Best Stocks To Invest In 2012

Best Stocks To Invest In 2012: Best muni bond fund bets

Even if the most dire predictions about the current muni bond market come true, and we see $100 billion or more in defaults, that’s still a drop in the a multi-trillion dollar bucket.

True, fiscal coffers are percolating a thin gruel of anemic revenue. Also true, bond insurers that used to provide a safety net for most munis are basically gone thanks to 2008’s maelstrom.
Also true; most muni bonds skew toward the longer-end of the more interest rate sensitive duration spectrum (a function of being tied to long- term infrastructure projects).

But, muni bonds are backed by the ability to raise taxes; no small feature. Much of the risk of owning muni bonds that are weakest is ruled out by investing in muni bond funds where manager track records are strongest.

And, finally, one can address the interest-rate sensitivity issue by investing in a diversified, duration flexible muni bond fund or focusing on shorter duration muni bond funds.

The best way to pursue the upside is through a diversified basket of actively managed munis.

The shorter duration Fidelity Intermediate Muni Bond Fund (FLTMX) is one choice for taxable accounts.

I also like Fidelity Tax-Free Bond (FTABX) paired with a non-muni bond option that offers rubies in the current emerging market rubble, Fidelity New Markets Income (FNMIX).

Best Stocks To Invest In 2012: Rhodes: Trader calls for correction

Given the market's current overbought condition, traders believe it is wise to raise some cash. We agree. We also sense that there is a change in the air regarding the rise in commodity prices.

We've looked for at least a 20% correction in commodities sometime this year. Certainly “now” seems to be at least an interim top to be sure.

Perhaps the catalyst for this decline stems from Goldman Sachs commodity strategist Jeffrey Curriehas, who has now decided to close his profitable long commodities trade -- long a basket of crude oil, copper, cotton, soybeans and platinum or the “CCCP trade as it has become known.

Also, he is exiting long copper and platinum positions because he believes the risk-reward no longer favors a bullish stance.

However, we’ll go on to note that he believes that on a 12-month horizon – the “CCCP trade” continues to show upside potential; but the near term risk-reward no longer favors being long the trade.

Meanwhile, the S&P has clear resistance at 1340 and the NASDAQ 100 at 2360; if those levels are taken out to the upside, then we’ll assume that another leg higher is underway.

However, recent weakness suggests a correction is underway towards more established support levels at 1250 and 2189.

But let us note right away, that if the NASDAQ 100 does manage to test 2189 – it will have broken key neckline support of a larger bearish “head & shoulders” topping pattern. Thereby targeting 2000-to-2050…which would be a rough - 10% to -15% correction.

Best Stocks To Invest In 2012: Media buys: CVC & CMCSK

The rough-and-tumble media group gained new investor respect in late 2010 and two of them now offer solid buying opportunities following the market correction.

Cablevision Systems (CVC), the fifth largest U.S. cable TV provider, plans to spin off its Rainbow Media business—possibly unlock- ing added shareholder value.

It is also strong in high-speed data and voice services for small and medium-sized businesses.

With its price softening a bit last week, but with prospects for earnings of $2.50 per share in 2012 and $3-plus in 2013 still intact, our 12-month price target from today’s 34 is around 45.

Top Dog in the media group is Comcast (CMCSK). The company with 40 million video subscribers in 39 states, 17 million Internet subscribers and over 8 million phone subscribers.

In January it took control of NBC Universal (from GE) just as the advertising market began showing renewed strength.

But according to Zacks, the two analysts tracking CMCSK are projecting 17% earnings growth and a 31 price target. Our target for CMCSK from today’s 23-plus is 35. The recently raised dividend provides a 2% yield.

Best Stocks To Invest In 2012: MIND C.T.I. Ltd. (MNDO)

Israel stands above all other nations when it comes to the high-tech industry, and one of my favorite emerging stocks in this sector is  MIND C.T.I. Ltd. (MNDO); this is a microcap Israeli tech stock with a high-yield dividend over 9 percent.

With over ten years in the technology sector, MIND has quickly evolved into a leading global provider of real-time, product-based mediation, billing and customer care solutions for voice, data, video and content services.

