My 3 picks for 2012
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.
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