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bluebare (30.32)

What's the best stock in the world?

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August 05, 2010 – Comments (16) | RELATED TICKERS: LPIH , NM , YONG

That's the criteria I use when I'm making a stock purchase.  Out of all the thousands of choices available, I always believe that the stock I'm purchasing has the highest profit potential of nearly anything else available.

I've cashed in some lucky bottom picks I made a few months back and am sitting on a little loose change that needs a home.  I've looked through my watchlist and come up empty.  There isn't a single company of the hundreds I follow that I'm excited about. Nearly everything is overbought.  It's feels to me like it's time to sell down further and look to start setting up some short positions.  That's my take on the big picture for what it's worth.

So, while I'm sitting around with the hypothesis that the market is going to top out short-term in the next few weeks, I've realized that I really need to refresh my portfolio of good ideas for when things get affordable and attractive again.  Do you have any?  In your opinion, what's going to be the best stock in the world to pick up if the market flushes out some bad news before the end of the year? or even if it doesn't?

Thanks.

16 Comments – Post Your Own

#1) On August 05, 2010 at 11:58 PM, Valyooo (99.53) wrote:

If the stock market drops on a dollar ralley, the best stock in the world to me is PM.  You don't need to do a lot of research on a company to know that a lot of Asians love to smoke (no offense intended or anything like that).  Also a dollar ralley will weaken the stock since they are paid in other currencies.  But long term the dollar will be crushed so PM will do even better.  People smoke when the economy is good and when it is bad.  I expect insane growth that is not priced in, and I am waiting for a slight correction before I jump in.

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#2) On August 06, 2010 at 12:00 AM, TMFBabo (100.00) wrote:

Dividend aristocrats: PG, JNJ, KO, ABT, PEP, ADP, CVX, APD, CL, VFC, MMM, WMT, BDX, KMB, CLX, etc.

Companies who have very long track records of increasing dividends (and thus, earnings) are less volatile than the market and can be decent places to park your money if you prefer to remain invested but are scared of bad news.  Dividend aristocrats have 25+ consecutive years of dividend growth by definition, which to me means stability.

I prefer small caps in general, but I have a few of these in my personal real life portfolio.

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#3) On August 06, 2010 at 12:27 AM, ikkyu2 (99.31) wrote:

I came to say PM.  I see someone beat me to it.

PM is not a dividend aristocrat, but its parent companies (Altria / RJR Nabisco + Kraft) were, until they started spinning themselves off as stock dividends.  Dividend aristocrats have to never lower their (split-adjusted) dividend associated with their stock symbol; spinning off part of the company as a stock dividend spoiled this record for MO.

However, a shareholder of MO, who held through the splits and continued to hold the resulting shares of MO/KFT/PM would have found that his total dividend from all 3 stocks combined had grown steadily.

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#4) On August 06, 2010 at 12:36 AM, imsnilloc (< 20) wrote:

Best stocks to look at have to do with the wheat situation.  I'm trying to pick the best of the best.  DD? DE?

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#5) On August 06, 2010 at 12:38 AM, bluebare (30.32) wrote:

I'm a small caps person, too, but I've been I've been looking at everything on your list because I haven't found anything new and exciting.  Except VFC.  I'll check it out.  If I had to choose today, I'd probably take PG, ABT or KMB.  The others are too expensive, IMHO.

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#6) On August 06, 2010 at 1:19 AM, awallejr (85.43) wrote:

XOM.

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#7) On August 06, 2010 at 1:26 AM, awallejr (85.43) wrote:

As a follow up. I am defining "best" as meaning something you can buy, hold and not worry about long term as a shareholder.  That doesn't mean what will appreciate the most over time.  Penny stocks from a simple percentage move could  outperform if you get lucky.  A penny stock at .01 moving to .10 would beat anything mentioned here so far. 

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#8) On August 06, 2010 at 2:35 AM, Valyooo (99.53) wrote:

Still PM all day every day. And VFC is great too.

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#9) On August 06, 2010 at 2:44 AM, Mstinterestinman (< 20) wrote:

VFC,EBIX,GMCR,MCF

Or if you want less volitility and a nice Dividend to boot cant go wrong with KO or JNJ or RSG.

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#10) On August 06, 2010 at 3:31 AM, mail123 (< 20) wrote:

Best stocks to look at have to do with the wheat situation.  I'm trying to pick the best of the best.  DD? DE?

stock Analysis







 

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#11) On August 06, 2010 at 3:37 AM, TMFBabo (100.00) wrote:

My comment was geared toward the defensive investor.  I don't think one stock can have both the most potential and the lowest volatility.  I was keeping in mind your criterion of being able to absorb some bad news.

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#12) On August 06, 2010 at 12:15 PM, Teacherman1 (57.76) wrote:

LYG, if you are looking at minimal downside, and tremendous upside over the longer time.

At some point they will need to issue some more new stock to pay off the UK Govt, so there could be some dilutive effect there, but that will be temporary and an opportunity to buy more.

How much they will need to issue depends on whether they want to end the relationship quickly, or maybe let the Govt. sell some or all of their shares over time, like the US is doing with CITI.

LYG is shareholder friendly (at least to those who own direct shares) and they will get first crack at any new issuance.

LYG has returned to profitability in the first half.

 JMO and worth exactly what I am charging for it.

 

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#13) On August 06, 2010 at 4:25 PM, dragonLZ (99.41) wrote:

NCT

Newcastle Investment Corp. is a real estate investment and finance company located in New York City. The Company owns a diversified portfolio of debt predominantly secured by commercial and residential real estate. The Company seeks to utilize match funded financing strategies to increase returns to shareholders and minimize its exposure to refinancing and interest rate risks. The Company is taxed as a real estate investment trust. In October 2002, Newcastle completed the initial public offering of its common stock, which is listed on the New York Stock Exchange under the symbol NCT.

Newcastle is managed by an affiliate of Fortress Investment Group LLC, a premier investment and asset management firm. Fortress has provided a dedicated Newcastle executive management team with extensive experience across the key disciplines necessary to successfully execute our business model. Newcastle also benefits from its manager’s investment and structuring expertise. In addition, Fortress has a significant equity investment in Newcastle.

Newcastle’s core business strategy is to invest in a diverse portfolio of real estate securities and other real estate-related assets. The Company’s investment philosophy is built around the principles of investing in a moderate amount of credit risk, adhering to strong investment and credit discipline and actively managing the portfolio to achieve its objectives. Fundamental to the investment philosophy is diversification as a means to minimize the risk of capital loss as well as to enhance financing terms.

 

 

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#14) On August 08, 2010 at 5:42 PM, bluebare (30.32) wrote:

Any more thoughts before the market opens tomorrow?  There's still time to talk me out of buying something like SDTH or CMFO in favor of something even better.

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#15) On August 08, 2010 at 5:58 PM, ag77840 (23.25) wrote:

XOM.  Demand for oil will only continue rise as there is a limited supply.  If you are willing to take some risk, I would recommend teacherman1's pick LYG.  I like AIB as well and have put real money into the stock.  Deep sea drillers would be a good investment now as well.  Demand for their services will only grow as shallow oil fields are depleted.  Check out NE (Noble).   

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#16) On September 29, 2010 at 3:47 PM, EPS100Momentum (72.36) wrote:

9/30/10 Thursday at 11am begins the conference call, should tighten up the guidance to eps estimates for 2011.

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