Posted Oct 12th 2008 10:00AM by Steven Halpern
Filed under: Newsletters, Presidential elections, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"A President McCain will be pro-growth but should be more aggressive in oversight as it pertains to mergers and acquisitions; with that being said, we like CenturyTel Inc. (NYSE: CTL)," says Kelley Wright, editor of Investment Quality Trends.
"CTL provides a variety of communications services to 25 states in primarily rural area and small to mid-size cities.
"The company offers local and long distance services, as well as enhanced voice services, as well as high-speed and dial-up Internet.
"In June the company increased its annual dividend to $2.80 from $0.27, reflecting its confidence in their growth model and as a deterrent to possible suitors.
"The blue-chip stocks that we recommend, including CTL, show exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less, debt of 50% or less, and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.
"Currently yielding almost 7.0%, CTL offers tremendous value in both dividend yield and the potential for long-term capital appreciation."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Posted Oct 11th 2008 4:00PM by Steven Halpern
Filed under: Mutual funds, Green Stocks
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"An Obama presidency would likely mean more to the alternative energy industry than any other factor to date; to benefit from an Obama victory, we would buy Market Vectors Global Alternative Energy (NYSE: GEX)," says Paul Tracy, editor of The Street Authority Market Advisor.
"Obama's 'New Energy for America' plan will aim to put 1 million plug-in hybrid cars on the roads by 2015, reduce greenhouse gas emissions by 80% by 2050 and ensure 25% of our electricity comes from renewable sources by 2025.
"Obviously, to enact such a bold plan would take a massive investment and mean billions for companies involved in the still-fledgling alternative energy field.
"And while investors can certainly pick and choose between individual companies with exposure to the sector, several ETFs have popped up that offer broad exposure to the industry. In particular, I like Market Vectors Global Alternative Energy.
"With this ETF, shareholders have a healthy stake in hydroelectric power generators, solar cells, as well as some exposure to gasoline alternatives such as ethanol and fuel cells.
"GEX shies away from micro-cap companies with unproven business models and loads up on larger, more-established players -- more than half of its assets are invested in companies with market caps of $6 billion or greater.
Continue reading Obama stock: Alternative profits from 'New Energy' policy
Posted Oct 11th 2008 1:00PM by Steven Halpern
Filed under: International markets, Newsletters, Presidential elections, Commodities, Oil, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"John McCain has said that nuclear power must be part of a plan to address climate change and reduce our dependence on foreign oil; to benefit from this plan, buy Shaw Group (NYSE: SGR), which constructs and maintains nuclear power plants," says Paul Tracy in his Street Authority Market Advisor.
"Today, nearly half of U.S. electricity is created via conventional coal-fired plants. This made sense for us for decades -- coal is so cheap and plentiful here that the United States is often referred to as the Saudi Arabia of coal.
"However, in the past few years, the tide of public sentiment has shifted against the energy source. Primarily this is due to the emissions created by burning coal for electricity.
"In addition to the well known release of carbon dioxide, coal emissions also contain traces of mercury. On top of that, the rise of China and other emerging markets has led to higher costs for coal.
"So with a public that is increasingly interested in alternative sources of electricity and a president who is committed to increasing nuclear power usage, the companies that build and maintain nuclear plants sit in the perfect position to benefit.
"In particular, I think Louisiana-based Shaw Group is a stock to watch. SGR's largest end market is the construction and maintenance of power plants, including both plants fired by fossil fuels and nuclear facilities.
"The company also owns a 20% stake in Westinghouse Electric, one of the world's leading designers and builders of nuclear power plants.
Continue reading McCain stock: Shaw Group (SGR) goes nuclear
Posted Oct 11th 2008 10:00AM by Steven Halpern
Filed under: International markets, Newsletters, Presidential elections, Oil, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"Like a neglectful homeowner who has let their house fall into a dilapidated state of disrepair, the federal government has quite a bit of housekeeping to do; if Obama wins the election, we would look towards infrastructure plays such as Fluor (NYSE: FLR)," says Nathan Slaughter, editor of Half-Priced Stocks.
"You may remember the tragic collapse of a Minneapolis bridge last year that took 13 lives. According to the Federal Highway Administration, this is not a one-time incident but a potential epidemic.
"By their estimates, 152,000 of the nation's 600,000 bridges (1 in 4) either require substantial work or have become obsolete and need to be replaced entirely.
