-
Stuff Your Stocking With Profits – 10 Hot Stocks to Buy Now
It’s the holidays, and that means you’ve probably been hard at work writing up those holiday shopping lists. This season you’ve
got to get something for your mom and dad, your husband or wife, the kids, the co-workers, the mailman, the dog, the… well, you get the point.But this year, while you’re diligently writing up those lists, I want you to make a little shopping list for yourself. This list, if constructed
properly, could deliver you the kinds of gifts that keep on giving.As an example, I’ve written my own list of the 10 hot stocks I want to own in the new year. And while your list may vary from mine depending
on what kind of investor you are, I’ve submitted my list as way to help generate ideas — and to give you a blueprint on how to go about
constructing your very own list.
-
Hot Stock #1 –
Amazon.com (AMZN)Every nation must learn to exploit its waterways if it wants to flourish, and perhaps the biggest waterway that’s ever been created is cyberspace.
Exploiting this waterway brilliantly is online retailer Amazon.com (AMZN),
the “virtual river” that has become the best location to get whatever you need at the lowest price possible.Everything from books, CDs, DVDs, flat-panel TVs, pants, shirts, dinnerware, cookware, coffee, etc., can be found at Amazon — in most cases
with no state sales tax and even no shipping charges. I think any stock shopping list that doesn’t include AMZN could be considered grossly
negligent.
-
Hot Stock #2 – Apple (AAPL)
One of the greatest corporate success stories ever is Apple (AAPL),
perhaps the quintessential best-of-breed personal technology company. There’s an almost cult-like following and near-religious commitment to
buying anything that Steve Jobs and company bring to market. This kind of brand loyalty is hard to find, but it’s really not all that hard to
comprehend.You see, by making personal technology goodies like the iPod, the iPhone and the Macintosh computer, the company’s created cool stuff that
people actually want. Moreover, people are willing to pay top-dollar for all of this cool stuff, and that’s helped make Apple hugely profitable — and
it’s helped make AAPL shares a huge gift for investors.
-
Hot Stock #3 –
Baidu.com (BIDU)When you’re making your holiday shopping list, don’t forget to include stocks in the hottest foreign market — China.
One of the hottest sectors in the Chinese market is the Internet. In fact, in 2008, China’s Internet population grew over 40% to nearly 300
million users. That growth continued in 2009, and by the end of June, China’s Internet population jumped to 338 million. That’s more Internet
users than the entire population of the United States.And where are all of these Chinese Web surfers going with their newfound connectivity? They are going to Baidu.com (BIDU).
The pre-eminent search engine site handles nearly three out of every four Internet searches in China. And as an advertising-dependent business, Baidu.com
will likely thrive along with the continued growth of advertising in
China.
-
Hot Stock #4 – Cree (CREE)
This stock may not be a household name, but I suspect you have one of their technologies in your house right now, namely LED lighting. Cree’s (CREE)
LED technology is increasingly being adopted by vast numbers of customers. One reason why is that the cost of LED lighting now is finally coming down
to a level that enables Cree to compete in the major lighting markets.But despite the growth over the past year in the LED lighting market, widespread LED lighting adoption is still in the early stages and is just
now beginning to explode. If you want to ride the “green energy” wave in your portfolio, make sure CREE is on your holiday shopping list.
-
Hot Stock # 5 –
SPDR Gold Shares (GLD)In 2009 we saw the resurgence of gold prices. In fact, this year it was hard to watch TV, read financial news publications or listen to the radio
without being bombarded with commercials recommending you add gold to your portfolio. Normally, the ubiquity of this “gold fever” would
be reason enough for me to be leery about the continued fortunes of gold. However, this time gold may indeed have a lot more room to run in 2010.The chief reason why is the decline of the U.S. dollar. As the dollar sinks against rival foreign currencies, gold has become a true safe haven
investment. A hard asset like gold retains its value much more so than a fiat asset like the dollar, and until I see a marked turnaround in the Federal
Reserve’s willingness to print money, I’m going to keep gold via the SPDR Gold Shares (GLD)
on my personal holiday gift list.
