AI
Sunday, February 05, 2012 11:43:27 AM
Windy here are five picks Manny Backus,Normans friend has on his radar screen. It cost 400 bucks for a years to follow his other picks.What do you think? I like Molycorp and Visa a lot.I think it's likely that despite the naysayers we're going to be surprised by our country's economic strength in 2012. Consumer spending should be strong and going into the end of 2011 the economy was generally beating expectations. I expect this trend to continue.
Most economists and investors are expecting the New Normal paradigm to hold and are looking for growth of 2-3% in GDP. Given such low expectations, I believe stronger than expected growth could become a dominant theme in the media.
Positive news reports could increase consumer sentiment and confidence. So with less fear of an impending recession, spending could actually rebound to pre-crisis levels. This however could also lead to an increase in inflation.
Europe
Realistically the euro will likely survive its present crisis. This is much more important a fact than the day-to-day drama that is unfolding throughout the EU. Just as in the US, upside surprises are more likely to deliver gains.
The euro is likely to change, and some countries may even break with the currency, but overall the currency should live to see another day.
The Election Year:
An interesting fact to look at is that stock market gains average 10.9% in election years and 81% of election years are positive.
Presidential elections historically boost stock markets and there is no reason to believe this trend will end. It takes a lot of money to elect a President… and that's good for the market.
This also holds true by the way, in countries OTHER than the United States…
Rare Earth Minerals:
China's uncertain policies regarding its supply of rare earth minerals look to drive up prices and the value of companies supplying them outside of the Great Red Dragon.
These minerals are a critical component of electronics equipment and China, the world's leading supplier, has briefly cut off exports twice in the past year.
Although they're called "rare", these minerals are actually found in many parts of the world and can be mined profitably at recent price levels. North American mining companies are evaluating new projects and several new sources should begin coming online in 2012, but the supply concerns will linger for several years as it takes time to move mining projects through development.
These factors all add up to what will be a fascinating and very profitable market this year.
So the question remains… what do you invest in?
Visa (V)
This credit card giant could be a primary beneficiary of increased consumer spending in a sustained economic recovery.
What they do:Visa owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payment platforms, which enable credit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services.
The chart:
Why they can double:
Warren Buffett, the world's most famous super investor, reported buying 2.3 million shares of Visa in his latest SEC filings. Buffett buys only when he sees long-term value and a business model likely to deliver steady profits.
Buffett also owns rival Mastercard (MA). Both companies are expected to show similar earnings growth. Visa has a higher operating margin but is trading at a lower P/E ratio. By any fundamental ratio, Visa is selling at a discount to MA, offering investors greater potential gains.
Visa generates revenue from more than 1.7 billion cards that are used over 54 billion times a year. Revenue totaled about $9.2 billion in the past twelve months and is expected to grow at about $1 billion a year going forward.
Visa's profits amount to about one third of its revenue. Analysts expect earnings growth to average 20% a year over the next five years. Earnings estimates are consistently being revised higher and as consumer spending increases. Therefore earnings for Visa should follow soon after.
The company has a history of beating analyst earnings estimates. Earnings should be at least $7 per share in 2013, and the company's earnings consistency merits an above market rate P/E ratio.
The price target: A target of $200 per share is reasonable for Visa.
Navios Maritime Holdings (NM)
Navios Maritime is a Greek shipping company that could double as the euro crisis is resolved. NM gets an extra boost if the economy is stronger than expected.
What they do:NVM is a seaborne shipping and logistics company in Greece. It focuses on the transportation of dry bulk commodities, including iron ore, coal, fertilizers, and grains. They control a fleet of 56 vessels that can ship cargo totaling 5.9 million deadweight tons. In addition, the company operates ports and transportation terminals.
The chart:[img]investorshub.advfn.com/uimage/uploads/2012/2/5/b[gul5stocks-chart2.gif
[/img]
Why they can double:
Risk is low in a stock that is selling for the value of the cash on its balance sheet as NM is. The company's other assets include ships and containers - tangible assets that could be easily sold. The stock is trading at about a third of its tangible book value. This limits the downside risks to investors.
NM's book value largely consists of stakes in three public traded companies under the Navios brand that include a dry goods shipper, a company focused on tanker operations and a company engaged in port operations.
NM has a number of long-term contracts in place providing guaranteed revenues and faces a relatively stable cost structure. Expansion is possible if economic conditions make that option attractive.
Although headquartered in Greece, operations are geographically diversified and most of NM's opportunities are related to growth in emerging markets.
Major markets are in South America (port operations) and India and China (shipping)
At recent prices, NM offered a dividend yield of about 6.4%. Historically, the stock has paid a generous quarterly dividend since going public about five years ago. Cash flow from operations is six times greater than the total dividend paying, offering a margin of safety to income investors concerned about whether or not the dividend will be maintained.
