5 of the Best and Worst Stock Picks for Spring 2010

Posted in Investments by Kevin | Tags: , , , , , , , , , , , , ,

Every quarter, we release the best and the worst stock picks for the next 3 months based on market analysis, economic data, and trend indicators. We have compiled a great list for our spring collection.

If you think there are other must buy/ must drop picks, let us know.

Top 5 Best Picks for Spring 2010

1) WellCare Health Plans (WCG) – One of the most successful companies coming out of the health care reform bill. WellCare was able to successfully maneuver itself to be a mediator between the government and large health care companies. With over $1.2 billion in assets and no debt, it looks like one of the strongest non – pharmaceutical companies.

2) Ford Motor Company (F) – I had previously bashed Ford because of their inability to make and sell cars that could beat out the Japs, but after the latest Toyota incidents and a sudden turn of fortunes for the American motor company, it looks like it has a glimmer of fortune in the future. Ford reported a whopping 40% increase on its car sales in March 2010 – a resounding figure.

3) SmartHeat (Heat) – SmartHeat recently reported a surge in Earnings for this Chinese company- mostly fueled by the strengthening of the Chinese economy in Q4 2009. It has a strong market in clean energy for the growing Chinese infrastructure and internationally. It is currently wavering around the $10.50 mark with a 52 week high of $18.52.


4) Petrobras (PBR) - Anyone familiar with the Brazilian economy (which I am a large fan of) can tell you a lot about the growing giant that is Petrobras. It is the 3rd largest energy company with proven reserves and has had multibillion dollar profits in the past few years. Petrobras is the 4th largest energy company in market value. Its a must have stock.

5) Vale S. A (VALE) - Another Brazilian company, VALE is short for Companha Vale de Rio Doce, and is the largest logistics operator in Brazil and the second largest mining company in the world. Although it stocks has been volatile lately- there is reason to assume that its going to surge. Brazil will be hosting the Olympics in 2012 and the World Cup in 2014- which should be a very good boost to the mining industry as development will be boosted.

The Worst 5 Stocks for Spring 2010

1) MetroPCS (PCS)The idea behind this company was great and it did perform well for some time. However, MetroPCS is having trouble keeping up with At & T and Verizon, even losing customers to lower priced plans of rival companies. The company has fallen off the social radar and the future looks bleak.

2) GameStop Corp (GME)- Disappointing holidays sales and sudden drops in February, coupled with the lost of the company’s CFO has shattered the image of GameStop.

3) 1-800-Flower.com, Inc (FLWS) – Buying flowers through the phone or online is an idea only a select few will embrace. It’s a great idea for sending flowers to grandma across the nation, but the biggest day for flowers is Valentine’s Day and its kind of unwise as a buyer to purchase flowers without seeing them, smelling them, and making them perfect for your loved one. Besides that, their financials are pretty bad too, with losses near the hundreds of millions in 2009.

4) Zale Corp (ZLC) – One of the worst performing stocks this year, having dropped 30%, Zale is on shaky ground on the verge of Bankruptcy. It was lucky for the company that Citibank extended the deadline on the low sales penalty for the Citi Credit Cards. Even with the good news, shares plunged 18% that day. Bankruptcy in the near future is not out of the question for Zale.

5) Lithia Motors, Inc. (LAD) – Lithia is an automobile dealership network with huge markets around the United States. However, most of its sales are generated by GM and Chrysler, with surging Ford accounting for only 5% of total sales. Although it can recover in the next few years, its looking pretty bad in 2010 with new car sales going nowhere.

And that’s our list for the Spring Quarter. Do you have anything to add? Your comments are welcome!


2 Comments to “5 of the Best and Worst Stock Picks for Spring 2010”

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    I learned years ago I was not a stock picker. I can identify
    people who can and invest in their funds.

     

  • I’m so glad that WellCare Health Plans came out on top this past spring. I had a good investment in it because I thought that it would do well with the economy and new bills. Do you think that it might be time to pull out of it soon though? I don’t want to hit the peak and then have it crash and lose everything…

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