My Stock Wish List

With the holiday season right around the corner, I thought I would take some time to state my stock wish list for 2012.  This is the entire list of stocks on my watch list and the price that I would start looking to buy (in no particular order).

I will go over why each of these companies are on my list.  Remember to make your own decisions and to do your own research before investing in a company.

Sodastream International (SODA)      Target $30

Always buy into a company when you believe in their product.  I believe that Sodastream may revolutionize the soda business.  They are a high margin company that sells a product that allows consumers to make their own carbonated beverages.  I was skeptical at first, but once you buy their product and their drinks, they're addictive.  Major retailers like Target and Best Buy just started to carry this product.  Revenues should start to increase exponentially in the future. Since the company went public a year ago, they have had 4 consecutive earning hits.  This company continues to surpass investor expectations.

This stock is not for the faint of heart.  Currently trading at $30.92, this stock was trading at $70 three months ago.  This is typical of stocks coming off of an IPO, but if you do decide to buy, be forwarned.  At under $30, I will be buying this stock and I think it has the potential to be trading at $100+ in the next couple of years.

Enbridge Energy Partners (EEP)        Target $28

This stock is only a viable investment in a Roth IRA.  This company is a Master Limited Partnership and is subject to confusing and time consuming tax rules.  No tax needs to be paid if in a Roth IRA however.  This company is a very safe energy stock that has a dividend around 7%.  As I have said in the past, I feel energy (along with technology) will be great plays for the next 10+ years.  This stock has consistently paid a large dividend for almost 20 years, and it doesn't look like it will stop anytime soon.  I have a target price of $28, and it is currently trading at $30.95.  In addition to the 7% dividend, I believe this stock could appreciate in price another 8-10% a year, making this a good long term investment.

Halliburton Company (HAL)      Target $30

Many companies are expected to benefit from rising oil prices, and Halliburton is one of them.  The company has got rocked the past four months, peaking at $57 and now trading at only $31.76.  I believe this stock is extremely oversold.  They have a very small PEG of .39, and this company is expected to grow substantially going into the future.  This is a company that specializes in oil drilling and exploration.  I do not see how the stock price can go any lower, but there is a good possibility it will be trading much higher this time next year.


Intel Corporation (INTC)         Target $21

Most people know about Intel and their products.  There are three reasons why Intel is poised to dominate in the next five years.  1. They are still the semiconductor industry leader.  2. They are trusted in the IT industry.  3. They have large gross margins.  Like most technology stocks, Intel has stayed relatively flat over the last decade.  However, they now yield a nice 3.6% dividend and a P/E of just 10.  If Intel can keep growing at over 10% a year, there is no way the price can go any lower.

This is a stock that I consider a substitute to Cisco Systems.  Along with ExxonMobil, Cisco Systems is one of the most privately owned stock in the USA.  I think now is the time to get out of Cisco and to get into Intel.  This is the reason Intel is on my watch list.  Currently trading at a price of $23.03, Intel has a ways to go before it falls into my strike range.  However, this stock has a beta that is greater than 1, and if the market goes down, this stock will fall with it, even if it is not warranted.

Vodafone Group (VOD)     Target $25

This is a very interesting stock and is one I would buy immediately if it reaches my strike price.  Vodafone is the world's largest wireless phone company with a dominant hold on most of Europe.  They also own 45% of Verizon Wireless.  Vodafone "officially" pays a 5.5% dividend each year, but they pays a special dividend on top of that.  When you consider the special dividend, Vodafone yielded a whopping 11% this year.  With Verizon promising to pay big dividends in the future, I do not see this changing.  They are currently trading at $27.17, but the stock price has been increasingly volatile as of late.  I see Vodafone dipping below $25 very soon and I will ready to pounce when it does.

Procter & Gamble (PG)   Target $60

This has been one of the safest and consistent performing stocks during the past 20 years.  It is always important to diversify your portfolio, and mine is currently heavy on Technology and Energy.  Procter & Gamble is a great way to dip into the consumer goods section.  While this stock does not offer a ton of upside, it does pay a 3.2% dividend and will not go down very much if the market crashes again.  I could see them trading in the mid 70's in a couple of years, and with limited downside risk, that is not too bad in today's trading environment.

Corning Incorporated (GLW)    Target $12.50

Corning is another company I am giddy about.  They have dropped in price dramatically during the last couple months because of an earnings miss.  However, I see them rebounding very nicely.  They are one of the world leaders in glassware, and own over 60% of the LCD screen market.  They also make screens for phones and household glass products.  With the stock currently trading at $13.08, I expect it to bounce into the 17's very soon.  My only hope is that the stock can drop below my strike price before it does that.

Transocean LTD (RIG)      Target $40

I am aware that this stock is currently trading at $39.83 which is below my target price.  However, I believe this stock may still go lower, which is why I am holding off on buying it for now.  This is a wild stock that was trading at $80 four months ago and $160 four years ago.  This company was partially responsible for BP's oil rig problem in the Gulf, but I think the stock has been oversold as a result of it.  Transocean pays an 8% dividend.  There are many negatives going on with the company right now which is why I have not bought yet.  First, they just issued a lot of new stock, which is depressing the stock price.  Second, they posted negative earnings last year as they had to spend a lot of money cleaning up the Macando Rig spill.  However, this company is too strong and good at what they do to not bounce back.  Despite everything that has happened, I will buy them when the price is right.  If the S&P drops down into the 1150 range, RIG's price will be so low that it will be a surefire buy.

Exelixis, Inc (EXEL)      Target $4

This is by all accounts a flier pick.  This is a bio-tech company, and anyone who follows bio-techs know they are hit or miss.  This is an extremely volatile company, and can have 300% upswings in the course of two weeks or it can lose 80% of its value in two weeks.  They try and create drugs to help treat and cure cancer but the approval process is long and difficult.  I am willing to take a risk with this company because they seem to have some promising products in the pipeline, but even I know this is just like playing slots at a casino.  It could turn out either way.  This stock is currently trading at $4.16.

Whirlpool Corp (WHR)     Target $45

This is another company that I think has got the short end of the stick.  Whirlpool's stock price has dropped 50% in the last six months and I think it is due a rebound.  They pay a 4.3% dividend and they are the market leader in may products.  Whirlpool is very much linked to the housing market and is dependent on consumers to have money to spend on luxury products.  I think the next decade will be very good for stocks and with a beta of 1.89, Whirlpool is sure to shoot straight up like the best of them.

There it is, the stocks on my watch list.  As you can see I like stocks that I feel are undervalued but still may be on the downswing.  This is why I am very cautious about when I buy because I do not want to try and catch a falling knife.  I hope you enjoyed this list and gave you some inspiration for your own investing ideas.