The price target:Earnings growth of 15% a year support a conservative P/E ratio of 12 for NM and a price target of $8.40
CTC Media (CTCM)
CTCM is a Russian TV broadcaster with additional election revenue driven by the 2012 Russian presidential election. Although it is widely expected that Vladimir Putin will win, he is still campaigning with a full onslaught of pricey television and print ads.
What they do:Based in Moscow, CTCM operates as an independent broadcasting company in Russia. It owns and operates the CTC, Domashny, and DTV television networks in Russia. The company also operates a television network in Kazakhstan and a television channel in Moldova. The company also has its own TV content production capabilities through a subsidiary.
The chart:
Why they can double:
CTCM's revenue is on track to grow more than 30% and should settle into a long-term growth rate of more than 10% a year.
The company's earnings growth should be significantly faster than revenue growth and analysts are looking for long-term growth of more than 30% a year.
CTCM offers exposure to Russia's stock market which is one of the most volatile in the world.
Recent selling has driven the stock to a low valuation of less than 10 times earnings and a dividend yield of more than 13%, however the dividend is likely to be cut. The sell off followed lower than expected earnings and a warning from management that ad sales would slow in the fourth quarter of 2011.
Election spending could be worth $8-10 billion in the US election next year and US media companies should see record levels of revenue. Campaign finance limits and a smaller economy will prevent that kind of spending in Russia, but the total spent on advertising will still be in the millions of dollars and enough to make a significant contribution to media companies like CTCM.
The price target:The selloff of CTCM presented a chance to buy at a bargain as the stock is likely to rebound to its 52-week high near $25 a share.
Mitcham Industries (MIND)
Oil demand continues to increase as the economy grows and Mitcham Industries' delivering of seismic equipment to oil companies could lead to big profits.
What they do:The company leases, manufactures, and sells seismic equipment to the oil and gas industry worldwide. They offer a unique technology that has proven to be popular in offshore drilling operations.
The chart:
Why they can double:
As the amount of the controversial drilling procedure "fracking" increases in shale deposits so does opposition and the chances of government intervention. Many oil companies are reconsidering fracking plans which require extended approval process. This means offshore drilling becomes more attractive under these conditions.
Latin America is fueling growth in MIND's revenue and earnings.
The company recently added a sales office in Hungary so that it can increase its presence in Eastern Europe, which includes the ultra-valuable energy market of Russia.
The company's P/E ratio based on historic earnings is about 15, in line with the market, but MIND is growing much faster than the market.
In 2012, analysts expect to see earnings of $1.40 a share and $2.10 in 2013.
The price target:Based on the expected earnings, MIND should trade above $40 a share.
Molycorp (MCP)
With China creating uncertainty in the rare earth minerals market, Molycorp, already an established miner in this sector, stands to benefit.
What they do: MCP focuses on the production and sale of rare earth oxides from stockpiles available in the western hemisphere. The company operates the Mountain Pass mine, located in San Bernardino County, California. Its rare earth products are used as inputs in various existing and emerging applications comprising clean energy technologies; multiple high-tech uses; defense applications; and water treatment technology.
http://investorshub.advfn.com/uimage/uploads/2012/2/5/qpd[d5stocks-chart5.gif[img][/img]
Why they can double:
MCP is one of the few non-Chinese rare earth mining companies. Their mines will be able to deliver stable supplies and take advantage of market panics created by China's unsteady export policies.
With a market cap of more than $2 billion, MCP is an established mining company and one of the few rare earth plays in the stock market. By size, it is the largest rare earth miner.
Sales grew more than 1,000% in the past year as the company proved it can process ore and deliver to the market.
Earnings have tripled in the past year, and should double again in the next twelve months.
A P/E ratio near 30 fails to reward the high growth the company has delivered and the additional growth opportunities available.
The price target:MCP should reach $70 a share in the next twelve months, assuming earnings of $3.50 a share and a P/E ratio of 20. Both estimates may prove to be conservative.
SYMBOL Entry Price Exit Price % Gains
REDF $7.87 $13.94 77.13%
SPMD $4.96 $11.43 130.44%
GNTX $26.94 $31.88 18.34%
THC $4.24 $7.00 65.09%
RES $17.74 $26.87 51.47%
ITMN $13.41 $47.13 251.45%
NYMX $7.07 $9.10 28.71%
CHTP $3.76 $5.81 54.52%
IMOS $6.71 $9.79 45.90%
EMC $21.33 $27.96 31.08%
TIN $22.75 $31.05 36.48%
GLNG $18.50 $38.98 110.70%
CBOU $9.99 $16.90 69.17%
RCL $34.16 $49.53 44.99%
MU $5.25 $7.24 37.90%
5 Stocks to
Buy Right Now
Dear Fellow Investor,
In this report, I'll layout for you 5 stocks I believe have the potential to double this year.
