Showing posts with label SKT. Show all posts
Showing posts with label SKT. Show all posts

Sunday, December 30, 2012

Hot stock picks for 2013

More stockpicks in which you can slavishly salivate over in 2013. Most of them not disclosed.

Stockbrokers' stated optimism for the year ahead on local and global sharemarkets is subject to a pretty big proviso: no more global financial crises please.


The catch-phrases of the past few years - the "credit crunch", "the GFC", "euro woes", the debt ceiling - have settled and equities markets could be looking at a second year without catastrophe.
It's not a lofty goal, but JB Were investment strategy group adviser Bernard Doyle says investors can take heart from relative stability, even if growth in their returns isn't spectacular.
"It won't be a blockbuster year for growth but it could be a year where for consecutive years... you haven't had some extreme bouts of risk events or worry about like a European collapse or markets teetering on the abyss again.
"If we get two years in a row where markets aren't concerned about existential threats - threats to the financial system - that will be the biggest achievement."
But there is already a problem on the horizon. The powerhouse United States economy is running out of financial road and heading for a "fiscal cliff".
At the bottom of that particular canyon lies Greek-style austerity measures which would equate to more than 5 per cent of the United States' GDP and lead to an almost certain recession.
However, the American political divide would have to grow to Grand Canyon proportions for a disagreement on government budget policy to push the country into such serious economic repercussions.
On the plus side, China has managed to manoeuvre its economic levers appropriately to avoid the mistakes of the Western economies, said MSL Capital Markets' Peter Elenio.
"Chinese authorities worked so hard to try and take the air out of their economy, to try and learn from Western mistakes, including everything from trying to keep inflation down and making sure that banks didn't lend too much.
"They do actually have the ability to turn the tap on again and I think we're seeing signs of that now."
However Doyle said the New Zealand sharemarket had actually benefited from the recent global stability concerns, as investors looked for off-the-radar equities with high yields, which New Zealand companies specialise in.
Investors were happy to buy cheap then, but will be looking for tangible earnings growth from those companies in the new year, he warned.
"It won't be a 20 per cent [return] year, but we could have a 10 to 15 per cent year quite possibly."
What follows are market leaders' top picks for 2013.
FIRST NZ CAPITAL, ROB BODE, HEAD OF RESEARCH
1. Diligent Board Member Services (DIL): At the intersection of two of the most important mega-trends in computing, namely "software as a service" and the iPad. In 2013 we believe Diligent will demonstrate its ability to generate substantial free cashflow while maintaining high growth rates at the top line.
2. Summerset Group (SUM): Underpinned by ageing population, which will only amplify in coming years as baby-boomers start to retire. We see a busy year in 2013 as Summerset proves that it can achieve much higher build rates across multiple villages.
3. PGG Wrightson (PGW): After an extensive period of restructuring, the outlook for PGW appears to be improving finally. Our enthusiasm is due to growth in rural merchandise sales and anticipated recovery in Australian seed sales, partially offset by weaker livestock revenue and real estate commission. Combined with an improving debt position, we expect the company to resume dividend payments in 2013.
4. Sky Television (SKT): Expected to be a solid performer in the year ahead as focus turns to earnings growth resuming in FY14 following a flat FY13 result. While it is a maturing business model, the recent special dividend highlights SKT's strong cashflow generation.
5. Kathmandu (KMD): Continues to enjoy decent same-store sales growth, highlighting ongoing strength in its sector, which should translate into higher earnings now that new systems and distribution centres have been bedded down. KMD share price to earnings multiple (10 times) is still undemanding, and with good execution could exceed current earnings estimates.
MACQUARIE PRIVATE WEALTH, BRAD GORDON, SENIOR INVESTMENT ADVISER
1. Goodman Fielder (GFF): With a dividend yield in excess of 4.5 and 6 per cent growth, GFF could be priced at up to a 40 per cent premium to market price to earnings ratio [pe] multiples.
2. Oceania Gold (OGC): We forecast gold production reaching 320,000 ounces in 2013 and 350,000-plus ounces by 2014, up from 230,000 in 2012. At the same time, we expect cash costs to fall almost 40 per cent to average below $650 per ounce once [Philippines-based gold copper project] Didipio is in full production. We continue to believe that the significant production growth will be the catalyst leading to a re-rating for the stock.
3. Pumpkin Patch (PPL): with FY13 shaping up as a year of consolidation, PPL appears well positioned to deliver strong medium-term earnings-per-share [EPS] growth, enjoy the flexibility of not being handicapped by out-of-the-money hedges, rebuild the Pumpkin Patch brand, expand Charlie & Me, reduce working capital commitments and pay an appealing dividend.
4. Ryman Healthcare (RYM): has a unique needs-based model (ie aged-care-heavy), and remains the market leader in a sector with both favourable economics and attractive long-term growth driven by demographics.
5. Restaurant Brands (RBD): offers an appealing blend of solid dividend and share-price growth as it leverages its core capabilities, firstly with the introduction of Carl's Jr, and potentially in the future with other, complementary brands.
