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.
"We own several stocks in our portfolio that are selling for less than their book value and with a P/E ratio of less than 5 -- but the prize among bargains is Teck Cominco (NYSE: TCK), our most promising stock for 2009," says Neil Macneale.
In his 2 for 1 newsletter -- which initially buys stocks when they announce 2-for-1 splits, he says, "It would be hard to argue this company is not literally being given away."
Macneale explains, "I bought this stock for the 2-for-1 portfolio over a year and half ago and its stock price has declined by about 90% since then.
"The Canadian mining company produces copper, zinc, gold, and metallurgical coal. All assets are in North America except for most of its copper operations, located in Peru.
"With a PE ratio bouncing between 1 and 2, and a Price-to-Book ratio at around 0.3, you are getting a well-established (1906), well-run asset play for less than its book value, even if existing plant and reserve values are slashed by over 50%.
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