Here's a five-pack of favorites. Doug Hughes picks a top banking bet; Vivian Lewis looks to the Canadian tar sands; Mark Leibovit trades a shipping firm and a gold miner; Price Headley likes a utility; and Jim Oberweis looks to China.
"Pinnacle Bankshares (PPBN OTC BB ) operates as the one-bank holding company, serving central Virginia for over 100 years," notes Doug Hughes, editor of The Bankstock Letter. "A new full service branch in Forest, Bedford County, Virginia, opened in August 2004. Deposits are just over $201 million and loans at just over $160 million. Earnings up 8% in the latest quarter to $0.33 a share, for a p/e of 15. They should be able to fetch $27 a share if they were to sell. With book value around $15.75, downside should also be limited to around the $17-18 area. The risk reward is very good and the 2.5% cash dividend is very nice. Asset quality is very strong. Insiders have been buying and own about 7%, with no sales. Accumulate under $19.75 and buy all you can under $18."
"Diana Shipping (DSX NYSE), which began trading in March, is a Greek holding company that owns and operates dry bulk carriers," notes trading expert Mark Leibovit, editor of Volume Reversal Survey . "The Greek firm charters its vessels to major trading houses, producers, and government-owned entities, carrying iron ore, coal, and grains. The stock is a buy, with a stop below the August 1 low of $12.32. Our upside price target is $20. Meanwhile, we think gold is on its way to a minimum target of $500 an ounce and we think Cambior (CBJ ASE) will benefit greatly from further strength in gold. The stock is a buy, with a stop below the May 16, 2005 low of $1.51. While we suspect that gold may pull back further here, we do not want to miss the turn north in CBJ when gold does reverse up out of its current pullback. Our upside target is $4.75."
"Canada's
laws have been used to turn many companies with hopefully steady revenue streams
into income trusts," notes Vivian Lewis, editor of Global
Investing.
"Right now, the best
Canadian Income Trust to buy would be Canadian Oil Sands Trust (CA:COS.UN Toronto), a pure play on the largest long-life oil reservoir
in North America. This is the largest Canadian income trust. It has only one
asset, which is a 35% stake in the Syncrude facility in Athabasca, which will
produce oil from tar sands for the next 35 years based on current investment, at
the rate of 350,0000 barrels per day. Its distribution level starting next year
will be about 13% in Canadian dollars, and its p/e is a cheap 11
times."
"We are buying
TXU Corp. (TXU NYSE) at the market as our latest swing trade," says
Price Headley in his Big Trends.com Aggressive Stock
Trader. "TXU has made a series of
new 52-week highs for over a year, and there doesn't seem to be an end to that
trend in sight. While a utility stock isn't our usual type of holding for this
aggressive portfolio, the recent performance speaks for itself. Indeed, TXU has
more than doubled in less than a year. The buy signal is supported by the
growing volume behind the recent movement. Our price target is 133.33, with a
closing stop at or under 104.75."
"Focus
Media Holdings (FMCN NASDAQ) provides audiovisual TV display advertising through a network of
nearly 23,000 flat-panel displays throughout China," notes Jim
Oberweis, editor of The Oberweis Report. "The
flat-panel displays are located primarily in high-traffic areas of commercial
office buildings such as lobbies and elevators, as well as in large retail
stores. Focus Media completed its IPO in July at $17. In its latest
reported second quarter, its first as a publicly traded company, sales increased
128% to $14.6 million. Earnings were $0.13 versus a loss in the same quarter of
last year. These shares may be appropriate for risk-oriented investors. Clients
of Oberweis Asset Management own about 1.1 million
ADS."
