investingfromtheright

I am retired and take educated guesses on all things financial.

August 28, 2006

August 28, 2006: Stocks to consider

There are a few stocks which I believe warrant your attention:

Look at Canadian Banks for a nice overall return with little downside risk at present. Although many analysts would not make the following bank their first choice, I would. The Bank of Nova Scotia (BNS) is a large, international, lightly traded consistant performer. It has a growing presence in China and has made important inroads into Asia, South America (especially mortgage banking in Mexico - a very lucrative and unexplored area for profit) and, of course, Europe old and new. It has low exposure to the US dollar and has appeared to manage risk vrs. reward. I have owned the stock since 2002 and see no reason to sell, as the fine management is intact and hitting on all cylinders. It is trading around 44 and would be a good choice on a pullback, as it has run up a bit the past few weeks in anticipation of an excellent earnings report (again).

Fortune Brands (FO) has underperformed due to a perceived heavy emphasis on home hardware products. This company is much more than that - ask Mr. Jose Cuervo. I bought the stock following a precipitous dip months ago into the low 70s, where it has flatlined. I would buy it right here for investment, not trading (same with BNS). IBI, another conglomerate trading around 23, would also merit strong investment consideration here. Both companies have international exposure as well as a US presense.

I mentioned Smithfield Foods (SFD) in an earlier post. This is a good news stock, for sure. They have been buying assets on the cheap and I anticipate both more intelligent acquisitions and a nice 2007 earnings report.

The point being: Although these are defensive position stocks they are also poised for growth, even as our political structure and lax attention to the Islamic/Russia/China/North Korea/Iran/Venezuela/Cuba/Bolivia/Iraq/Syrian/UN "hate USA" cartel goes beyond the intellectual comprehension of our Democratic Party friends and their far left minions continues unabated. There is only peace through strength and the willingness to use it.

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