Each stock has been screened analyzed and targeted by the proprietary "super software" I use in my Consensus Picks advisory service regularly.
I'll tell you more about that in a minute.
But first, here's a few major trends I'm seeing develop that I believe will send these 5 stocks soaring.
The U.S. Economy:
I think it's likely that despite the naysayers we're going to be surprised by our country's economic strength in 2012. Consumer spending should be strong and going into the end of 2011 the economy was generally beating expectations. I expect this trend to continue.
Most economists and investors are expecting the New Normal paradigm to hold and are looking for growth of 2-3% in GDP. Given such low expectations, I believe stronger than expected growth could become a dominant theme in the media.
Positive news reports could increase consumer sentiment and confidence. So with less fear of an impending recession, spending could actually rebound to pre-crisis levels. This however could also lead to an increase in inflation.
Europe
Realistically the euro will likely survive its present crisis. This is much more important a fact than the day-to-day drama that is unfolding throughout the EU. Just as in the US, upside surprises are more likely to deliver gains.
The euro is likely to change, and some countries may even break with the currency, but overall the currency should live to see another day.
The Election Year:
An interesting fact to look at is that stock market gains average 10.9% in election years and 81% of election years are positive.
Presidential elections historically boost stock markets and there is no reason to believe this trend will end. It takes a lot of money to elect a President… and that's good for the market.
This also holds true by the way, in countries OTHER than the United States…
Rare Earth Minerals:
China's uncertain policies regarding its supply of rare earth minerals look to drive up prices and the value of companies supplying them outside of the Great Red Dragon.
These minerals are a critical component of electronics equipment and China, the world's leading supplier, has briefly cut off exports twice in the past year.
Although they're called "rare", these minerals are actually found in many parts of the world and can be mined profitably at recent price levels. North American mining companies are evaluating new projects and several new sources should begin coming online in 2012, but the supply concerns will linger for several years as it takes time to move mining projects through development.
These factors all add up to what will be a fascinating and very profitable market this year.
So the question remains… what do you invest in?
With the power of my Consensus Picks technology at my fingertips – the same technology that mines over 800 independent financial sources for its picks – I offer you these 5 stocks you MUST buy.
Visa (V)
This credit card giant could be a primary beneficiary of increased consumer spending in a sustained economic recovery.
What they do:Visa owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payment platforms, which enable credit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/lnbrd5stocks-chart1.gif
Why they can double:
Warren Buffett, the world's most famous super investor, reported buying 2.3 million shares of Visa in his latest SEC filings. Buffett buys only when he sees long-term value and a business model likely to deliver steady profits.
Buffett also owns rival Mastercard (MA). Both companies are expected to show similar earnings growth. Visa has a higher operating margin but is trading at a lower P/E ratio. By any fundamental ratio, Visa is selling at a discount to MA, offering investors greater potential gains.
Visa generates revenue from more than 1.7 billion cards that are used over 54 billion times a year. Revenue totaled about $9.2 billion in the past twelve months and is expected to grow at about $1 billion a year going forward.
Visa's profits amount to about one third of its revenue. Analysts expect earnings growth to average 20% a year over the next five years. Earnings estimates are consistently being revised higher and as consumer spending increases. Therefore earnings for Visa should follow soon after.
The company has a history of beating analyst earnings estimates. Earnings should be at least $7 per share in 2013, and the company's earnings consistency merits an above market rate P/E ratio.
The price target: A target of $200 per share is reasonable for Visa.
Cutting edge technology delivers you picks like this regularly in Consensus Picks… learn more here!
Navios Maritime Holdings (NM)
Navios Maritime is a Greek shipping company that could double as the euro crisis is resolved. NM gets an extra boost if the economy is stronger than expected.
What they do:NVM is a seaborne shipping and logistics company in Greece. It focuses on the transportation of dry bulk commodities, including iron ore, coal, fertilizers, and grains. They control a fleet of 56 vessels that can ship cargo totaling 5.9 million deadweight tons. In addition, the company operates ports and transportation terminals.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/b[gul5stocks-chart2.gif
Why they can double:
Risk is low in a stock that is selling for the value of the cash on its balance sheet as NM is. The company's other assets include ships and containers - tangible assets that could be easily sold. The stock is trading at about a third of its tangible book value. This limits the downside risks to investors.