With a market cap of $61.8 million, little MNDO doesn’t show up on many traders’ radar screens - especially because it’s thinly traded, averaging just over 136,700 shares traded daily.

That makes it exactly the type of small cap stock that we should keep an eye on and think about buying when the opportunity arises. We want to get into these types of companies before they receive significant analyst coverage.

In MNDO’s case, there are other strengths besides just a lack of coverage. The company’s income statement looks particularly strong. Total revenues for 2010 were close to $20 million, an increase of 14 percent year over year.

Growth in revenues helped to increase operating income from $2.2 million in 2009 to $4.8 million, or 25 percent of revenues, in 2010. Net income was $44.9 million or $0.26 per share.

The balance sheet also looks strong with a total cash position of $20.5 million at the end of 2010. The company boasts profit margins of 24.4 percent and return on equity of 20.8 percent. Moreover, MNDO continues to grow its customer base at a rapid pace.

The company recently took a major step towards catching institutional attention with the announcement that they have joined forces with Israel’s first mobile operator, Pelephone communication. Pelephone has over 2.8 million subscribers.

For the investor who wants the potential for outsized capital gains in small cap stocks that pay big dividends, MNDO is worth further research.

Best Stocks To Invest In 2012: Stillwater Mining (SWC)

Stillwater Mining (SWC) is the largest producer of platinum group metals (PGMs) in North America and the only significant producer in the US.

In 2010, the company produced a total of 485,000 ounces of PGMs including 374,000 ounces of palladium and 111,000 ounces of platinum from its Stillwater and East Boulder mines in southern Montana.

Palladium prices were at depressed levels for much of the period between 2002 and 2008, and Stillwater wasn’t in a position to expand operations or make money.

But with palladium prices now well over USD700 per ounce, the miner is once again solidly profitable.

Stillwater’s expansion projects are slated to push the company’s total output up by 40 percent over the next 4 years to roughly 700,000 ounces of PGMs per year.

And roughly three-quarters of that output will be palladium, the PGM with the strongest near-term growth prospects and tightest supply-demand conditions.

Stillwater trades at just 13 times projected 2011 earnings and should be able to grow profits by 20 to 30 percent over the next few years as it brings new production on-stream to take advantage of rising palladium prices.

Stillwater Mining, a new addition to the Metals and Mining Portfolio, rates a buy under 24.50.

Best Stocks To Invest In 2012: Global X FTSE Norway 30 (NORW)

If you are looking for an investment safe haven, Norway shuld be high on your list; while much of Europe is mired in fiscal turmoil, Norway -- which is not a memeber of the EU -- seems to have matters well in hand.

It is the world's seventh largest oil exporter and, unlike most countries in the world, actually carries a budget surplus that is estimated to be about 10% of GDP this year.
The common approach to national budgeting in much of the world seems to be spending money as long as it can be borrowed.

But Norway's budget conservatism and half-trillion dollar wealth fund means it has an extremely low default risk. In real market-cost terms, the cost of insuring against Norwegian default is the lowest in the world.

Also in Norway's favor is that its inflation and unemployment are low and its currency, the krone, is strong.

The Global X FTSE Norway ETF (NORW) is realtively new, having been trading since September 2010. The fund attempts to emulate the FTSE Norway index, a market capitalization-weighted index designed to reflect board-boased equity performance of the country.

The top three sector weightings are energy (40.5%), financial services (22%) and basic materials (10%). The annual expense ratio is 0.50%.

Best Stocks To Invest In 2012: Best Stocks To Invest In 2012: T. Price U.S. Large-Cap Core (TRULX)

T. Price U.S. Large-Cap Core (TRULX) has been managed since its inception in mid-2009 by Jeff Rottinghaus; the fund currently has less than $30 million in assets.

Rottinghaus seeks to fill the portfolio with 50 to 55 large-cap stocks rated highest by Price’s extensive cadre of equity analysts, who tend to be divided by sector and industry.

The criteria to favor one stock over another differ among various sectors: in technology, Rottinghaus says, the firm’s analysts tend to prefer companies going through very favorable cycles for new products and services. In the consumer staples area, on the other hand, valuation plays a greater role.

