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Real bargain stock #9: Google (GOOG)

googleEveryone who uses the Internet knows what a powerful tool Google's (NASDAQ: GOOG) search engine is. In fact, the ubiquity of Google searches has now put the company's name firmly in our verbal lexicon. Hey, you know you've made it big when your name becomes a verb, as in, "I Googled myself."

Fortunately for shareholders, Google is more than just a catchy verb.

Shares of the search engine firm have delivered an incredible 313% gain over the past five years, and year-to-date the shares are up a very solid 62%. I think that despite the near $500 share price, GOOG shares are still a bargain, and that means they are likely to search out some very nice gains for high-priced stock enthusiasts.

Next: Stock #10

GE is in an uptrend

If you agree that technical analysis can provide clues about a stock and company, then GE's chart is saying the company is stronger today, than it was six months ago.

For the above reason and others, I'm Reiterating my Buy rating for General Electric (NYSE: GE), first recommended on June 2, 2009 at a price of $13.80. If you bought GE then, you're up about 20%.

Continue reading GE is in an uptrend

Goodyear Tire's uptrend is clear

Investors, it makes sense to get it in gear with Goodyear Tire, if you can tolerate moderate risk.

I'm Reiterating my Buy rating for Goodyear Tire (NYSE: GT), first recommended on May 5, 2009 at a price of $13.30. Goodyear is set to soar. Here's why:

Continue reading Goodyear Tire's uptrend is clear

Kohl's: Back up the truck

This is probably you're last chance to snap-up some shares of Kohl's at a reasonable P/E.

Hence, I'm Reiterating my Buy rating for Kohl's Corp. (NYSE: KSS), first recommended on April 28, 2009 at a price of $43.82. If you bought Kohl's then, you're up about 20%.

Continue reading Kohl's: Back up the truck

Valero Energy has underperformed, but stick with the refiner

Valero Energy (NYSE: VLO) has underperformed, but I'm nevertheless Reiterating my Buy rating for the company, first recommended on April 20, 2009 at a price of $20.08. Here's why:

True, gasoline demand has lagged due to the recession, but that trend is expected to end, as lay-offs decline with the U.S. economic recovery.

Continue reading Valero Energy has underperformed, but stick with the refiner

Kellogg: The right products for the 'frugal consumer' era

I'm Reiterating my Buy rating for Kellogg (NYSE: K), first recommended on April 13, 2009 at a price of about $40. If you purchased K at that time, you're up a decent 15%.

The basic value-added thesis remains in place for Kellogg: Kellogg should benefit from more 'frugal consumer' Americans eating breakfast at home, although there is some risk of sales attrition, due to the rise of generic substitutes.

Continue reading Kellogg: The right products for the 'frugal consumer' era

FedEx: In-sync with the U.S. recovery

If you managed to establish a position in FedEx (NYSE: FDX) in April, you're up about 30%, which is not bad, given current economic conditions.

To be sure, FDX is not as cheap as it was then, but I'm still Reiterating my Buy rating for the company, first recommended on April 13, 2009 at a price of $50.98. Here's why:

Continue reading FedEx: In-sync with the U.S. recovery

AutoZone: Auto parts must show results, or else

This was a complex call, but I'm Reiterating my Buy rating for AutoZone (NYSE: AZO), first recommended on March 30, 2009 at a price of $163.40.

AutoZone's stock has not performed as well as I had expected. Technically, AZO has straddled the 50-day moving average for two months, or as a friend and trading guru used to say, "The stock is meandering."

Continue reading AutoZone: Auto parts must show results, or else

Suntech: A worthy solar play

In general, I've argued against solar plays, due to the sector's adolescent and volatile status, and against China-based plays, but there have been a few exceptions, and Suntech Power (NYSE: STP) qualifies as one.

It now appears that Suntech will benefit from China's solar subsidy program, as well as U.S. government initiatives to invest in renewable energy. Further, reduced selling prices moving forward should increase demand for Suntech's products.

Continue reading Suntech: A worthy solar play

Biotech stock #6: Illumina (ILMN)

biotech stocks illuminaDo you think we're going to see more or less genomics research in coming years? End of discussion.

Illumina (NASDAQ: ILMN) is the leading provider of equipment for genomics researchers and its lead is growing. Buy and hold may be almost dead, but it certainly applies to ILMN. The stock has been trashed along with the market, but it's simply the best at what it does - and getting better.

