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.

Contrary plays: US housing & Canadian trusts originally appeared on BloggingStocks on Mon, 07 May 2007 08:30:00 EST. Please see our terms for use of feeds.

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.

International Securities Exchange Holdings, Inc. (NYSE: ISE) is the top speculative play for 2007 from Bernie Schaeffer, technical trading expert and editor of The Option Advisor. He explains, "ISE is an electronic exchange and the world's largest trading venue for equity options (in terms of volume traded).

"About two years ago, the ISE set a precedent when it became the first U.S. options exchange to debut for public trading. ISE has appeared in the earnings confessional seven times since its trading debut in early 2005. On all of those occasions, the firm has either matched or exceeded Wall Street's earnings expectations.

"Since it appeared on the scene, the stock's path of least resistance has pointed higher, although options players remain wedded to the bearish camp. If the stock continues to advance upon new-high territory, a short-covering situation could be in the offing, eliciting an additional source of buying power.

"Analysts are also skeptical; the most recent Zacks information finds that 10 of the 11 brokerages following the stock have named it a 'hold,' leaving one 'strong sell' rating and nary a 'buy' to be found. The skepticism is palpable on this one, making it a solid contrarian play as 2007 kicks off."

To see Bernie's top conservative investment idea for 2007, click here.

Top Picks 2007: Option Advisor speculates on options exchange originally appeared on BloggingStocks on Fri, 29 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.

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.

Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) is the favorite speculative play for 2007 from John Stewart, editor of The Leverage Alert. He explains, "The stock has made a strong positive move off its July lows, and the fundamental, technical, and sentiment outlook for the stock appear to suggest that the shares could continue to perform extremely well into 2007.

"From a fundamental perspective, the company is slated to earn a profit in the current quarter after several quarters of net losses. This development has not been overlooked by investors as the shares are up more than 40% from their July lows.

"What's more, Martha Stewart Omnimedia now trades well above its key short-term moving averages and has broken above former resistance around the 20 level on the monthly chart. This level now appears to be acting as support, which is an important bullish characteristic from a technical perspective.

Continue reading Top Picks 2007: Leverage Alert likes Martha Stewart's style

Top Picks 2007: Leverage Alert likes Martha Stewart's style originally appeared on BloggingStocks on Sun, 24 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.

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.

Lennar Corp. (NYSE: LEN) is the favorite conservative investment for 2007 from Bernie Schaeffer, editor of The Option Advisor. He notes, "Lennar, one of the largest homebuilding firms in the U.S., is built on a very solid foundation.

"For more than 20 quarters running, the stock has exceeded or matched analysts' per-share earnings expectations. Despite negative earnings revisions and poor housing statistics during the past few months, homebuilding stocks have actually rallied from their July 2006 lows.

"For its part, LEN is back up near six-month highs. It has been a relative-strength leader when compared to its peers in the outperforming ISE Homebuilders Index. Meanwhile, options players are firmly entrenched in the bearish camp. And, nearly 9% of the equity's float has been sold short.

"Analysts are still leery of LEN, as evidenced by the latest Zacks data. Of the 12 brokerage firms ranking the shares, five have awarded a 'hold' rating while two list the stock as a 'strong sell.' A continued upward drive in the shares could spur some upgrade activity, drawing positive attention toward the equity."

To see Bernie's favorite speculative idea for 2007, click here.

Top Picks 2007: Schaeffer sees solid foundation under Lennar originally appeared on BloggingStocks on Thu, 21 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.