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Top Picks 2011: PMC-Sierra (PMCS)

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"PMC-Sierra (PMCS) -- our top pick for 2011 -- develops semiconductor system solutions for advanced communications," notes Daniel Frishberg.

The editor of The MoneyMan Report explains, "This choice is based on our forecast is for accelerating growth in the U.S. along with powerful growth sustained in developing markets. In our view, this should lead to rapid acceleration in PMCS' stock price.

Continue reading Top Picks 2011: PMC-Sierra (PMCS)

Timken Co. (TKR): An Old-Fashioned American Industrial

"Old-fashioned American industrial companies that are poised to benefit from growing international markets will be good investments in 2010," explains Daniel Frishberg,

The host of Bizradio and editor of The MoneyMan Report adds, "Our latest buy recommendation is Timken Company (TKR), which fits perfectly into this model."

Continue reading Timken Co. (TKR): An Old-Fashioned American Industrial

Gold and silver: Frishberg looks behind the scenes

Daniel Frishberg -- a former Wall Street insider and the current host of BizRadio -- offers an intriguing glimpse behind the scenes of the gold market.

In his The Moneyman.com Gold & Oil Report, he questions the role of not just overall market fundamentals, but short positions held by institutions. He also looks to a new long positions in silver.

Frishberg explains, "There are plenty of reasons to be bullish on the future of gold prices, including a weak US dollar. Further, India's Central Bank recently announced their purchase of gold from the IMF. Russian and Chinese Central Bankers have also expressed an interest in purchasing the remaining IMF gold.

Continue reading Gold and silver: Frishberg looks behind the scenes

Top Stock Picks '09: Energy Conversion (ENER)

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"For the best risk-adjusted results we're looking at corporate bonds," says BizRadio host Daniel Frishberg, whose favorite pick for 2009 is the Energy Conversion Devices 3% convertible bond due 6/15/2013.

In The MoneyMan Report, he suggests. "These securities -- which are convertible into shares of the solar power stock Energy Conversion Devices (NASDAQ: ENER) -- could generate a major score, since the company is right in the Obama sweet spot."

"We are following the government as it moves its market manipulation up the risk curve.

"We have seen the government first buying commercial paper and short term bonds to move the Fed Funds Rate, then moving investors up the ladder to long-term Treasuries, then on to agency and high-grade corporate bonds.

"Each time, these moves have produced stock-like capital gains for investors with the knowledge to participate in these markets.

Continue reading Top Stock Picks '09: Energy Conversion (ENER)

Obama's to-do list: Bridges and roads

This post is part of a special report, A Dozen Ways to Play an Obama Building Boom.

"President-elect Obama recently announced that he is working on a stimulus package that could be as large as $1 trillion," notes BizRadio host Daniel Frishberg in The MoneyMan Report.

"This money would be used on infrastructure. Items such as new roads, bridges, etc. would be on the 'to do list.'

"The theory is that this would bring jobs and thus help stimulate the economy. On this news, many of the infrastructure companies rallied. These are the same companies that have been severely beaten up due to global growth slowing.

"Thus, with a new stimulus package focused on infrastructure spending imminent, not only in the U.S. but some emerging countries, we are using some of our cash to invest in various infrastructure companies.

"We are purchasing Fluor Corp. (NYSE: FLR). This is a global engineering firm that will be a huge beneficiary from all the infrastructure spending.

"Even though the stock has recovered the last few weeks, it is still down over 50% from its high. Given their prospects and valuation, we believe this is a great company to invest in at present levels.

"We are also purchasing KBR, Inc. (NYSE: KBR). The company was spun off from Halliburton and they focus on engineering & construction. KBR gets a lot of their sales from contracts in Iraq and other countries.

"The stock fell 75% before recovering somewhat. However, the stock is still down 63% in the last 12 months and we believe the prospects for their business are excellent."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Petrobras (PBR): At the 'heart of the global growth story'

"Rio de Janiero-based Petroleo Brasileiro S.A. (NYSE: PBR) is in the heart of the global growth story," says Daniel Frishberg, BizRadio host and editor of The MoneyMan Market Newsletter.

"In general, investors are still seeing selloffs as buying opportunities even though the majority of stocks are in a bear market. We are not sure how long this can continue.

"Our 'Crazy Investor Index' does not yet show the type of extreme fear that is typical at a bottom, so it will probably mill around in short-term rallies and selloffs until something motivates them to panic simultaneously.

"In the meantime, we prefer to buy excellent companies just as the herd decides to stampede. And while our portfolio is now slightly net short we are adding one new long position: Petroleo Brasileiro S.A., often referred to as Petrobras.

