Thursday, April 12, 2012

Stock Market Round-Up Part One. Yeehah!

As many of you know I'm always interested in making money, and when one is not at the craps tables, the stock market is about as close as you can get from your computer. In today's blog I'll recommend 5 stocks that I believe will greatly beat all the averages in the remainder of 2012. At the end of the year, I'll revisit this list to show how I punk'd you all with my investments, or drop my tail between my legs to cover by badly bruised testicles.

The author is NOT liable for any financial losses, but will gloat about all gains, please consult your financial advisor. As a student entering law school, I am already learning the importance of a disclaimer.

Stocks to buy (in no particular order):

1. Yandex (NASD:YNDX). This is the Russian 'Google.' Yandex sports the largest search engine share in Russia at 60% of the market, and this share is growing. So while the Russian economy is bringing millions of people into the more industrialized world that will use a search engine, more people will use Yandex in a greater percentage. The company is profitable and growing revenues and earnings in exponential form. Moreover, the company is already a strong player in other Baltic states such as Ukraine, Belarus, Turkey & more.

Yandex has only been publicly traded a little under a year. It's IPO debuted with an initial price of about $40 a share, since then the stock has pulled back to the teens and is now trending higher on strong continual momentum and volume around $26. Look for this stock to trade near it's IPO debut by year's end or higher.

2. Altria (NYSE:MO). Altria is the holding company for Phillip Morris cigarettes, for those of you who smoke, I don't need to convince you to buy the stock, for those who don't, either start smoking and try to quit, or listen to the numbers.

MO has consistently maintained pricing power, margins, and earnings growth year over year which produces a near perfect line of an upward trending stock over the last 4 years. It's ever growing earnings are also awarded to shareholders with a hefty dividend of about 5%, and they raise them every year as well. This cash cow will be around until the second coming of Jesus. If all you care about is pocketing a nickel on every dollar a year, you don't even have to look at the share price.

Expect MO to be trading from it's current levels of $31-32 a share to $33-36 by year's end.

3. (NASD:SOHU). This is a conglomerate internet company in China with a vast portfolio of products from search to content that are now generating huge revenues and huge profits. While trading at $51 per share, has a P/E ratio of only 13 and is earning a whopping $4 per share this year, with next year earnings anticipated to reach over $7 per share. This stock hit over $100 last year around this time and has since pulled back to what I can only describe as dirt dirt dirt cheap. Big internet money managers are adding this company to their portfolios, and the COO just plunked down almost $3 million of his own money to buy more shares a couple months ago. Nothing like an insider trade to let you know the real deal. 

Look for to potentially reach back to $100 per share by year's end.

4. Human Genome Sciences Inc. (NASD:HGSI). This bio-tech is a very interesting play. It has the first new lupus drug FDA approved in over 50 years, Benalysta. While sales have been slower than expected, the drug continues to increase in sales, and HGSI's revenues have taken a notable turn up. While the company is still losing money, a bio-tech, like a pharma only crosses into the black once you see a drug reach blockbuster status, it appears that Benalysta still has that potential, but it is taking longer than investors originally thought it would. 

This company traded over $30 within the last year and is near it's 52 week low of $6.50. Another noteworthy factoid is that there is a huge, and I mean enormous percentage of the shares out on loan short, over 30%. This means there will be a short squeeze that will send this stock rocketing when it starts to move. This stock could stay at $7-10 for the rest of the year, be bought out by GlaxoSmithKline, or rocket back over $30. One thing is sure, there seem to be a lot of big positives and very few negatives.

5. Las Vegas Sands (NYSE:LVS). This company known for The Venetian and The Palazzo hotels in Las Vegas is the baby of Sheldon Adelson, who has been in the news lately for dumping $10's of millions into pro-Newt Gingrich super pacs. While Sheldon may not have rolled his dice well with Newt, he certainly rolls well in every casino he owns. LVS' earnings continue to grow, as the company expands into a world that is largely embracing gambling as a modern socially acceptable paradigm. 

The company just started paying a dividend which let's you know they have stacks of cash and are certain of a greener tomorrow. Trading at $60 per share currently, I think you could see LVS between $80-$100 by the end of the year.

So, those are my plays. Here's hoping you make lots of cash so you can buy the private jet your mother could never afford for you on Christmas, Hannukah, etc.

When the year is up, I'll assume I put $2,000 into everyone of these companies as of market close on April 11, and we'll see how much my hypothetical $10,000 has grown or shrunk.

Remember, it's not about how big your pile of cash is, it's about how much it grows!

1 comment:

  1. Nice blog Bryan. Although I know nothing about the stock market, it was very well-written:)


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