JB WERE [NZ], BERNARD DOYLE, INVESTMENT STRATEGY GROUP
1. Fletcher Building (FBU): The stock price has improved a long way from $6 to above $8. We know we're in a housing recovery, not just in Christchurch but also Auckland. The Australian housing market could be on the cusp of recovery. Earnings growth forecast is 15 per cent in 2013, 30 per cent in 2014.
2. Infratil (IFT): The underlying businesses are attractive, but they're not being recognised by the market. We have been quite impressed by earnings growth coming out of some of the underlying businesses - Energy Australia and Z Energy. That makes the stock quite attractive.
3. SkyCity (SKC): The stock price has lagged behind others around it that have moved strongly higher. We think there's valuation support for the company. There are potential catalysts for growth with the Auckland convention centre and potential for expansion of its Australian operations, including $375m investment in Adelaide. It's languished a little bit but we like the quality of the business, we're happy to be patient.
4. Guiness Peat Group (GPG): We still see the intrinsic value of the underlying assets as discounted, and as the company continues to wind up its investments, the gap between underlying value and the market's pricing will narrow. The stock has the most emotional baggage of any in the NZ market. There are a lot of disappointed investors, rightly so. To own that stock, you'd have to be happy to own Coats, its biggest underlying business, and so most likely the one you will be left with.
5. New Zealand Oil & Gas (NZOG): The management of cash resources of the company has improved markedly, and it's now paying an impressive yield. There's good discipline around its exploration plans. We like having a little bit of oil in the mix, anyway, because if I was looking into 2013 and asking what could go badly wrong, there's still Iran sitting out there with nuclear ambitions.
FORSYTH BARR, ROB MERCER, HEAD OF RESEARCH
1. Mainfreight (MFT): The firm has set out to methodically build a global freight logistics business and its acquisition of Wim Bosman for € 110 million has given MFT a solid footprint into Europe. MFT has a high marginal return on equity through leveraging organic growth from its existing network and earnings growth outpacing the market and its peers. The executive team is proactive and has proven to be highly responsive to changes in market conditions, and it has substantial global growth prospects.
2. PGG Wrightson (PGW): This company has made progress in improving the underlying operating performances of its core rural-services businesses. Its proprietary seed business remains in a strong position with a competitive advantage in its significant research and development facilities. It is focused on reducing debt through the monetisation of its loan portfolio and targeting working capital. Assuming no further drastic climatic condition issues in Australia and New Zealand, we believe PGW is well positioned to achieve solid earnings growth over the medium term.
3. Ryman (RYM): Compelling demographics mean this business continues to deliver a high-quality product that is enjoying increased demand. It has the scale, in-house expertise and development pipeline to capitalise on this demand and is a recognised market leader.
4. SkyCity (SKC): is very well placed for medium-term operational upside from improvements to its Auckland casino and the underlying economic conditions, but the operating environment remains subdued. Encouraging signs at the key Auckland property over the full-year 2012, in particular for the Auckland gaming machines and international business. A strong generator of free cashflow, a sound balance sheet and potential further leverage from the NZ International Convention Centre.
5. Skellerup (SKL): Its model is proactive, seeking to drive operational improvements and the pursuit of new product development in close association with customers.
PETER ELENIO, MSL CAPITAL MARKETS, FINANCIAL ADVISER
1. A2 Corporation (ATM): has experienced strong revenue growth in 2012 with growing appreciation of the health benefits of its products. We expect the ambitious growth strategy and investment over the last two years in expanding into the UK and other key markets will start to show results in the coming year. We anticipate that A2 will be included in the NZX 50 during the next year attracting greater investor interest.
2. Diligent Board Member Services (DIL): One of the real growth stocks of the last three years, it has a global leading position in the provision of software portal services to major corporates. Continues to benefit from margin expansion and increasing compliance requirements imposed by regulatory authorities. Sales penetration in Europe and Asia is expected to drive revenue growth. Diligent is also developing a dividend policy.
3. Skellerup (SKL): Strong dividend yield and focused management has led us to believe that this stock will continue to benefit from greater institutional interest.
4. NZX: 2013 looks very encouraging for listing fees and other revenue streams that NZX should benefit from. The Government's plans for the partial sell-down of some of the state-owned assets and the pipeline of other expected IPOs should drive improved performance. The focus of the new management team on forming strong relationships with all market participants is expected to see benefits.
5. Tower (TWR): Continues to perform well and margin expansion is expected to continue with a lower level of claims in a number of its divisions. The sale of GPG's stake could create the prospect of corporate activity.

