November 10, 2008: The Neural Fair Value 25 Portfolio

Back from a rigorous real estate trip to the Wilmington, NC environs. I am finding excellent opportunities to Lease-Option and Land Contract new homes which we build at a reasonable price and market to buyers who are not quite ready for prime time bank financing even though they have good income and very good credit scores. The three bedroom/two bath ranch homes are a receiving excellent reviews for quality and livability. Even in a crappy market, business is approaching the brisk stage. I also like multi-family housing, as the supply of renters keeps growing and growing.

On to stocks. Standard and Poors regularly publishes a list of undervalued stocks that, in their opinion, have superior upward price potential. The stocks inhabiting this list, called the Neural Fair Value 25 Portfolio, have traditionally performed better than the S&P 500, which now means they lose less - but I digress.

Here is the latest list for review, a few which may be right for your diversified portfolio:

ACN Accenture, Ltd. ($30.02)
ADCT ADC Telecommunications ($6.65)
ARW Arrow Electronics ($16.19(
BIG Big Lots ($16.58)
BMC BMC Software ($24.87)
CHKP Check Point Software Technologies ($19.91)
CRDN Ceradyne ($23.92)
FTI FMC Technologies ($30.19)
GD General Dynamics ($60.93)
GPN Global Payments ($40.01)
HLF Herbalife ($19.76)
HPQ Hewlett-Packard ($34.17)
LIZ Liz Claiborne ($6.46)
LMT Lockheed-Martin ($77.51)
M Macy's ($9.94)
MHK Mohawk Industries ($36.19)
NOK Nokia ($14.85)
NTAP NetApp ($12.44)
OXY Occidental Petroleum ($52.99)
RNR RenaissanceRe Holdings ($43.33)
SYMC Symantec ($12.90)
THG Hanover Insurance ($36.39)
URBN Urban Outfitters ($15.98)
USTR United Stationers ($34.61)
WXS Wright Express ($14.94)

Regular readers know that I have been prone to blog targeted lists of potential stock candidates to readers. Giving specific "buy" recommendations in this market, ETF basic portfolio ideas excepted, during the past several months has not been on my agenda. Ideas for selected security purchases, designed to encourage the individual investor to research rather than point in a specific direction, may be the best service one can render in these times.
Assemble your favorite candidates to buy when the time is right and your temperament permits.