NM's book value largely consists of stakes in three public traded companies under the Navios brand that include a dry goods shipper, a company focused on tanker operations and a company engaged in port operations.
NM has a number of long-term contracts in place providing guaranteed revenues and faces a relatively stable cost structure. Expansion is possible if economic conditions make that option attractive.
Although headquartered in Greece, operations are geographically diversified and most of NM's opportunities are related to growth in emerging markets.
Major markets are in South America (port operations) and India and China (shipping)
At recent prices, NM offered a dividend yield of about 6.4%. Historically, the stock has paid a generous quarterly dividend since going public about five years ago. Cash flow from operations is six times greater than the total dividend paying, offering a margin of safety to income investors concerned about whether or not the dividend will be maintained.
The price target:Earnings growth of 15% a year support a conservative P/E ratio of 12 for NM and a price target of $8.40
Don't waste time picking and choosing investment advisories… Consensus Picks does all the work for you!
CTC Media (CTCM)
CTCM is a Russian TV broadcaster with additional election revenue driven by the 2012 Russian presidential election. Although it is widely expected that Vladimir Putin will win, he is still campaigning with a full onslaught of pricey television and print ads.
What they do:Based in Moscow, CTCM operates as an independent broadcasting company in Russia. It owns and operates the CTC, Domashny, and DTV television networks in Russia. The company also operates a television network in Kazakhstan and a television channel in Moldova. The company also has its own TV content production capabilities through a subsidiary.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/hnum[5stocks-chart3.gif
Why they can double:
CTCM's revenue is on track to grow more than 30% and should settle into a long-term growth rate of more than 10% a year.
The company's earnings growth should be significantly faster than revenue growth and analysts are looking for long-term growth of more than 30% a year.
CTCM offers exposure to Russia's stock market which is one of the most volatile in the world.
Recent selling has driven the stock to a low valuation of less than 10 times earnings and a dividend yield of more than 13%, however the dividend is likely to be cut. The sell off followed lower than expected earnings and a warning from management that ad sales would slow in the fourth quarter of 2011.
Election spending could be worth $8-10 billion in the US election next year and US media companies should see record levels of revenue. Campaign finance limits and a smaller economy will prevent that kind of spending in Russia, but the total spent on advertising will still be in the millions of dollars and enough to make a significant contribution to media companies like CTCM.
The price target:The selloff of CTCM presented a chance to buy at a bargain as the stock is likely to rebound to its 52-week high near $25 a share.
Consensus Picks 92.75% accuracy rate can't be beat… become a member today.
Mitcham Industries (MIND)
Oil demand continues to increase as the economy grows and Mitcham Industries' delivering of seismic equipment to oil companies could lead to big profits.
What they do:The company leases, manufactures, and sells seismic equipment to the oil and gas industry worldwide. They offer a unique technology that has proven to be popular in offshore drilling operations.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/xmqzy5stocks-chart4.gif
Why they can double:
As the amount of the controversial drilling procedure "fracking" increases in shale deposits so does opposition and the chances of government intervention. Many oil companies are reconsidering fracking plans which require extended approval process. This means offshore drilling becomes more attractive under these conditions.
Latin America is fueling growth in MIND's revenue and earnings.
The company recently added a sales office in Hungary so that it can increase its presence in Eastern Europe, which includes the ultra-valuable energy market of Russia.
The company's P/E ratio based on historic earnings is about 15, in line with the market, but MIND is growing much faster than the market.
In 2012, analysts expect to see earnings of $1.40 a share and $2.10 in 2013.
The price target:Based on the expected earnings, MIND should trade above $40 a share.
Only invest in the stocks that verified by multiple experts… let Consensus Picks deliver you the cream of the crop!
Molycorp (MCP)
With China creating uncertainty in the rare earth minerals market, Molycorp, already an established miner in this sector, stands to benefit.
What they do: MCP focuses on the production and sale of rare earth oxides from stockpiles available in the western hemisphere. The company operates the Mountain Pass mine, located in San Bernardino County, California. Its rare earth products are used as inputs in various existing and emerging applications comprising clean energy technologies; multiple high-tech uses; defense applications; and water treatment technology.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/qpd[d5stocks-chart5.gif
Why they can double:
MCP is one of the few non-Chinese rare earth mining companies. Their mines will be able to deliver stable supplies and take advantage of market panics created by China's unsteady export policies.
With a market cap of more than $2 billion, MCP is an established mining company and one of the few rare earth plays in the stock market. By size, it is the largest rare earth miner.
Sales grew more than 1,000% in the past year as the company proved it can process ore and deliver to the market.
Earnings have tripled in the past year, and should double again in the next twelve months.
