Use access key #2 to skip to page content.

My 3 picks for 2012

Recs

8

December 31, 2011 – Comments (4) | RELATED TICKERS: SDRL , XRX , SAND

Well end of year, begining of new, predictions are due to fly.  These are my three favorites.

1)  SDRL.  I am loving this company.  They are expanding their fleet to include new deepsea rigs and leasing them as they fly off the assembly line.  We really are running out of places to drill for oil, so deepsea will continue to be the place to drill.  It pays a growing dividend at 76cents a quarter now.  Yes its debt is high but that debt gets monetized fast.  $35 seems to be a resistance point, but eventually I submit it will be a lower level support point.

2) SYDNX.  If you want to play the gold route, either buy the stuff and vault it or buy this company.  This is "legalized mafia" in my opinion.  They lend out money to start up mines in exchange for a piece of the pie.  Thier income has been expanding dramatically, with future deals to be made I am sure.  Some of the people here are the same that turned SLW into a at one point $40 ish stock.

3) XRX.  This is a more boring pick but an "I can't see it miss" stock.  It currently trades at a very low if not bearish PE of around 8.  It really is more of an IT stock now since it purchased ACS.  However, of particular note is the fact that the company will be buying up its common with its free cash flow over the years, which could amount to a significant redemption.  It does pays a somewhat decent dividend.  This is one you can really "buy and hold."  Should be in the 15's in my opinion.  But, hey, it is MY opinion heheh.

4 Comments – Post Your Own

#1) On January 26, 2012 at 6:56 PM, awallejr (83.78) wrote:

Wow just noticed I typed SYDNX instead of SNDXF.  But as an update 2 of the 3 are doing nicely so far.  XRX got beaten up too harshly I thought.

Report this comment
#2) On December 11, 2012 at 9:25 PM, Mega (99.95) wrote:

Sandstorm up 90%, Seadrill up 18%, Xerox down 8%. Average +33% versus S&P +14%. Nice job.

 

My 2012 predictions are here: http://caps.fool.com/Blogs/2012-prediction-potential/686039

2 companies have gone bankrupt so far, however as a short portfolio the results were not very good. I may need to create a checklist system to avoid picking the big gainers next year.

KV-A -95%
PEIX -68%
EK -62%
FMD -42%
YRCW -30%
MPG +44%
GRH +101%
HOV +276%

Additional companies, performance since 2/15:
FFN -67%
RAD -35% 
MHGC +9%
BKS +12%
FNP +30%
PRKR +175%

Average +18%
S&P 500 +14% 

Report this comment
#3) On December 11, 2012 at 9:25 PM, Mega (99.95) wrote:

Sandstorm up 90%, Seadrill up 18%, Xerox down 8%. Average +33% versus S&P +14%. Nice job.

 

My 2012 predictions are here: http://caps.fool.com/Blogs/2012-prediction-potential/686039

2 companies have gone bankrupt so far, however as a short portfolio the results were not very good. I may need to create a checklist system to avoid picking the big gainers next year.

KV-A -95%
PEIX -68%
EK -62%
FMD -42%
YRCW -30%
MPG +44%
GRH +101%
HOV +276%

Additional companies, performance since 2/15:
FFN -67%
RAD -35% 
MHGC +9%
BKS +12%
FNP +30%
PRKR +175%

Average +18%
S&P 500 +14% 

Report this comment
#4) On December 12, 2012 at 7:57 PM, awallejr (83.78) wrote:

Thanks.  Also SDRL did distribute $4.31 in dividends in 2012 and XRX distributed .17.  I still like all 3 going forward.

Kind of wished I listened to the ATPG BK rumors more.  Still holding a few hundred preferred heheh. Management so blew it especially not having filed a claim with the BP fund and for the ridiculous shimshon adventure while Clipper was begging to be completed.

Report this comment

Featured Broker Partners


Advertisement