Hilary Kramer is the editor of GameChangers, Breakout Stocks Under $10, and High Octane Stocks, published by InvestorPlace Media. She is also a weekly commentator on Nightly Business Report, and author of The Little Book of Big Profits from Small Stocks. She has 25 years of investing experience, first as an analyst, then as a portfolio manager, investment banker, and hedge fund manager, and has managed more than $5 billion in global private equity and publicly traded investments. She received an MBA from the Wharton School of Finance at the University of Pennsylvania and within a decade was recognized as one of the best equity investors on Wall Street.
These four little-known and beaten-down stocks could be stellar performers in the coming years, says Hilary Kramer of GameChanger Stocks.
The new game changers…we’re here with Hilary Kramer, who’s going to talk about some of her favorite new game takers out there.
There are so many exciting stocks today. It’s the innovation—that’s what really drives asset increases that help your portfolio grow.
AeroVironment (AVAV) is a company that makes the unmanned aerial vehicles, the planes that are actually piloted from the ground. Do you know they’ve gotten so small, some are the size, literally, of a bird?
Now, AeroVironment is very important because in the defense industry, we might not be making tanks anymore. We might not need big battleships. But we still need reconnaissance, and that’s where AVAV comes in.
The eyes in the sky.
And the stock is undervalued right now because the entire defense industry has come off so strongly.
Here’s another defense company: GeoEye (GEOY) is a satellite imaging company. They have another satellite launching soon. When you look at Google Maps, for example, and very often Google Images, you’re looking at a GeoEye satellite image.
But GeoEye also provides the information to the defense industry in the United States and around the world, as well as Homeland Security, Border Control, Maritime, all of our different sections of defense, as well as to the mining industry, forestry, sustainability…how do you measure melting snowcaps? GeoEye. This stock has just been decimated because it’s considered a defense play, even though it has such an important role in our economy and within innovation itself.
Another company that I love is Embraer (ERJ), a Brazilian aerospace company that makes the small jets, competes with Bombardier. The new paradigm today, especially in China and Latin America, is the hub style of flying, so that’s what you’re going to see a lot more of, even when we get on planes. I was just in Nashville, from New York to Nashville, Embraer single row small airplane. Everyone will be traveling via hubs.
Embraer is also very strong in military defense, as well as in corporate jets. Excellent jet maker. Brazil’s had a tough time, so the stock of Embraer has also come down. They’re waiting for a very, very big contract to come from their own Brazilian military defense, which they might joint venture with Boeing to do that.
Another stock I like, PriceSmart (PSMT). PriceSmart is the Costco (COST) of Latin America. Very strong in Columbia, for example. The price club format is really taking off in Latin America as the middle class continues to grow, as transportation becomes easier, as many of the packaged-goods companies, especially the US ones, are expanding into Latin America, shipping in there. PriceSmart is a company you want to watch, you want to buy, you want to get in early on.