It's been a roller-coaster year for stocks, but one that will
ultimately end well. Barring any unforeseen events, the S&P 500
will end the year with a gain of about 15.0%. This year brought
with it a myriad of opportunities for profits and losses, from the
commodities boom and M&A frenzy to health care reform and the
"flash crash." Through it all, our experts at StreetAuthority.com
were able to identify stocks that went on to post impressive gains.
Here's what our experts had to say about their biggest gainers in
2010 and whether they expect the winning streak to continue into
My pick for 2010 was also my top pick for 2009, and is still
among my favorite ideas for 2011. I'm talking about
Ford Motor (NYSE:
, which is up another 70.0%
since I told our readers
about it back in early July. I don't see another move like that
coming, but I think that investors could well see a 30.0% gain in
2011 and another 30.0% gain in 2012, asshares still seem quite
inexpensive at eight times next year's projected profits.
For the last two years, Ford's stock has been on a constant rise.
The road ahead will likely be a bit choppier. On its way to yet
higher gains,shares may take short-term hits in any given month if
U.S. car sales are weak.Shares may also be spooked if Europe, where
Ford derives 25.0% of sales, really hits the skids. But all of the
hard work of Ford's management team should pay off for years to
come. The economic crisis enabled management to enact some tough
changes in terms of costs, which it otherwise wouldn't have had
theoption to. If I had a crystal ball, it would tell me thatshares
may rise from a current $17 into the low $20s in 2011 and the upper
$20s by 2012, at which time Ford may look to install a very
nicedividend . When it finally arrives andshares are much higher,
thatdividend may onlyyield 3.0%. If you buyshares now and wait, the
effective eventualyield on thatdividend would likely top 5.0%.
-- David Sterman
StreetAuthority Staff Writer
My top pick for 2010 was Israeli software company
Formula Systems (1985) Ltd. (Nasdaq:
. The stock has soared more than 60.0% since mid-May.
As I mentioned
, the red-hot Israeli tech sector is spawning some excellent
companies. Formula provides software and information technology to
businesses in more than 50 countries. Its products and services are
used to lower costs, reduce complexity and extend the life of older
As the global business environment has improved, Formula
Systems'net income soared 28.0% in the first three quarters of
2010. The positive prognosis for the U.S.economy in 2011 should
enable the company to boostearnings going forward.
Despite the impressive performance, the stock still sells at
price-to-earnings ratio of less than 12, well below the S&P 500
average, and pays a trailing 12-monthdividend yield of 7.8%.
However, I still consider the stock to be a buy.
-- Tom Hutchinson
StreetAuthority Staff Writer
I have profiled dozens of stocks this year and can't tell you for
sure which recommendation racked up the biggest return. But with a
powerful gain of 144.0%, my guess is that
Silver Wheaton (NYSE:
took home the gold medal.
On Jan. 14, just two weeks into the New Year, I pinpointed Silver
my single favorite pick
At the time, I felt confident that silver prices could easily rise
50.0% or more. If that happened, I thought, no other company would
cash in quite like Silver Wheaton.
The company buys silver production from gold miners at fixed prices
(typically below $4 per ounce). These tidy arrangements eliminate
the heavy exploration and development costs that other miners have
tobear -- partners such as
Barrick Gold (NYSE:
do all the heavy lifting. They also mean that small gains on the
top line can lead to big swings on the bottom. During the past
year, the firm's silver acquisition costs have remained level at
$3.98 per ounce, but its selling prices have risen from $15.16 to
$19.81 an ounce. Thanks to that 30.0% increase in prices, cash
flows have more than doubled.
As predicted, the market has cheered -- sending Silver Wheaton on a
wild 47.0% ride during the past three months alone. So there could
be more to come.
With silver prices ascending to 30-year record highs above $30 per
ounce, the company's already loftyprofit margins continue to head
even higher. In addition, production is expected to climb from 24
million ounces in 2010 to 40 million in 2013 -- without a penny in
capital expenditures. Therefore, theshares could remain in rally
mode, particularly with the Federal Reserve doing everything in its
power todevalue the dollar.
