US Stock picks for 2010

[Scorpio]

I'm toying with the idea of investing more in NYSE traded stocks, and I was wondering what people with investment backgrounds like Redman thinks about some of the stock I am watching as potential 2010 winners.

Pricing is as of Dec 31, 2009 11am, and these would be some of my picks and some of my reasons why (there was more thought that went into these picks, but too much to write):

Energiser Holdings (ENR) trading at around $62; this is half of what it was trading at in Dec 2007. ENR is the #2 player in the battery business, current pricing reflects Q3 2009 EPS that was lower than expected.

Monsanto (MON) trading at $82; this company has a lot of pricing power in worldwide agriculture, and has significant global technological advantages over competitors. 18 months ago MON was trading at around $145.

VERTEX (VRTX) now trading at $43; a pharaceuticals company with a new drug, Telaprevir that is expected to do well for the company.

Weatherford (WFT) - oilfield equipment manufacturer,trading at $17.30 now, the stock took a beating because of low rig count worldwide, but a rig count recovery started in Q3, 2009 and is expected to increase in 2010. Stock was trading at $55 in June 2008.

Will post more later.

[Redman]

Scorpio,
whether the NYSE NASDAQ or AMEX- the issue would be the individual company in question.The exchange that it trades on has become less relevant given the similarities in technology used at any exchange of note.

I like Monsanto and WII-they tie in with my outlook-I own some WII ,SLB,HLX, on behalf of clients and personally.

Im NOT bullish on the US markets in general- given the run up thus far.

I prefer to be in commodity based companies-if not the commodity itself.

WII is a oil service co-I believe oil/gas go higher as the market realises supplies are still tight vs world demand.

Food supplies are still an issue-no matter what the situation people have to eat-I own DJP which is a broad commodity ETF.Monsanto should benefit.

THE USD dollar is debased and continues to weaken as the Fed injects liquidity(supply) into the market.
This will force the value of a USD to fall and to protect your purchasing power historically Hard commodities(priced inUSD) are a hedge as is (used to be??) real estate.

Higher interest rates are coming-the FED has to make bonds more attractive to keep demand for bonds at the level they need,

As the fed runs their deficits higher they will keep printing money and this should be inflationary.

Inflation should factor into your decisions and therefore I would limit your cash holdings.

AND just for the record I can be wrong (Im quite comfortable being wrong incidentally)-everything I said is the POV I hold and use in dealing with the portfolios I manage and my personal things.

I cant and wouldnt give specific advice in this forum.


Later

[Scorpio]

Thanks, Redman, I don't plan to hold you to anything you write here, and I hope that no one else will.

I specified NYSE stocks, but I really meant US stocks, because I find there is more information out there about them.

I am glad you agree with me on MON, I actually own some, and I am up on them.

I think that WII was aquired by WFT. I agree with your assessment of the oilfield service industry. According to Schlumberger's website, worldwide rig count for october was 3519 and for November it was 3645, so there is definitely an uptick in that industry.

For the same reason as WII/WFT, SLB is a good pick, but I think it is trading too close to its 52 week high at the moment, so I may have missed the boat on this one.

I need to research HLX a bit, but it looks good too.

Haven't really look at commdities yet, but an EFT with commdities as its underlying assets sounds like a good idea, I will look into DJP, thanks.

I agree with limiting cash holdings as well, that is why I am trying to build a sounds long term stock portfolio.

[Wayne]

http://usdebtclock.org/


Look At This.

[Redman]

Hope you still have them coins.

Later

[ebony02]

*Taking notes* :D

I still have so much to learn. *sigh*

[Wayne]

Hope you still have them coins.

Later

Yeah man in MY SAFE......................not in the BANK....

[Redman]

Man toting safe these days eh
You have any idea where I can find the rules governing leaving the US with that material???


Later

[Wayne]

redman...........I thought that you were privy to those procedures.

[Redman]

Well boy its only as I have some one flying out with some, I realize they might have to empty pockets etc and I had to call them to leave some because of the value.
Frankly I just didnt think about it with all the changes made with DHS etc.

So ahm you could help me out ?


Later

[Redman]

Wayne-all 3 oz came through in her purse......simple-duh


LAter

[ferrorolvans]

Thats totally true that the markets from usa are so efficient today that if there was a potential upside to a stock that is well-known, then that is ALREADY priced into the stock.