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Friday, March 4, 2011

2011 Best Stocks for Making More Money -Part 5


2011 Best Stocks for Making More Money -Part 5


No.16: Legend International (LGDI)


Legend International Holdings, Inc. engages in the exploration and development of mineral properties. It principally focuses on the development of its phosphate deposits located in the Mt. Isa district, along the margin of the Georgina Basin of Queensland, Australia. The company also owns interests in diamond and base metal projects located in Northern Territory. Its exploration licenses cover 40,525 acres in Queensland and 4.7 million acres in the Northern Territory, Australia.

No.17 Level 3 Communications (LVLT)

 
Experts say that this stock is shifted temporarily to the bearish side, which makes them cautious about picking stocks in early 2011. With that caveat in mind, the editor of they looks to the Level 3 Communications (NASDAQ: LVLT), s speculative, low-priced issue.

Expert owned these top stock years ago and when Level 3 bought Broadwing we got stock and cash; thus solid profits years ago or zero-cost basis on Level 3 shares.  "After pundits hyped it (at triple current prices) the top stock has dropped to an area of attractiveness. One caution: from sub-$1 levels during our forecast market panic a year ago, the shares have doubled; thus it's not impossible that 'capital gains taking' could suppress the top stock somewhat early-on in the New Year."Thus our buy-zone will be particularly wide; such as between 90 cents and $1.30 or so. One may elect to pay more and scale-in; though we’d prefer to buy in on pullbacks."Meanwhile, we note that their ability to service their debt should not be an issue presently; so we are interested to see what they do over the next year or two; not past 2012.  
"Our original interest in Broadwing -- now absorbed by Level 3 -- was the all-digital-optical as well as transcontinental (now to Europe as well) fiber system. On top of that mobile carriers are increasingly looking to 'backhaul alternatives' to meet their increasing bandwidth needs, which should increasingly result in loading to fiber backhaul systems.

"The low latency is a reason why most sports and news networks are using Level 3 (two-way conversation reveals latency, whereas one-way conventional transmission doesn’t) for their HDTV broadcasts and we believe that will increase in importance as 3D arrives eventually.

No.18 PepsiCo (PEP)


PepsiCo owns some of the most sought after brands in the world, including Gatorade, Tropicana, Frito-Lay, and Doritos.  It does business in more than 200 countries worldwide, including key emerging market economies like China and India.
"Perhaps most important of all, it’s a growth company with analysts expecting long-term future earnings growth of 10-12% per year."In recent months, PepsiCo has taken another major step forward with the pending acquisition of its two primary bottlers – Pepsi Bottling Group and PepsiAmericas. "The acquisition provides the potential to eliminate an estimated $500 million to $1 billion in redundant costs.  If those cost savings are transferred directly to the bottom line, shareholders could see a significant increase in net income of 10% to 20%.

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