A P/E ratio near 30 fails to reward the high growth the company has delivered and the additional growth opportunities available.
The price target:MCP should reach $70 a share in the next twelve months, assuming earnings of $3.50 a share and a P/E ratio of 20. Both estimates may prove to be conservative.
Most economists and investors are expecting the New Normal paradigm to hold and are looking for growth of 2-3% in GDP. Given such low expectations, I believe stronger than expected growth could become a dominant theme in the media.
Positive news reports could increase consumer sentiment and confidence. So with less fear of an impending recession, spending could actually rebound to pre-crisis levels. This however could also lead to an increase in inflation.
Europe
Realistically the euro will likely survive its present crisis. This is much more important a fact than the day-to-day drama that is unfolding throughout the EU. Just as in the US, upside surprises are more likely to deliver gains.
The euro is likely to change, and some countries may even break with the currency, but overall the currency should live to see another day.
The Election Year:
An interesting fact to look at is that stock market gains average 10.9% in election years and 81% of election years are positive.
Presidential elections historically boost stock markets and there is no reason to believe this trend will end. It takes a lot of money to elect a President… and that's good for the market.
This also holds true by the way, in countries OTHER than the United States…
Rare Earth Minerals:
China's uncertain policies regarding its supply of rare earth minerals look to drive up prices and the value of companies supplying them outside of the Great Red Dragon.
These minerals are a critical component of electronics equipment and China, the world's leading supplier, has briefly cut off exports twice in the past year.
Although they're called "rare", these minerals are actually found in many parts of the world and can be mined profitably at recent price levels. North American mining companies are evaluating new projects and several new sources should begin coming online in 2012, but the supply concerns will linger for several years as it takes time to move mining projects through development.
These factors all add up to what will be a fascinating and very profitable market this year.
So the question remains… what do you invest in?
Visa (V)
This credit card giant could be a primary beneficiary of increased consumer spending in a sustained economic recovery.
What they do:Visa owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payment platforms, which enable credit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services.
The chart:
Why they can double:
Warren Buffett, the world's most famous super investor, reported buying 2.3 million shares of Visa in his latest SEC filings. Buffett buys only when he sees long-term value and a business model likely to deliver steady profits.
Buffett also owns rival Mastercard (MA). Both companies are expected to show similar earnings growth. Visa has a higher operating margin but is trading at a lower P/E ratio. By any fundamental ratio, Visa is selling at a discount to MA, offering investors greater potential gains.
Visa generates revenue from more than 1.7 billion cards that are used over 54 billion times a year. Revenue totaled about $9.2 billion in the past twelve months and is expected to grow at about $1 billion a year going forward.
Visa's profits amount to about one third of its revenue. Analysts expect earnings growth to average 20% a year over the next five years. Earnings estimates are consistently being revised higher and as consumer spending increases. Therefore earnings for Visa should follow soon after.
The company has a history of beating analyst earnings estimates. Earnings should be at least $7 per share in 2013, and the company's earnings consistency merits an above market rate P/E ratio.
The price target: A target of $200 per share is reasonable for Visa.
Navios Maritime Holdings (NM)
Navios Maritime is a Greek shipping company that could double as the euro crisis is resolved. NM gets an extra boost if the economy is stronger than expected.
What they do:NVM is a seaborne shipping and logistics company in Greece. It focuses on the transportation of dry bulk commodities, including iron ore, coal, fertilizers, and grains. They control a fleet of 56 vessels that can ship cargo totaling 5.9 million deadweight tons. In addition, the company operates ports and transportation terminals.
The chart:[img]investorshub.advfn.com/uimage/uploads/2012/2/5/b[gul5stocks-chart2.gif
[/img]
Why they can double:
Risk is low in a stock that is selling for the value of the cash on its balance sheet as NM is. The company's other assets include ships and containers - tangible assets that could be easily sold. The stock is trading at about a third of its tangible book value. This limits the downside risks to investors.
NM's book value largely consists of stakes in three public traded companies under the Navios brand that include a dry goods shipper, a company focused on tanker operations and a company engaged in port operations.
NM has a number of long-term contracts in place providing guaranteed revenues and faces a relatively stable cost structure. Expansion is possible if economic conditions make that option attractive.
Although headquartered in Greece, operations are geographically diversified and most of NM's opportunities are related to growth in emerging markets.
Major markets are in South America (port operations) and India and China (shipping)
At recent prices, NM offered a dividend yield of about 6.4%. Historically, the stock has paid a generous quarterly dividend since going public about five years ago. Cash flow from operations is six times greater than the total dividend paying, offering a margin of safety to income investors concerned about whether or not the dividend will be maintained.
