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Stocks to Buy Now

Stocks to Buy in 2013: Don't Miss the New Developed Market Leaders

By , Money Morning -

When looking for stocks to buy in 2013, many investors turn to the markets that outperformed the Standard & Poor's 500 Index in 2012.

For example, they might like Germany. The MSCI iShares Germany Index Fund (NYSE: EWG) soared more than 32% in 2012.

That's far better than the 15% gain from the S&P 500. It's also much stronger than the 15% gain from the iShares MSCI EAFE Index Fund (NYSE: EFA), which tracks developed-market equities in Europe, Australia, Asia and the Far East.

But amid slowing growth and frothy equity valuations, German stocks appear unlikely to continue such performance in 2013.

That's why investors should check out these other developed market players ready to soar in 2013. They're all expected to deliver gains that could rival Germany's explosive 2012 profits.



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Three Stocks to Buy in Next Year's Most Promising Sectors

By , Contributing Writer, Money Morning -

Whatever 2013 brings for the markets, there will be plenty of quality stocks to buy - if you know where to look.

Overall, the markets are expected to have another positive year.

A survey of 10 top financial strategists by Barron's projects the Standard & Poor's 500 will close at 1,562 in 2013, a 10% gain from current levels. (By the way, last year's picks outpaced the broader index by 6%.)

That would follow modest gains in 2012 of 13.5% for the S&P 500 and 8% for the Dow Jones Industrial Average.

For next year, Wall Street's top guns predict certain sectors of the market - technology, industrials, and energy - will lead the charge higher. Companies in more defensive sectors like consumer staples, telecoms, and utilities, will be laggards.

So let's take a closer look at three stocks to buy from among these favored sectors that should be an excellent place for your money in 2013.

Stocks to Buy in 2013: Cheap Tech

Tech stocks are hugely profitable and as a group currently carry a forward P/E ratio of about 11.

That's cheap versus historical levels.

Tech is also a bellwether for when companies start to invest capital.

"When we get an upturn in capital expenditures, it will show up in tech first," Barclays' Barry Knapp told Barron's.

One stock to buy that has a rock solid balance sheet and a mountain of cash is Cisco Systems Inc. (Nasdaq: CSCO).

Once the world's most valuable company with a market cap of $500 billion, Cisco's shares sank sharply when the tech bubble burst in 2000.

And the stock is still dirt cheap, trading around $20 a share, roughly 10 times next year's earnings. Plus, the company is sitting on more than $48 billion in cash, worth about $9 a share.

With a dominant market share of 60%, CSCO is the de facto choice in the switching market.

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Stocks to Buy Now: Bet on these Three Casino Stocks for 2013

By , Contributing Writer, Money Morning -

Rather than being suckered by the glamour and neon lights at casinos, savvy investors looking for stocks to buy now are putting the odds on their side and betting on "the house."

That's because casino stocks are promising big returns for shareholders.

Plus, the gaming industry is still in the early stages of what should be a sustained recovery from the financial crisis that had lightened gamblers' wallets.

But identifying the best casino stocks to buy now involves more than a weekend jaunt to Vegas.

Due diligence on gaming stocks now requires a look at gambling's biggest hotspot - Macau, a former Portuguese colony that is now a special administrative region under Chinese rule.



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The Next Profit Breakthrough: Synthetic Biology

By , Defense + Tech Specialist, Money Morning • @Robinson_STI -

Drug, chemical, and biofuel firms are relying more than ever on artificial fragments of DNA to invent new products. It's called synthetic biology.

For example, teams all over the world are now in their labs looking to create novel biotech compounds or drugs by inserting synthetic DNA into cells, either living or artificial. They're also growing new microorganisms that yield biofuels to be used in lieu of oil.

Trouble is, the process is so complex that it can take days to synthesize these man-made genes, usually in small batches.