c Share Investor 2013

Tuesday, December 18, 2012

Broker Stock Picks for 2013


I made my 2013 stock picks back in late November and some of you maybe wondering what the professionals are thinking for next year.

Keep in mind, just like me they will have their biases and they may or may not indicate as to whether they own the stock they are picking - they should.

Some interesting picks that I will comment on latter in this spot.


2013 Picks


Goldman Sachs
* SkyCity
* Ryman
* Telecom
* Infratil
* Kathmandu
McDouall Stuart
* Abano
* Diligent
* Ryman
* Skellerup
* Cue Energy
Forsyth Barr
* Fletcher Building
* F&P Appliance
* Chorus
* Sky TV
* Ryman
First NZ Capital
* Fletcher Building
* Mainfreight
* Chorus
* National Property Trust
* NZ Oil & Gas
MacQuarie Securities
* Chorus
* Pumpkin Patch
* Ryman
* Mainfreight
* Transpacific Industries
Hamilton Hindin Greene
* F&P Healthcare
* Westpac
* Chorus
* Nuplex
* Tower
Craigs Investment Partners
* Chorus
* Auckland Airport
* Ryman
* Fletcher Building
* Westpac



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The Essays of Warren Buffett: Lessons for Corporate America, Fourth EditionThe Essays of Warren Buffett: Lessons for Corporate America, Fourth Edition by Warren E. Buffett
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c  Share Investor 2013

Tuesday, January 31, 2012

I'm Buying: Fisher & Paykel Healthcare Ltd

Well, as I said back in June 2011 I was being as patient as a wee church mouse and I would let you know after the fact if I was going to buy some additional Fisher & Paykel Healthcare Ltd [FPH.NZX] shares.

Well blow me down if I didn't do that just this morning when I purchased 15,000 more at $2.15 per share to add to the current 5000 holding in the Share Investor Portfolio.

As I pointed out this morning in the latest Share Price Alert the share price represented good value and is returning over 8% net on dividends alone.

The purchase was funded from dividends from the portfolio built up over 4 profit reporting periods and was earning 3.5% in a cash deposit.

I have not bought anything since buying Contact Energy Ltd [CEN.NZX] shares in July 2011 for a second shorter term portfolio Share Investor Portfolio 2.

Since the Global Financial crises hit in late 2008 there have been a number of bargains I have laid my hands on during the low period in 2009 - AIA (1,2) MFT, WHS and MHI, the aforementioned CEN and today's buy.

This has been a spend over that period of around $150,000.00 about half of it funded through dividends earned and the rest new money.

I am still waiting patiently for other good stocks to come under fire in 2012 and will let you know as and when they come on my radar.

Heres one.

