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Wednesday, April 27, 2005

Big Ben's Stock Picks for 2005-06

Below are my stock picks for 2005-2006. My opinions may change. You should not solely rely on me for investment decisions. Do your own research. Read annual reports, listen to conference calls, and read the Value Line & S&P reports. I may own some of the stocks below.

Energy
Chesapeake Energy (NYSE: CHK) (Own)
An excellent natural gas play.
Good entry point under $19.50.
Target Price: $25-28

Halliburton Holding Company (NYSE: HAL) SOLD
Has two units. Energy Service & Construction (KBR). Well managed company with a potential to sell off its construction unit to create additional value.
Good entry point under $42.00 ($21 Split Adjusted)
Target Price: $48-50 ($25 Split Adjusted)

Conglomerates
Tyco (NYSE: TYC) DROPPED 10/19/05 ( -20%)
Great company that is significantly under valued.
Good entry point under $35.00
Target Price: $40.00


General Electric (NYSE: GE)
Good entry point under $35.50
Target Price: 41.00

Consumer Products

Altria (NYSE: MO) (Own)
People always buy tobacco. Plus this company has a 4.5% dividend. This is my favorite stock for 2005-06. There is litigation risk factored into the low P/E. Still a very solid company.
Good entry point under $66
Target Price: $73

Proctor & Gamble (NYSE: PG)
Best consumer products company that is adding the Gillete brand to their elite list. They also get Duracell in the Gillete deal. P&G has a terrific product line and they just increased their dividend.
Good entry point under: $55
Target Price: $65

Coca-Cola (Own) or Pepsi are both other good stocks in this group. Coke has a little higher dividend but Pepsi is growing earnings faster.

Healthcare
Pfizer (NYSE: PFE) SOLD
Largest pharma in the world. Has a nice 2.7% dividend. One of the most undervalued companies on Wall Street.
Good entry point under $28
Target Price: $32

United Health Care (NYSE: UNH) (Own)
Earnings have grown 35% over the past five years. Earnings should grow over twenty percent the next five years. This is a must own company that does not have the litigation risk of big pharma. My favorite healthcare stock.
Good entry point under $100. ($50 Split Adjusted)
Target Price: $125

Financial Services
Citigroup (NYSE: C) (Own)
World largest bank and nearly yields 4%. Another solid company that is undervalued.
Good entry point under $48
Target Price: $58

Goldman Sachs Group (NYSE: GS)
The leader in investment banking. Will benefit from increased M&A activity. S&P has a 2005 target price of $150. I am not that bullish, but I still like GS.
Good entry point under $110
Target Price: $130

Technology
I really don't like tech stocks for 2005-06.

Qualcomm (Nasdaq: QCOM) SOLD
Will be further implementing their CDMA wireless technology this year. It is far superior to current technologies used by Sprint & Cingular.
Good entry point under $35
Target Price $45

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