Not only is it time consuming, but it requires the use of costly robots and other advanced gear. Simply stated, if someone came along with a breakthrough that greatly speeded up the development of synthetic genes, it could affect several industries at once, not to mention its own value in the market.

Allow me to introduce you to Gen9 Inc. The company is blazing a trail in the development of scalable technologies for synthesizing genes.

Now, Gen9 is a small, new dynamic company. And its potential is huge.

It was formed last summer around a unique new device that greatly speeds up the process of creating synthetic DNA.

Even better, it cuts the cost of that process by leaps and bounds.

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How to Choose the Best Global Value Stocks to Buy

By , Money Morning -

It's no surprise investors are having a hard time finding strong stocks to buy.

After all, nobody's getting too excited about the recent rally. Europe is about to implode, Japan's in a coma, China's suffering a slowdown and the United States faces the possible fiscal cliff.

That's why I was talking to fund manager George Fraise of SGA Global Growth (MUTF: SGAGX) the other day, to find out where the growth - and potential for profit - is in the global market.

Fraise said he's very bullish on global value stocks, and outlined his strategy for picking the right ones.



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Letting Biotech Companies "Patent Nature" Could Be a Huge Boon for Investors

By , Defense + Tech Specialist, Money Morning • @Robinson_STI -

The U.S. Supreme Court has just agreed to hear a landmark case that could have extreme money-making ramifications for biotech companies.

Next June, the nine justices are expected to settle - once and for all - whether companies can patent human genes in the United States.

The Patent and Trademark Office has been issuing patents on DNA for nearly 30 years, according to Bloomberg Businessweek.

Roughly 4,000 of the 22,000 human genes now have some form of patent.

But the American Civil Liberties Union has challenged the practice in Association for Molecular Pathology v. Myriad Genetics. Now that case will go to the highest court in the country.

At heart, the legal question sounds simple: Does Myriad Genetics Inc. (NasdaqGS:MYGN) have the right to patent two genes that signal whether a woman is at higher risk of getting cancer of the breasts or ovaries?

Myriad of course did not invent or create the breast cancer predisposition genes, referred to as BRCA genes.

But it did create something called the BRACAnalysis test that looks for mutations on these genes. Those mutations are associated with much greater risks of breast and ovarian cancer.

Usually firms cannot get that kind of market protection for something that is clearly a product of nature. But in this case, Myriad has developed a process of extracting a gene that makes the resulting molecule novel and chemically different from DNA that naturally occurs in our bodies.

And, after all, it took Myriad 17 years and $500 million to develop the test. Without barriers to entry, other firms could simply come in, take advantage of all that costly effort and sell a knockoff for less money.

Even if that weren't illegal, it's obviously unfair.

Let's dig into the case and why it matters to you...



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Stocks to Buy Now: Don't Miss This Looming M&A Wave

By , Money Morning -

As investors hunting for the best stocks to buy, we often get so caught up in the big names of the day that we miss a powerful opportunity right in our community.

I'm talking about community bank stocks, and they're about to offer you one of the biggest profit opportunities of the next few years.

In fact, patient long-term investors could see profits similar to those enjoyed in the 1990s as banks recovered and consolidated.

Stocks to Buy: Why It's Time for Small Banks

Community banks usually have just a few branches and less than $1 billion in deposits. They have seen their stock prices fall dramatically over the past few years from the peaks reached in the 2006 boom days.

Between 2006 and the depths of the credit crisis, the NASDAQ Bank Index plunged by more than 60% and has not really recovered. Some of the poorly managed ones lost it all and were liquidated by the Federal Deposit Insurance Corp. (FDIC).

Those that are left should benefit from the eventual recovery of the real estate markets - but the truth is most of these banks won't be around that long.

That's because as the credit crisis unfolded legislators and regulators were quick to react - or overreact. They applied new rules and regulation not just to the large institutions that caused most of the problems, but also to the smaller community banks.

With literally hundreds of new banking regulations on the way, many smaller banks simply will not be able to comply and still operate profitably. It will also be difficult for smaller banks to access the capital markets to raise the money needed to grow.