-- Nathan Slaughter
Chief Investment Strategist of
My top pick for 2010 was Rockhopper Exploration, a tiny
oil-exploration outift. It was part of a group of several
wildcatters drilling separately in an area that had long been
abandoned by the major petroleum companies. After researching the
company and the area in which it was drilling, I added the stock to
my portfolio. In less than three months, theshares delivered more
than 287.0% after the company found oil off the Falkland Islands --
sparking a dispute between Argentina and Britain in the process.
Had this discovery been made by
ExxonMobil Corporation (NYSE:
, no one would have blinked, but the find moved the needle for
Rockhopper. That idea -- a
small company with a compelling strategy
to dominate its market and deliver outsize gains to shareholders --
is what I look for in my
-- Andy Obermueller
Chief Investment Strategist, Fast-Track Millionaire
MV Oil Trust (NYSE:
is a U.S.
that receives 80.0% of the royalties on all properties of MV
Partners. These properties are located in the oil-prone regions of
Kansas and Colorado, and contain an estimated 90.0% of oil
The trust has proved reserves of 8.8 million barrels of oil
equivalent (MMBOE) as of Dec. 31, 2009, from which it produced
about 780,000 barrels of oil equivalent, giving it an estimated
11.3 years of remaining reserve life.
However, the trust will terminate on June 30, 2026, or when 11.5
MMBOE have been produced. To date, less than 4 MMBOE have been
produced since inception in 2006. At the current rate, the trust is
expected to have about 10 more years before it expires.
The average price MVO receives for its oil has varied dramatically
depending on market conditions. This variation has led to
historically wide fluctuations in quarterly distributions. Over the
past four quarters, MVO has distributed a total of $2.76 in
variable quarterly payments, for a trailingyield of close to 8.0%
at recent prices. Most of the distributions are treated asreturn of
capital , so the trust can be held in a taxable brokerage account.
At less than 13 times trailingearnings of $2.76 per unit,shares are
trading at a discount relative to the S&P 500's almost 15
times. Considering theshares carry ayield that's about four times
more than that of the U.S. equitybenchmark , they look extremely
attractive. The average daily volume of around 118,000shares also
provides reasonable liquidity. This trust offers a superioryield
and capital gains upside for income investors looking for an oil
play. The Texas-based trust can be contacted for more information
-- Carla Pasternak
Director of Income Research for
This year I booked two 58.0% gainers in my
Stock of the Month
portfolio. One of them was in
Olin Corporation (NYSE:
. Olin is an unusual company: about a third of its revenue comes
from gun ammunition sales, while the balance comes from the
chlor-alkali production. When I bought the position in 2009, the
chemical side of the business was sagging, hampered by the economic
slowdown. However, the gun ammunition side of the business was just
starting to turn in record profits.
Since I sold Olin in May 2010, it has gained just 6.2%, trailing
the performance of the S&P 500 by 5.3%. I believe the chemical
side of Olin's business will improve in 2011 as I think all basic
material companies will benefit from a recovering globaleconomy .
But I also think there are probably better basic material plays
next year. In fact, my January 2011
Stock of the Month
is a basic material play.
I particularly like copper and steel companies going forward. Next
year, the demand for copper is set to outpace demand. Steel demand
is estimated to grow 5.3% next year, although this is a
conservative estimate, tempered by the uncertainties in China. But
we have to consider the rapid recovery taking place in other parts
of the world, so I wouldn't be surprised to see the demand for
steel grow in excess of 7.0% next year.
-- Amy Calistri
Lead Investment Analyst for StreetAuthority's
Stock of the Month
-- Brad Briggs
A graduate of Baylor University, Brad joined StreetAuthority in
2008 after working in the banking industry and at The Texas
Observer. Brad's researching experience includes... Read more.
Disclosure: Neither Brad Briggs nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.
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