What do Quepasa Corporation, ATP Oil & Gas Corp, Ford Motors, Cisco Systems and Sirus XM have in common? In 2012, it is quite possible to see all five of them double in value amid social, political and economic stimuli. All five of these stocks are undervalued and 2012 could be the year that they capture investors' attention and begin to make serious moves. As is usually the case before a stock spikes, the conditions surroundings these companies are providing the perfect environment for them to thrive in.
Quepasa Corporation (QPSA) runs a social network aimed at a predominantly Latino audience. Quepasa is the owner of Quepasa Games- a social media game developer that has a reach into both Orkut and Facebook. In 2011, Quepasa was hard at work swallowing two companies that will be critical to its success in 2012. The first acquisition was Techfront owner, XtFt, which solidified Quepasa's position in the social game market and gives the company an opportunity to expand its reach in social gaming over the next year. The second acquisition came in July when Quepasa announced that it finalized a buyout of MyYearbook, which gives Quepasa a mobile presence it was previously lacking.
ATP Oil & Gas (ATPG) has found a niche in the exploration of natural gas and oil wells on the shelf of the Gulf of Mexico where other companies have no interest. The company specializes in harvesting oil and gas from locations that are either too small for large competitors to care about or too difficult to get to. What makes 2012 so special for ATP is a $30 million buy in to a 40% share of an exploration well off the coast of Israel. Preliminary models show ATP doubling its reserves of natural gas once its operation is underway, making this stock a dream for anyone who is able to get into it at the right moment.
Ford Motors (NYSE:F) is quite possibly the most undervalued stock on this list and will soon prove that sentiment. In 2012 Ford will finally win back the confidence of Americans who have been loyal to Toyota (NYSE:TM), (which is plagued by a quality deficit) Honda (NYSE:HMC) and other Japanese automakers who have provided higher perceived quality and gas mileage. Over the last decade, Ford Motors has caught up with and surpassed Toyota in quality, but was never able to convince hesitant consumers. The year 2012 opens up a new playing field as Ford Motors releases its new fuel efficient model Fusion, which boasts a rating of 47 miles per gallon in the city. Fusion's mileage knocks out Toyota's Camry and Hyundai's Sonata as it becomes the newest, most fuel efficient gas powered car in America.
Ford was the only American automaker to reject a financial bailout and was on its way back to profitability on its own in 2009. The demand for the new Fusion, which is currently being produced in Mexico, has brought life back to Michigan. Ford plans to open new operations there to meet the high demand it anticipates for the Fusion. New jobs, innovative new fuel efficient vehicles and a good marketing strategy will propel Ford Motors to the stratosphere this year.
Cisco Systems (NASDAQ:CSCO) showed a last quarter rise in 2011, much to the credit of CEO John Chambers, who has led the company's remarkable turnaround. The demand for cloud services rose in 2011 and Cisco Systems is able to capitalize on this due to the relationship between cloud services and the data-center switching segment, where Cisco Systems possesses an 80% market share. The company is perfectly poised to have a breakout year in 2012.
Sirius XM Radio (NASDAQ:SIRI) is on the list because there is currently no other direction for this company to go. Shares for Sirius stock reached the floor in 2009 at a meager twelve cents per share before the company rebounded to $2 to start the year in 2012. The release of the hands on Lynx satellite radio receiver this year has already caught the attention of many who have been waiting in anticipation of its arrival. Operating on a modified Android platform, the device has bluetooth compatibility, records up to 200 hours of music and alerts users when their favorite content is playing.
Ford Motors is the hands down winner of 2012 with its offering of the most fuel efficient vehicle on the American market. This comes amid growing tensions between the United States and Iran, which could result in rapidly rising gas prices. Anyone who has a position in Ford is liable to win big and those who don't already should seriously consider it.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.