Medical Devices & Supplies
Medical device stocks should provide investors with opportunities for solid, lower-risk returns over the coming six to twelve months. We like BAX, BDX, BSX and BCR.General Motors Corp. (GM)
General Motors Corp. (<a href="javascript:void(0)" onclick="quotepop('gm')">GM</a>) has failed to secure any loan from the government until now. The U.S. government was supposed to provide $25-50B in aid as DIP [debtor-in-possession] financing. The government also rejected the immediate $12 billion short term loan as the UAW [United Auto Workers] refused to accept any wage cut until 2011. <p> General Motors is looking at money under the Troubled Asset Relief Program (TARP). However, this is still under review. Any aid should force the company to only make 35MPG+ vehicles. Management should be purged and outsiders brought in. Tariffs and quotas should be implemented for imported vehicles from overseas. Consumers should be allowed to deduct their automotive interest. <p> Lastly, global alliances should be forged among producers in North America, Europe and Asia. From an equity holder perspective, we rate the shares a Sell with a six-month target price of $0.00.Garmin Ltd. (GRMN)
Garmin Ltd. (<a href="javascript:void(0)" onclick="quotepop('grmn')">GRMN</a>) - Garmin is an OEM [original equipment manufacturer] of GPS-based equipment. September quarter results were in-line with the consensus on both the top and bottom lines. All segments were up double-digits in 2007, and are expected to be up again in 2008. <p> We note that pricing pressures continue to intensify, negating some of the growth in units. Management is optimistic about material prices offsetting ASP pressures in 2008. We see declining profitability for the company. <p> However, the shares appear cheap, given the current valuation. Consequently, we are reiterating our Buy rating on GRMN shares.Happy holidays!
We wish all our readers the very best for this holiday season.
Please revisit this site on Jan. 2, when we feature
the leading advisors' favorite stocks for the new year.
Colorado Goldfields’ CEO Lee R. Rice Announces Revised Acquisition Plan for Kinross Colorado Mining Properties
LAKEWOOD, CO--(Marketwire - December 24, 2008) - President and Chief Executive Officer Lee R.
Rice of Colorado Goldfields Inc. (
"It became clear that sufficient due diligence regarding the Sunnyside Mine cannot be completed by year end. Moreover, there may be significant environmental issues that would arise if the Sunnyside Mine were reactivated by a third-party purchaser, which must be fully vetted before the parties could reasonably move forward. Given these conditions, and my long-standing personal respect for Tye Burt, President of Kinross, realistically we need to take a pause. Perhaps in early 2009, subject to re-evaluation by both Kinross and Colorado Goldfields, the parties may resume discussions," said Rice.
Cavium Networks Completes Acquisition of W&W Communications
Acquisition Adds Video Processors to Cavium's Portfolio of Products Demo of PureVu(TM) Video Processors at International CES in January 2009
Jim Stack: A look at recessions ..and what’s ahead
"Even if the bear market bottom is not yet in place, it will most likely come a lot sooner than many now believe," says market historian and money manager Jim Stack.
In his InvesTech Market Analyst he takes a look at past recessions, the recent market action and the outlook for the stock market and the economy, as well as select energy stocks that he has upgraded.
"Surprising to most, this is already one of the longest recessions of the past 70 years. Only 1973-74 and 1981-82 were longer at 16 months.
"If the current recession were to extend through the middle of next year, it would become the longest recession since 1933. And if it were ]to extend through the end of 2009, as some gloomy prognosticators are suggesting, it would then become the 2nd longest recession in over 100 years!
"We’re not saying that is an impossibility. After all, anything is plausible when it comes to economics! But we seriously doubt that the current recession will extend through the end of next year.
"And if it were to end sometime in the first half of 2009, then it’s certainly not too late to be looking for a stock market bottom, since the stock market typically leads the economy by 6 to 9 months.
"In our opinion, the Federal Reserve and Treasury made 3 fatal mistakes in handling the economic downturn that began in 2007:
- 1) Refusing to acknowledge a recession (and appearing like idiots for not doing so).
- 2) Attacking the crisis with piecemeal solutions (which seemed both inept and ineffective).
- 3) Failing to recognize the real crisis was in the public’s loss of confidence (which continued to snowball as a result).
