The Motley Portfolio's 3 Best Buys Now
Well this past week the Fed threw the market another bone with QE Infinity and the market responded enthusiastically. In fact the S&P 500 finished up about 2% on the week after all was said and done. What’s to come? That’s anyone’s guess. But no matter what I’ll continue to invest as it’s the only way I know how. But of course I don’t do it blindly folks; some deals are better than others right now. To that end, I present my three best buys now from my TMF Real Money Portfolio, AKA the Motley Portfolio.
Halliburton (NYSE: HAL)
There are so many things to like about this company, but perhaps one of the things I love most about it is it’s still relatively unloved. I know plenty of people that still have a hard time getting past the Cheney factor, much less the oil spill in the Gulf. But with more money flooding the system I have a feeling energy is going to be a great place to park some cash and Halliburton is a pretty phenomenal operation. Oil prices are on the rise and while natural gas prices are at record lows today, they’re sure to feel some pressure as more demand comes on line. With Halliburton’s diverse nature it enjoys plenty of exposure to both through its deepwater and fracking exposure and at just 12 times earnings I think it’s a bargain today. You can see my original write-up here:
Clean Energy Fuels (Nasdaq: CLNE)
Admittedly a bit riskier bet I still love the primary focus of Clean Energy Fuels in fleets along with the trucking industry. This story is still very much in the early stages, but I’ve been following this company since 2008 and they’ve stuck around through the nastiest financial crisis I hope I ever see. America’s Natural Gas Highway becomes more and more a reality with the passing of each quarter and T. Boone Pickens has made it seemingly his life’s mission to bring the benefits of natural gas to our transportation infrastructure. There are an awful lot of things to like about this company and it’s my belief that the completion of ANGH will give this company a competitive advantage that will be worth a whole lot more than what the market is giving it credit for today. Here’s my original write-up with more thoughts on where these guys may be headed:
Starbucks (Nasdaq: SBUX)
Rounding out my energy trifecta this month (What? It’s energy isn’t it?) is Starbucks. Yes, everybody knows this purveyor of perfection in the form of great coffee and I’m sure there’s not much I can tell you that you don’t already know about the company. But as we continue to witness insane speculation in the markets, there needs to be (and certainly is to a degree) a flight to quality and this is mine. While the company seemingly has a lot of irons in the fire with China, India, Evolution Fresh, La Boulange and the holiday release of the Verismo, this is also a company being run by a man with a passion for this business. Coffee is one of the most guaranteed repeat purchases I know, and Starbucks continues to bring new offerings to the table for just about everyone. I suspect we’ll continue to see management bump the dividend up as time goes on, and as a long-term holding the 1.3% yield to go with the stock trading today at just 23 times forward estimates leaves me wanting more. It’s definitely worth a look today. Here are both write-ups for more:
You can catch up with all the stocks in my portfolio right here:
I have 23 different companies in the Motley Portfolio now and to be sure I like them all. But these are the three best buys from the Motley today. Consider giving them a look. I don’t think you’ll regret it.