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Clean Harbors (CLH): Cleaning up in hazardous waste

"Clean Harbors (NYSE: CLH), the nation's largest hazardous waste firm, represents a great way to add some recession-resistance to your portfolio," says growth stock expert David Fessler.

The contributing editor to The Oxford Club adds, "This stock is also a way to get paid from cleaning up our nation's biggest environmental messes in the process." Here's the advisor's review.

"Clean Harbors is a one-stop clean-up shop for waste. We're talking hazardous waste, toxic chemicals, radioactive materials and biologic or infectious waste.

"With a superior portfolio of over 100 waste management facilities, Clean Harbors is North America's largest vertically integrated environmental services and hazardous waste-treatment company.

Continue reading Clean Harbors (CLH): Cleaning up in hazardous waste

Abbott (ABT): Contrarian sees healthy gains

"I think 2009 will be a very tough year for the economy but an exceptional year for stocks," says Alexander Green of The Oxford Club. Here, he looks at Abbott Laboratories (NYSE: ABT).

"The company has been around for more than 120 years. It currently operates in more than 130 countries, selling hundreds of products, including Ultane (an inhaled anesthetic), the anti-infective Biaxin XL, and TriCor and Niaspan to manage cholesterol.

"However, Abbott's biggest growth driver is Humira, a blockbuster drug that targets autoimmune disorders. The drug has received FDA approval to treat a number of diseases, including rheumatoid arthritis, psoriasis and Crohn's disease.

Continue reading Abbott (ABT): Contrarian sees healthy gains

Steris (STE): 'Recession-proof' play on keeping clean

"Steris Corp. (NYSE: STE), the world's leading maker of sterilization and decontamination equipment, is a fast-growing company in a recession-proof industry," notes growth stock expert Alexander Green.

The contributing editor to industry-leading The Oxford Club explains, "Every year, 6.5 billion medical devices are sterilized in Steris equipment. Even gun-shy investors can afford to step up and buy a few shares of this one."

"Researchers and professionals in the pharmaceutical, medical device manufacturing and health care industries count on Steris to keep their environments germ-free.

"In North America, Steris leads in products like lights, booms and tables. It also offers consumable products, such as hand sanitizers, washing lotions and skincare products.

"This company has a long history, datingo its beginnings as The American Sterilizer Company in 1894. It was already a world leader in sterilization products in the 19th century. Today, the company employs more than 5,300 people in more than 60 countries. Sales hit $1.32 billion over the past 12 months.

"And under the leadership of new CEO Walt Rosebrough, Steris is re-energizing its sales, marketing and R&D. It's also cutting costs to enhance efficiencies and improve profits.

Continue reading Steris (STE): 'Recession-proof' play on keeping clean

Defensive trio: Lockheed, Raytheon and L-3

"As my high school football coach always quipped, 'Offense may win fans, but defense wins games,'" says leading growth stock expert Louis Basenese.

Here, the Oxford Club associate investment director takes a look at his three favorite defense stocks, noting, "When it comes to investing in the current environment, I'm convinced that you can't go wrong with this trio of companies."

"In my view, this sector willl never fall out of favor. The recent development with Russia serves to underscore another point I've been making for years. We always have to be prepared.

"Or, put another way, there will never be a good time for defense cuts, lest we want to leave our country vulnerable.Add it all up, and we can expect defense companies to enjoy steady demand. Even in the face of a recession.

"As the CEO of Rockwell notes, there has been absolutely no fallout in the defense industry as a result of the worldwide credit meltdown or other economic woes. So here's a quick run-down on the three defense companies we prefer for investors.

Continue reading Defensive trio: Lockheed, Raytheon and L-3

Oxford Club bet on Buffett: A 'no-brainer'

"Warren Buffett's holding company, Berkshire Hathaway (NYSE: BRK.B), has been the single greatest investment of our lifetimes," says Alexander Green, noting, "His compounded annual gain from 1966 to 2007 was 21.1% vs. 10.3% or the S&P 500."

In the Oxford Insight, the investment director explains, "It is now time to buy the 'ultimate no-brainer'." Here's his assessment.

"Despite this strong long-term performance, Buffett experienced a rare earnings letdown during the second quarter of this year.