The most logical course of action will be to sell out to a larger institution.



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The Best Stocks to Buy According to Top Hedge Funds

By , Money Morning -

Knowing the best stocks to buy, and when to buy them, can be a daunting task.

But looking at the moves of the largest hedge funds enables investors to gain insight into what the big boys are doing.

FactSet Research Systems Inc. (NYSE: FDS), a financial research firm that provides analysis of the markets' biggest players, recently released its quarterly report on the stock positions held by the 50 largest hedge funds.

While the top held stock, Apple Inc. (Nasdaq: AAPL), had its exposure in the overall funds reduced by 1.8 million shares, the list of most added stocks might surprise you.

Best Stocks to Buy: Where Hedge Funds are Investing

In the third quarter, overall the top 50 hedge funds increased their exposure to stocks by 3%.

Here's a rundown of the top 10 stocks that the top hedge funds were buying last quarter, listed in order by the amount of market value added to the funds.

Stocks to Buy Now: Two Intoxicating Recession-Proof Plays

By , Contributing Writer, Money Morning -

As you look for stocks to buy now, it's as simple as watching the behavior around you...

For example, you might feel like the fiscal cliff, devastation from Superstorm Sandy and more gridlock in Washington is enough to drive you to drink.

And millions of people are doing just that.

Even in the worst of times, alcoholic beverage companies continue to generate rock-steady revenues and surging profits -- no matter what the rest of the market is doing.

Truth is, not many people will give up their nightly rituals, even if times are tough. During the Great Recession, booze purveyors have been particularly resilient, making them good stocks to buy ahead of slow growth in 2013.

Over the last five years, the S&P 500 has returned less than 1.2% annually. By contrast, a Wine, Beer, and Spirits Folio focused on the sector returned 9.1% per year.

Better yet, beer, wine and liquor makers are one of the few industries that have been able to raise prices, according to an industry report by Value Line.

To cash in on this trend, consider the stocks of these two stalwart beverage companies.



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Three Biotech Stocks to Buy Now

By , Contributing Writer, Money Morning -

If you're looking to hit a home run over the next 12 months, your best bet for stocks to buy now is biotechnology companies - especially those focused on cancer research.

Here's why: biotech stocks have been in a stealth bull market in 2012.

In fact, the values of the 230 publicly-traded biotech companies tracked by the BioWorld Stock Report have jumped by an average 38% year-to-date.

The third quarter was especially hot. The Nasdaq Biotechnology Index rose 10% over that time frame and is up a healthy 37% this year.

And, nothing is hotter than companies focused on the battle against cancer.

Take Medivation Inc. (Nasdaq: MDVN), for example. This California-based biotech has jumped from $23 to $46 a share, largely on the approval of Xtandi, its novel prostate cancer drug.

Thousands of other experimental drugs are going through various stages of clinical trials, and the largest category in the pipeline is cancer drugs. With that in mind, it's safe to say that if you're looking for a stock with big upside potential, cancer-driven biotech stocks should be high on your list. Biotech Stocks: Cancer Research is Paying Off

A cancer diagnosis was once a death sentence -- especially if you were diagnosed with the disease in its late stages.

But, both government and industry have spent vast sums in the last decade researching how cancers develop and spread.

And now all that investment is starting to pay off -- recent clinical trials and treatment breakthroughs show real promise.

The newest cancer research focuses on three fronts.

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Stock Market Today: This Stock Wins With or Without QE3

By , Money Morning -

The major headlines in the stock market today include the Fed's decision to implement QE3, increased producer prices, and higher jobless claims.

