BBQ Reviews - Charcoal BBQ Reviews - Kamado Smoker Reviews - Wood Pellet Grill Reviews - Charcoal Kamado Reviews - Pellet Grill Reviews - Ceramic Grill Reviews

Top medium risk stock picks

Top medium risk stock picks

Top medium risk stock picks

Top medium risk stock picks

top medium risk stock picks

top medium risk stock picks

My top medium risk stock picks in this grouping encompasses all the sectors. These are stocks that we would put in our portfolio’s and hold long term, with annual reviews. Some of the stocks are capable of not meeting the “streets expectations” in a quarter here and there. Income can fluctuate based on one time write offs or other assorted reasons. But that’s part of running a business. It’s quarter over quarter of no growth or loss that concerns us. These companies have shown us that they are capable of this type of growth. Norther Tier Energy doesn’t quite fit in that category as it IPO’s only recently. But based on a long track record, growth and business acumen that has been developed over the years as a private company, they have shown that they fit in this category.  These are all fundamentally solid companies, with no massive meteoric growth, but slow steady growth yielding %5 – %10 per year yield, including dividends.

 Northern Tier Energy (NYSE:NTI) – Northern Tier Energy stock analysis –  Norther Tier Energy is a refinery based out of St. Paul Minnesota. They can refine light and heavy oil, which is a plus. $4.43 EPS with 91 million shares? NTI IPO’d in July 2012. Norther Tier was in such a good financial position that the board of directors declared a prorated quarterly distribution of $1.48 per unit payable in cash on November 29, 2012 to common unit holders of record on November 21, 2012. The prorated cash available for distribution was $136.1 million for the third quarter 2012. This is a handsome available cash distribution reserve. All this to say, Northern Tier Energy makes a lot of money and looks like they will continue to do so. Crude inventories are still high but refined product inventories are low. This  should mean continued income for refineries such as Northern Tier Energy.  Can Norther Tier Energy continue to pay out a larger quarterly dividend? Based on the earnings from the last published quarter and the latest guidance issued from Northern Tier which states that the lowest production of 80,000 bpd to highest of 85,000 bpd, I think they should be more than able to sustain a healthy quarterly divvy with I believe some capital gains too, based on a low P/E of 5.5. Refineries can’t grow exponentially like O&G companies, but investor interest can increase based on dividend income being somewhat sweet. I think the quarterly dividend is safe, I think this stock will be a winner for the next 2-3 years easily if not longer.

Alcoa Inc (NYSE:AA) – Alcoa Inc. stock analysis. Despite soft aluminum prices in the last year or so (2011-2012) Alcoa kept it’s head above water.  This aluminum manufacturing giant has never fully recovered from the (pardon my pun) meltdown. It was flying high in the $40 range. It is trading at$9.26 a 52 week high right now and I think is about to turn the corner again. Will test the $10-$12 in the next 6 months or so. This giant is trading below book value, and that is always something I look for. The EPS growth is expected to be a slow and painful train ride. But the train is leaving.

Bank of America (NYSE:BAC) – Bank of America stock analysis. Of all the US banks, I think Bank of America had the best chance of recovering the fastest. It doesn’t mean that it doesn’t have any delinquent loans or money pits, but it is consistently being  upgraded by heavyweight analysis which is something I like. BAC has a forward looking slightly high  P/E of %33 based on a stock price of $12 and change.  I feel that the earnings will slowly return to where they should be for a bank that size. I bought this stock at $7 and $8. Should have bought it at $4. I think this stock will test the waters of the $20 mark in a year. I am a tad bit bullish on this one.

Terex Corporation (NYSE:TEX) – Terex Corporation stock analysis. Terex and I have a long and tumultuous history. Terex corp is one of those companies that isn’t purely recession proof but does ok. It’s an infrastructure company, it builds construction related machinery. I remember when TEX used to trade at book value. It wasn’t a sexy stock. I once bought this stock at $25, watched it go down to $11 in a year. Then it slowly climbed and it went up to $29 and I said to myself, that’s enough, this stock is messed up. Lots of institutional ownership which is good. But then right after I sold it, within a couple of months TEX was at $90. I could cry. Quarter over quarter in the last year or so, the earnings have dropped a bit in the 3rd quarter 2012. Was $.27 cents a quarter compared to the $33 the previous. TEX can and does have a high P/E at the time of this blog entry. In the event of more aggressive housing starts and a small but significant pickup in the US economy, this stock will and can double to justify that P/E. It is well run company and for that reason I have added it to my top picks.

Cerner Corporation (NYSE:CERN) – Cerner Corporation stock analysis. Cerner has had meteoric growth in the last 5 years. How is this for a 5 year chart? Looks like a $20 to $80 chart. Cerner Corporation is in the medical software business. The software than runs hospital’s. HMO’s, basically anything medical. Revenue growth and more importantly EPS growth has been impressive to say the least. The P/E is an aggressive 37 right now, which is supporting the all time high price of $81. I think this company will be over $100 in a year. It still has market share to own. 170 million + shares outstanding, and Cerner Corporation wants to buy back some of them. Many shareholders would rather see a dividend than a buy back. That is always the shareholder sentiment. I am bullish on this company.

Cerner Corporation Stock Analysis

Cerner Corporation Stock Analysis

 

Atlantic Power Corporation (TSE:ATP) – Atlantic Power Corporation stock analysis. A good old utility stock. Atlantic Power operates power generation and transmission facilities. This stock is a seemingly safe and stable dividend play for conservative investors. One must remember that all of Atlantic Power’s assets and income streams are located in the United States. What this means is the the value of the American dollar is important. Atlantic Power does  hedge some of it’s business and these types of programs do lower the risk of currency valuation problems. But the exchange rate can be and is an important thing to watch. This could be costly problem given the US debt. As of now, this stock has some red in it’s financial statements. Been through a few tough years. *Note* My sentiments have changed and are now hold or sell.

Bank of Montreal (TSE:BMO) - Bank of Montreal stock analysis. This is one of the “Big 5″ banks in Canada, ranking number 4 in market capitalization behind Royal Bank. What I like about BMO is it’s dividend. I believe it has the longest dividend payout history of any other company in Canada. This should party assure the investor that BMO can consistently make money. Moreover, BMO pays out between %40 to %50 of it’s earnings in dividends to shareholders over time. EPS growth has been steady since the financial meltdown mess in 2008/2009. As of the time of this writing, BMO’s P/E is 10 with a stock price of $61. TSE:RBC Royal Banks it’s largest competitor has a P/E of 12. I see room for stock price growth and continued dividends. I am bullish indeed.

 

Valero Energy Corporation (NYSE:VLO) – Valero Energy stock analysis. VLO is another refinery, another BIG refinery. Valero Energy Corporation, and it’s subsidiaries, are an international manufacturer and marketer of transportation fuels and other petrochemical products as well as power. Valero and it’s subsidiaries have many assets including 16 petroleum refineries with a combined throughput capacity of approximately 3 million barrels per day, 10 ethanol plants with a combined production capacity of 1.2 billion gallons per year, and a 50-megawatt wind farm. So, that’s a big company, with big money making potential. *Note* There have been some significant changes.  My sentiments have changed and are now hold or sell.

 

Disclaimer

The information contained in this guide is nothing more than my view on investing in the stock market and is by no means a recommendation to buy stocks described within this guide. The information contained is purely informational, and are my views only. I have no financial gains by suggesting the above stocks as an investment. This guide has been created to provide tips and education that can help you make intelligent financial decisions and contribute to your overall success as an investor.

Thank you

The Stock Rock

,

No comments yet.

Leave a Reply


Hit Counter provided by Skylight