5 Top Fidelity Funds to Buy Now

Founded over 65 years ago, Fidelity Investments is a financial powerhouse.  In all, the firm has $3.5 trillion in assets under administration and serves over 20 million individual investors.  Fidelity also provides services to more than 5,000 financial intermediaries.
No doubt, the core business at the firm is its mutual fund platform.  There are roughly 500 offerings — with a bulk of them invested in equities.  It helps that the firm has an excellent training and mentoring program for its analysts.  It’s a farm system that produces top-notch money managers.
So which funds stand out?  Let’s take a look:

Fidelity Contrafund (FCNTX)

When it comes to stock funds, one of the best money managers is Will Danoff.  In fact, he has operated the Fidelity Contrafund (MUTF: FCNTX) for roughly 20 years.  So he understands how to deal with bull and bear cycles.  Keep in mind that the annual average return since 1990 is a sizzling 12.8%.
In light of this, it should be no surprise that the Contrafund has been a magnet for investor funds (assets under management are $79.4 billion).  Yet, this size seems to be no hindrance for Danoff to generate nice returns.  For the past year, the fund was up 14.20%.
Of course, the Contrafund has a large number of big-time companies.  Some of the top holdings include Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG), Berkshire Hathaway (NYSE: BRK.B, BRK.A) and Disney (NYSE: DIS).  But Danoff also sprinkles some smaller companies in the portfolio.

Fidelity Capital & Income (FAGIX)

In a low rate environment, it is tough for bond funds to generate juicy returns.  But there are certainly opportunities in the securities of smaller companies.  These are often referred to as “high yield” bonds.
To participate in the market, there is the Fidelity Capital & Income (MUTF: FAGIX) fund.  Actually, the portfolio manager, Mark Notkin, is not afraid to ramp up the risk level when he sees value.  Some of his top bond holdings include GMAC, Sprint (NYSE: S) and HCA.  At the same time, the fund invests a part of the portfolio in stocks.
True, the volatility can be high.  But over the long run, the swings should dampen.  For example, the Fidelity Capital & Income fund has posted an average annual return of 14.09% for the past three years.

Fidelity Small Cap Discovery (FSCRX)

Small cap stocks go through hot and cold streaks.  They can also vary based on the investment styles – that is, value or growth.
So why not blend the two?  This is the approach of the Fidelity Small Cap Discovery (MUTF: FSCRX) fund.
The flexibility has helped to stabilize returns.  For example, during the 2008 financial crisis, the loss was only 27.57%, which was much better than the 37% decline in the S&P 500.  Then a year later, the fund posted a gain of 50.69% and a 32.38% return in 2010.

Fidelity Diversified International (FDIVX)

So far, it’s been topsy-turvy for global markets.  The Middle East is in the midst of upheaval and Japan continues to suffer from the massive earthquake and tsunami.
Despite all this, the fact remains that international investing is critical for any portfolio.  And a good mutual fund for this is the Fidelity Diversified International (MUTF: FDIVX).
The portfolio manager, Bill Bower, has a good sense for value.  Interestingly enough, he has had relatively light exposure to Japan.
For the most part, the focus is on large cap growth companies.  The top holdings include BP plc (NYSE: BP), Royal Dutch Shell (NYSE: RDS.A), BHP Billiton (NYSE: BHP) and Novo-Nordisk (NYSE: NVO).

Fidelity New Markets Income (FNMIX)

Investing in emerging markets sounds scary to many investors.  Just look at the massive volatility in the Egyptian stock market lately. But emerging markets can provide substantial long-term growth for a diversified portfolio.
Although, there is a lower-risk way to play this category:  investing in the bonds.  And yes, one option is the Fidelity New Markets Income (MUTF: FNMIX) fund.
Consider that the fund focuses primarily on debt that is denominated in U.S. dollars.  Basically, this helps to further lower the risk levels.
The fund also diversifies across various countries.  Holdings are in places like Russia, Bolivia and even Lebanon.
In 2009, the fund saw a 44.56% gain and then posted a return of 10.94% in the following year.
Tom Taulli’s latest book is “All About Short Selling” and his Twitter account is @ttaulli. He does not own a position in any of the stocks named here.

6 Software Penny Stocks to Buy in 2012

There is no better place to find explosive growth than with low-priced penny stocks. I’m not talking about pink sheet stocks that are potentially nonexistent, or fraudulent names set to crash. I’m talking about real companies with real earnings — companies listed for more than one year on a major exchange like the AMEX, NYSE or Nasdaq, and that have a market cap in the ballpark of $100 million.