In general, however, the analysts favor modestly priced, high-quality companies that are gaining market share in growing industries.

For cyclical stocks, they look for companies beaten down due to a cyclical trough but likely to benefit mightily once the cycle turns, thanks to limited competition, engendered by high barriers to entry by competitors.

For all their picks, they spend a lot of time attempting to ascertain management quality.

In general, Rottinghaus favors GARP companies (growth at a reasonable price) while also devoting some of the fund’s assets to more highly valued companies thought to have excellent prospects.

Like most other equity funds at Price, U.S. Large Cap Core has a bias toward quality as indicated by low debt, high barriers to entry and strong return on capital. Rottinghaus hopes this would cushion the fund in a bear market.

Best Stocks To Buy Right Now

Best Stocks To Buy Right Now: Standard Chartered (SCBFF)
Yiannis Mostrous is a leading expert on Asian Stocks. For his top pick last year, advisor choseStandard Chartered (London: STAN, OTC: SCBFF) as  his top pick.
The stock has risen 110% since his original recommend -- and remains  his top pick for 2011 as well. Here's the latest from his The Silk Road Investor.
"Standard Charter is an international bank focused on consumer and corporate banking and treasury activities.
"Though based in London, the bank gives exposure to emerging markets in Asia, the Middle East and Africa. Asia makes up 59% of the firm’s profits with Hong King as its biggest single concentration of customers.
"The economies in Asia are rebounding faster than those in the west, increasing competitor activity amongst international and local banks.
"The banks strategy is to continue to develop its consumer banking franchises while maximizing profitability in its historically strong wholesale operations.

