Costco could very well be the greatest retailer of it's time. There is virtually nothing you cannot buy at Costco. Further, if you believe the economy is heading into a recession, Costco will benefit from comp store increases. America shops at Costco. That's the problem with the analysts. They live in such a world of isolation that they never shop Costco. So no matter what you need, gasoline, gourmet foods, designer clothing, appliances, beer, wine, beverages, automobiles, stereos, computers, cameras, jewelry, travel, or insurance, Costco not only has it under one roof, but they beat the socks off of everyone's pricing. What's not to like about Costco?

A dog of the DOW. We like it for that reason. Again, the analysts don't like it due to their isolationist mentality. Home Depot is THE home improvement store leader and favorite amongs REAL home improvement enthusiasts, gardners, and contractors. Lowes cannot hold a candle to HD. Look at the big picture - if the housing sector is down, HD should benefit from remodels in the mid-term. When people don't move, they remodel. Plain and simple. Plus, HD's business model puts it an arm and a leg above it's competitors when it comes to selection and product line. Our only negative on HD is it's customer service, which is in need of serious improvement.

Perhaps one of the most overlooked retailers out there. Wow, what a play. I hate shopping at Ross Stores, but every single time I go into a Ross Store, it's packed. There's lines down the aisles. It is one of the worst looking retail environments I have ever seen, which is what keeps the cost low. How many Wall Street analysts shop Ross? How many have ever been in a Ross Store? I bet fewer than I have fingers and toes. And therein lies the valuation misconception. Ross caters to the masses. And the masses shop at Ross because they deliver department store clothing at clearance prices. What a concept. The tighter money gets, the better Ross does. It's a reverse play on the economy, but even better, as the middle class gets squeezed, they shop Ross to save a buck. It's peers are pretty bad in comparison, spare Marshall's. Ross creates an environment of bargain hunting at rock bottom pricing. It's like a flea market for soft goods all under one roof. You may not shop there, but remember, most of the country does. I will no longer overlook this hidden gem.

Ever hear of WiFi? Think it's going places? How about WiMax? It only has a range of 30 miles compared with WiFi's 300 feet. You read that right. Alvarion has developed the WiMax technology, and they're moving it worldwide. It's only a matter of time before they take their proprietary patented system into the USA. It's all over the world today. Rumor has it they're working with Intel on the system, but I sure couldn't confirm that. The fundamentals are strong, the growth potential is enormous. Talk about a ground floor opporunity on a new technology that is certain to take off. If you're not in ALVR now, get in before it makes the move to par and beyond.

In the big scheme of satellite radio, Mel Karmazin will win the day. This stock looks like a financial dog, and I am not thrilled with it. But we have faith in Karmazin. Just remember where cable TV was back in the 70's. That's where satellite radio is today. We think that if Mel can hold it together, it's a long term winner. But it does come with great risk, and it's financials currently stink.

Service, service, and service - worldwide. Perhaps the most undervalued play in the sector, UPS puts all the other logistics firms to shame. Yet nobody likes the stock. With FedEx above par, there's no reason UPS shouldn't be trading at a comparable level. Perhaps one day investors will wake up and smell the coffee.

They're the worst of the group. If human beings were animals, ever animal rights group in the world would be going after them. Their aging fleet of airframes, they're poor customer service (poor doesn't begin to describe it), and their broken business model makes United Airlines look like it is constantly on the brink of disaster. Yet like Teflon Don Gotti, they seem to always bounce back. They have a loyal customer base for reasons I cannot ever seem to understand, and people pay top dollar to be treated like shit on United. Further, they have the most extensive lobbying force in the industry. And talk about government subsidies, UAUA wrote the book on that one. I hate this airline, but I am not the normal customer who will take dirt on a plate and pay for it. The rest of the world loves United, and as an investment, screw the fundamentals, these guys will never go away.

Do you think oil is going up? If so, check out xto. We like it for it's vast holdings of untapped reserves. At $40 a barrel, those reserves didn't make a lot of sense. At $80+ per barrel, they make a ton of sense. And XTO is primed to capitalize off of them.