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IBDvalueinvestin (98.33)

6 undervalued stocks for 2010



December 28, 2009 – Comments (8) | RELATED TICKERS: NOA , CSR.DL2 , CNEP.DL

article is by SeekingAlpha on 12/28/09:

8 Comments – Post Your Own

#1) On December 28, 2009 at 12:04 PM, IBDvalueinvestin (98.33) wrote:

Should have had JST in that list up over +4 today.

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#2) On December 28, 2009 at 12:05 PM, Momentum21 (98.09) wrote:

CSR is single-handedly keeping my discretionary portfolio afloat (bought at 5.51) as many of my small caps have been underperforming I raise my glass to CSR and order it to continue onward as I wait for the others to catch up. : )

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#3) On December 28, 2009 at 1:24 PM, JaysRage (76.37) wrote:

Some pretty good picks.    2 stocks from my watch list in CSR and NEP.  

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#4) On December 28, 2009 at 3:35 PM, greenwave3 (< 20) wrote:

Agreed, CSR and NEP are good picks for the coming year and beyond. JST is also attractive, but I would wait for a pullback before committing.

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#5) On December 29, 2009 at 11:01 AM, IBDvalueinvestin (98.33) wrote:

Both NOA & NEP trading at forward PE's of 7

That will not last long and already has started on NEP to be adjusted higher, only a matter of time before funds start focusing on buying shares of NOA as well.

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#6) On December 29, 2009 at 11:33 AM, devilzadvocate (< 20) wrote:

I would say thumbs up for all three - CSR, NEP, and  NOA. NEP would pullback a little in a day or two.. giving a good entry point.

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#7) On December 29, 2009 at 3:44 PM, IBDvalueinvestin (98.33) wrote:

NOA comfortably into mid-teens for 2010 says SeekingAlpha

currently  NOA at $6.89/shr



North American Energy Partners Inc (NYSE: NOA)

NOA is a provider of heavy construction, mining, piling and pipeline services in Western Canada with a principal focus on oil sands. Almost 90% of Sales in the most recent quarter, Q3’09, were generated from oil sands. With 20% of the world’s supply of heavy oils and bitumen located in Canada, and with upward pressure on global oil prices in the coming years, NOA is ideally positioned to take advantage of Canada’s abundant oil supplies and proximity to the USA.

As a direct result of the oil price collapse in late 2008 a number of large Canadian potential oil sands projects were deferred by oil producers. Consequently during 2009 NOA has had to rely on existing long-term recurring projects for revenue generation.

However, with global economies now beginning to emerge from the biggest downturn in decades and oil demand visibility improving for the next few years, oil majors in Canada are restarting new oil sands projects. NOA, as the largest construction and mining contractor in the oil sands sector, is assured to benefit strongly. Very little, if any, of this upside is reflected in NOA stock price.

At $6.57 (close, Dec 24), the stock trades on a 2010 p/e of 7.3. During the next 12 months, especially when contract wins are announced, and as brokers provide visibility into 2011 Sales and EPS, the stock should trade comfortably into the mid teens. Whilst NOA is a cheap strategic oil play, currently the shares are thinly traded and investors should not chase too vigorously.

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#8) On January 06, 2010 at 7:21 AM, devilzadvocate (< 20) wrote:

24% for NEP, 17% for NOA, and 11% for CSR...

While I knew all three were good stocks.. I was left biting my nails on the side waiting for a better price to jump in as all of them had double digit jump in one week.

I am going to pull the triggter on NOA today as I believe it would go up another 40% easily. Not sure if NEP is still that attractive... I guess the easy money has been made.

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