  • QE3 a 99% certainty?... Not quite- When the Federal Open Market Committee makes its statement at 12:30 p.m. EDT every investor will be waiting to hear if QE3 has finally arrived. After what seems like two years of speculation since QE2 was announced will we finally get QE3? According to Citigroup Inc. (NYSE: C) a gauge of indicators of market expectations for additional central bank stimulus rose to a record 99% in August. Yet many economists do not expect QE3 to be announced today for many reasons. If the Fed takes action it will be viewed as highly political coming just months before Election 2012. Even if the Fed announces QE3 but says it will delay QE3 purchases until after the election as it did with QE2, the political implications will still be there. Other reasons are the lack of progress the previous rounds of QE have had in turning around the economy - and not just the stock market. "The Fed continues to want the economy to grow faster and specifically, to grow more jobs, but the ability of QE to do that is extraordinarily limited," Catherine Mann, a finance professor at Brandeis and former Federal Reserve economist told CNN. "We know that QE reduced interest rates, but we also know that has not led to more construction, more mortgages, more business investment, or more lending. Since it hasn't done any of that, it probably hasn't created jobs either."
  • Producer prices rise most in three years- Wholesale prices, measured by the producer price index, climbed 1.7% in August - the most since June 2009 - due to higher gasoline and natural gas prices. This was a faster increase than the 0.3% reported in July and ahead of the median forecast for a gain of 1.3%. Food prices rose 0.9% due to a rise in dairy and egg prices. The core producer price index which excludes food and energy rose 0.2%, which was in line with expectations. Tomorrow's consumer price index will be a good indicator if higher wholesale prices have translated into increased consumer prices.

Click here to see what Zuckerberg revealed...

Stock Market Today: U.S. Credit Rating At Risk Again

By , Money Morning -

The major headlines in the stock market today (Tuesday) include Moody's warning it might lower America's AAA rating, the trade deficit and a financial shakeup:

  • U.S. Credit Rating at Risk- In a statement released Monday, ratings agency Moody's said the United States is in danger of losing its AAA credit rating if Congress cannot come up with a solid plan to lower the debt-to-GDP ratio. "If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable," Moody's said in an e-mailed statement. "If those negotiations fail to produce such policies, however, Moody's would expect to lower the rating, probably to Aa1."

    Currently Moody's rates the U.S. AAA credit rating with a negative outlook. Standard & Poor's last year downgraded the U.S. to AA+ which is the equivalent to Moody's Aa1. Both agencies cite the political bickering in Congress and inability to deal with fiscal situations as the main reasons for the downgrades. S&P has mentioned that those risks could lead to another downgrade. When President Obama updated his federal budget in August the debt-to-GDP ratio was projected to be 75% by 2022, currently it is just over 1.04%. If lawmakers decide to go off the fiscal cliff as a debt reduction measure Moody's said it will maintain its current rating and negative outlook and then wait to see results of the fiscal cliff before deciding to return to a stable outlook.

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What Stocks to Buy Now

By , Money Morning -

What Stocks to Buy Now

Money Morning's Shah Gilani appeared on Fox Business' "Varney and Co." this morning (Tuesday) to discuss the slow growing U.S. economy and its effect on the stock market.

Host Stuart Varney asked Gilani if there are any stocks worth buying given the recent economic indicators and 1.5% growth rate in the U.S. Gilani didn't disappoint and offered a couple of stocks to buy now - one of which he is picking up himself.

You can see all of Gilani's analysis in the accompanying video.

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Two Stocks to Buy in Uncertain Times

By , Money Morning -

Europe’s debt problems are hitting a breaking point, U.S. economic growth is slowing and the Dow is down about 7% in the past month – so investors want to know what to do. Money Morning Capital Waves Strategist Shah Gilani is doing just that – sharing the stocks he thinks will provide safety in these uncertain times. He joined Fox Business’ “Varney & Co.” Tuesday morning to share with host Stuart Varney two investments he has recommended to his Capital Wave Forecast subscribers. One is a solid pharmaceutical company with blockbuster drugs barreling down the pipeline and 4.8% dividend yield. The other is an alternative utility-based investment with 5.8% dividend yield. Watch this clip to learn more.

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