The price target:Earnings growth of 15% a year support a conservative P/E ratio of 12 for NM and a price target of $8.40
CTC Media (CTCM)
CTCM is a Russian TV broadcaster with additional election revenue driven by the 2012 Russian presidential election. Although it is widely expected that Vladimir Putin will win, he is still campaigning with a full onslaught of pricey television and print ads.
What they do:Based in Moscow, CTCM operates as an independent broadcasting company in Russia. It owns and operates the CTC, Domashny, and DTV television networks in Russia. The company also operates a television network in Kazakhstan and a television channel in Moldova. The company also has its own TV content production capabilities through a subsidiary.
The chart:
Why they can double:
CTCM's revenue is on track to grow more than 30% and should settle into a long-term growth rate of more than 10% a year.
The company's earnings growth should be significantly faster than revenue growth and analysts are looking for long-term growth of more than 30% a year.
CTCM offers exposure to Russia's stock market which is one of the most volatile in the world.
Recent selling has driven the stock to a low valuation of less than 10 times earnings and a dividend yield of more than 13%, however the dividend is likely to be cut. The sell off followed lower than expected earnings and a warning from management that ad sales would slow in the fourth quarter of 2011.
Election spending could be worth $8-10 billion in the US election next year and US media companies should see record levels of revenue. Campaign finance limits and a smaller economy will prevent that kind of spending in Russia, but the total spent on advertising will still be in the millions of dollars and enough to make a significant contribution to media companies like CTCM.
The price target:The selloff of CTCM presented a chance to buy at a bargain as the stock is likely to rebound to its 52-week high near $25 a share.
Mitcham Industries (MIND)
Oil demand continues to increase as the economy grows and Mitcham Industries' delivering of seismic equipment to oil companies could lead to big profits.
What they do:The company leases, manufactures, and sells seismic equipment to the oil and gas industry worldwide. They offer a unique technology that has proven to be popular in offshore drilling operations.
The chart:
Why they can double:
As the amount of the controversial drilling procedure "fracking" increases in shale deposits so does opposition and the chances of government intervention. Many oil companies are reconsidering fracking plans which require extended approval process. This means offshore drilling becomes more attractive under these conditions.
Latin America is fueling growth in MIND's revenue and earnings.
The company recently added a sales office in Hungary so that it can increase its presence in Eastern Europe, which includes the ultra-valuable energy market of Russia.
The company's P/E ratio based on historic earnings is about 15, in line with the market, but MIND is growing much faster than the market.
In 2012, analysts expect to see earnings of $1.40 a share and $2.10 in 2013.
The price target:Based on the expected earnings, MIND should trade above $40 a share.
Molycorp (MCP)
With China creating uncertainty in the rare earth minerals market, Molycorp, already an established miner in this sector, stands to benefit.
What they do: MCP focuses on the production and sale of rare earth oxides from stockpiles available in the western hemisphere. The company operates the Mountain Pass mine, located in San Bernardino County, California. Its rare earth products are used as inputs in various existing and emerging applications comprising clean energy technologies; multiple high-tech uses; defense applications; and water treatment technology.
http://investorshub.advfn.com/uimage/uploads/2012/2/5/qpd[d5stocks-chart5.gif[img][/img]
Why they can double:
MCP is one of the few non-Chinese rare earth mining companies. Their mines will be able to deliver stable supplies and take advantage of market panics created by China's unsteady export policies.
With a market cap of more than $2 billion, MCP is an established mining company and one of the few rare earth plays in the stock market. By size, it is the largest rare earth miner.
Sales grew more than 1,000% in the past year as the company proved it can process ore and deliver to the market.
Earnings have tripled in the past year, and should double again in the next twelve months.
A P/E ratio near 30 fails to reward the high growth the company has delivered and the additional growth opportunities available.
The price target:MCP should reach $70 a share in the next twelve months, assuming earnings of $3.50 a share and a P/E ratio of 20. Both estimates may prove to be conservative.
SYMBOL Entry Price Exit Price % Gains
REDF $7.87 $13.94 77.13%
SPMD $4.96 $11.43 130.44%
GNTX $26.94 $31.88 18.34%
THC $4.24 $7.00 65.09%
RES $17.74 $26.87 51.47%
ITMN $13.41 $47.13 251.45%
NYMX $7.07 $9.10 28.71%
CHTP $3.76 $5.81 54.52%
IMOS $6.71 $9.79 45.90%
EMC $21.33 $27.96 31.08%
TIN $22.75 $31.05 36.48%
GLNG $18.50 $38.98 110.70%
CBOU $9.99 $16.90 69.17%
RCL $34.16 $49.53 44.99%
MU $5.25 $7.24 37.90%
5 Stocks to
Buy Right Now
Dear Fellow Investor,
In this report, I'll layout for you 5 stocks I believe have the potential to double this year.
