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Top 5 Stocks for 2009
As we enter 2009, and leave the carnage that was 2008 behind us, I recently wrote that now was a fantastic time to buy shares of companies you have been watching and where the fundamentals present an excellent risk/reward scenario.
A fresh start to the new year gives us all a chance to catch our breath and reexamine the allocation of our portfolios.
Particularly of interest to me and readers of this blog, are what stocks we should be purchasing for the riskiest portion of our portfolio.
Namely, that devoted to small and micro-cap stocks that I specialize in.
In this report, I will be outlining 5 great stocks for the new year from highest to lowest allocation, and explaining my reasons for liking that company, as well as the biggest risk factors when it comes to investing in that stock.
I’ll also outline at what price I feel these stocks are great values and when you should buy more, or hold off untill a better price comes along.
Finally, I will detail the % of your portfolio specifically set aside for risky stocks, that you should be investing in these companies.
For instance, if you only have $5,000 to invest after maxing out RIA, 401(k) or other retirement savings accounts, etc., how much of your “play” money should be put towards each of these names.
Remember that these selections are only current as of right now, and aren’t all formal recommendations on my site.
For updates on my current model portfolio and the companies recommended in this report, please check back with PeakStocks.com.
OK, enough talk, let’s get right to it!
Buy Alert: It’s Time To Lock Up Shares of GeoEye Immediately!
It’s time to start a large position in GeoEye Inc. (NASDAQ: GEOY), or add to your position if it is less than 3/4 immediately.
The provider of space based and aerial imagery is trading at a huge discount right now to its true value, and it won’t be long before the market realizes this (as has already started happening once GeoEye bounced off of its lows last week).
In addition, with upcoming catalysts, and insider buying, now is not the time to delay.
I would even advocate buying long term call options for those that are familiar with that strategy as within 3-6 months, GeoEye’s shares will be much higher than they are now.
In this post I’ll detail the reasons why.
This is a must read as we enter 2009 for those looking for somewhere risky, yet calculated, to put their money.
Why I Bought More AAR Corp. (10-24-08)
Even though I have already allocated a full position, and then some, to AAR Corp. (NYSE: AIR), the recent sell-off in the market, and with AAR in particular, is WAY overdone.
Sometimes you get a gift, and you would be crazy to not take it.
Various valuation metrics as well as my discounted cash flow analysis (DCF) show that AAR’s shares should be about 50-100% higher without even accounting for a recovery in the marketplace!
Add this to recent insider buying, and the stock trading below tangible book value, and at a severe discount to its peers, and you get a classic low risk, high reward proposition that is hard to pass up.
It might take weeks, or it might take months, but I believe AAR at these levels represents a true bargain on a valuable business with a proven management team and execution strategy.
What follows are my reasons for picking up another 1/4 position today.
Buy ALERT: AAR Corp. (NYSE: AIR) BUY 1/4 Position TODAY Around $11.75
What:
AAR Corp. (NYSE: AIR): AAR Corp. is a diversified company that provides products and services to the aviation, aerospace, and defense industries worldwide. It operates in four segments: Aviation Supply Chain; Maintenance, Repair, and Overhaul (MRO); Structures and Systems; and Aircraft Sales and Leasing.
AAR has gotten slammed to the mat along with most other stocks in the Aerospace and Defense sector over the last year or so.
I am issuing a BUY recommendation on shares of AAR Corp. (NYSE: AIR) immediately.
I am initiating a BUY recommendation of AAR at or around $11.75 per share.
I’ll be coming out with a post later this evening explaining why.
New to the AAR story?
- Read my last company update here.
Time To Go Shopping: 3 Stocks I’m Buying Today
It’s time to put some money to work immediately.
I don’t profess to know when the markets will turn, or how long it will take, but I do profess to know that there are quality companies out there that are begging to be purchased, if only in small increments at the present, and held on to for years to come.
The three companies that I have added to my portfolio are probably no secret to anyone who has been following my recommendations for some time.
They are:
I am advocating purchasing 1/4 position in each one.
I’ll be writing full company spotlights and the reasons for my purchases in much greater detail in upcoming posts, but with the decline in the overall market, dipping our toes in the water and purchasing these great companies at these levels was something that needed to be done now.
Below are brief explanations about what the companies do, my reasons for adding them to the portfolio, and some of the risk factors you should be aware of before purchasing shares.