Continue reading Petrobras (PBR): At the 'heart of the global growth story'

MoneyMan sees growth in agriculture

"Powershares DB Agriculture Fund (ASE: DBA) is a new addition to the capital gains portfolio at TheMoneyMan.com Market Newsletter. Here the latest by BizRadio host Daniel Frishberg.

"An area of the market that hasn't been affected by the economic slowdown and isn't correlated with the equities has been the commodity markets. Global demand for commodities has continued to increase.

"This has lead to record highs for most commodities, including soft commodities. We expect this to continue. There are several reasons for this.

"First, emerging markets are developing at a rapid pace and their populations are becoming richer and can now afford to eat better. That leads to higher prices in soybeans, corn, wheat, etc. Second, there are government mandates for producing ethanol which has driven up the price of corn.

Continue reading MoneyMan sees growth in agriculture

Financial SPDR ETF (XLF): Favorite fund for financials

"One of our favorite areas going forward for the next 1-5 years are the financials at these levels," says Daniel Frishberg, editor of TheMoneyMan Report and host of BizRadio. Here he looks at an ETF for the sector.

"The global growth story isn't going away and there are a ton of deals that need to be financed, trading volumes are high, private equity is still huge, and it takes big financial institutions to keep all of this running. They are really the fuel that keeps the (globally) economy expanding.

"Financials got caught up in the easy money craze by creating and buying risky derivatives. Many of the CEOs have already been fired and the books are being cleaned up by huge write downs. We think over the next couple of years, financials could actually gain the most on a return basis.

"This has been an area we have pretty much avoided or had very little exposure to. We continue to hold Citigroup (NYSE: C) in our capital gains portfolio and will average down at some point in the near future. But, for today, we want to buy the industry and dip our toe.

Continue reading Financial SPDR ETF (XLF): Favorite fund for financials

Best Stocks for 2008: Stem cells add new market to Invitrogen (IVGN)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Our favorite speculative pick for 2008 is (NASDAQ: IVGN)," says Daniel Frishberg, editor of The MoneyMan Report and host of BizRadio.

"Invitrogen is a $4.5 billion company that markets tools in kit form and provides other research products and services to corporate, academic, and government entities. The company has over 25,000 products.

"The company is also involved in stem cells, which are cells in an early stage human embryo that have the potential to turn into any other type of cells, e.g., heart, nerve, kidney, pancreas, etc.

"There has been much debate about stem cell research due to the killing of an embryo. However, a major breakthrough suggests that stem cells can be created from your own skin cells.

Continue reading Best Stocks for 2008: Stem cells add new market to Invitrogen (IVGN)

Best Stocks for 2008: Value shopping at Home Depot (HD)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Our favorite conservative pick for 2008 is Home Depot (NYSE: HD)," says Daniel Frishberg, editor of The MoneyMan Report and host of BizRadio.

"This is a stock that has been beaten down due to the weak housing market. We believe, based on the fact that it owns most of the real estate its stores sit on and these are typically in the best areas of town, that it's undervalued.

"With new management in there and a housing market that will stabilize, home improvement will do very well over the next several years. Home Depot typically trades at 14X cash flow since 1995. Based on that one parameter, the stock could be a double over the next couple of years.

"The company's balance sheet is in excellent shape at this point. We believe most of the bad news is priced in and with a Fed that will continue to cut interest rates, Home Depot will be an economically sensitive stock that will benefit. In our view, this is a 2-3 year hold.

Continue reading Best Stocks for 2008: Value shopping at Home Depot (HD)

Top resource ideas: 20 advisors on metals, mining, and money

Gold and silverWhat are the best speculations and investments among metals, miners, and other resource plays? To find out, I turned to 20 of the nation's leading newsletter editors, as well as speakers from the recent New Orleans Conference, a leading forum for resource advisors.

Their current top ideas cover a wide diversity of ideas, from gold and silver, from alumina and copper, to platinum and palladium. These picks cover markets from Chile to China and from Canada to Russia. These ideas also range from large cap, well-established, and diversified companies to small cap, development-stage junior speculations.

Readers should only consider these ideas as a starting place for their own research and should keep in mind the caveat that any stock you buy should only be considered within the framework of your own time horizon and risk parameters. Meanwhile, here are 20 different advisors assessing various aspects of the metals, mining, and resources sectors:

Continue reading Top resource ideas: 20 advisors on metals, mining, and money

Blackstone (BX) and Citigroup (C): 'Among the world's best companies'

"The Fed's moves do not mean we are out of the woods as far as further market corrections go; however, we do want to increase our exposure to the market, particularly top quality financial stocks," says Daniel Frishberg.

The host of BizRadio 1320 and editor of The MoneyMan Report is adding two stocks to his portfolio that he considers among the "best companies in the world" – the Blackstone Group (NYSE: BX) and Citigroup (NYSE: C).