"For the January-November period, the firm reached record income and pretax profit highs, driven by growth in the corporate banking business.
"Standard Chartered has a relatively low loan-to-deposit ratio of 75%, giving the bank the luxury of relying less on borrowed funds and more on its increasingly strong, less costly deposits for expansion.
"Valuations are attractive; share price per trailing earnings is 14.3, trading at 1.5 times tangible book value. The firm maintains a strong balance sheet and a healthy liquidity position."
Best Stocks To Buy Right Now: T. Rowe Price New Asia (PRASX)
"My top investment idea for 2011 is T. Rowe Price New Asia (PRASX)," says long-standing fund expert Walter Frank.
In his The MoneyLetter, which has been published for over 30 years, he explains, "What attracts us to the fund is the weight it gives to both  China and India." Here's his review.
"It may seem a strange pick considering that the fund is up almost 100% for 2011.
Normally, after such a run, we would not pick the fund as a favorite for next year. In addition the entire range of emerging market stocks are now among the favored by surveyed managers for 2011.
"That too should serve as a warning to stay away from the group. Having duly warned you we are nevertheless sticking with our recommendation.
"What attracts us to the fund is the weight it gives to both China and India. Each is about 30% of the fund. We like that mix.
"In fact, what attracted us to the fund in the first place is that it gave reasonable weight to India. We see most Asian funds as underweighting India. We would be wary of a pure India fund and right now we are not keen on a pure China fund. It is the blend that we like.
"Even though the emerging market funds have been Wall Street favorites this year we think their run is by no means over. The emerging markets are being valued at about the same level as are developed markets.
"Considering their potential growth rate, they are actually selling at a more than trivial discount of what they would sell for were they a developed market. We do not believe the discount makes much sense any more.
"Today’s emerging markets are no longer the crap- shoots of the past. As this is being recognized,we look for higher normal valuations (price/earnings ratios) than in the past.
"There was a manager change for the fund in April, as the former manager retired. So far the fund has not lost a beat.
"We would not expect it to, considering the strong bench T. Rowe Price brings to Asian investment. We are still recommending the fund despite its meteoric gains in ’09."
Best Stocks To Buy Right Now: Universal Insurance (UVE)
"Universal Insurance Holdings (NYSE: UVE) is my stock pick for 2011," says Neil Macneale, editor of the In his 2-for-1 advisory.
Incidentally, Neil's top stock pick in last year's report -- Teck Resources (NYSE: TCK) -- soared nearly 600%. Here's his review of last year's pick as well as his new favorite for the coming year.
"Teck Resources has had a great run but it's nearing the time to cash out. According to our monthly buy and sell routine -- which is a laddered portfolio approach -- the TCK position in our 2 for 1 portfolio will be sold in April.
"According to our monthly buy and sell routine -- which is a laddered portfolio approach -- . However, no one who bought at the beginning of 2011 could be faulted for taking their profits at any time.
"TCK now has a P/E of 32 and its balance sheet is way out of whack. A resumption of dividend payments seems unlikely in the next few years. TCK is selling at its 52 week high and, as hard as it is to face up to the facts, it's time to let it go.
"Even if its has a little upside momentum remaining, as my Grandfather used to say, 'You always need to leave a little on the table for the next guy, otherwise who would want to buy?'
"Universal is a small insurance company based in Fort Lauderdale, Florida, specializing in homeowner's insurance. The company has a strong balance sheet with over $7.00 in cash per share on the books with earnings at close to a dollar a share.
"The current profit margin stands at just under 20% and the dividend yield is a whopping 13.8%. 47% of outstanding shares are held by insiders.
"Granted, investing in a homeowner's insurance company in hurricane country should be considered on the risky side, but UVE has a good record with its premium/loss ratio so far.
"In return for the risk taken on, insurance companies get to use OPM (other people's money) for investments during the periods between claims losses. Universal has done exceptionally well in that regard during the economic downturn.
"It cannot be assumed that the good record on investments in 2011 will be repeated, but the management of Universal seems to be playing a hot hand at the moment and it's not unreasonable to imagine this might continue through 2011."
Best Stocks To Buy Right Now: MannKind (MNKD)
"My top stock pick for 2011 is MannKind Corp. (NASDAQ: MNKD), which is developing a  a novel formulation of inhalable insulin called Afresa,"  notes Nate Pile.
In his Nate's Notes newsleter, he explains, "I would emphasize that while the stock must be considered speculative until the FDA delivers a ruling in mid-January of next year, I believe the clinical data that has been submitted by the company is likely to warrant approval.
"Inhalable insulin has admittedly been a losing proposition for other companies that have attempted to play the game over the years.
"However, I believe that MannKind's unique approach to the situation will not only help the company win approval for its drug, it will also allow the company to experience a surprisingly strong rollout of the product if/when it is finally approved.
