Monday, December 27

4 Motley Fool Stock Picks

Online Stock Trading - Motley Fool Stock Picks

Dan Dzombak, the Internet and technology editor at the Motley Fool, generally likes to invest in under-followed companies and special situations. He likes to concentrate capital on his best ideas rather than spreading it too thin. He has just published a number of stock picks on the Motley Fool site :

1. Lloyds Banking Group (NYSE: LYG) Taken from the top stock picks from the pitches made on CAPS, the Motley Fool's free investing community. Lloyds Banking Group, was a pick last month, but caught his eye as it fell from the level at which it was picked. Lloyds, along with plenty of other European has seen its shares fall over the past 3 months on general fears of problems in European banks. Lloyd[s is one of the big 4 banks in the UK but it required a lot of money from the government during the recent crisis after it was "forced" (by the same government) to buy Halifax to save it.

2. Transocean (NYSE: RIG)
Transocean was one of Fortune's picks for the best stocks for 2011. Transocean, operates offshore drilling rigs around the world. Its stock had been hit hard after the Deepwater Horizon disaster, - owned and operated by Transocean but leased to BP. The rig was insured, and Transocean says that its contract with BP protects it from all liability, including gross negligence. Transocean's rigs will be in higher demand as oil prices rise. Currently trading at nine times earnings, definitely a stock to add to your watchlist.

3. Mosaic (NYSE: MOS)
Mosaic - also one of Fortune's picks for 2011. They manufacture potash, phosphates, and other fertilizer products. China is said to be considering restricting its sale of phosphates outside China, which would help Mosaic. The barriers to entry are high (which would please Warren Buffett) as the cost of a new potash mine is in the billions of dollars. As the population grows around the world, fertilizers will become more important to meet the demand. Mosaic represents a good way to cash in on that trend

4. Imation (NYSE: IMN). - recommended in November

Imation is a global developer and marketer of recordable optical media, flash products, magnetic tape media, and consumer electronics. Operating under the Memorex, Imation, TDK Life, and XtremeMac brands.

It's cheap
Imation is trading below its net current asset value at around 88% of its NCAV of 10.76 i.e. "absurdly cheap".

It has no debt and loads of cash and other current assets.

No one cares
Only two analysts were on the most recent conference call, Imation is a company that Wall Street and most investors know very little about.

We will know more about the company's strategy in January -- so investing in an undervalued stock unti lthen is not such a bad thing.

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Further stock picks - Shares Magazine Share Tips

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