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Stock Talk: Thoughts and Opinions

The other day a reader asked my personal opinion on various stocks in his portfolio so I thought I’d share my thoughts to all of you.

PQ: Great technology bet, tech historically does well in fall and helped by strong sector performance good stock to own.

MCD: Dividend rich stock, fast food is not going away anytime soon. Should continue to make lots of money which only makes stock go up.

SONC: Stock is whatever for me, will rise led by sector performance however I think stronger buys out there.

JNJ: Again safe long-term pick, supported by solid dividend, strong analyst support, and good book its a safe bet.

WU: Solid PEG Ratio, good analyst coverage, and potential to continue to grow. Dividend is a plus.

DEO: Safe bet, largest alcohol producer. Supported with solid dividend expect $75 in a year. I met the CEO two years ago when I interned and sat in on conference call and have emailed him since he is a badass and will take this company higher.

XOM: Expect XOM to see lots of new business now with BP’s problems. I think this is a good long-term anchor to any portfolio.

BA: Undervalued big time, dividend support, strong sector support, strong PE numbers. Only concern is PEG ratio is a little high.

MSFT: Yes they were passed by Apple but that’s no reason to ditch MSFT. Supported by a nice dividend Microsoft will hit $35 in a year supported by strong sector performance.

CSCO: Another great Tech stock that will shine in the fall.

COST: Best of breed retailer, safe bet longterm as consumer spending begins to return to normal levels.

PAYX: High dividend but the financials for the company aren’t so great. I’d pass as better buys and more speculative and value plays out in the market.

KO: Value brands are always strong long-term investments just look at DIS, MCD, MSFT.

NUE: Great potential but I like FLR, FWLT, and COP instead.

PEP: Again like I said with Coke solid brands always to well. Steady growth not as speculative but safe picks.

UPS: Rising costs in United Postal Service should give more business to UPS making it expected to beat earnings estimates.

ABT: Long record increasing dividends. EPS numbers strong, excellent stock for value investors.


Other Strong Plays:


TOT: Amazing stock to own, high global exposure in strategic locations including the recent addition of moving into the rich African nation. Moving on they have increased their exposure to natural gas in both France and Denmark. With a solid 5% dividend and the belief that the market has bottomed out makes this is a great position to own. I know none of us are sure of when the market will begin to rebound but when it does this is a stock not to miss out on.

JOYG: +160% run over past year/+45% since mid-Feb. This mining equipment specialist is positioned to continue its run in this ongoing, multi-yr, secular bull market in mined commodities.

BUCY: Ditto for Bucyrus as said above.

RAX: This computing specialist that provides web-based IT systems has soared 60%+ in the past year.  With a P/S above 3 and Price to Cash of 10 this stock is poised to continue to soar and outperform it’s peers. $22 in a year is a realistic bet.

ATVI: This video game creator has been lagging in the past 12 months compared to other stocks. With fall around the corner and strong titles coming out I think this stock will start to pickup. A PEG of 0.1 shows this stock is undervalued big time.

AAPL: With $23 billion in cash on hand and a PEG ratio of  0.6 Apple still has room to grow. Strengthened by strong releases of new products such as iPhone 4 and iPad I see no reason to doubt earnings going anywhere but up.

TQNT: Screaming buy, stock has a PEG ratio of 0.1 and is recommended by 91% of analysts.

CVX: Good overall play as they have very low exposure to refining while holding a stellar exploration portfolio. With rising oil prices this stock is a no brainer. Chevron also posses a solid 4% dividend yield and is currently trading at around eight times earnings.

PBR: Love this stock however it has been the worst performing stock in Brail throughout the first half of the year due to capital problems and the BP Oil Spill. I feel this overhang has kept the stock low which presents a great buying opportunity as PBR continues to be under-valued when matched up against it’s peers. My gut feeling is once these few issues are washed away this stock will rise.

COP: Holds a strong array of natural gas positions which could be the future of energy after the recent series of events. Adding to this they are strong globally and posses many valuable assets that will strengthen the companies prospects.

VALE: Vale is the safest bet in my opinion of all the big mining giants. Vale has made smart moves in reducing its reliance on China by expanding its shipments to other countries. In 2010 China accounted for 32% of Vale’s revenues compared to 45% in 2009. Overall lower exposure to China and increased diversification of exported materials will strengthen Vale’s long-term appeal and lower it’s earnings volatility.

STD: String of moves recently have been incredible in strengthening the banks position and reducing its Spanish Exposure. Being a high yielding bank with large growth potential I am very impressed with the resilience in the past few months and believe it’s a strong buy.

BAC: Bank of America has so many levers to grow; mortgages, credit cards, investment banking, capital marketing, etc. I like what their CEO is doing and it’s the cheapest of all large cap banking stocks. I think it’s a great investment and a stock you need to buy today. I say $24 is where we heading.

C: Hedge funds jumping in and government on its way out. Expect this stock to surprise in the next year and longer. $6-$7 is not that far away.

GS: Love this stock long-term, however the media loves to hate on Goldman more than anything else. Despite that once this SEC case blows over and a new management is but in place this stock will soar to new high levels. Goldman never seems to be stopped and their string of success won’t be halted by some SEC case.

JPM: hey are the best run bank on Wall Street led by a great management team. They are similar to BAC and should benefit from all the same products. With $40 billions in reserves and a strong book expect this stock to rise.

PRU: Like this stock a lot got a great global diversification of assets and has many different levers to growth. Worth taking a look at as a potential long-term investment.

FCX: after a sharp drop in April, this one’s poised to pop back through $100, perhaps as high as $125 by the end of 2010.  Copper and Gold all in one – what more can you ask for?

CLF: Strong earnings will continue to drive this one higher.

BHP: China & India Inc. will continue to devour ore.  Enough said!

IBM: Performing well on all cylinders, plus strong dividend make this a stalwart stock.

If you have any questions on stocks feel free to email them to me or send them to my Twitter. Also remember to sign up for Stocks on Wall Street’s Newsletter to receive top stocks picks and market updates.

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Disclosure: "No Positions"