-
Hot Stock #6 – Google (GOOG)
Another stock for any holiday shopping list is Google (GOOG).
As the dominant player in the overall Internet search engine world, Google continues delivering big earnings; and big gains for owners of the stock.
And even though Google dominates the Internet search space, they aren’t resting on their laurels.The company is moving into areas such as mobile phones, television advertising data and even the software business with its Chrome Web browser.
And while these new ventures may prove beneficial to Google’s bottom line, the real meat and potatoes for Google is their advertising model.
As the economy continues improving, I expect to see more companies doing more advertising, and that advertising is going to take place largely online — which
means GOOG shares should continue looking good in 2010.
-
Hot Stock #7 – Itron (ITRI)
A smart choice for a new “smart grid” is power meter maker Itron (ITRI).
In late October we received news of the first round of U.S. government smart grid infrastructure spending. The Obama administration named 100 utility
projects that were awarded grants as part of the government’s stimulus plan. The $3.4 billion smart grid investment grant awards will be matched
by industry funding for a total public-private investment worth more than $8 billion.As a leading maker of smart power meters — the infrastructure that enables two-way communication between customers’ meters and the utilities — Itron
operates in the sweet spot of this smart grid build-out. These smart meters are critical to utilities efforts to manage electricity demand because
they allow utilities to charge different rates at different times of day. They also can be programmed to alert consumers when grid conditions require
special action. The ultimate goal of these stimulus grants is to boost efficiency across the electric-power grid, and Itron’s power meters are
one huge key to making this happen.
-
Hot Stock #8 – Marvell (MRVL)
Marvell Technology (MRVL) is truly a marvel of a company.
The data storage and broadband communications equipment maker specializes in so-called “fabless” semiconductor designs. Marvell is a global
player, deriving more than 80% of its revenue from the fast-growing Asian markets. But the real kicker that makes me put MRVL on my shopping list
is that the company is extremely well-positioned to benefit from the growth in the electronic book market. E-books such as Amazon’s Kindle are
becoming mainstream, and I suspect that you may have a Kindle on one of your other holiday shopping lists (I know I do).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 estimates that by integrating chips, the company can cut the
cost of processors in half. That should cause a big rush to Marvell, and it should be a big driver for the company’s bottom line in 2010.
-
Hot Stock #9 –
Starbucks (SBUX)As a confirmed and unrepentant coffee junkie, I’m a huge fan of the 800-lb. bean in the space, premium coffee seller Starbucks (SBUX).
You can always count on Starbucks to deliver your caffeine in a robust, flavorful and piping-hot package. The company also continues delivering earnings
in a big way. More importantly, SBUX shares also have delivered piping-hot performance in 2009, and I suspect they will continue to do so in 2010.If you want to want to put a company on your personal shopping list that’s really hitting its stride, then look no further than the coffee
seller responsible for a veritable revolution in hot beverage consumption — Starbucks.
-
Hot Stock #10 – Tiffany & Co. (TIF)
My final personal shopping list stock is one of the best luxury goods retailers in the business — Tiffany & Co. (TIF).
If you’re a man, you can almost never go wrong by giving that special lady the gift that comes in the distinctive blue box. And if you’re
a woman, you probably already have something from Tiffany on your personal holiday wish list. So, why not add the stock to your list as well?Tiffany recently raised its full-year earnings outlook, and one reason why is the growing sales it’s experiencing internationally, particularly
in Asia. I guess this means the rest of the world is also now waking up to the virtue of Tiffany. As we close out this first decade of the 21st century,
I think a smart investor will want to make sure TIF is on their holiday shopping list.Cheap Stocks Under $10 — Plus Your Next Doubler
The best cheap stocks are undervalued companies priced at less than $10 per share — with great upside potential. Learn the four simple steps to
separating the bargains from the busts AND the names of three cheap stocks to buy now — download
your FREE profit guide here.