Huaneng Power and TrueCar
01/15/2015 7:00 am EST
Our top conservative idea for 2015 is a Chinese power producer that also engages in a wide range of other business activities, explains Kevin Kennedy, editor of Coolcat Report.
Huaneng Power International (HNP)—featured in our newsletter, The Coolcat Total Stock Market Report—is a play on the big move in Chinese equities.
Its earnings per share of $5.31 give it a PE of about 10 and annual sales of more than $21 billion compare favorably to its market cap of about $20 billion. The stock also yields a dividend of more than 4%.
Our top speculative idea is TrueCar (TRUE), which operates a data-driven online platform through its TrueCar.com Web site, which allows users to obtain market-based pricing data on new and used cars and connect with its network of TrueCar certified dealers.
The stock—featured in our more speculative newsletter, The Coolcat Explosive Small Cap Growth Stock Report—came public in May below $10, surged to $25 in September, then pulled back below $16 before coming on strong in the past two months.
The stock is a bit pricey, selling at about 10 times annual sales of $191 million. It's projected to turn a 65-cent-per-share loss in the past year into a 12-cent gain in the next four quarters.