"The overall price tag to bring all these bridges up to date: about $140 billion. And the American Society of Civil Engineers (ASCE) believes that bridges are actually in pretty good shape when compared to other crumbling infrastructure.
"Across the country, we have 3,500 unsafe dams in need of repair and hundreds of locks that must be fixed to allow cargo barges to navigate through inland waterways.
"Sewage treatment facilities are outdated; corroded pipes leak 6 billion gallons of drinking water daily; and maintenance on energy transmission lines has been steadily dwindling for over a decade.
"Throw in aging transit systems, highways, landfills, and ports, and the ASCE has graded America's overall infrastructure a "D" and puts the repair bill at a staggering $1.6 trillion.
"And Obama will not shy away from big government projects. In fact, the senator has gone on record as saying 'it is critically important for the United States to rebuild its national infrastructure.'
"And this isn't just hollow campaign rhetoric. Obama has thrown his support behind the National Infrastructure Bank Act, which would free up tens of billions to support various infrastructure projects.
"By all accounts, a massive amount of cash will be needed to bring our infrastructure into the 21st century, and much of that will find its way into the coffers of heavy construction companies like Fluor.
"The Texas-based company is a global heavyweight in the engineering, procurement, construction and maintenance (EPCM) field with nearly $20 billion in annual revenues.
Continue reading Obama stock: Constructing gains with Fluor (FLR)
Posted Oct 10th 2008 5:30PM by Steven Halpern
Filed under: International markets, Newsletters, Presidential elections, Commodities, Oil, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"If McCain is elected, we would suggest USEC (NYSE: USU); after slumbering for over 20 years, nuclear power is quickly emerging from hibernation and will be satisfying a much larger percentage of the nation's energy-hungry appetite during McCain administration," says value investor Nathan Slaughter, editor of Half-Priced Stocks.
"Currently, there are 104 nuclear plants in operation nationwide, which combined, account for 20% of the country's electricity. But both of those totals are set to rise markedly. Current forecasts suggest nuclear facilities could double their share and ultimately account for 40% of power in the U.S.
"There are several factors underpinning this resurgence in nuclear energy, not the least of which is $100 per barrel oil and elevated prices for natural gas and coal.
"Believe it or not, one kilogram of uranium-235 has the stored energy equivalent of 1,500 tons of coal. And while up-front construction expenses can be high, ongoing operating costs for nuclear reactors are running just $15-20 per megawatt hour, far cheaper than traditional plants.
"John McCain is an outspoken champion for the nuclear power movement, outlining ambitious plans to commit $315 billion towards the construction of 45 new reactors over the next two decades.
"Beyond that, he has a clear goal of achieving energy independence by building '100 new plants to power the homes and factories and cities of America.'
"All of this spells plenty of opportunity for USEC, owner of the nation's only uranium enrichment facility. The company is in the business of supplying fuel for commercial reactors around the world -- and competition is sparse.
"The firm also benefits from a longstanding nuclear non-proliferation treaty with Russia. Specifically, USEC participates in the salvaging of old Soviet nuclear warheads under the 'Megatons to Megawatts' program.
"The company has carved out a dominant market share and now supplies about half of the nation's enriched uranium (most of the rest comes from Russia).
Continue reading McCain stock: Mining gains with uranium miner USEC (USU)
Posted Oct 10th 2008 1:00PM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"Obama's tax plan would give greater relief to the lower and middle classes; one retailer that would benefit from this is American Eagle Outfitters (NYSE: AEO)," says John Reese, editor of Validea, which follows the investment criteria of "legendary" investors such as Warren Buffett and Peter Lynch.
"Consumers have had to tighten their wallets and purses because of the slowing economy and rising food and fuel prices. Breaks for average Americans would be welcome news for retailers, which have sputtered amid the downturn.
"In the event of a retail surge, this teen-focused Pittsburgh-based clothing chain should be at the head of the line.
"American Eagle gets approval from two of my Guru Strategies -- computer models that are each based on the published approach of a different Wall Street great. What's more, the two strategies that like the firm are modeled after two of the greatest gurus, Warren Buffett and Peter Lynch.
"My conservative Buffett-inspired model looks for stocks with a lengthy history of steadily increasing earnings, as well as a conservative balance sheet.
