Stock picks and pans: BNI, ALU, CY, MOT, L, UPS, WAG, JNJ, WMT ...

After another sell-off day, investors are no doubt jittery, but at some point the market will have to find a bottom. In the meantime, many continue to build positions in stocks they deem are cheap, defensive or have the growth potential to come out of the recession strongly.

Here are some ideas from BloggingStocks contributors and around around the Web:

Johnson & Johnson (JNJ) and Procter & Gamble (PG) are two companies long touted as the best defensive plays out there. But this morning we hear that Buffett cut holdings of J&J and P&G as he turned his attention to fixed-income investments. This may be a surprising move as both stocks trade near their 52-week lows, but Doug McIntyre thinks it may be warranted since as the recession gets deeper, consumers may move toward low-priced and private label brands...
Burlington Northern Santa Fe (BNI), on the other hand, is one company in which the Oracle of Omaha continues to increase his stake, now standing at 22.4%. Sheldon Liber also finds more value in BNI these days as the decline in oil prices pushed its price down.

Alcatel Lucent (ALU), Cypress Semiconductor (CY), Motorola (MOT), Office Depot (ODP) and Sun Microsystems (JAVA) are only five of the ten cash-rich, low-priced turnaround stocks from George Putnam. All trade below $5 a share and have substantial cash on their balance sheets.

Loews (L) gives investors "a way of buying a collection of good stocks at a discount, with much else thrown in free," says Adrian Day. By calculating the value of its holdings, he found it is trading at a discount of 25% to the value of just the public shares and its cash.

United Parcel Service (UPS) is a tremendous value, according to Sheldon Liber. Not only are fuel prices way down, it has recurring revenue, great management, balance sheet and 3.8% dividend yield. Sheldon has been increasing his holdings with naked puts.

Walgreen (WAG) is 'the defensive's defensive,' says Joseph Lazzaro, because not only is it in a conservative sector, it has also resisted the urge to grow by acquisition. Instead, it has opened new stores, penetrated into new markets and expanded its services.

Wal-Mart (WMT) shares gained more than 4% Tuesday, a day the markets saw a sharp sell-off. The company said it is seeing customer traffic increase and that it is restarting its own buyback program at some point during the year. Jamie Dlugosch says WMT appears to be a retail stock that investors can own and feel easy about.

Netflix (NFLX) seems to be thriving during bad economic times, says Michael Cintolo. He likes the stock from a fundamental and a technical view points.

Philip Morris International (PM) is seeing an interesting trend where emerging-market smokers continue to trade up from discount tobacco to the company's pricier brands. "Its beaten market value offers an opportunity for long-term investors with an eye toward both growth and income," write Barron's Naureen S. Malik as the company pays a 6% dividend yield.

Motorola (MOT), Seagate (STX) and Bank of America (BAC) are three of 11 companies whose CEOs bought large amount of shares lately, according to SmartMoney.

Netflix (NFLX), Apple (AAPL), Constellation Brands (STZ) and Abbot Laboratories (ABT) are four "safety" stocks that look overpriced, from SmartMoney. Abbot was also a pick at Barron's.

Wal-Mart (WMT), Amazon (AMZN) and Best Buy (BBY) are three of six retailers that are thriving, according to Kiplingers.
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