Energy markets are experiencing their own March Madness, notes Phil Flynn, senior market analyst at ...
Gaming, Cars, and Energy
01/30/2014 11:00 am EST
From within the realm of global investing, several incredibly diverse companies stand out to MoneyShow's Jim Jubak in the gaming, automotive, and energy sectors.
In the video below, from Yahoo! Finance, Jim Jubak highlights three companies that are the 2014 Top Stock Picks of several of MoneyShow's team of experts. These companies may be set to boom, and not just locally, but globally.
For his first expert's pick, Jubak looks to David Dittman, who serves as the chief strategist at The Australian Edge. Mr. Dittman is an expert on Australian investing, and his 2014 Top Stock Pick is the Australian gaming giant Crown Resorts Ltd. (AU:CWN). Crown Resorts owns casinos that have long histories of stable cash generation and the ability to endure global macro volatility. These Australian casinos have also demonstrated resilience during economic downturns.
China serves as the premiere source of tourism revenue for Australia. And with the number of Chinese tourists who visited the Land Down Under last year being more than double that of 1995, is it easy to see why Jim Jubak says, “What you're really looking to get some play on is Asia.”
With the auto industry thriving the way it has been as of late, it's no wonder that Pape picked this auto parts manufacturer. In fact, this marks the second time he has recommended the Canadian company, and since the first time he recommended it, back in July of 2012 (when the stock was at $19.72), it has more than doubled. But nonetheless, Mr. Pape believes it still has more upside potential.
Jim Jubak feels that investors should buy the more liquid and tradable local shares in Toronto, which is understandable, since Linamar ADR's do not exist. However, given the strong demand for the company's pistons, crankshafts, and turbo chargers, and the fact that Ford is its biggest customer, there may be even more reasons to like the look of Linamar.
For his final choice, Jim Jubak looks to the energy sector, and likes what Elliott Gue, editor of Energy and Income Advisor has to say about Patterson-UTI Energy (PTEN), which serves as his 2014 Top Stock Pick.
Mr. Gue likes the fact that Patterson-UTI Energy, a $3.5 billion on-shore drilling operation, continues to upgrade its fleet of drilling rigs, replacing older units with advanced APEX Walking rigs. He believes that these advanced rigs will boost the firm's profitability, and especially likes that the stock currently trades at an undemanding valuation.
Jim Jubak adds to Gue's pick, by pointing out, “What you're looking at here is the transition going on in the way companies drill and the power that they use in their rigs.” He agrees with Elliott Gue that Patterson-UTI Energy's industry conversion to more high powered rigs should prove beneficial, not only for the company, but for investors who take advantage of this drilling company that is based in Houston.
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