Each stock has been screened analyzed and targeted by the proprietary "super software" I use in my Consensus Picks advisory service regularly.
I'll tell you more about that in a minute.
But first, here's a few major trends I'm seeing develop that I believe will send these 5 stocks soaring.
The U.S. Economy:
I think it's likely that despite the naysayers we're going to be surprised by our country's economic strength in 2012. Consumer spending should be strong and going into the end of 2011 the economy was generally beating expectations. I expect this trend to continue.
Most economists and investors are expecting the New Normal paradigm to hold and are looking for growth of 2-3% in GDP. Given such low expectations, I believe stronger than expected growth could become a dominant theme in the media.
Positive news reports could increase consumer sentiment and confidence. So with less fear of an impending recession, spending could actually rebound to pre-crisis levels. This however could also lead to an increase in inflation.
Europe
Realistically the euro will likely survive its present crisis. This is much more important a fact than the day-to-day drama that is unfolding throughout the EU. Just as in the US, upside surprises are more likely to deliver gains.
The euro is likely to change, and some countries may even break with the currency, but overall the currency should live to see another day.
The Election Year:
An interesting fact to look at is that stock market gains average 10.9% in election years and 81% of election years are positive.
Presidential elections historically boost stock markets and there is no reason to believe this trend will end. It takes a lot of money to elect a President… and that's good for the market.
This also holds true by the way, in countries OTHER than the United States…
Rare Earth Minerals:
China's uncertain policies regarding its supply of rare earth minerals look to drive up prices and the value of companies supplying them outside of the Great Red Dragon.
These minerals are a critical component of electronics equipment and China, the world's leading supplier, has briefly cut off exports twice in the past year.
Although they're called "rare", these minerals are actually found in many parts of the world and can be mined profitably at recent price levels. North American mining companies are evaluating new projects and several new sources should begin coming online in 2012, but the supply concerns will linger for several years as it takes time to move mining projects through development.
These factors all add up to what will be a fascinating and very profitable market this year.
So the question remains… what do you invest in?
With the power of my Consensus Picks technology at my fingertips – the same technology that mines over 800 independent financial sources for its picks – I offer you these 5 stocks you MUST buy.
Visa (V)
This credit card giant could be a primary beneficiary of increased consumer spending in a sustained economic recovery.
What they do:Visa owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payment platforms, which enable credit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/lnbrd5stocks-chart1.gif
Why they can double:
Warren Buffett, the world's most famous super investor, reported buying 2.3 million shares of Visa in his latest SEC filings. Buffett buys only when he sees long-term value and a business model likely to deliver steady profits.
Buffett also owns rival Mastercard (MA). Both companies are expected to show similar earnings growth. Visa has a higher operating margin but is trading at a lower P/E ratio. By any fundamental ratio, Visa is selling at a discount to MA, offering investors greater potential gains.
Visa generates revenue from more than 1.7 billion cards that are used over 54 billion times a year. Revenue totaled about $9.2 billion in the past twelve months and is expected to grow at about $1 billion a year going forward.
Visa's profits amount to about one third of its revenue. Analysts expect earnings growth to average 20% a year over the next five years. Earnings estimates are consistently being revised higher and as consumer spending increases. Therefore earnings for Visa should follow soon after.
The company has a history of beating analyst earnings estimates. Earnings should be at least $7 per share in 2013, and the company's earnings consistency merits an above market rate P/E ratio.
The price target: A target of $200 per share is reasonable for Visa.
Cutting edge technology delivers you picks like this regularly in Consensus Picks… learn more here!
Navios Maritime Holdings (NM)
Navios Maritime is a Greek shipping company that could double as the euro crisis is resolved. NM gets an extra boost if the economy is stronger than expected.
What they do:NVM is a seaborne shipping and logistics company in Greece. It focuses on the transportation of dry bulk commodities, including iron ore, coal, fertilizers, and grains. They control a fleet of 56 vessels that can ship cargo totaling 5.9 million deadweight tons. In addition, the company operates ports and transportation terminals.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/b[gul5stocks-chart2.gif
Why they can double:
Risk is low in a stock that is selling for the value of the cash on its balance sheet as NM is. The company's other assets include ships and containers - tangible assets that could be easily sold. The stock is trading at about a third of its tangible book value. This limits the downside risks to investors.
NM's book value largely consists of stakes in three public traded companies under the Navios brand that include a dry goods shipper, a company focused on tanker operations and a company engaged in port operations.
NM has a number of long-term contracts in place providing guaranteed revenues and faces a relatively stable cost structure. Expansion is possible if economic conditions make that option attractive.