Your best strategy for life-changing profits?

This is a stock to buy for the long term to use as a base for selling calls. Or, even better, you can write some credit spreads, as the calls have terrific premiums.

Don't miss the complete list of biotech stocks to buy now.

And for more ways to profit, check out:

Biotech stock #5: Cerus Corp. (CERS)

biotech stocks cerusCerus Corp. (NASDAQ: CERS) is a real company with real revenues, but no profits yet, and could be at a $50 million revenue run rate in 2010.

It is a pioneer in something called "pathogen inactivation" -- a technology that cleans blood, making blood banks almost completely indifferent to the health of donors. It's the perfect system in the age of AIDS, bird flu and other infectious disease. Cerus' INTERCEPT Blood System is currently sold in 18 countries, and a potential major catalyst is an expedited approval process in the United States.

The stock is trading around a buck -- down from nearly $8 about a year ago -- and it could be worth $10 in a couple of years.

Your best strategy for life-changing profits?

Buy the stock and wait. You may be waiting a while, but this is a solid company with a real product and profits, and stock appreciation should come in the next two years. Make that big-time appreciation.

Next: Biotech Stock #6

Biotech stock #4: Curis (CRIS)

biotech stocksCuris (NASDAQ: CRIS) is a speculative stock -- no approved product and no revenue -- that, in former markets, would sell for $10 - $12. It is now around a buck and a half, after doubling in the past few months.

CRIS focuses on cancer treatments, and is partnered with Genentech/Roche. It has a new therapy for basal cell carcinoma in mid-stage trials. The results appear very promising. In fact, they are so promising that Genentech is treating this as the last trial needed before seeking FDA approval.

This stock is a potential 10- to 20-bagger with an FDA approval in 2011 or so. And the company is on the verge of licensing a new molecule that could be a big catalyst for the stock in the short term.

Your best strategy for life-changing profits?

Buy CRIS now. (In the interest of full disclosure, I own a lot of CRIS.)

Next: Biotech Stock #5

Biotech stock #3: Cepheid (CPHD)

biotech stocks cepheidWhen my son had a huge boil under his arm, it turned out that it was filled with the killer staph, MRSA. It also turns out that my (otherwise) great doctor used a traditional lab to process the test, which took a week to determine it was MRSA.

Cepheid (NASDAQ: CPHD) manufactures the equipment and test that takes just two hours to do the same thing -- and is better and cheaper than traditional tests. CPHD wins 90%-plus of all competitive bids and its test could be available in low-tech facilities, such as doctor's offices or nursing homes, next year.

The big catalyst for this stock, however, is that Medicare will stop paying for all hospital-acquired infections except MRSA in October. So institutions need a quick test if they are going to be reimbursed for treatment.

The stock has fallen from $30 to under $9. It's worth $20 - $22 to an acquirer.

Your best strategy for life-changing profits?

Buy the call options.

Next: Biotech Stock #4

Continue reading Biotech stock #3: Cepheid (CPHD)

Biotech stock #2: Questcor Pharmaceuticals (QCOR)

biotech stocks questcorImagine a company with 90%-plus margins and huge cashflow that uses its cash to carefully expand its business and buy back stock -- with a P/E under 8! That's Questcor Pharmaceuticals (NASDAQ: QCOR).

QCOR has a treatment that is approved for spasms from multiple sclerosis, but is mostly used to treat radical infantile spasms that kill or retard babies.

Your best strategy for life-changing profits?

Buy the stock and wait for it to appreciate or for the company to get bought out. You could also buy the (illiquid) options, or buy the stock and sell the calls.

Next: Biotech Stock #3

Biotech stock #1: Gilead Sciences (GILD)

biotech stocks gileadFew would argue with the claim that Gilead Sciences (NASDAQ: GILD) is the best-managed biopharma company on the planet.

It dominates the HIV treatment market and gets a 19%-plus royalty on Tamiflu, which is used to treat H1N1 (swine) flue. Gilead also has several drugs on or headed for the market to treat pulmonary disease and hard-to-treat high blood pressure.

Your best strategy for life-changing profits?

Buy the stock and sell the calls (then use the cash to buy puts on the market, which is headed down further.) Or buy long-term calls and keep an eye on them.

Next: Biotech Stock #2

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Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 26, 2009: 10:20 PM

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