Top Stock #1 –
Southwestern Energy (SWN)
Mainly a natural gas company, Southwestern Energy (SWN) has been challenged by massive supply and
low prices. However, the company has responded by pushing production through the roof. In the latest quarter, output soared by 65%! That means even
though the company is getting a lower price, it is still posting great sales.
SWN is a pioneer in horizontal drilling — meaning instead of erecting many rigs that drill down into a gas field, it simply taps a well once
and then drills sideways to access the remainder of the field. This technology keeps costs down while boosting output. Even if gas prices stay very
soft, this horizontal drilling tactic will allow Southwestern to increase sales simply by bringing even more natural gas to the market.
Top Stock #2 –
CNOOC Ltd. (CEO)
CNOOC Ltd. (CEO) is a rough-and-tumble energy company located on the other side of the world. The
company manages China’s offshore oil and gas exploration and production activities, in partnerships with international oil and gas firms. Under Chinese
government-regulated production sharing contracts, CNOOC has the sole right to acquire up to 51% of any successful discovery offshore China made by
foreign partners. CNOOC is also engaged in oil refining, natural gas processing and refined products marketing.
While worldwide demand has indeed been weak, the need for crude oil has been growing steadily in China. That means CEO is first in line to capitalize
on the region’s demand. What’s more, since oil is price-controlled in China, CEO won’t suffer from thin margins if crude prices stay soft.
The company was recently a player in the largest overseas investment bid in China’s history, a move to buy a stake in Argentine energy giant Repsol.
This willingness to make a huge acquisition against a weak economic backdrop illustrates how dramatic China’s appetite for oil and gas will be once
the recovery takes shape. CEO will continue to do well as China leads the recovery.
Top Stock #3 – Sociedad Quimica y Minera (SQM)
Based in Chile, Sociedad Quimica y Minera (SQM) provides a host of chemicals for agricultural, health
care and industrial applications. In addition, SQM is a world leader in lithium — the material that is used in batteries for hybrid cars. Lithium
batteries charge much faster than alternative power cells, and that makes this material crucial to any low-emission vehicle.
Fuel efficiency is now one of the most important aspects of any vehicle, and demand for fast-charging lithium batteries will soar in the automotive
market over the next 12 months. Chevy’s Volt will debut late next year with lithium cells under the hood, and Toyota is racing to bring a lithium-powered
electric car to the market soon after. This will add up to big profits for SQM.
Our total return in SQM since adding it to our Blue Chip Growth Buy List is over 40%.
Top Stock #4 – Enersis (ENI)
Enersis (ENI) is the largest utility in Latin America with almost 12 million customers. This emerging
market is seeing booming demand for energy right now — and additionally, has fewer pollution controls and regulations that cut into profitability.
ENI posted a 50% increase in earnings in the first quarter, proving that even in a recession this stock is booming due to strong energy demand in
the region. This jump is only the beginning, since like China, Latin America’s economy has been much stronger than developed nations. Consider that
while U.S. GDP declined nearly 6% in the second quarter, Brazil’s economy grew 2%! Just imagine how much electricity demand will spike once the worldwide
recovery takes hold.
Top Stock #5 – C. H. Robinson Worldwide (CHRW)
In addition to having lower overhead costs from being a third-party provider without its own fleet to run, this company is poised to ramp up shipping
in a hurry as factories place new orders and rebuild their inventories in the coming months.
The company recently bought out two produce companies in Boca Raton, Florida — Rosemont Farms Corp., a produce marketing company, and Quality
Logistics, a produce transportation provider.
This latest acquisition just goes to show that CHRW is continuously investing in its growth and exploring new opportunities to expand its network.
In the produce arena, CHRW works with popular consumer brands, including Mott’s, Welch’s and Tropicana. Both Rosemont Farms and Quality Logistics
are well-reputed in the produce industry, and will help CHRW take its business to the next level.
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Here now are 20 stocks to avoid. If you own these losers, sell them now.
20 Stocks to Sell Now
The following stocks are rated F in my exclusive PortfolioGrader stock rating tool. It’s a great way to rank your
current or future investments, and it’s completely free!
Sell these stocks immediately.
- Ethan Allen Interiors (ETH)
- Basic Energy Services (BAS)
- Popular Inc. (BPOP)
- Old Second Bancorp (OSBC)
- CoBiz Financial Inc. (COBZ)
- Valero Energy (VLO)
- City Bank (Washington) (CTBK)
- JAKKS Pacific Inc. (JAKK)
- K-Swiss Inc. (KSWS)
- McMoRan Exploration (MMR)
- Atlantic Coast Federal Corp. (ACFC)
- Synovus Financial Corp. (SNV)
- Superior Industries International (SUP)
- United Western Bancorp Inc. (UWBK)
- Dixie Group Inc. (DXYN)
- Green Bankshares Inc. (GRNB)
- Center Financial Corp. (CLFC)
- Preferred Bank Los Angeles (PFBC)
- BancTrust Financial Group Inc. (BTFG)
- PremierWest Bancorp (PRWT)
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