Although headquartered in Greece, operations are geographically diversified and most of NM's opportunities are related to growth in emerging markets.
Major markets are in South America (port operations) and India and China (shipping)
At recent prices, NM offered a dividend yield of about 6.4%. Historically, the stock has paid a generous quarterly dividend since going public about five years ago. Cash flow from operations is six times greater than the total dividend paying, offering a margin of safety to income investors concerned about whether or not the dividend will be maintained.
The price target:Earnings growth of 15% a year support a conservative P/E ratio of 12 for NM and a price target of $8.40
Don't waste time picking and choosing investment advisories… Consensus Picks does all the work for you!
CTC Media (CTCM)
CTCM is a Russian TV broadcaster with additional election revenue driven by the 2012 Russian presidential election. Although it is widely expected that Vladimir Putin will win, he is still campaigning with a full onslaught of pricey television and print ads.
What they do:Based in Moscow, CTCM operates as an independent broadcasting company in Russia. It owns and operates the CTC, Domashny, and DTV television networks in Russia. The company also operates a television network in Kazakhstan and a television channel in Moldova. The company also has its own TV content production capabilities through a subsidiary.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/hnum[5stocks-chart3.gif
Why they can double:
CTCM's revenue is on track to grow more than 30% and should settle into a long-term growth rate of more than 10% a year.
The company's earnings growth should be significantly faster than revenue growth and analysts are looking for long-term growth of more than 30% a year.
CTCM offers exposure to Russia's stock market which is one of the most volatile in the world.
Recent selling has driven the stock to a low valuation of less than 10 times earnings and a dividend yield of more than 13%, however the dividend is likely to be cut. The sell off followed lower than expected earnings and a warning from management that ad sales would slow in the fourth quarter of 2011.
Election spending could be worth $8-10 billion in the US election next year and US media companies should see record levels of revenue. Campaign finance limits and a smaller economy will prevent that kind of spending in Russia, but the total spent on advertising will still be in the millions of dollars and enough to make a significant contribution to media companies like CTCM.
The price target:The selloff of CTCM presented a chance to buy at a bargain as the stock is likely to rebound to its 52-week high near $25 a share.
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Mitcham Industries (MIND)
Oil demand continues to increase as the economy grows and Mitcham Industries' delivering of seismic equipment to oil companies could lead to big profits.
What they do:The company leases, manufactures, and sells seismic equipment to the oil and gas industry worldwide. They offer a unique technology that has proven to be popular in offshore drilling operations.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/xmqzy5stocks-chart4.gif
Why they can double:
As the amount of the controversial drilling procedure "fracking" increases in shale deposits so does opposition and the chances of government intervention. Many oil companies are reconsidering fracking plans which require extended approval process. This means offshore drilling becomes more attractive under these conditions.
Latin America is fueling growth in MIND's revenue and earnings.
The company recently added a sales office in Hungary so that it can increase its presence in Eastern Europe, which includes the ultra-valuable energy market of Russia.
The company's P/E ratio based on historic earnings is about 15, in line with the market, but MIND is growing much faster than the market.
In 2012, analysts expect to see earnings of $1.40 a share and $2.10 in 2013.
The price target:Based on the expected earnings, MIND should trade above $40 a share.
Only invest in the stocks that verified by multiple experts… let Consensus Picks deliver you the cream of the crop!
Molycorp (MCP)
With China creating uncertainty in the rare earth minerals market, Molycorp, already an established miner in this sector, stands to benefit.
What they do: MCP focuses on the production and sale of rare earth oxides from stockpiles available in the western hemisphere. The company operates the Mountain Pass mine, located in San Bernardino County, California. Its rare earth products are used as inputs in various existing and emerging applications comprising clean energy technologies; multiple high-tech uses; defense applications; and water treatment technology.
The chart:http://investorshub.advfn.com/uimage/uploads/2012/2/5/qpd[d5stocks-chart5.gif
Why they can double:
MCP is one of the few non-Chinese rare earth mining companies. Their mines will be able to deliver stable supplies and take advantage of market panics created by China's unsteady export policies.
With a market cap of more than $2 billion, MCP is an established mining company and one of the few rare earth plays in the stock market. By size, it is the largest rare earth miner.
Sales grew more than 1,000% in the past year as the company proved it can process ore and deliver to the market.
Earnings have tripled in the past year, and should double again in the next twelve months.
A P/E ratio near 30 fails to reward the high growth the company has delivered and the additional growth opportunities available.
The price target:MCP should reach $70 a share in the next twelve months, assuming earnings of $3.50 a share and a P/E ratio of 20. Both estimates may prove to be conservative.
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