BUY ALERT: uWink (Nasdaq: UWKI.OB) BUY 1/4 Position 9/8/08 Around $0.55
I’ve been biding my time with uWink (NASDAQ: UWKI.OB) for the last few months or so as the price has plummeted from around $1.40 per share to the now bargain basement price of $0.55 per share.
There has been little news coming out of uWink other than their last quarterly earnings release that I wrote about extensively, which was not a pretty picture.
As I explained in my breakdown, the results need to be taken into context, and not overblown or exaggerated in their nature.
Chief among those observations is the fact that uWink is not really a restaurant company, although to this point, that’s the only way we’ve had to value them.
It seems that valued in that context alone, some out there, and for sure the culprits of the recent stock decline, have taken it upon themselves to bail on the company right at the cusp of their acceleration as a software development company.
That, I believe, is a big mistake.
In fact, the recent stock price provides us with such a compelling risk/reward scenario that it is simply too good to pass up, and needless to say, uWink definitely qualifies for my Double Thesis.
Apparently I’m not the only one that feels this way as the CFO has just purchased more shares on the open market, and both the CFO and CEO have received a generous amount of new preferred stock in exchange for some of their underwater options.
There are other reasons why I feel this is a great time to purchase shares of uWink or further cost average your position if you already have one, and I’ll go into those in detail further below.
I am initiating the Fourth (4) BUY recommendation of uWink at or around $0.55 per share.
BUY ALERT: AuthenTec (Nasdaq: AUTH) BUY 1/4 Position 8/4/08 Around $7.50
The market didn’t take to kindly to PeakStocks.com portfolio recommendation AuthenTec’s (Nasdaq: AUTH) latest earnings release, sending shares precipitously lower in the days following what were largely stellar earnings from a rapidly expanding up-and-coming company.
The good news for us, is that this presents us an excellent opportunity to add shares of AuthenTec at discounted prices and further cost average our total position.
If you haven’t already, it’s time to put some money to work in shares of AuthenTec.
I don’t know when shares will stop their recent slide to new all-time lows, but one thing I am certain of: AuthenTec is a cutting edge company that continues to execute in an otherwise wickedly negative marketplace and in the face of continued consumer doldrums.
Very briefly, AuthenTec is the world’s leading provider of fingerprint sensors and solutions to the wireless, PC and Access Control markets.
I am initiating the Fifth (5) BUY recommendation of AuthenTec at or around $7.50 per share.
Here’s Why:
AAR Corp. - Upgrade to BUY: Record Q4 and FY 2008 Sales/Earnings, Solid Outlook
There’s nothing that I could say to start off this post that would clarify AAR’s position in their market right now better than what CEO David Storch said to start the 4th quarter and full year 2008 earnings conference call:
“Based on questions we have been receiving over the last several weeks, we believe the market may not fully appreciate the spread of business we have here at AAR.
In many quarters we are merely seen as an airline aftermarket provider. While that was more true earlier in the decade, today AAR is a much broader company servicing a wider customer base.”
Therein lies the beauty of the diversification in AAR’s business, and their ability to leverage that business, even in tough times like now, to come out stronger and better positioned to take market share from competitors, as well as capitalize on their growing revenue to defense and overseas customers.
AAR Corp. (NYSE: AIR), provides products and services to the aviation, aerospace, and defense industries worldwide.
In this post I’ll be breaking down their full earnings release, as well as analyst conference call, and round out my post with the reasoning behind my upgrade.
BUY ALERT: AuthenTec (Nasdaq: AUTH) BUY 1/4 Position 7/3/08 Around $10.00
What:
I think it’s time you take a serious look at PeakStocks.com portfolio recommendation AuthenTec (Nasdaq: AUTH), the world’s leading provider of fingerprint sensors and solutions to the wireless, PC and Access Control markets.
I am initiating the Fourth (4) BUY recommendation of AuthenTec at or around $10.00 per share.
BUY ALERT: GeoEye, Inc. (Nasdaq: GEOY) BUY 1/4 Position 6/12/08 Around $16.50
It’s time to put some more capital to work today.
I am initiating a second (2) BUY recommendation of GeoEye, Inc. (Nasdaq: GEOY), a provider of space-based and aerial imagery and geospatial information.
I’m pounding the table hard for this one, and I could easily see GeoEye’s shares doubling in value from this point forward in 6-8 months!
I’m not even kidding at all.
Here’s why.
