From Zero to Hero
01/16/2014 12:00 pm EST
On Wall Street, winners can become losers and vice versa at the drop of a hat. That's why MoneyShow's Jim Jubak is looking at stocks that underperformed last year, but are ready to breakout in 2014.
In the video below from Yahoo! Finance, Jim Jubak points out several 2014 Top Stock Picks from MoneyShow's team of experts, that he feels are due to have their value recognized in the coming year.
AGL Energy is a utility based out of Australia. According to Conrad, the main reason the company's shares dropped more than 18% in 2013 had to do with weakness in the Australian dollar, which made the stock plunge to a multi-year low of barely 88 US cents in late December 2013.
However, for 2014, both Conrad and Jubak feel the company is poised for a comeback. In fact, it looks like this may already be in the works, since it's already showing off a 2.5% gain so far this year. As Jubak points out, “You're basically getting a play on the Australian economy and about a 6% dividend yield.”
For his second underperforming stock from last year, Jim Jubak looks to Carl Delfeld, editor of the Capital Gains newsletter.
This company's stock plunged 59% in 2013 due to weak fertilizer and phosphate prices. However, both Conrad and Jubak feel it is beginning to bounce back this year, due to a return to normalized pricing and earnings.
Like his Australian pick, Jubak feels it's also important to note that SQM also pays a fat dividend that's risen to 4.7% thanks to its slumping share price.
Despite the fact that there isn't really a way to figure out which emerging market stock will prevail by the end of 2014, for the final underperforming stock of 2013 that caught Jim Jubak's eye for this year, he turns his attention to the 2014 Top Stock Pick of Paul Goodwin, editor of Cabot China & Emerging Markets Report.
Paul Goodwin chose the Chinese company LightInTheBox Holdings (LITB) as his value play for this year. This company, based out of Bejing, actually sells most of its online merchandise to customers outside of mainland China.
After starting off very strongly, soaring 140% in its first two months of going public, it suffered a setback and has been in a downtrend ever since its August 2013 earnings report disappointed the global investment community.
No question that there is risk involved with LightInTheBox Holdings. However, that being said, Goodwin and Jubak still feel it is a reasonable buy, with potential that is huge, only having to win a portion of its sales (in its highly competitive marketplace), to thrive by the end of the 2014 fiscal year. As Jubak points out, "It's an incredibly intense space, but on the other hand, there's incredible growth there."