For similar reasons for today's buy -  the weak US currency having an impact on repatriated profits back to NZ - the buying power for Sky Network Television Ltd [SKT.NZX] has increased putting the pay TV broadcaster at an advantage as it buys programming and hardware in US currency. It also has a weak share price for some reason and is looking like an attractive monopoly to me.

I am very pleased about my new addition today.


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c Share Investor 2012

Monday, December 12, 2011

Share Investor's 2012 Stock Picks

2011 has been a hard year on the stockmarket but lets forget about all the drama the PIIGs, Greek meltdowns, American deficits and massive bloated debt that threatens to strangle all before it and reinstate the stock picking monkey to pick stocks for 2012 .

It is the 5th edition this year and promises to be one of the most interesting if only for the possibility that 2012 will be a worse year for stocks than 2011.

In the face of a continued global recession, an uncertain economic future that had a big impact at the end of 2008 and continues today 2012 will be harder to pick than 2011.

Please keep in mind dear readers that the picks are my own and they reflect my investment philosophy and not necessarily anyone else's.

My picks are primarily based on a long-term view, regardless of the current short to medium term market turmoil and economic uncertainty.

NB: Since I think most of my portfolio consist of the best stocks on the New Zealand market, I found it difficult to pick stocks outside my realm of self interest.

NB 2: Stock prices quoted range from Dec 1-10.

Share Investor's 2012 Stock Picks


Picks from the NZX



Sky City Entertainment Group Ltd

[SKC.NZX]

Image

Sky City Entertainment has had an exceptional 2011, with a record FY 2011 profit at the hands of an excellent CEO and a number of strategies planned and executed to produce pleasing results for shareholders. The share price of the company has not however tracked its increased fortunes and has been trading in 2011 between $3.10 - $3.70.

The company has invested alot of money in expansion of the business in 2011 with a large number of eateries and bars added across the company's casinos and new gaming areas in the Auckland casino bearing fruit. 2012 looks promising as the company has bid for a national convention centre and look to cement this deal with Govt in the early part of that year

It looks to be good value as a result of this low share price relative to its prospects of a full year profit for 2012 of between $140-150 million.

Buy on weakness if this company has already been in your sights.

Disc I own SKC shares in the Share Investor Portfolio

Sky City Convention Centre @ Share Investor


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Sky City Entertainment Group @ Share Investor


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Discuss SKC @ Share Investor Forum
Download SKC Company Reports


Contact Energy Ltd

[CEN.NZX]

http://chart.bigcharts.com/custom/fairfax-com-nz/summary-chart.img?symb=NZ:cen
Contact Energy has had a tough 2011 with stagnant profits and falling customer numbers but 2012 is shaping up to be a better year for the company.

Drought conditions experienced now and forecast to continue across Summer are going to benefit a generator like Contact considerably and this will go straight to the bottom-line. Customer numbers have stopped falling and have showed some small gains over the last 3 months.

The are also persistent rumours that majority owner of the company origin Energy Ltd[ORG.NZX] are still interested in taking full control at some stage.

The share price started the year at just under 6 bucks and has traded the year below that price for the majority of 2011 and even hitting the mid $4.70 mark in August and at the current price of $5.52 is still looking a buy

I bought some at $5.34 in July and I think investors have bailed too early considering things are finally starting to go their way. Look to buy before Winter 2012 because I am picking a good one for the company because of what I have outlined above.

A good defensive stock in times of economic uncertainty as 2012 will no doubt be.

Disc I own CEN shares in the Share Investor 2 Portfolio


Contact Energy @ Share Investor


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Discuss this stock at Share Investor Forum - Register free
Download CEN Company Reports

TradeMe Ltd
[TME.NZX]

Image
While only just listed at the time of writing, TradeMe could be one of those company's that continue to do well in 2012 despite global economic uncertainty. A good defensive monopoly stock in these terms as they tend to do even better during the hard times. TradeMe has a good track record and should do well in the medium term.

Plenty of demand for the IPO should see an improvement in share price.

