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Tuesday, March 23, 2010

Stock Appreciation

It has been a while since I looked at pure stock plays. Here are my best picks for strait stock appreciation.

General Electric (GE)
I have been a long-term holder of GE, and although my initial buy price of $35 is a long way off, I still believe in this stock. To be certain this is not a short-term play, even though some analysts are picking it for just that. Over the next two to three years I expect the stock to regain its old position. Furthermore I would expect to see the dividend grow during that time too.

Google (GOOG)
Google is down about 5% since the topic of leaving China become a hot-button issue. I have long loved Google and all their products (this blog is on Blogger.com, which is owned by Google). The stock price appears prohibitively high as an entry point, but I think you must look past that. A few shares of Google would be a good idea, many analysts are still pegging this as a $700 stock.

Central European Distribution Corp (CEDC)
I have been a long-term holder of CEDC for quite a while now, long enough to remember it at $75 a share. I was so confident in this stock and the company that I added to it when I was down and out on my initial holding. This has paid off well, I am currently up over 40% and have no plans to sell. I expect to see this stock in the $40's by summer and maybe $50 by the end of the year. (currently at about $35 a share).

Caterpillar Inc. (CAT)
Caterpillar is a cyclical company, the recovery of the global economy should benefit them tremendously. This once $85 stock will likely be a ways off from those highs, but I suspect it can blow through $70 this year. (Currently at about $60).

I should add Ford (F) for all the reasons I have listed in the past. Also missing on this list are bank stocks, because I am playing them with preferred stock. I would add HSBC (HBC) and Bank of America (BAC) if I was looking for strait stock appreciation. If you want a play on Nat-Gas look to Chesapeake Energy (CHK). McDonald's Corporation (MCD) could be a play on a slower than anticipated recovery, or a "double-dip",

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