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Top 6 Stocks to Buy for December

These picks should appreciate despite an uncertain market

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Top Stock to Buy #6 – Westport Innovations (WPRT)

Westport Innovations (NASDAQ:WPRT), a global leader in the manufacturing of natural gas engines, uses innovative alternative energy technology that allows diesel trucks to run on natural gas. Management recently cut 2012 revenue outlook from $400 million to $340 million, and the company has string of losses. But bottom fishers who believe, as I do, that a major change is about to occur in the use of natural gas vehicles (NGVs) should consider this stock.

On Nov. 15, Deutsche Bank (NYSE:DB) initiated coverage of WPRT with a “buy” rating saying, “We see an inflection point for NGVs from 2013 as engine technology [advances]… we believe risk-reward is attractive at current levels.”

On Nov. 26, the company announced a newly developed, unique on-board storage solution, which is expected to give the ability to fuel even the largest spark-ignited engines on a single tank of liquid natural gas and reduce the overall fuel costs and weight “dramatically with a single-tank option.”

Technically, this very volatile stock appears to have made a bottom along an extended base at $23. The MACD is flashing a buy signal. The near-term target could be as high as the mid-$30s. Long-term buyers could see substantially higher returns.

WPRT Chart
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