"Although revenue increased 10% to $29.3 billion, insurance related write-downs hurt the company's bottom line. Still, the shortfall was far from cataclysmic. For the quarter, earnings fell 7.6% to $2.88 billion.

"Despite the shortfall, the company still maintains a top-notch credit rating and has over $28 billion in cash, a war chest for the world's greatest investor. How has Buffett been so successful? He takes a disciplined value approach to investing. And he sticks with it.

Continue reading Oxford Club bet on Buffett: A 'no-brainer'

Inflation-adjusted gains: A good "TIP"

"The latest annual rate of inflation measured from last July to this July was 5.6%, the largest annual gain since way back in January 1991," observes Alexander Green.

Here, the investment director for the industry-leading The Oxford Club suggests that investors consider the iShares Lehman TIPS Bond Fund (ASE: TIP), noting, "This is a great way to buy a diversified portfolio of inflation-adjusted Treasuries and track them quite easily."

"The latest consumer price index figures were a bit of a shock; the annual rate of inflation measured from last July to this July was 5.6%, the largest annual gain since way back in January 1991.

"Despite these horrendous inflation figures, gold, mining shares and other inflation-sensitive indicators did nothing – or even fell. What gives?

"Remember that the market is always looking forward, not back. Investors are always more concerned with what lies ahead than what happened in the recent past. Next month or next year may be a different story entirely.

"That's why every investor should have a hedge in his portfolio, like inflation-adjusted Treasuries. These bonds are unique in the investment world. They are the only investment guaranteed to beat inflation. And they are great portfolio diversifiers. They don't march in step with either stocks or bonds.

Continue reading Inflation-adjusted gains: A good "TIP"

Yum! Brands (YUM): 'World class leadership'

"I think now is a particularly opportune time to buy the world's largest fast-food company, YUM! Brands (NYSE: YUM) ," says Louis Basenese.

The associate investment director and contributing editor to The Oxford Club observes, "YUM Brands operates 35,000 restaurants under the KFC, Taco Bell and Pizza Hut brands." Here's his review of the firm's outlook, including its expanding role in China.

"For starters, YUM keeps extending its streak of impressive results. For the seventh quarter in a row it beat expectations. Earnings per share increased 16% for the quarter and 28% year-to-date. Not to be overlooked either is the fact YUM raised guidance. Again.

"This quarter, fewer than 5% of companies in the S&P 500 can boast this triple whammy (beating earnings and revenue estimates and raising guidance). Ironically, while most of the other triple-whammy stocks enjoyed hefty single- and double-digit run-ups on the announcements, YUM sold off.

"And here's where I think most investors are missing the boat, and once again focusing too heavily on the short term. Yes, YUM's in a pinch. Food costs are rising and consumers are spending less.

Continue reading Yum! Brands (YUM): 'World class leadership'

General Electric (GE): A 'global juggernaut'

"Despite negative analyst commentary, General Electric (NYSE: GE) is one of the biggest and best blue-chip stocks," says Karim Rahemtulla. The contributing editor to The Oxford Club looks at the "global juggernaut."

"It's now more crucial than ever that your portfolio holdings are well-diversified, and GE is arguably the most diversified company in the world, with exposure to a plethora of sectors.

"Its GE's media businesses are performing well and will receive a boost from the Olympic Games this summer. And with oil prices soaring, GE's alternative energy businesses (wind turbines) are showing excellent growth and will benefit from the shift to alternative fuels and power generation.

"GE's aviation division is enjoying a boom from global growth in travel. And its medical division continues to benefit from strong growth, as the sector breaks out innovative new technology for a variety of ailments.From consumer products, to alternative energy, to aircraft engines and medical technology.

Continue reading General Electric (GE): A 'global juggernaut'

Yum Brands! (YUM): A stock pick for the next decade

Referring to his long-recommended position in YUM! Brands (NYSE: YUM), Louis Basenese exclaims, "I've spent 1,308 days tracking its price movements and written 11,239 words expounding its virtues."

Indeed, the associate Investment Director for The Oxford Club states, "If I could only recommend one stock to own for the next decade, hands down YUM! Brands would be the one."