"Eagle has grown earnings per share in eight of the past ten years, with EPS rising from $0.25 to $1.82 in that time, meeting the first criterion. In addition, the firm has no long-term debt, which my Buffett model loves.
Continue reading Obama stock: Middle-class shopping at American Eagle (AEO)
Posted Oct 10th 2008 10:10AM by Steven Halpern
Filed under: Newsletters, Stocks to Buy, General Dynamics Corp (GD)
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"The GOP is traditionally known as the party that spends more on defense; thus, if McCain wins the election, one stock to benefit would be defense firm General Dynamics (NYSE: GD)," says John Reese, editor of Validea, which follows the strategies of "legendary" investors such as Warren Buffett and Peter Lynch.
"While McCain has talked tough about reforming the defense budget, he has also pledged to increase the size of the military, modernize the armed services, and push hard for strong missile defense systems -- all of which require serious spending.
"As a major producer of battle tanks and assault vehicles, armaments and munitions, battleships and nuclear submarines, and military information technology systems, this Virginia-based firm is thus likely to have quite a bit of work on its hands during a McCain presidency.
"Just as importantly, General Dynamics' finances and fundamentals are very strong, earning approval from both my Peter Lynch and Warren Buffett-based Guru Strategies -- computer models that are each based on the approach of a different investing great.
"Because of its moderate 18.14% long-term growth rate and huge annual sales of $28.7 billion, General Dynamics is considered a 'stalwart' by my Lynch strategy, the type of large, steady firm that Lynch found offered protection during downturns or recessions.
"Two big reasons my Lynch model is high on this stalwart: its yield-adjusted P/E/Growth ratio of 0.75, which signals that the stock is a bargain right now, and its 18.79% debt/equity ratio, a sign that GD has the conservative financing Lynch liked to see."
My Buffett-based model, meanwhile, likes General Dynamics' consistency. Over the past decade, its EPS have declined just once, rising from $1.46 to $5.10 in that time.
"The company's annual return on equity -- a figure Buffett used to find firms with the 'durable competitive advantage' he famously prizes -- has been at least 16.4% every year.
"GD has also retained $22.30 in per-share earnings in the past decade while increasing EPS by $3.64, showing it can earn investors a 16.3% return on the earnings it keeps. That's a sign of the strong management Buffett is also known to look for."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Posted Oct 9th 2008 4:59PM by Steven Halpern
Filed under: Wal-Mart (WMT), Newsletters, Stocks to Buy
"'Easy hold' stocks have strong finances, consistent sales and earnings and moderate volatility; one such stock is Wal-Mart Stores (NYSE: WMT)," says Chuck Carlson in The DRIP Investor.
"Easy hold stocks are 'easy holds' for good reason -- their price action generally does not force you to make too many decisions about selling. And one that has held up quite well of late is Wal-Mart, the world's largest retailer.
"The firm's discount focus has been especially popular with consumers in recent months in light of the sluggish economy and job markets. The firm has beaten earnings estimates in each of the last four quarters. Record profits of $3.50 per share are expected for the current fiscal year ending January 2009.
"Long term, I expect Wal-Mart to provide the sort of steady sales and profit growth that will keep its stock trending higher.
"While I would not expect Wal-Mart to keep pace during the next big upward move in the market, I think the consistency of returns the stock will show over the next several years should be rewarding for investors looking for acceptable returns at moderate risk levels.
"Wal-Mart also offers a direct-purchase plan whereby any investor may buy shares directly, the first share and every share. Minimum initial investment is $250. However, Wal-Mart will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $25."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Posted Oct 9th 2008 3:09PM by Steven Halpern
Filed under: Apple Inc (AAPL), Newsletters, Entrepreneurs, Presidential elections, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"We expect that an Obama-Biden victory will provide a renewed sense of optimism on the part of consumers; to profit from this expected trend is Apple (NASDAQ: AAPL)," says growth stock specialist Nate Pile, editor of Nate's Notes.
"Apple has been crushed this year on concerns about consumer spending. Any improvement in consumer spending that may come from an Obama win should only add fuel to the fire that is already burning brightly for Apple.
"The company's product line-up is one of the best in the consumer electronics space, and as we have been anticipating for a number of years now, success with products outside of the PC market is translating into growth rates for the Mac line that are significantly above the industry average.
"Apple's stock price certainly suggests that there is a huge buyer boycott going on when it comes to tech stocks these days.
