FTMDaily’s Top 10 Stocks for 2012
Jerry and Jay's Top 10 Stocks for 2012
2012 is already shaping up to be a very interesting year. For investors, an interesting year can either be a bad thing, or a good thing.
In 2012, we here at FTMDaily are sticking to our "tried and true" investing strategy. It's something we call "P.A.C.E." investing.
P = Precious Metals
A + C = Agricultural Commodities
E= Energy
We continue to believe that these areas will be the primary beneficiaries of the U.S. monetary meltdown that is inevitable.
To help you give you an idea of our unique P.A.C.E. investing approach, I recently invited my own stock guy, Jay Peroni, to join me in a recent webinar. We titled this online presentation, Jerry and Jay's Top 10 Stocks for 2012.
Virtually all of the stocks, except for one foreign currency fund, fit into the category of gold and silver mining, energy, and agricultural commodities.
Happy investing!
Jay Peroni's Top Five Stocks
1. CF Industries (NYSE: CF)
Theme: Agricultural Commodities
Comments: In 2012, corn acreage planted in the United States is expected to reach its second-highest level since World War II. Crop economics currently favor planting corn over soybeans and wheat on a net return basis. Fertilizer expenses are much higher for corn compared with beans and wheat. Access to pipelines connecting the company's nitrogen facilities in Louisiana and Oklahoma to the Midwest gives CF a transportation cost advantage. High shipping and storage costs for importers of nitrogen fertilizer limit the amount of competition CF faces in North American markets from regions with lower natural gas costs.
2. NuStar GP Holdings (NYSE: NSH)
Theme: Energy
Comments: Storage and shale-driven pipeline projects should accelerate distribution growth for NuStar. Investors in publicly traded general partners of MLPs derive significant upside from the payout structure incentive distribution rights, which give the GP an increasing share of cash flows over time. The pipeline and storage businesses tend to be very stable, generating predictable cash flow, and NuStar GP Holdings has increased distributions nearly 10% per year since its 2006 IPO. NuStar GP Holdings will benefit from NuStar Energy L.P.'s ongoing investment opportunities in fee-based storage and pipeline projects. As a pass-through entity organized as a limited liability company, NuStar GP Holdings does not pay corporate taxes, which allows it to distribute a greater share of earnings to unitholders than corporations.
3. Continental Resources (NYSE: CLR)
Comments: Continental Resources is an independent oil and natural gas exploration and production company. They have the largest acreage positions in the Bakken and Anadarko Woodford resource plays, and are the #2 oil producer in the Rocky Mountains. They have maintained a crude oil-focused growth strategy since the late 1980s, and with their strengths in production and reserves they are on track to triple their size by 2014.
4. TC Pipelines (NYSE: TCP)
5. Iamgold Corporation (NYSE: IAG)
6. Market Vectors Junior Gold Miners (NYSE: GDXJ)
Comments: GDXJ represents an aggressive play on junior gold exploration stocks. The companies are called "juniors" because they are smaller than the major mining companies and often have little in the way of proven reserves. Therefore, they are much more volatile. Gold bull markets in general are beneficial to junior explorers. However, be aware that a pullback or correction in gold prices could mean a major drop in the value of GDXJ. GDXJ is a good play for us because in addition to owning the physical metal, we also desire exposure to the up and coming gold mining companies. Investing in small individual mining companies will put your money at extreme risk. This is a risky bet with major upside or downside potential. I don't like too much risk when it comes to my holdings. Therefore, GDXJ satisfies my desire to gain access to a large basket of these types of mining companies in one ETF. Right now, mining shares are woefully undervalued both fundamentally and historically. I expect a major rally in mining shares and GDXJ is an aggressive way to play it. But I anticipate that the rewards will be worth the risk.
7. Deere & Company Common Stock (NYSE: DE)
Theme: Agricultural Commodities
Comments: Agricultural stocks had a rough year in 2011. Despite the downward pressure, I remain bullish on high quality stocks like John Deere which has continued to deliver solid sales and profit growth amid difficult times. DE (John Deere), through its subsidiaries, operates in four business segments: agricultural equipment, commercial and consumer equipment, construction and forestry, and credit. The company has been rapidly expanding globally through recent acquisitions. Farmers around the world rely upon the high quality innovative farming machinery produced by this company. I expect shares of DE to end 2012 higher.
8. Chevron Corporation (NYSE: CVX)
Theme: Energy
Comments: Chevron has long been my favorite "big oil" company. And given its 3% dividend, and the uncertain future that lies ahead, I really like Chevron as an investment in uncertain times. CVX remains one of my personal favorite energy companies for several reasons, including consistently increasing dividend payouts and global exposure to both the oil and natural gas markets. In fact, CVX has paid a dividend to its shareholders every year since 1912, and it has been increasing its annual dividends for 23 years. It is hard not to like a well-run company like CVX. I believe that everyone should have some exposure to energy in their portfolio. And I personally think CVX is one of the best ways to gain that exposure.
9. Cameco Corporation (NYSE: CCJ)
Theme: Energy
Comments: Nuclear energy represents one of the cheapest and cleanest forms of energy known to mankind. Nuclear energy, however, is a politically sensitive topic. This sensitivity has been especially noticeable in the wake of the Japanese nuclear disaster in 2011. I am a long-term believer in nuclear energy and CCJ represents one of the best ways to gain exposure.
10. Merk Hard Currency Investor (NASDAQ: MERKX)
Theme: Alternative/Foreign Currencies
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TAGS: jerry robinson, ftmdaily, jay peroni, precious metals, top 10 stocks, stocks for 2012, 2012 stocks, agriculture, investing in agricultural commodities, commodities investing, energy investing, invest in energy, invest in natural gas, how to invest in oil, pace investing