The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action thanks to the mass acceptance of smart phones and personal computing devices.

These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.

Because these companies have the wind at their sails from an earnings perspective, these penny stock prices will not last long. Now is the time to pounce before the rest of the market catches on.

Here are six software penny stocks to buy now:
NetSol

6 Software Penny Stocks to Buy in 2012 - NetSol Technologies (NASDAQ:NTWK) is a penny stock with a near $100 million market cap. This is a real company with real products and real revenues. The company makes application software for the automobile finance and leasing industry as well as the banking, financial services and healthcare industries globally.

Shares have drifted lower since peaking near $2.40 per share earlier this year. You can buy this penny stock today for just $1.60 per share. That is a bargain that you should exploit.

NetSol beat estimates in the last quarter by 4 cents per share. Look for a similar result when it announces quarterly results. For the full year, the expectation is for a profit of 18 cents per share. If the company does better than expected, this stock could really take off.
Cover-All

The penny stock Cover-All Technologies (AMEX:COVR) has a market cap of $63 million and is part of the Russell micro cap index. In May, the stock was listed on the AMEX exchange taking shares off bulletin board status. The stock has gained about 50cents per share since that time.

Cover-All Technologies is in the business of providing software products and services for the property and casualty insurance space. That sector has been getting headlines this year with the uptick in natural disasters and inclement weather. Any chance to save money with technology will be more likely to be advanced under more difficult financial times.

Cover-All is profitable and expected to make seventeen cents per share in the current fiscal year. That number jumps 3 cents to 20 cents per share in 2012. The company has beaten estimates in the last two quarters. You can buy that 17% growth for less than 15 times estimated earnings.
Top Image

One of the problems owning penny stocks is trading volume is thin and liquidity makes it tough to sell shares for a profit. In the case of Top Image Systems (NASDAQ:TISA), we have a stock that sees an average of 300,000 shares trading hands each day. Clearly this stock will be followed by a fairly large group of investors.

Top Image system is in the business of making software with respect to data capture and manipulation. This Israeli-based company was founded in 1991. Shares of the company blasted higher in early May after the company reported positive results for its first quarter of 2011.

In the period, the company saw a 36% increase in revenue and posted a profit of seven cents per share as opposed to a loss in the year prior. That was enough to move the stock from $1.34 per share to $2.20 per share. Those are the types of moves you can expect from a penny stock when it delivers solid operating performance. I expect a repeat performance in future quarters.
Authentidate

6 Software Penny Stocks to Buy in 2012 -Authentidate Holding Corp. (NASDAQ:ADAT) is in the business of making the health care industry less paper-intensive. Offering web-based solutions for health systems and physician groups, this penny stock has nearly doubled in value since early April.

I don’t think the gains are done there. This sort of momentum is what I like to see. Historically riding these waves of momentum has been very lucrative to me and my investors.

Authentidate is growing and continually adding to its impressive roster of customers. Most recently the company signed a deal with the Department of Veteran Affairs to provide telehealth solutions. The company is expected to lose money in 2011, but to be profitable in 2012. If so, the stock will double again from here.
Cinedigm Digital Cinema

Penny stocks can be quite volatile. 6 Software Penny Stocks to Buy in 2012 -Shares of Cinedigm Digital Cinema (NASDAQ:CIDM) have been on a roller coaster this year. In mid-March the stock caught fire and jumped a dollar per share over the course of a couple of months. Since that time, shares have given up half that gain to the ballpark of $1.90 per share.

Use the selling to get in on this penny stock ride. Cinedigm provides technology solutions and digital content to theater exhibitors. The company just completed a year of operating losses that it expects to sharply narrow in the 2012 fiscal year. Sales are growing rapidly and that is what investors should focus on today.

To the extent they beat expectations, profitability may arrive sooner than later.
Mind CTI

6 Software Penny Stocks to Buy in 2012 -Mind CTI (NASDAQ:MNDO) is an Israeli-based technology company that provides convergent end-to-end billing and customer-care product-based solutions for service providers as well as telecom expense management solutions. After peaking at nearly $3.60 per share, the stock has slipped to current levels at $2.80 per share.

The move lower comes on the heels of a less-than-stellar quarterly earnings report for its first quarter ending March 31, 2011. Year over year revenue in the period was lower, but the company did post a profit of six cents per share. In addition to reporting a backlog to be recognized this year of $10.2 million Mind CTI had previously declared a cash dividend of 32 cents per share.

With telecom and wireless being all the rage around the globe, I expect Mind CTI to perform quite well for the remainder of the year.