview from Jaffe's weekday radio program, Greg McBride, senior financial analyst for BankRate.com, talked about how mortgage interest rates have continued to rise, noting that the average 30-year fixed in America now stands at 6.6%, up from 6.25% a month ago. McBride also suggested that the next 10 days will be critical in setting the direction of rates, as economic news will go a long way to determining if the market thinks the Federal Reserve will be able to cut rates later in the year.
Jaffe's radio show features reviews of stocks and mutual funds suggested by MarketWatch readers; to request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to Chuck Jaffe .