The company is looking for a Pro-forma $65 million profit for the 12 months to June 30 2012, down from $69.8 million in 2011, so a reasonably steady bottom-line should be good for a reasonable dividend payout through 2012 and beyond.

TradeMe Ltd@ Share Investor

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Discuss TRE @ Share Investor Forum


Sky Network Television Ltd
[SKT.NZX]
Image

Sky Television is a company that has done well over 2011. A 2011 full year profit up by nearly 17% on revenue up just 7.4%, the company has benefited by increased customers, the switch of present customers to premium digital services and the 2011 Rugby World Cup.

2012 will see the company consolidate this growth with the continuation of the digital switch, a move towards internet TV and the 2012 Olympic Games. All good revenue earners.

Another good defensive monopoly (like all the companies listed above this stock pick), SKT is insulated somewhat from the global economic crises more than other stocks because it gets its revenue from inside New Zealand.

At its current share price of $5.35 it is close to 12 months lows of $5.25, so at this price it makes a good net return of around 6%.

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Discuss SKT @ Share Investor Forum
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Trustpower Ltd

[TPW.NZX]

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Trustpower had a 2012 first half year result up nearly 20% on the previous year and is a well run company with a good track record. With 220,000 customers this generator and retailer is around half the size of Contact Energy but shows a more consistently even return on investment.

The areas that it services are geographically spread but mostly in rural areas where business is still strong and servicing a large number of dairy farms that are still doing good business and are likely to need a growing energy demand as 2012 rolls on.

With a gross dividend yield of just over 7% this beats Contact's yield by around 1.5% and that figure alone is a good reason to buy this stock at or near these prices levels in these high inflationary times.

The stock is currently trading at its 12 month lows.

Trustpower @ Share Investor

Long Term View: Trustpower Ltd

Discuss TPW @ Share Investor Forum
Download TPW Company Reports


Vector Ltd
[VCT.NZX]

Image

Vector is the last electricity company included in the 2012 picks and it has been picked principally because of its high gross return of nearly 8%, its defensive nature as an essential utility and a reasonable if unexciting long-term investment.

Vector achieved a 2011 full year profit of just over $200 million, an increase of 4% on 2010. Management expect 2012 EBITDA to be up slightly so just watch the share price which is currently tracking at $2.47 for any pull-backs as the stock is trading close to its 12 months highs of $2.65.

Vector @ Share Investor

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Discuss VCT @ Share Investor Forum
Download VCT Company Reports


Fisher & Paykel Healthcare
Ltd
[FPH.NZX]


Image

I have included Fisher & Paykel Healthcare in 2012 because I still consider will be one of the big successes of the next 5-10 years and one I included in the 2008, 2009 ,2010 and 2011 Share Investor stock picks,.

It is not only a company with good long-term prospects but a company that is another good hedge against the current global turmoil. Despite the grim economic conditions over the last few years it has managed to grow revenue well and only suffering slightly with a decreased profit because of the weak US dollar. Their products will still sell well despite a possible downturn in other business sectors.

Its share price has done nothing over the last 12 months but as I said above economic conditions have failed to dent its prospects and 2012 looks to show more of the same.

With a 2012 half year profit and revenue up strongly on 2011 2012 looks to be an even better year than 2011 in terms or business operations.

Its share price has suffered since I picked it at around $3.10 12 months ago, so this of course makes it an even better pick than 2011 when you consider at the current price of $2.40 the stock is returning a healthy 7 % plus gross dividend.

FPH shares have been at a low of $2.13 in September due to currency weakness in the US dollar (It gets the bulk of its revenues in US dollars but does have hedging) so when making your pick next year tend to make your play when the US dollar is under pressure.

Disc I own FPH shares in the Share Investor Portfolio

Fisher & Paykel Healthcare @ Share Investor



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Discuss FPH @ Share Investor Forum
Download FPH Company Reports


Ebos Ltd
[EBO.NZX]
Image

Ebos Ltd is another company that should withstand the economic rigours of 2012. 2011 saw them produce a full year 2011 profit up nearly 19% on 2010 on revenue up by 200 million.