"The NBER has now made it easier for everyone, including Ben Bernanke, to use the dreaded 'R'' word. Note that 3 of the past 4 recessions actually ended within a month of when the NBER officials announced that 'we are now in a recession.' So it may actually turn out to be 'good' news if the 'worst' news is now out on the table.
"Admittedly, we are not ready to step out on that limb again and say –in no uncertain terms– that the bear market bottom is in place. But ironically, we are encouraged (rather than discouraged) that a record 81% of CFOs are more pessimistic about the economy this quarter than last quarter.
"This goes hand-in-hand with a record low in Consumer Confidence 1 as measured by the Conference Board.
"Extremes in sentiment or confidence often come at critical market turning points. One reason is that when pessimism reaches such extremes, it has no where to go but up.
"And what we find intriguing about the Conference Board survey is that consumer confidence about the 'Present Situation' has continued falling, while their confidence about 'Future Expectations' has not.
"And while the Conference Board routinely reminds us that you cannot subtract apples from oranges, similar upturns have proven prescient at leading the path out of recession in the past.
"Moreover, we feel our portfolios are well positioned to weather the uncertainty ahead, and yet take advantage of any profit opportunity. After all, even if the bear market bottom is not yet in place, it will come… and most likely a lot sooner than many of the doom-and-gloom bears currently believe.
"Due to the recent pullback in oil prices and energy stocks, EnCana (NYSE: ECA) and Devon (NYSE: DVN) have been upgraded from “Hold” status to 'Buy/Hold'.
"Investors who have not yet initiated positions in these equities may consider doing so now. If you are adding new money into the market, we suggest cautiously phasing your portfolio up to our recommended allocation over several weeks."
Blue chip buys: IQ Trend’s Timely Ten
"An analysis of past bear markets reveals that it is not uncommon for 50% of the gains made during a bull market to be wiped out before the market reaches a bottom and a new cycle begins," notes blue chip stock specialist Kelley Wright.
In Investment Quality Trends, he reviews the history of bear markets and the role of dividends during these periods, as well as his latest list of 10 favorite blue chips stocks.
"Not since the 1930s have we seen such severe bear markets in the DJIA and S&P 500. And not since the 1930s have we seen S&P 500 volatility so high and credit spreads so wide.
"What is uncommon is for a bear market decline to be this deep and this fast. When you consider how extremely overbought and overvalued the market was by 2007, however, it makes perfect sense that not only did the extremes had to be taken out, but taken out decisively.
"The catalysts that drove investors and the markets to exceed long-established parameters of value to such an extreme degree appear to be in the process of being eliminated.
"With the 3.0% area of Undervalue having been decisively violated, the dividend yield on the Dow has reached or breached the 4.0% level on four occasions.
"Accordingly, with the global economy obviously in recession, I would not be surprised to see 5.0% and eventually 6.0% (in stages) before the bear markets end.
"While a 5.0% or 6.0% dividend yield on the Dow is not chiseled in stone, it is prudent nonetheless to be aware that there is precedent for these levels and they are consistent with past bear market yield objectives.
"If these yield objectives are reached it will not be because of poor earnings; it will be because investors will demand greater value. In market speak greater value is called ‘higher risk premiums,' in lay terms we would say 'lower prices, higher yields.
"The upside of higher risk premiums is that eventually we should realize extremely high market returns. After every market bottom since WW II the average return after one year has exceeded 35% and over 50% after two years.
"In no instance was there a negative return in the first two years. Even after the market reached the Depression low in 1932 it doubled off that low in one year and tripled within three years.
"The enlightened investor understands that market bottoms are a process. So instead of abandoning equities with the masses at the very point that real value is being realized, be patient, pick your spots, demand value and remember you are a long-term investor; this too shall pass.
"Our selection of 'The Timely Ten' blue chip stocks is are those we believe will perform best over the next five years.
"Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for appreciation.
"The Timely Ten consists of Undervalued stocks with a S&P Dividend & Earnings Quality rating of A- or better, exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less, and debt of 50% or less. Below are our current Timely Ten:
Philip Morris International (NYSE: PM)
Colgate Palmolive (NYSE: CL)
Altria Group (NYSE: MO)
Johnson & Johnson (NYSE: JNJ)
Procter & Gamble (NYSE: PG)
Nike, Inc. (NYSE: NKE)
Coca-Cola (NYSE: KO)
Automatic Data Processing (NYSE: ADP)
Emerson Electric (NYSE: EMR)
Air Products & Chemicals (NYSE: APD)