Bradford’s Top Picks 2010
By Glen Bradford
(Note that I own these, and that I own other stocks that I am also buying a lot of.)
Happy Holidays! Only those interested in not losing money should continue reading. Admittedly, in the last year I have bought a couple companies at higher prices than I should have. I am a believer that my ability to pick bottoms is significantly greater than my ability to pick tops, which is probably why I dropped everything including final exams running headstrong into March 2009 to buy the most undervalued companies I could find. The past is the past. What’s 2010 look like?
To be honest, 2009 predictions were significantly less risky to make than 2010, as I was confident in China, Russia, and Oil bottoming and taking the rest of the global economy up with them as the global economic powers stimulated the world economy. I pretty much could have said anything was a buy and come out ahead. The best I can do for 2010 is say that I don’t know. I don’t know if there is a broad-based way to come out ahead. I could guess about stuff but I want to be known for talking only about things worth talking about. That said, I’ve got some growing companies that are priced as if they are stagnant or even worse based on my forward looking earnings estimates. I figure buying the companies I mention below and closing your eyes for a year is a better strategy than anything else you’ll see on TV. These are among the best opportunities I’m looking at.
Lotus Pharmaceuticals (OTC: LTUS.OB) is one of those companies that most value investors stare at in disbelief and begin by wondering the cause of the ridiculous cheapness. This company keeps kicking the crap out of its already bullish estimates and is priced to die a horrible death. Simply put, if you look at it and don’t like what you see, don’t waste your time reading the rest of my article. I can’t really help you if you can’t help yourself. China Medicine (OTC: CHME.OB) is a company that’s more of what I would consider value in disguise. It looks like it’s fairly priced, except for the wild card that the TNT blockbuster growth going forward appears to be mind-numbing at first, second, and third glances.
A couple companies that I learned more about at the Brean Murray Carret China Growth Conference include Skystar (NASDAQ:SKBID), Biostar (OTC:BSPM) and Puda Coal (OTC:PUDA). I’m convinced that they are currently trading at fractions of their intrinsic value and sitting in cash instead of these stocks for the next year is a losing deal. I don’t think I can say enough good things about these three companies.
Then you have the two pretty obvious oil plays. China North East Petroleum (AMEX: NEP) is priced to shrink. Just take a look at some of their latest statements. Longwei Petroleum (OTC: LPIH.OB) still hasn’t reached my $3 “Mr. Obvious” target, not to mention that it’s easily worth double that. Rumors indicate that the Gujiao facility is more powerful than suggested.
So, that’s really all there is too it. Soon, you’ll be wondering why you didn’t buy these at these levels as you panic to buy them at higher prices. If you want to play the game a bit more proactively, you might want to start reading message boards along with your quarterly and annual reports. I use InvestorsHUB. I believe that sometimes cutting edge information comes from all sorts of nooks and crannies and being exposed to the latest ideas is a great way to stay in touch and avoid panic-selling. Note that I own all of these companies and that there are other companies in the world that I own as well. At the current time, I am aware of 50+ companies that likely won’t lose an investor money a year from today. Pay nothing, get something. For those of you following me, I did turn my Apple stock into an IPod, but it took an extra Christmas.
Disclaimer: Bradford was long all the companies mentioned at the time of publication.