There's no way around it. The markets are "hitting the gas" in
the fourth quarter.
Is there anyone better than Warren Buffett to analyze the state of
the U.S. economy? I mean, his Berkshire Hathaway is a miniature
version of the U.S. economy with stakes in every sector, from
homebuilders to utilities to insurance to consumer products. I
don't know about you, but when the Oracle of Omaha proclaims that
the U.S. will not suffer a double-digit recession, I listen. And
then there's John Paulson, the legendary fund manager who made
billions on the housing market in 2007-by betting against it, of
course-while most investors were losing their shirts. Even Bill
Gross, the legendary bond manager, is placing big bets on stocks in
the final months of 2010-he's starting a new equity fund! An
unstoppable tech boom is picking up speed. In the past two years,
tech stocks have doubled the performance of the rest of the market,
with the NASDAQ soaring +40% and a +20% gain for both the Dow and
S&P. I guarantee you're not going to believe me on this one,
but here it is: Consumer spending is a growth engine again. A
number of A-rated retail companies are reporting sales increases
upwards of +75%.
But here's the real kicker…
Wall Street just loves the second half of a new president's term.
After two years of implementing his agenda, Mr. Obama will spend
the next two years defending it. That means no new policies and
investors can bank on a Presidential Election Cycle rally that will
extend through November 2012. It has happened in every presidential
term since 1945. It's exactly why Buffett, Paulson and Gross are
chomping at the bit. And why I'm pounding on the table today.
We're facing a "perfect storm," and when these forces align,
it's going to create a boom for investors with the smarts to get in
the best companies. I like a number of blue chip stocks right now,
and I want to tell you about them.
Farming for profits:
Although it's one of the
largest manufacturers of farm equipment, my first blue chip company
actually rakes in the majority of its sales from North America-it
has more than 2,500 distribution centers in the U.S. and Canada
Right now, the company is facing a perfect storm: Rising crop
prices and a weak U.S. dollar are boosting sales of its
agricultural equipment worldwide. Net sales worldwide jumped +6% in
the second quarter.
But this is just the beginning… analysts are projecting a
whopping +300% rise in earnings and shares have climbed nearly +40%
in the past four months. I'm talking about
Deere & Company
) and it is one of my top buys for the end of the year and
More than a TV show:
My next big blue for end-of-the-year profits is
DIRECTV Holdings LLC
). This is the largest direct-broadcast satellite service in the
United States and is far ahead of No. 2 DISH Network. The company
is the gold standard in satellite service. Cable providers like
Charter, Comcast and Time Warner have all continued to lose
customers in the latest quarters, as they have been unable to
upgrade their services enough to compete with DIRECTV's massive
In the most recent quarter, DTV's revenue jumped +10% to $6.02
billion. Earnings reached $0.55 a share compared with $0.37 per
share a year earlier. Earnings were in line with analysts'
estimates of $0.55 per share, and revenue exceeded the expected
$5.98 billion. DIRECTV's profit rose +31% to $479 million, up from
$366 million in the third quarter of 2009. I expect the company to
end the year strong and deliver nice profits for your New Year.
If you didn't know, November is National Diabetes Awareness Month.
And this November, I have a great buy for you in this area.
Novo Nordisk A/S
) is a pharmaceutical manufacturer that yields a 1% dividend. NVO
is one of the world's leading producers of insulin, which is used
to treat diabetes.
In the most recent quarter, the company saw a +37% boost in
profit, posting a $665.7 million profit compared with $485.6
million this time last year. Sales rose +26% compared with last
year's third-quarter, reaching $2.9 billion. After the earnings
report, NVO raised its fourth-quarter predictions. The company now
expects full-year sales growth of 11% to 12%. Demographic trends
and company direction point to a booming business for NVO and that
makes it one of my top buys right now.
Louis Navellier does not own a position in any of the stocks