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When The Dust Settles: Marvell, Strayer, JA Solar

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Worried about a crash? You can still trade.

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There is no question we're reaching extremes, and I feel in the back of many traders' mind is that ultimate extreme, spelled c-r-a-s-h. Is it a possibility? Sure it is. However, I haven't met a single trader who makes consistent money thinking that the end is near.

At this juncture right here and now, rather than contemplate the odds of an '87-like plummet, go to work developing a list for when the selling dries up and stocks once again are in vogue. Believe it or not, crash or no, it will happen.

Here are a few I have on my list:

Marvell Technology (MRVL) – I added this one yesterday and by day's end will be taking a partial stop on a failed break attempt, but once the dust settles this is one I want to add aggressively. The company recently reported a 325% year over year EPS increase, on a 27% jump in revenue. With a .95 estimate for 2009, the stock looks incredibly cheap at these levels. I'll wait for the stock to settle down, but it possesses a top spot on my watch list.

Strayer Education (STRA) – As I mentioned on last Friday's Fast Money, when the economy stinks people seek out new skills. On a valuation basis, the stock looks rich but from a technical perspective, a break out over $200 should be respected. The stock is settling in, consolidating those gains, and will be high on my list as an add when the dust settles.

JA Solar (JASO) – Solar is getting taken behind the woodshed today and bravo to Minyanville contributor and Fast Money's Guy Adami, who rebuked my call, saying they could be bought lower. Well, they're heading lower now and this one is getting hit very hard despite continued upgrades and what looks like a deep discount valuation compared to its estimated growth rates. The stock is still very young and is now going through its sixth major correction since it started trading. With a longer term uptrend in place, I'm looking to nibble more here on weakness leaving room to add on a prudent set up.

Yes, the action is terrible and, no, a crash isn't out of the question, but at some point those who have preserved capital will be ready to pounce on bargains. However, they need to make sure they stick with names that will become big winners. These are three that may be just that.

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Position in MRVL, STRA, JASO.

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