Forbes briefly profiles the stock picks of Tom Forester, the fund manager who achieved a slight gain in 2008 when the S&P 500 plunged 37%. Forbes reports that he identifies the natural gas pipeline provider Spectra Energy Partners as a “green light” because it “has little exposure to commodity prices” and a 7% dividend yield. He suggests a “yellow light” for Pfizer because “he thinks its middle-of-the-pack multiple (14 times earnings) could expand a bit.” General Motors represents a “red light” despite its apparent value attractiveness because of problems with China and a likelihood that auto financing in the U.S. has peaked. As a “wildcard,” Forester highlights Chesapeake Energy, saying: “I’m hesitant to mention it” and “it’s just not our pond to fish in.” Nonetheless, he sees a chance of a huge rebound in the stock price.
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