"Part of the reason for the continued slide is being attributed to the lack of a 'major announcement' at a recent publicity event, though I believe the fall has more to do with where we are currently at in the 'psychology cycle' on Wall Street than anything else.
"Though we may have to wait until we get through tax-loss selling season this year to see a significant rebound in the stock price, we believe Apple's best days are still ahead of it, and a win by Obama will only help to accelerate the trends that are already underway for the company."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Posted Oct 9th 2008 1:00PM by Steven Halpern
Filed under: Newsletters, Mutual funds, Presidential elections, Commodities, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"Our pick to profit from a McCain-Palin victory in November is the SPDR Gold Trust (NYSE: GLD), an exchange-traded fund that is designed to reflect the performance of the price of gold bullion," explains Nate Pile, editor of Nate's Notes.
"We would buy gold in order to hedge ourselves against what we expect would be a heightened sense of uncertainty that foreign investors would express (at least initially) if the hard-to-predict 'mavericks' take the helm.
"I also continue to believe that we are still in the early stages of what will prove to be a multi-year boom for commodities, and much of the selling we have seen in gold appears to be for primarily emotional reasons.
"The recent strength of the dollar may partially explain the drop in gold, but for the most part, I think we have simply been witnessing some good old-fashioned panic selling.
"Unlike some other ETFs that invest in precious metals via the buying and selling of futures contracts on the underlying commodities, SPDR Gold Trust (formerly known as the streetTracks Gold Trust) actually buys and sells gold bullion, and each share of the Trust represents approximately 1/10th of an ounce of gold.
"However, while there are certain benefits to actually owning gold itself (as opposed to a derivative contract associated with the commodity), investors need to be aware that gold is considered a 'collectible' by the IRS, and thus investing in this ETF can result in a higher tax rate being applied to any gains that are achieved.
Continue reading McCain stock: Go for gold with SPDR Gold Trust (GLD)
Posted Oct 9th 2008 9:50AM by Steven Halpern
Filed under: Newsletters, Presidential elections, Commodities, Oil, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"Given Obama's statements regarding raising qualified dividend and long-term capital gains, tax-deferred dividend income, like that provided by master limited partnerships (MLPs) such as Kinder Morgan Energy Partners (NYSE: KMP), should look very attractive," Carla Pasternak, editor of High Yield Investing.
"Under Obama, the current Bush tax cuts would appear to have little likelihood of being extended, suggesting that dividends will again be taxable as ordinary income, at a tax rate of up to 35%. Capital gains will also be taxable at the top rate of 20%.
"However, the corporate structure of master limited partnerships generate cash flow that's considered a return of capital. Instead of being taxed as a regular dividend, returns of capital instead reduce your cost basis -- meaning you won't have a tax liability until you sell the security.
"Typically, MLPs pay out around 75-90% of their distribution as tax-deferred return of capital. The balance is treated as taxable income, even in an IRA type of account. For that reason, MLPs are suited for a taxable brokerage account.
"Almost any tax-advantaged MLP could protect your portfolio from the higher tax rates. I've zeroed in on Kinder Morgan because of its superior dividend yield of around 7.5% and strong dividend growth history fueled by growing cash flow.
"Kinder Morgan is one of the largest owners and operators of energy-related pipelines and storage facilities in the U.S.
Continue reading Obama stock: Boost yields with Kinder Morgan MLP (KMP)
Posted Oct 8th 2008 5:05PM by Steven Halpern
Filed under: Newsletters, Presidential elections, Stocks to Buy, Financial Crisis
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"If John McCain wins, there's a greater likelihood the reduced-dividend and capital gains tax rate will be extended; in that case, I would favor a tax-advantaged fund such as the Eaton Vance Tax-Advantaged Dividend Income Fund(NYSE: EVT)," says Carla Pasternak in High Yield Investing.
"Eaton Vance Tax-Advantaged Dividend Income Fund has a solid tax-advantaged yield of more than 11%, of which the entire 2007 amount qualified for the reduced dividend tax rate of up to 15%.
"EVT focuses on strong dividend-growers and undervalued stocks with room to move. About 80% of the fund's holdings are in common stocks, with the rest of the portfolio in high-yielding preferred shares.
"Top holdings include oil giants Chevron and ConocoPhillips, as well as utilities like Edison International and dividend stalwart Philip Morris.
"The fund does have large exposure to the financial sector, as it accounts for about 20% of the portfolio. Due to the turmoil in the sector, EVT has seen its share price sink amid the credit crisis.
