Jumat, 18 Desember 2009

What If you had to pick just one superstar stock ........


Ah Yes, If you could just pick that one stock that is a sure shot superstar. As a purveyor of stock advice you will time and again get the request from a friend that has a CD coming due that they are making 0.25% interest on and want to put it into a can't miss superstar stock. Well the last time I got this request back in 2000 I told my friend to purchase Lucent Technology which had been growing at 40% a year for multiple years in the optical electronics business and also Pfizer (Symbol PFE) which had just purchased Warner-Lambert and their superstar growth drug Lipitor. These stocks just like Tiger Woods a few months ago, appeared to be rock solid, can't miss safe bets. Well they both ended up crashing down in stock value and both were investment disasters. Tiger still has his golf talent, but faces a tough road ahead bringing his life back in order. I feel sad for his wife and children.
That brings us to today, December 19th, 2009 where the superstar question is posed again. Well based on the premise that people will continue to eat and there will continue to be more people in the world, I will pose to you an agriculture stock. Thomas Jefferson would have been happy about that. The name I will pick is Monsanto (Symbol MON). The stock is up 58% over the last 3 years, 18% net profit. Sales growth around 13% and continued earnings growth.
From an excellent group of Potash (POT), Agrium (AGU), Mosaic (MOS) and Scotts Miracle Grow (SMG), I picked out Monsanto because it also has the kicker of selling the material that goes inside all the airbags in automobiles. I can be sure people will eat and also cars will continue to collide together as we have 20 Inches of snow coming down in the northeast right now. The stock trades north of $80.00, so you will need to pick an entry spot for purchase. Maybe during a lull in February 2010, when everyone else is piling into the tech stocks.
I guess Tiger took his guidance from the "Advice Dog" over to the right, and he is an easy target right now so I will not take cheap shots at him, but golf needs him to come back and bring the magic back to the links. He should also get some corrective lenses, because he apparently is not able to see his wife Elin, who is a knockout.

So chow down and buy some Monsanto,

Freewilly

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