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5 Stocks to Buy While Others Are Afraid

Tickers in this article: ATVI EA ZNGA RL LULU
NEW YORK (TheStreet) -- The stock market got off to a rough start this week. Not only has the broad market swoon knocked the life out of most tickers, several companies got hit on lackluster earnings reports.

My biggest concern: I am waiting for a couple of paychecks to clear. In fact, until they do, it would not bother me if the market continued to correct, drop, tank or even crash.

I fully understand that the prospects of these things scare many people. If you need your money soon and you're all-in, I understand your fear. When the day comes that I am two-to-five years out from needing cash from my nest egg, I will have tucked a more-than-sufficient portion of it under my proverbial mattress.

Short-term sentiments aside, as a long-term investor, I am buying the following stocks on weakness.

Names to Buy on Weakness

Electronic Arts (EA) , Activision Blizzard (ATVI) and Zynga(ZNGA) . That's right. I like all three stocks. If a space exists where multiple companies can not only co-exist but thrive, the gaming sector is it.

Investors have bruised and battered each of these stocks. As of Tuesday's close, EA is down 44.6% from its 52-week high. ATVI is off 13.9%. And ZNGA took a 50.2% haircut.

Hold on tight, but if I were to create a basket between these three stocks, I would allocate 50% in ZNGA and 25% each in EA and ATVI. Yes, overweight ZNGA. Before you start talking about "bubbles," "irrational exuberance" and "dot-com booms and busts," let me explain myself.

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First and foremost, I am a long-term investor. When I buy a stock, I do so with a time horizon measured in several years, not days, weeks or even months. And I buy future potential.

Zynga has the visionary in its CEO Marc Pincus. As I started to explain Monday on TheStreet, I invest in visionaries like Jeff Bezos, Mark Zuckerberg and Pincus. These guys started companies, created spaces, changed the world and continue to own the role of trailblazing pioneer. I will bet on an entrepreneur any day of the week over an MBA. (And I know Pincus has an MBA, but he's as much of an MBA as I am urban planner or heart surgeon).

That's why I go overweight Zynga. I want more of my money on the guy who dictates change to the other guys. While it's tough to hammer them too hard for it, both EA and Activision came way late to the digital party.

Neither company saw the future or, at the very least, they failed to act on it. Now, they're playing catch up. On the bright side, both have strong-enough balance sheets to subsist while they regroup. Activision has no debt and about $3.5 billion in cash. EA sports only $534 million in debt and has nearly $2 billion in its savings account. And, on the even brighter side, their digital businesses are starting to emerge hard and fast.