"While we can't be sure of when the crisis in the financial industry will subside, we can be assured this fund will benefit once things turn around. Meanwhile, investors are able to lock in a juicy double-digit yield.
"Investors seeking international exposure will also do well with this fund. Less than half (45%) of the fund is invested in the U.S. The remainder is spread evenly across Europe's major economies, including Germany, the U.K. and Finland.
"With a solid record for dividend growth, and selling at a steep discount of about -20% to the value of its underlying portfolio assets (meaning investors can pick up a dollar's worth of assets for only 80 cents), EVT might be attractive no matter who assumes the presidency.
"However, due to its tax-advantaged nature, having a Republican in the White House who favors keeping the current reduced-dividend tax would be a direct benefit to EVT investors."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Posted Oct 8th 2008 1:10PM by Steven Halpern
Filed under: International markets, India, Newsletters, Presidential elections, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"If Obama gets elected I expect him to pay great attention to domestic health care issues, in which case generic pharmaceutical companies should benefit; India-based Dr. Reddy's Laboratories (NYSE: RDY) will fare very well under such a scenario," says global stock specialist Yiannis Mostrous in The Silk Road Investor.
"The two main prospects for the company are its participation in the generic Allegra business, which could generate about $20 million in profits.
"As Dr. Reddy's has increased its U.S. pipeline filings to 60 Abbreviated New Drug Applications (ANDAs) pending approval, its U.S. business should be back on track soon.
"The second prospect is a potential merger and acquisition spree among the Indian pharmaceutical companies in an effort to face competition more effectively.
"A viable merger will allow companies to reduce research and development (R&D), as well as administrative costs, since there's an overlap when it comes to filing for the approval of similar products.
Continue reading Obama stock: Get ready for Dr. Reddy's (RDY)
Posted Oct 8th 2008 10:00AM by Steven Halpern
Filed under: International markets, China, Newsletters, Presidential elections, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"I expect that if McCain gets elected he will not alter the U.S. policies toward China and therefore the country will continue to move ahead with its economic modernization plans; Lonking Holdings Limited (OTC: CIMHF) stands to benefit tremendously from this plan," says Yiannis Mostrous in his The Silk Road Investor.
"China's main focus is the improvement of the economy's infrastructure. The theme fit well what international developmental agencies have been estimating, namely that more than US$600 billion will be spent improving living conditions in Asia, home to a third of the world's population.
"China and India are at the forefront of such efforts, with Indonesia, Thailand, the Philippines and Vietnam right behind. Roads, railways, airports, power production, electricity supply, clean water and waste management are all on the to-do lists.
"China, leading the way on roads, railroads and energy, is now in the construction phase of a 30-year, 85,000 kilometer expressway project. It's also building a railway that will link China's east and west for the first time, and China and other Asian countries are in the planning stages of a trans-Asia rail link.
Continue reading McCain stock: A China policy pick, Lonking Holdings (CIMHF)
Posted Oct 7th 2008 5:00PM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"If Barack Obama wins the presidency, one under-the-radar play would be embryonic stem cell research; Geron (NASDAQ: GERN) is the current leader in embryonic stem cell research among publicly traded companies," explains trading and investing expert Bill Martin in his BullMarket.com.
"Embryonic stem cell research in the U.S. is not restricted in any way, as is often popularly believed in this hotly contested debate. The real issue at hand is federal funding, and whether federal taxpayer dollars should be used to help fund the research.
"Currently, federal funding is only available to firms that won't create embryos for use in scientific research or clone them for any reason, and that are working with stem cell lines derived from embryos destroyed before August 9th, 2001.
"In addition, the stem cell lines must have been obtained from 'left over' embryos created solely for in-vitro fertilization purposes from consenting donors without any financial incentive.
"According to a September 2003 NIH report, the only publicly traded company of the more than a dozen institutions listed with stem cell lines that qualified for federal funding was Geron, which has been a pioneer in the field since 1999.
"Embryonic stem cell research is among three areas of concentration for the biotech firm, and it has a large number of related stem cell patents. Some of its major areas of focus include spinal cord injuries, heart disease, and diabetes.
"If Obama takes office, there is a pretty good chance that he and the Democrat controlled Congress will offer government funding for embryonic stem cell research. If this happens, expect Geron to head higher."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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