Last Year's Winners Could Keep Winning
01/15/2014 12:15 pm EST
Should you wait to see if the winners from 2013 continue to thrive in 2014, or should you take the profits and invest somewhere else? MoneyShow's Jim Jubak thinks a bit of both might be the right answer.
In the video below from Yahoo! Finance, Jim Jubak discusses some of the top stocks that MoneyShow's experts have picked for the upcoming year.
These stock picks, which outperformed in 2013, may do just the same this year. For instance, Canadian stock expert Gordon Pape, editor of Internet Wealth Builder, has his eye on the following stock:
No one is even remotely close to the 59.8% operating ratio of CN Rail (CNI), the most accomplished railroad in Canada and the United States. From oil and grains, to cars and trucks, it seems like this company ships just about everything. Perhaps that is precisely why Jim Jubak agrees with Gordon Pape's 2014 Top Stock Pick and predicts that ongoing productivity in 2014 might propel CN Rail stock up another 20%.
Another expert who believes that Canadian National Railway is poised for a great 2014 fiscal year is Microsoft founder (and billionaire) Bill Gates, who owns a $5 billion block of this business.
For the second stock that looks interesting, Jim Jubak agrees with Jim Oberweis, Jr., editor of The Oberweis Report. Oberweis thinks that the healthcare sector, in particular, Ligand (LGND), is set to boom in the coming year.
This San Diego-based biotech company is the 2014 Top Stock Pick of Oberweis. And, according to Jubak, it has further to go in 2014, even though Ligand shares have already gone from $20 to nearly $60 in just last year alone.
“In some way (Ligand) is a kind of fund in itself,” Jubak says. “They've got about 90 fully-funded partnerships and the biggest chunk (about 40%) of that is in oncology, but you get a piece of everything.”
Some critics might argue that Ligand is a stock that's down 40% over the past ten years (having slumped from $120 in 2004), but Oberweis and Jubak see upside for Ligand, due to, as Jubak states, “an already huge pipeline” that's still growing.
For his final pick in today's video, Jubak turns to Nate Pile, editor of Nate's Notes. He also chose a stock in the healthcare sector, even though, as Jubak admits, it is a bit of a gamble.
However, an April 1 announcement by the FDA, regarding Mannkind's first inhalable insulin treatment, could also allow this stock to enjoy a favorable 2014.
“This has been a six year process with the FDA, not all of it good,” says Jubak. “This is a gamble.”
Given the unpredictability of FDA panels, as well as the fact that this is a stock that has already more than doubled in the past year, apparently, it's a gamble that many investors are unwilling to take.
That being said, “What I really like to do is find momentum in value plays and vice versa,” says Jubak.