EBOS is a leading supplier and distributor of both specialty and generic medical and pharmaceutical products to the New Zealand, Australian and Pacific Islands public and private healthcare sectors and is, like Fisher & Paykel Healthcare, somewhat insulated from the macro conditions that usually influence other companies.

The company has doubled profit over the last 4 years and has a good track record historically.

The share price is off its 12 month highs of over $7.50 and at its current share price of $6.10 is paying a healthy dividend of over 7% gross. The company has a history of increasing dividend payouts.

The company is very positive for growth in 2012 and have lowered debt considerably over the last few years.


EBO @ Share Investor

Long Term View: EBOS Group Ltd

Discuss EBO @ Share Investor Forum
Download EBO Company Reports


Mainfreight Ltd

[MFT.NZ]

Image

I am picking Mainfreight for 2012 after leaving it out for my 2011 picks because it had gained 30% in value after I picked it in 2010 and I considered it overvalued at just under 8 bucks.

At just under $10 at time of writing and after reaching an all-time high of $10.72 in July 2011, the share price now is 20% higher than what it was at the end of 2010 when I picked it, you might be wondering why I am picking MFT for 2012.

Well, you will already know why if you are a regular reader of this blog that I think Mainfreight is a company that is the best managed company and with the best prospects on the NZX.

Mainfreight is a dominant player in the logistics sector in Australasia and has businesses in North America, Asia and now Europe with the acquisition in mid 2011 of the Wim Bosman Group. It has designs on becoming a global logistics player, has surpassed 1.2 billion in revenue in 2011 and has a stated aim of doubling in size over the next 3-5 years.

Mainfreight has had a great 2011, with 2012 first half result profit significantly up and its share price has picked up as a result and long-term their lengthy track record of success looks likely to continue.

Having been glowing about its prospects long-term, 2012 could be a bad year for the company as global trade looks set for a downturn as the European debt crises bites on their economy hard and the outlook for the global economy is more than a little negative.

Logistics companies are one of the first sectors to feel the impact of economic downturns and I think this might be a good opportunity to buy on weakness in the share price in 2012.

Buy below 6 bucks with a view to hold a minimum of 5 years for superior returns.

Disc I own MFT shares in the Share Investor Portfolio


Mainfreight @ Share Investor

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Questions to Mainfreight's MD Don Braid
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Mainfreight Annual Report Packs a Punch
Analysis - Mainfreight Ltd: FY Profit to 31/03/09
Mainfreight VS KiwiRail: The Sequel
Long VS Short: Mainfreight Ltd
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks

Discuss MFT @ Share Investor Forum
Download Mainfreight Company Reports


Xero Ltd
[XRO.NZX]

My final main pick but certainly not the least, is Xero , the online accounting software company. Xero is a niche player in an industry dominated by global players like Quicken and MYOB and it increased its customer base significantly in 2011 and looks set to build on 2011's gains. It has however put the break-even point for the company in terms of net profit off until 2012 - that deadline was supposed to be reached late this year.

It is presently building its customer base to get "critical mass".

The buzz in the tech industry surrounding Xero is reflected in the amount of support the company has from insiders and it could be well a big player in time to come. The company has had some significant financial backers from those who know Xero well but Mums and Dads are still largely absent from the shareholder register.

XRO is a little riskier than most investments and the share price has finished the year off pretty much where it began but took a dip close to 2 bucks in July.

I include Xero this time because even though founder and CEO Rod Drury told me in 2010 that he wasn't going to sell the company and was dedicated to seeing it through to a stage where the company would be a global player, I think that he maybe tempted to take offers going at a time where the company could struggle to maintain revenue growth and therefore gain that critical mass. Xero would be valuable to a Quicken or MYOB as an add-on to their businesses.

Buy on dips below $2.50.


