3 Undervalued Plays
Hilary Kramer has three stocks that she thinks are still undervalued, while a couple of other well-known names are now facing stiff competition.
What are some undervalued stocks? Hilary Kramer deals with breakout stocks under $10. So what does your...not your crystal ball, this is a lot of science, but give us four or five ideas in diverse sectors.
The most important areas are those that are not yet overextended, very richly trading stocks. So you want to find the companies that have valuations that are compelling and have high dividend yields too, so you have income and you have some upside.
Two companies I absolutely love. One is Brazilian: Vale (VALE). It's a Brazilian company with close to a 5% dividend yield; copper, aluminum, fertilizer, diversified commodities, which is the way you want to be in a market that could be healing and returning to profitability globally.
Another one is BHP Billiton (BHP), and that is very similar to Vale: an Australia-based commodities producer that, again, is diversified and is in every area of mining, from gold and silver all the way to iron ore.
Also, I love some of the biotech stocks that to me still represent opportunities because of the upside. There is one stock in particular, Regeneron (REGN), that many people feel has run at this point. But from a valuation standpoint, this producer of macular degeneration therapeutics is a very compelling company, because it also has drugs and medications for cholesterol reduction that are really on the blockbuster level, as well as for anesthesia, oncology, and nervous system drugs.
So is this current market right now perhaps overextended, do you think?
Very much so.