"YUM! Brands, operator of KFC, Pizza Hut and Taco Bell, is quietly transforming itself into an international juggernaut. Today, roughly half of its operations and profits come from outside our borders. Tomorrow (okay, not that quickly, but soon), more than two thirds of its business will be based outside the United States.

"And the transition and timing couldn't be more perfect. More than half the word's investable market capitalization is now outside the United States. And that percentage keeps growing.

Continue reading Yum Brands! (YUM): A stock pick for the next decade

'Back up the truck' for financials?

"When I evaluate the underlying fundamentals in the financial sector, I find myself ready to back up the truck," notes Louis Basenese, editor with The Oxford Club. Here he looks at a financial ETF.

"Recently GE shocked the world when it missed earnings expectations by seven cents because of difficulties in its financial services business, the seventh largest in the United States. Then Wachovia posted a worse-than expected $1.1 billion loss.

"Next was Washington Mutual which reported a $1.14 billion quarterly loss, worse than expected. And Merrill Lynch had a quarterly loss of $1.96 billion, also worse than expectations.

"Not to be outdone, the bottom of the line-up, regional banks (Comerica Inc., KeyCorp and PNC Financial Services Group) also struck out, reporting worse than expected first-quarter net income and/or mounting credit-loss provisions and net charge-offs.

"Remarkably, the Financial Select Sector SPDR (ASE: XLF) has barely budged. Indeed, its 15% higher than where it was when Bear Stearns collapsed.

Continue reading 'Back up the truck' for financials?

Jacobs Engineering (JEC): Building value in infrastructure

"Consulting firm Jacobs Engineering Group (NYSE: JEC) is squarely focused on helping the world solve its infrastructure problems," says David Fessler, advisory panelist for the Oxford Club.

"Jacobs offers broad-based, bumper-to-bumper technical services. With over 54,000 employees staffing 160 offices in 20 countries, Jacobs is one of the world's largest and most diverse providers of professional and technical services.

"And it's keeping plenty busy building and upgrading infrastructure the world over. Its latest big contract win -- worth about $550 million over a three-year period -- comes from the Louisiana Department of Education for post-Katrina reconstruction.

"The work will cover the replacement of damaged or destroyed school facilities as well as the construction of temporary facilities.

Continue reading Jacobs Engineering (JEC): Building value in infrastructure

Raytheon (RTN): Ready for Recession

"The recent fits and spasms of the stock market predict tough times ahead; and ironically, that's good news for Raytheon (NYSE: RTN)," says Louis Basenese, Oxford Club Associate Investment Director.

In The Oxford Insight, he notes, "When stocks are anticipating a recession, the best offense is often defense stocks -- and there's plenty of reason to expect this defense contractor to shine, even if a recession is confirmed."

"Defense will likely remain one of the largest budget items for the United States, regardless of which political party wins the fall election. And, according to JP Morgan Securities, the defense outlays of the United States actually increase, by an average of 6.5% during recession years since 1945.

"So in the end, recession or not, as the world's fifth largest defense contractor, Raytheon's sure to enjoy steady demand.

"I'm sure you've recently read, all about the large spy satellite that became disabled and was poised to re-enter earth's atmosphere with a dangerous load of toxic fuel. What few know is that Raytheon's Standard Missile-3 was specially modified to intercept the target 153 miles over the Pacific Ocean.

Continue reading Raytheon (RTN): Ready for Recession

"Big oil" is not the problem: Alexander Green's perspective

This post is based on an article written by Alexander Green, Investment Director of The Oxford Club. My thanks to Mr. Green for his straightforward insight.

Let me begin by stating that my only argument against the oil industry has been their "the only game in town" attitude. Never have I complained that oil companies show too much profit. I have never accused the oil industry of gouging or unjust profiteering. With that stated, let us continue:

Oil companies DO NOT set gasoline prices at the pump. Those prices are dictated entirely by supply and demand economics. The single biggest driving force in the economics of crude oil today is the increasing demand by growing industrialized nations, China being the biggest by far. Even the United States Supreme Court declared that they find no evidence that oil companies are manipulating oil prices in any undue manner. This issue will, of course, remain in hot public debate.

Continue reading "Big oil" is not the problem: Alexander Green's perspective

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Last updated: May 28, 2012: 11:32 PM

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