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How to Make Money in 2010
A lot of investors are wondering if it’s time to take profits. The answer is “No way!” I anticipate a surge on Wall Street
in the New Year, and the smart play is to keep your money on the table right now.But investing in any old stock is not the way to make money in 2010. If you’re serious about building your wealth in the New Year, the only
way to beat the market is to invest in stocks with high-growth potential. These are the companies that have consistently grown their sales and earnings
quarter after quarter in both good markets and bad.So let’s cut to the chase — here are five of my top stocks for the New Year that you can take to the bank.
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New Year Stock #1 –
Sourcefire (FIRE)Sourcefire (FIRE) is an IT firm that develops network security and information management
software. The company’s innovative 3D software (for discover, determine, and defend) is the gold standard for government agencies and large enterprises
in the finance, health care, manufacturing and technology industries. Its customers have included PricewaterhouseCoopers, SAIC and Ernst & Young. The
company also has partnerships with larger security service providers such as Symantec and VeriSign, allowing it to tap into bigger revenue streams.In the third quarter, Sourcefire’s sales rose 35% to $27.4 million compared with $20.3 million in the same quarter a year ago. During the same
period, the company’s earnings rose to $2.7 million or 9 cents per share compared with a loss of $1.7 million or 7 cents per share. FIRE is one
of my top 5 stocks for 2010 as cyber security remains a top priority for businesses.
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New Year Stock #2 –
Marvell Technology (MRVL)Marvell Technology (MRVL) is a Bermuda-based firm that offers data storage and broadband
communications gear. This “fabless” semiconductor company designs and sells hardware but outsources the actual fabrication of the devices to keep
down costs. Marvell is a global player, deriving more than 80% of its revenue from Asia, though it relies on just a few customers like Western Digital,
Toshiba and Samsung for the bulk of its sales traffic.MRVL is one of my top 5 stocks for 2010 since it’s at the forefront of the growing electronic book market. As we’ve seen with the recent success
of Amazon.com (AMZN) through its Kindle, e-books are rapidly emerging as mainstream products
and real sources of revenue for tech companies. Marvell recently announced that it is collaborating with E Ink Corp., which is supplier of “e-paper” displays
used in many digital-book readers, to produce the next generation of microchips for these e-book devices. Marvell has estimated that by integrating
chips that the company can cut the cost of processors in half — meaning manufacturers will jump all over Marvell’s new processors once they
hit the market.MRVL stock is going strong and should continue its impressive growth across the next year.
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New Year Stock #3 –
Hi-Tech Pharmacal (HITK)Hi-Tech Pharmacal (HITK) distributes prescription, over-the-counter and nutritional products. The
company primarily produces generic forms of prescription drugs, including off-brand versions of antibiotics, allergy drugs and vitamins, among other
medications. Hi-Tech also makes branded over-the-counter products and has one branded prescription product, which is Tanafed DMX, an allergy medication.HITK proves that while consumers may not be buying a new plasma screen television, they are certainly still buying their medications. Hi-Tech’s
generic drug sales continue to surge — a sign that cost-conscious consumers are going off-brand to save money. This is a great trend for HITK
to cash in on.Even as the health care debate rages on in Congress, HITK should have no problem continuing to expand the profitability of its product lines.
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New Year Stock #4 –
Baidu (BIDU)Baidu (BIDU) is the leading Chinese-language Internet search engine, with more than 70%
of China’s search market. Some people say this company is China’s Google, but in fact this company is faring even better than that iconic company
since Google’s head in China recently resigned after failing to challenge BIDU. Baidu earns nearly all of its revenue through online advertising services
but also operates a network of third-party websites and online communities.In its latest attempt to compete with Google over dominance of China’s web search market, BIDU said it is making deals with China Unicom and
China Telecom to pre-install a mobile search application in 3G phones. The new Baidu Palm application will hook users into its search, message board
and question-and-answer online services and should appear on the market soon once the deals have been finalized.Thanks to a competitive growth strategy and cutting-edge technologies like this mobile app, I expect BIDU to come out on top and lead Chinese Internet
searches in the New Year.
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New Year Stock #5 –
Dril-Quip (DRQ)There has been a commodity surge in 2009 unlike anything we’ve seen in recent memory. But while gold has been getting most of the attention, crude
oil has been slowly marching back to prominence. That means now is the time for investors to get into oil stocks before this industry really takes
off.
Dril-Quip (DRQ) designs, manufactures and sells some of the most cutting-edge oil equipment
around. The company’s gear is used in offshore drilling to access deepwater finds, deployed in the harsh arctic tundra to tap remote oil fields and
used in other severe service applications worldwide. As crude oil prices continue to rise across 2010, oil companies will look to tap into new fields
to cash in — meaning sales for Dril-Quip should soar.ETF Profit Secrets Revealed — FREE from Louis Navellier!
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