Here we offer a potpourri of brief investment insights, including a favorite fund from Jim Lowell, top buyback candidates from David Fried, the market outlook from Joe Battipaglia, a gold stock buy from Leo Fasciocco, a play on fuel cells from Roger Conrad, and a bet on Buffett from Stephen Leeb. (For more information on the advisors cited, simply click on their photos below.)
"I think the wind is shifting," says Jim Lowell,
editor of the Fidelity Investor, a
leading mutual fund service devoted to Fidelity funds. "Fundamentals are
improving, albeit at a snail's pace. In our aggressive growth portfolio we are adding to our position in
Fidelity Leveraged Company Stock (FLVCX). The fund is in the able hands of manager Dave Glancy.
The fund is a mid-cap blend with three main areas of emphasis: consumer
discretionary names, cash, financials (favoring insurance companies), and
telecom."
David Fried, editor of The Buyback
Letter, updates his "stock pickers" portfolio. "If you do not
own OfficeMax (OMX NYSE) you should purchase it at the current quote
of $4.70. It offers excellent value and limited downside anywhere under $5.00 a
share. We are adding 200 shares of Activision (ATVI NASDAQ)
to the Stock-Pickers portfolio
at market prices. Activision announced an aggressive repurchase late last
year. In addition there has been substantial insider buying and the
company has about $7.50 a share in cash."
"The anticipation and anxiety felt by
investors and the public at large is approaching a level similar to that during
the 1991 Persian Gulf War," says Joe Battipaglia
of Ryan, Beck &
Co. "In our judgment, the various asset classes have already discounted much of the
risk of war and we believe that potential positive surprises resulting from a
short-lived and successful war far outweigh the downside risks. The removal
of the war threat should also reduce the required risk premium for equities and
improve the value of this asset class relative to Treasuries, money market, and
other 'safe' asset classes. Should we be correct about our outlook for the
economy and earnings, and should the 'war discount' pass more quickly than
expected, this would ultimately translate into a 25%-35% improvement in value
for the S&P 500."
"Ashanti
Goldfields Ltd. (ASL NYSE)
operates mines in Ghana, Guinea, Tanzania, and Zimbabwe; its Obuasi mine has
produced gold for over 100 years and is still a leading producer," notes
Leo Fasciocco, editor of Ticker Tape
Digest. "The company has about 26 million ounces of gold
in proven and probable reserves. Technically, the stock has broken out from
a 7-week flat base with good tape action. We view this as a
trading play; it is a low-priced, speculative stock, suitable only
for aggressive investors. We are calling for ASL to advance to around 9; a
protective stop can be placed near 5.70."
"Ballard Power (BLDP NASDAQ)
remains the best pure play on fuel cells," says Roger Conrad,
editor of The Utility Forecaster. "The company claims to have the cash backing it needs until
2007 to bring its multi-product line to market in autos, distributed power
generation, and electronics. But with Wall Street and the oil industry all
expecting a steep drop in oil prices, few investors are interested. I continue
to hold the stock for its long-run promise, but I'm also prepared to stomach
further drops in the meantime."
"Our perennial all-weather favorite value and growth stock is
Berkshire Hathaway (BRK.B NYSE)," says Stephen Leeb,
editor of Personal Finance
. "The stock's relatively small premium to book value in the face of sustainable
profit growth of about 15% is a powerful argument. Another is the
company's unmatched capital base in an industry in which money translates
into returns. Then, there is Warren Buffett's legendary investment record, which is
getting no credit in the current value of the stock. Remember, too, that
well-situated insurance companies are natural hedges in a tough stock
market. The shares are a must for all investors; buy up to
$2,650."