"In addition to developing a drug that has a far more favorable clinical profile that the last inhalable insulin product to be approved (Exubera, in 2006), MannKind has also leveraged its engineering expertise to develop a vastly superior mechanical device for delivering the powdered insulin to a patient's lungs.
"The stock took a hit a few months ago when it was announced that the company would not be signing up a marketing partner for Afresa prior to the drug's approval.
"However, it has been my contention all along that it was most likely Alfred Mann (already a billionaire a couple of times over thanks to past successes with start-up companies) who walked away from any potential deals, not the other way around.
"And given how the stock has responded following the dip, it appears that the rest of Wall Street may be coming to its senses around the issue as well.
"Assuming the drug gets approved, it would not surprise me at all to see a marketing deal announced shortly thereafter, most likely on much better terms than the company would have received had it signed an agreement pre-approval.
"Along with this lead product, MannKind is also working on next generation products for not only diabetes, but for other metabolic disorders as well.
"In addition, the company is also doing a lot of work in the oncology arena, and as time goes by, we believe the company has the potential to grow significantly as it leverages its expertise in all three areas it is doing work.
"With the caveat that the stock is likely to tumble sharply if the FDA denies approval of Afresa next month (and thus needs to be considered 'speculative' by all who by it ahead of the ruling), I believe MannKind currently represents one of the best risk- reward ratios among all the stocks I follow. MNKD is considered a strong buy under $9 and a buy under $12."
Best Stocks To Buy Right Now: Matthews Asia Dividend (MAPIX)
"Though most investors do not associate Pacific-Rim investments with high dividend yields,Matthews Asia Dividend (MAPIX) could change their perception," says Mark Salzinger.
In his No-Load Fund Investor, he looks to this fund, which he notes recently o?ered a dividend yield of approximately 4%.
"The fund recently o?ered a dividend yield of approximately 4%. Managers Jesper Madsen and Andrew Foster seek to fill this fund with dividend-paying stocks of companies.
"The managers select stocks throughout the Asia-Pacific region, including Japan, China/Hong Kong, Taiwan and recently at least eight other Asian countries. Though dividends did not protect investors in American stocks from the carnage in 2008, they appear to have reduced losses for investors in Asian equities.
"Matthews Asia Dividend (formerly known as Matthews Asia Pacific Equity Income) fell only 26% in 2008, vs. 42.2% on average for the funds in Morningstar’s Diversified Pacific Stock category. So far in 2011 (through Dec. 14), Matthews Asia Dividend has gained a whopping 48.1%, vs. 31.1% for its peers.
"That means the fund did about 16 percentage points better than average in a down year, and has done about 17 percentage points better in the bull market so far in 2011!
"The Matthews funds specialize in attempting to form portfolios of 'indexes of the future' in Asian markets. In other words, they seek exposure to publicly traded companies in su?cient quantities to represent a picture of Asian economies as they are likely to develop over time, not as some index developer imagined them to be several years ago.
"So, compared to existing indexes of Asian stock markets, the Matthews funds tend to devote more of their assets to consumer stocks and midsize and small-cap companies, and less to big exporters and other famous companies.
"Matthews Asia Dividend is available directly from Matthews Funds (800-789-2742; matthewsfunds.com) as well as no-load at various fund supermarkets."
Best Stocks To Buy Right Now: General Mills (GIS)
"General Mills (NYSE: GIS) looks especially tasty for total returns in 2011," says Chuck Carlson, a leading expert on dividend reinvestment plans -- a low cost strategy for loong-term investors to accumulate  shares of a particular stock directly from the company.
On his The DRIP Investor, he explains, "There is a transition taking place in the stock market toward high-quality, dividend-paying stocks. General Mills plays into this trend very nicely.
"Profits for the leading food company should show nice gains in 2011, which should provide support to the stock price. Also, the stock o?ers certain defensive characteristics should the market become more tumultuous.
"Its stable of strong brand names, focus on costs, and overseas growth opportunities should drive profits higher in the near and long term. I like the stock for all seasons.
"General Mills owns some of the strongest brands on your grocer’s shelves, including Green Giant vegetables, Old El Paso Mexican food, Haagen-Dazs ice cream, Yoplait yogurt, and Cheerios and Wheaties cereals.
"Finally, General Mills has pricing power that could be very useful should inflationary fears increase among investors. The stock's yield of 2.7% is an added bonus. I look for the stock to outperform the overall market in 2011.
"I think the stock will continue to put up decent gains should the market rally continue. And I would expect the 'defensive' qualities of the stock to fuel above- average price resiliency should the overall market turn down.
"Investors should note that General Mills o?ers a direct-purchase plan whereby any investor may buy the first share and every share directly from the company. The minimum initial investment is $250. For information on the direct-purchase plan call (800) 670-4763."
Best Stocks To Buy Right Now: Global Crossing (GLBC)
"Global Crossing (NASDAQ: GLBC) was started in 1997 to build a worldwide fiber optic cable network; revenues grew very slowly, and the company was forced to file for Chapter 11 in January 2002," explains turnaround specialist George Putnam.