Xero Ltd @ Share Investor


Share Price Alert: Xero Ltd 2
Share Price Alert:Xero Ltd
Xero Ltd: 2011 HY Loss looking promising
From Xero to Hero?
Stock of the Day: Xero Ltd
Rod Drury ready for the long-haul with Xero
Share Investor Interview: Xero's Rod Drury
Xero Ltd: Download full Company Analysis
Rod Drury on Xero and Growing Business
Xero set for surprise to the Market?
Love Xero?
Share Investor's 2010 Stock Picks
Stock of the Week: Xero Ltd

Discuss Xero @ Share Investor Forum
Download Xero Company Reports


Other Notable Quotables

Auckland international Airport Ltd [AIA.NZX] A good monopoly at historically cheap prices, doing better in 2012 and set to pick up profit again in 2012.

Fisher & Paykel Appliances Ltd [FPA.NZX] has been beaten down to penny dreadful status and currently trading at 35c but still has brand recognition and could recover in late 2012 somewhat if the Christchurch earthquake rebuild kicks off. An off side chance if you want a punt.

Steel & Tube Ltd [STU.NZX] & Fletcher Building Ltd [FBU.NZX] have both been given a hammering share price wise in 2011 and both will benefit greatly from a Christchurch rebuild supposedly kicking off in late 2012. Watch for share price dips to buy when overall market sentiment is negative.

As you might also think I recommend every stock in the Share Investor Portfolio - except PPG, PPL and GFF. The last 3 are turning into stinkers.

Nasdaq

YUM! Brands Inc
[YUM.NASDAQ]

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A pick from 2010 and 2011 Yum ! Brands Inc achieved a target of 10% sales growth for 2011 and with more tasty growth to come in 2012 and beyond from China & India still make this company a Finger Lickin proposition.


ASX

Coca Cola Amatil

[CCL.AX]

Image

Coca Cola Amatil is the dominant player in the carbonated drinks market in Australasia. It sells its iconic Coca Cola brand as well as a large number of other well known brands in New Zealand, Australia, Indonesia, Fiji and a number of other markets in this part of the world. Their 2010 Annual Report shows a record profit of nearly AU$ 500 million on strong revenue growth.

A strong history of profits can be a good sign that there is more to come in the future and the fact that its customers are largely addicted to its products makes this company a great long term bet. I have always liked this company because it keeps managing to grow its business with clever marketing and product placement at sales outlets.

Buy on any weakness for superior long-term returns.

Coca Cola @ Share Investor

Coke is it!

Discuss Coca Cola @ Share Investor Forum


Conclusion
& Outlook for 2012

2012 may well be a year of some severe downward corrections on global stockmarkets. As uncertainty surrounds the fragile state of many economies and the precarious state of Europe's debt yoke and more pain and drama to come in the United States as politicians argue over spending cuts to stop the country from defaulting. Gains made on stockmarkets in 2011 could materialize for some as nervousness over the aforementioned leaves them to take cash off the table. It is clear that there is much more bad news in relation to the global economy to come and the consequences of this bad news one can only guess at but it will not be pretty at all.

That aside if you can, some listed companies have done well in 2011 and will continue to do so in 2012 but others will find the going tough as cash flow dries up, debt mounts and interest rates bite.

I have concentrated largely on defensive monopoly type stocks for 2012 with the bulk or all of their revenues coming domestically and picked in 2012 will do comparatively well for that year and should do well over the next 5 years or so as we see these uncertain economic times continue.

If there is no upturn in the economy, stockmarket share price weakness will have me poised to buy further shares in some of the companies I own in the Share Investor Portfolio with surplus cash of over $32,000.00 in dividends and some with borrowed funds if there are some really good bargains to be had. I am looking at buying more Fisher and Paykel Healthcare Ltd [FPH.NZX] shares should the share price fall further with US dollar weakness.

Remember, the stocks I have picked above are based on my investment criteria and may not fit yours and of course you could have a different opinion. I would love to hear your opinion and any picks you may have.

Have a look at what I have to say, take it on board or not and then do your own research to see if you might agree with me.

Lastly, I wish you all good luck and a prosperous 2012, we are going to need it!


**Just an added footnote. Please feel free to post your own stock picks for 2012. The only requirement is that you say why and declare any financial interest. Post them below at the bottom of this piece or click here.


Disclosure
: I own FPH, SKC, CEN, AIA, FBU & MFT shares in the
Share Investor Portfolio.


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Related Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
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c Share Investor 2008 - 2012