The long awaited 2009 stock pick list... (enter heavenly choirs singing)
As promised here are the stock picks for 2009. I've titled these, appropriately, 9 Money Making Stocks for 2009 and 41 Bonus Picks. For those of you who may still have some math trouble that's a really fancy way of saying 50 stocks!
Before I reveal the list I need to lay a few ground rules and give an overview of the post.
First of all this is simply the list. The full report will be out sometime next week ready for download. In the report I will offer a complete analysis of the top 9 picks (this is insanely valuable - we can't even put a price on it really). The remaining 41 picks have some analysis and information but not a complete analysis.
Dessert picks. The "dessert picks" are stocks that don't even come close to making our criteria for 2009 picks. However due to the unique market circumstances of 2008 we have a plethora of great stocks that are so undervalued you can't help but buy these guys. Of course I never suggest buying a stock without some sort of clear profit strategy so all of these dessert picks are potential stock purchases that also allow some good cash flow from writing covered calls. In the full report I give analysis as well as the "Dollar-Cost-Zero" point (that's the point at which you've recouped all of your investment and this stock could fall to zero and you'd still be making money).
Criteria: There are 6 key factors that went in to making these picks. Unlike what many of you consider "traditional stock picks" my picks are a bit different. I really don't care if they're going to go up over the next 6 months. I really don't care if they're going to go down. All I care about is that we can trade them and make great money. So here's the criteria. In the full report (again available next week) I detail more why each of these top 9 picks meet the following criteria:
1) Must have Good Volume (at least 1M average) and good Open Interest (on the options)
2) Must be Optionable
3) Must have a history of Predictable Trading Patterns
4) Must have a Good Immediate Trading Range (at least $10)
5) Must be in a Sector With Some Excitement
6) Must have "Room To Bust A Move"
Bonus factors:
- Important News
- Important Product Releases Upcoming
- Important 3rd party Factors
These are the criteria. The Top 9 have been selected because they meet or exceed these criteria the best. It's only fair to add there is probably a slight personal bias to some of these picks as well seeing as many of the additional 41 picks could have been a top 9 pick (but there was only 9 slots). (these top 9 will absolutely be looked at in great detail in our Foundations of Stocks and Options Class as we will track them as a class)
As for the 41... These guys meet the majority of the criteria. However in most cases each of these picks has at least one factor that prevents it from meeting all 6 criteria on a consistent basis. The most common factor is usually Volume or Open Interest related. That's not to say these picks are not great picks, you just have to be more aware when trading them and check all of your important liquidity factors.
Our Goals: And finally I should re-iterate our goals with these picks. We are not looking for stocks that will move higher. We are looking for stocks that will MOVE. And more specifically we are looking for stocks that will move a lot, often, and in a predictable pattern. So with no further adieu I present...
Top 9 Money Making Stocks for 2009
- AAPL - Apple Computer
- AZO - Auto Zone
- BIDU - Baidu
- GOOG - Google
- PBR - Petro Brasil
- RIMM - Research in Motion
- SLB - Schlumberger
- SHLD - Sears Holdings (this one is kind of unlikely and special - I detail it in the report)
- MA - Master Card
And the 41 Bonus Picks:
- ADM - Archer, Daniels, Midland
- AMZN - Amazon
- ALK - Alaska Airlines
- AVB - Avalon Bay
- AXP - American Express
- BA - Boeing
- BBY - Best Buy
- BBBY - Bed, Bath and Beyond
- BTU - Peabody
- CAT - Caterpillar
- CME - Chicago Mercantile Exchange
- CMG - Chipotle Mexican Grill
- CVX - Chevron Texaco
- DE - Deere & Co
- DECK - Deckers Outdoor
- EQT - Equitable Resources
- FCX - Freeport McMoRan Copper & Gold
- FDX - Federal Express
- FSLR - First Solar
- FWLT - Foster Wheeler
- GILD - Gilead Sciences
- GRMN - Garmin
- GS - Goldman Sachs
- HAL - Halliburton
- HANS - Hansen Natural
- HES - Amerada Hess
- IBM - International Business Machines
- ISRG - Intuitive Surgical
- JNJ - Johnson & Johnson
- MMM - 3M
- NOV - National-Oilwell
- OXY - Occidental
- POT - Potash
- RIG - Transocean
- SNDK - Sandisk
- SUN - Sunoco
- TXN - Texas Instruments
- VLO - Valero
- VMW - VM Ware
- WYNN - Wynn Resorts
- XOM - Exxon Mobile
And Dessert: (These picks are good candidates to buy and use for writing covered calls if you like that strategy)
- AIG - American International Group
- BAC - Bank of America
- C - Citigroup
- DRYS - Dryships
- GE - General Electric
- LAMR - Lamar Advertising
- MOT - Moterola
- RMBS - Rambus
- SNDK - Sandisk (also on our 41 bonus list)
- WFMI - Whole Foods Market
And there you have it. A total of 60 potential trades for you to enjoy during 2009. As I mentioned the full report will be out sometime next week and you can dig further into some of my analysis.
If you take a look at this list and don't feel excited I encourage you to look at the charts. If you look at the charts and don't feel excited, well then I'm going to encourage you to take my class. In fact I'm offering the first section of my Foundations of Stocks and Options class for free during February. This is a $400 class and not only will we be looking at these stocks but by the time you get done with my class I guarantee you will be excited about this list.
To sign up for the free report sign up here:
http://www.thefinancialpuzzle.com/report09.html
(it will be emailed to you next week sometime)
To sign up for the free class visit this link here:
http://www.thefinancialpuzzle.com/free/foso4.html
Until next time as always, Happy Trading.
J-Dub
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5 comments:
with consumer spending shrinking, and expected to shrink further, how can you put consumer products companies on your list. i mean, people in the USA are losing their jobs left right and center. You really think a new ipod is high on their list of items to purchase?
same applies for the credit card companies you mentioned. retail sales down, credit card transactions will be affected, no?
my two cents
Sure Johnathan - It makes sense that you would say that. However remember the criteria is not that a stock will go HIGHER - the criteria in picking these stocks is to pick selections that will move. As a trader we trade both directions of the market. We do not care that the stock goes higher or lower - we just want it to have volatility and move.
One may also ask how I could select stocks that are in crisis like Citigroup to actually buy long! I'll detail this more in my complete report but in short these companies have a verbal promise from the government that they WILL NOT be allowed to go under. That means in the long term this could be a stock that slowly recovers and you can make amazing profit on. However - You never want to be left too exposed. All of these picks were selected knowing that you can recover your complete investment in roughly 6-8 months by writing covered calls. Then you literally would have a dollar cost average of $0/share - meaning no matter what happens with citigroup you would be making money. Read the report -take the class - and you'll totally understand. Thanks for the great question
DRYS is a fraud and on the way to Zero.
Rambus is a stock with great potential and is in the same situation qualcomm was in back in 2000. Should rambus hold up it's case against hynix,samsung they are looking at numerous patent infringemnts and a huge payday. The upside potential is far greater than the downside. I am currently long at $11. There is significant risk but the upside potential eclipses that of any of the other picks.
thevoice@voicedup.com / voicedup.blogspot.com
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