He explains, "The market's action has been very impressive. Our Market-Ray indicator shows that demand was overwhelmingly positive and while supply dried up. That is a great recipe for higher prices."

He continues, "One thing that we believe is clear is that the Fed is more interested in global growth and the impact on Americans than the risk of inflation at this time. This will put a floor on certain asset groups such as financials."

One favorite financial holding, already in the advisor's portfolio, is Goldman Sachs (NYSE: GS). Now, to boost his exposure to the financial sector, Frishberg says, "We're adding two dominant stocks at cheap levels, Citigroup and Blackstone."

Continue reading Blackstone (BX) and Citigroup (C): 'Among the world's best companies'

Home Depot: A value play

Host of BizRadio and editor of TheMoneyMan Newsletter, Daniel Frishberg sees long-term value in Home Depot (NYSE: HD), noting that the stock is now at the same price that it was in 1998.

He explains, "There were several management issues which have been resolved and a slumping housing market which we believe is stabilizing and will recover the rest of this year and into next year."

He points out that back in 1998, Home Depot's sales per share were $13.65. Now he notes, "Sales are are projected for all of 2007 at $48 per share."

Likewise, Frishberg notes that in 1998, earnings were $.71 per share. Today, he notes, they are projected to be $2.85 per share for 2007. Meanwhile, he adds that their shares outstanding have decreased by over 15%.

Likewise, in 1998, the stock's P/E ratio was over 40. Now, he notes, it is around 14. And, he points out, return on equity averages in the mid to high teens. The advisor says, "Here are the three most compelling reasons we like this stock:

1) Based on its historic cash flow multiple, this company could trade at $60 per share

2) Private equity continues to take out large companies they believe are a value for big premiums and Home Depot has been rumored in these buyouts.

3) It owns most of the real estate its buildings sit on, which is probably undervalued by investors. Sears went through this as well a few years ago and the stock ran up tremendously once investors realized the value of all that real estate.

Frishberg emphasizes that this stock is not being recommended for trading gains. Rather, he says, "We want to be more patient with this stock. The big gains may be back-end loaded, meaning we believe the gains will be very large but may not come for several months."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Contrary plays: US housing & Canadian trusts

Dan Frishberg, editor of The MoneyMan Newsletter and host of BizRadio 1320, is going out on the limb with some contrary positions in two out-of-favor sectors -- a U.S. housing play and a Canadian income trust.

To recall, last fall, the Canadian government changed laws regarding the way that Canadian income trusts would be taxed, which led to a marked fall-off in the entire sector. Frishberg now notes, "I've been watching the sector since prices fell dramatically in a short amount of time." And one stock in particular that he has watched is Canetic Resources Trust (NYSE: CNE), which he notes fell from $17 to around $12.

Since then, he says, it's bounced around $12 several times and it appears it's finally starting to get some traction. Indeed, he adds, "There are now rumors of private equity coming into this area as their next target. Many energy trusts might get taken public and their domiciles moved to another country, possibly the U.S."

He continues, "If that happens, many of these trusts will rocket higher." The advisor has added Canetic Resources to his income portfolio. The stock has a yield based on the current dividend of just under 15% per year and pays a monthly dividend.

In another move into an equally out of favor sector, the advisor is also going long in the housing sector. He explains, "Stocks move ahead of news -- and some of our forward looking indicators are showing that home prices may actually improve in the next few months."

Frishberg notes, "Once everyone agrees that housing is improving nationally, the stocks will have already run up in advance. From a technical perspective, we really like the homebuilders as a whole." To reduce risk, he is avoiding investing in any one particular housing stock and is buying a basket of holdings iSHARES Dow Jones U.S. Home Construction (ASE: ITB), an exchange-traded fund."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Top Picks 2007: Daniel Frishberg trusts in First Trust Tech

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

First Trust Nasdaq Technology (NASDAQ: QTEC) is the top speculative idea for 2007 from Daniel Frishberg, BizRadio host and editor of TheMoneyMan.com.

He explains, "If all you had done over the past fifty years was buy stocks on the midterm election and sell on the presidential election, you'd be worth twice what you are now! Now we all get another chance.

"Seven years ago, stock prices were just about where they are now, but many companies were half the size and making half the money they make today. Seven years ago, stocks were expensive, and bonds were cheap. Today the tables have turned and we're set to profit.

"Some commentators are suggesting that the Wall Street phenomenon known as 'window dressing' may be a factor in this latest stock price surge. However, we think the rally is too broad to be just 'window dressing.' It is better to look at the rush of foreign money due to the falling dollar, the improving economy, and the end of interest rate hikes.

Continue reading Top Picks 2007: Daniel Frishberg trusts in First Trust Tech

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Last updated: February 12, 2012: 05:52 AM

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