If you had to choose one stock to invest your money in for 2013, what would it be? First off, let me say that we would never advise putting all of your money into just one stock. Diversification and hedging are always better ideas to safeguard your investment portfolio from too much risk. But hopefully this contest will provide a little bit of fun, and possibly open up your eyes to some new stocks, sectors and thinking.
Best Stocks to Invest in for 2013
The contest will compare the closing stock prices from November 30, 2012 to the prices on the market close on Monday, December 2nd 2013. The winning stock will be the one with the highest percentage gain for the year, including dividends paid. Good luck to all!
VRTX – Vertex Pharmaceuticals Inc
Company is an up and coming biotech firm with a strong R&D dept. There is a lot of volatility with this stock, but if purchased on a dip, it could provide excellent appreciation levels.
BFDI – Brekford Corp
I normally wouldn’t recommend a penny stock, but Brekford Corp is solid. They produce red light and speed enforcement cameras, and partner with cities/counties in revenue-share agreements. Most of their contracts have been relatively small, but they just recently beat out Xerox for the lucrative Baltimore City contract, which should begin producing $8-9 million in annual revenue beginning January 1st.
LRAD – LRAD corp
They provide high tech sound equipment for militaries globally, and their founder is a serial inventor with tons of experience in this market. The stock is very affordable for people without too much to spend, and with more large military orders coming in, I think it will yield big gains for a low price.
FB – Facebook Inc
It has a 43% implied volatility which implies the stock will move ~2% each day (+/-) and the implied volatility has been as high as 74%. It’s very liquid and trades approx 50 million shares a day. Many investors are afraid of stocks with high volatility; however, volatility is key if want velocity of direction – to the upside as well as to the downside. Liquidity ensures traders and investors are active in buying as well as selling the stock.
AAPL – Apple Inc
I expect them to have a huge upcoming holiday season with their updated product line of iPhones, MacBooks, iMacs, iPads and the of course the new iPad Mini. Over the course of the year, I am excited about the iPhone 5 launch in China, a potential market of 133 million 3G subscribers, and the possible introduction of an Apple TV. It’s an amazing company with an attractive price right now.
YHOO – Yahoo! Inc
Having entered at a price of $15.86 earlier this year, the market has only recently started to realize its true value. Based on the investments in Alibaba and Yahoo Japan, and now with a new CEO Marissa Mayer, I believe YHOO is a solid investment opportunity. Also, the company will continue to buyback their own stock which will only strengthen the share price. However, in the very short term the price could retrace having risen 30% in the past 3 months to new highs.
IBM – International Business Machines Corp
Because the company’s fundamentals and balance sheet appear strong to me, their P/E ratio also leads me to believe the stock is being heavily undervalued at this time and I think they are well-poised to capitalize on the implementation of Obamacare.
XOM – Exxon Mobil Corp
he combination of the ongoing industry strength, profitable business model and energy commodity outlook, all bode well for this very large-cap position. A great dividend play that offers a current 2.28%yield while the investor waits for additional capital appreciation of the stock, certainly doesn’t hurt their story.
MCK – McKesson Corporation
It’s been rated as a five-star stock by Standard & Poor’s for well over three years, and since it’s centered on healthcare, its prospects in 2013 are good. I think the implementation of Obamacare is going to positively affect many healthcare stocks, and given McKesson’s track record, I put them at the top of the list.
UNH – UnitedHealth Group Inc
You don’t bet against the government, do you? United Health Group recently purchased QSSI (Quality Software Services Inc.) which recently won a government contract to help construct the federal health care exchange. If there are any conflicts of interest in preparing and enacting the President’s health care agenda, be prepared to take advantage of it. There is also a nice dividend of 21.25 cents a share.
Disclaimer: None of these views are intended as investment advice. Everyone’s situation is different, so all investors should do their own research and assessment before determining what investment (if any) is right for them.