Now, however, the editor of The Turnaround Letter suggests, "The potential of that network is finally beginning to be fulfilled.
"Global Crosssing raised billions of dollars of capital, mostly debt, and used the money to lay thousands of miles of fiber optic cable spanning the globe.
"The initial strategy seems to have been 'if you build it, they will come'. Global Crossing built the network, but as the telecom bubble burst around 2000, nobody came.
"Global Crossing emerged from Chapter 11 in December 2003. Once again the market showed enthusiasm for the story. The new stock went as high as 36 shortly after it began trading. When it later dropped in price, several high-profile investors accumulated sizable positions.
"Unfortunately, there was still considerable overcapacity in worldwide networks, and Global Crossing’s results continued to lag expectations. The stock hit a low of 5 earlier this year before beginning to recover.
"The network is still built – it connects 690 cities in 60 countries around the world –and it appears that the revenues are finally beginning to come.
"Over the last three fiscal years revenues grew from $1.87 billion in 2006 to $2.26 billion in 2007 to $2.59 billion in 2008 and were at $1.88 billion for the first three quarters of 2011.
" It appears that the tremendous growth in data, voice and video tra?c is finally beginning to fill up some of the capacity in worldwide networks. The company has also developed a successful marketing strategy focusing on mid-sized to large companies with far flung operations.
"Since much of the cost of the business is fixed (and incurred years ago when the cables were first laid), a large part of any increase in revenues will drop straight to the Global Crossing bottom line.
"In addition, Global Crossing has been able to cut its overhead over the last few years, further increasing operating profits.
"Because the company is still depreciating many of its assets for book purposes, it may continue to show net losses for a while. However, it is now generating free cash flow for the first time in its history.
"Even though Global Crossing reduced its leverage significantly through the Chapter 11 filing, there is still a fair amount of debt on the balance sheet. But it has no significant debt maturities for several years, and if current trends continue, it should have no trouble refinancing that debt.
"We think Global Crossing’s current stock price gives you the opportunity to buy into a very valuable communications network at a tiny fraction of its original cost and at a time when the potential of that network is finally beginning to be fulfilled."
Best Stocks To Buy Right Now: Blue Coat (BCSI)
"My pick for 2011 is Blue Coat Systems (NASDAQ: BCSI), a company that provides web security," says Leo Fasciocco, a leading technical analyst known for his focus on stocks that are breaking out of basing patterns.
In his The Ticker Tape Digest, he explains, "We consider the stock an excellent intermediate-term play because of its strong profit outlook. Blue Coat, based in Sunnyvale, Ca., provides software and services for networking, with annual sales of $444 million.
"Its products enable its end user customers to secure their Internet gateways and remote computer systems by providing protection from malicious code, or malware and objectionable content.
""The company is benefiting from an expansion of its products. In 2008, BCSI acquired Packeteer, a provider of WAN tra?c prioritization technologies. It most recently came out with an expansion of its Webpulse cloud service for Arabic web content.
"Looking out to fiscal 2011 ending in April, the Street projects a 44% jump  in net to $1.30 cents a share from the 90 cents anticipated for fiscal 2011.
"The stock has been trending higher the past few months recovering from the bear market. The  long-term chart for BCSI shows the stock with a cyclical tendency. It is now in the up trend part of its cycle. We see that as favorable for bulls at this time with the stock now trending higher.
"In our view, BCSI is an outstanding stock poised to breakout. It is holding in its base and poised to show massive earnings gains.We are targeting BCSI for a move to 36 after a breakout. A protective stop can be placed near 24 after a breakout."
Best Stocks To Buy Right Now: BMC Software (BMC)
Dow Theory Forecasts is one of the most respected and venerable players in the financial newsletter community; the service has been published continuously for well over 5 decades.
Editor Richard Moroney looks to BMC Software (NYSE: BMC) as his top pick for 2011. He explains, "BMC develops products that run corporate data centers, which house critical computer systems.
"BMC's long-term contracts sustained stable profits during the downturn. Over the next 12 months, results should benefit as clients resume spending on technology. "Consensus estimates project per-share profits will advance 15% in fiscal 2011 ending March - and grow 14% annually over the next five years.
"Recent acquisitions have bolstered BMC's promising segment for automating datacenter activities. Fortune 500 companies comprise more than 85% of BMC's client list, and such companies are unlikely to abandon cost-cutting initiatives once the environment improves.
"Reflecting this optimism and better-than-expected results for the September quarter, BMC in October raised profit guidance for fiscal 2011. With a trailing price/earnings ratio of 15, BMC trades at a discount to its three-year average P/E of 22 and five-year average of 27.
"If the P/E returned to the three-year average and BMC matched consensus profit estimates, the stock would trade at $58 next year.
"While that target seems a stretch, BMC seems fully capable of reaching $45 to $50. BMC is a Focus List Buy and a Long-Term Buy."