Hi, I would like to find out which stocks I should buy that will be successful in the coming years after 08. Any answer would be greatly appreciated! FCX is pretty under valued when it comes to it's growth rate, that would be my one pick for 08. Do your homework first though!
Kiker - do you really think that oil will come back down to $50/barrel ever again!?!?! It's already almost Christmas and we're still above $90, this is supposed to be the slow part of the season for oil consumption. Plus everyone knows about the recession fears, they should have taken oil down a lot more already. I think we may trade down to the $75-80 range this winter, but that's probably about it. Do you know why I think oil is going higher??? Peak oil. Believe it. Simple supply and demand will keep oil moving higher. I therefore wouldn't want to touch any airline stocks right now! Good luck to you though! NONE! You can't pick stocks.
Instead, invest in quality mutual funds with proven track records. Let the professional fund managers pick the stocks. I don't mean to be rude, but you probably shouldn't buy any stocks if you're asking that sort of a question. Why would you risk your money based on the advice of total strangers who may not even know what they're talking about?
My suggestion is to buy some books or take some classes in personal finance and learn how to invest properly. If you're buying stocks without knowing what you're doing, you're far more likely to lose your money than make any.
If you don't want to do that, select a good stock mutual fund and let the pros do the work for you. You can do very well that way. IF you belive the economy is headed toward recession you want defensive plays like health stock and consumer staples . Large caps would also be a good place for your investments in a recession. Instead of individual stocks consider buying etf's or mutual funds that hold shares in the aforementioned categories. What the heck I'll give you one, Ceradyne ticker symbol CRDN, but do your own research before you buy anything. I can't give you a specific company, but I can give you a sector I am looking at.
Normally I would NEVER suggest this sector, but given our current economic climate, this is a sector that will have some winners....its the Commerical Airline Companies.
I can't believe I am actually recommending these, but they are poised to do well. Currently they are trading at 40% off from their highs. Some people think this is due to the high cost of fuel...not exactly. less than 3 years ago the price of oil was at a record high and so too was the Airline Industry's profits.
Historically, when these companies are trailing at 40% from their highs, AND there was the possibility of a recession, they jump in value. During a recession, people cut expenses, though not all expenses can be cut. Business travel is one of them. Holiday travel is another. Energy analysts are anticipating a drop in Oil over the next few years, reset to about $50/barrell.
With this, and the historical trend of this industry, I would say that this time next year, these stocks will have increase 60-70% of their current value.
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Christmas Apple:
This has been the hum-drum on CNBC that has been brought up by several energy analysts from Morgan Stanley and JP Morgan. It makes sense. Recession kills the US economy. Oil is traded internationally in the USD. The Oil Exporting Countries have their currencies pegged to the USD (even if they have a basket of currencies to the their peg, the USD makes up 70%). This means that they MUST adopt our Monetary Policies wether they like it or not, as that is what happens when you peg a currency. Since we will be adjusting our economy, so too will these countries. Moreover, the PPB currently being so high has really beat some of these countries stupid with inflation (low double digits). Now they want a rate increase to cut back on the money supply, thereby saving them from inflation. we will be doing rate cuts in order to thaw out the credit freeze and recharge the economy...the only value they have to prevent their economies from going nuclear is to increase production, thereby reducing the price per barrell. Current costs for the Airliners is priced in the near $100/barrell; and will remain within their equations for the next year. This is where the surprise will lay. I am right there with you about Airliners though. I traditional stay as a far from them as possible, but they are in a sweet spot...which is why I am closely monitoring Sky Blue and Continential. recession stock.
pepsi, coke, mcdonalds, healthcare, etc.
but apple and google also will be GREAT from now on.
Load GS if it goes below 200.
CAT is good, and get FSLR on a nice pull back.
but 2008.. play carefully on VISA ipo and you may make some money! virtual banks stocks My $0.02:
ANIK--Anika Therapeautics. Very inexpensive and about to introduce a sort of a cosmetic surgery wonder gunk.
SNMX--Senomyx. Also very inexpensive company that produces compounds that allow users to reduce the amount of sugar, MSG, salt, etc in foods. It's products are just starting to sell.
HOG--Harley Davidson. One of the best brands on the planet. If you're patient this one should pay off handsomely in a few years.
MCO--Moody's. One of the two big credit rating agencies in the US, it's been battered by the credit crunch, but long term its a winner.
MW--Men's Warehouse. A great men's clothing retailer selling for less than 10 times earnings.
And finally I'm a big fan of solar stocks (ESLR, WFR), and especially stocks that make the raw material (polysilicon) needed to produce solar products (WFR, and also HOKU)
Of course you should do your own research before investing. I could be dead wrong about any or all of these companies. |
