We will be in the Year 2013 in a short while, the turning of a calendar page is no mystic for any of us. January 1 is no different from April 11 or August 13. Businesses, and markets keep on doing what they did yesterday or last week, unmindful of our journey around the sun.
Each new year brings optimism of a new start. And it doles out the opportunity to reassess, and reset our investing perceptions – and make fresh new year determinations.
That said the guys at Motley Fool have been pitching around some very groundbreaking investing ideas over the years, the following critique covers a teaser ad that has just started to permeate mailboxes, just before the onset of the New Year.
This time around they are mystifying to sell you their Stock Advisor Newsletter along with a report on their stock picks for the year 2013, so what are they, let us find out, here are the excerpts from the teaser ad in quotes…
An insanely cheap Chinese housing developer. Its P/E ratio sits just above 1 and the cash on its balance sheet equals twice its market cap. Not to mention, it comes with a dividend yield just shy of 5%. When you look at just how massive a trend urban migration is in China, this investment looks like a no-brainer.
I am intrigued! You too? Great, well then let’s figure out who are these…
Motley Fools Stock Pick # 1
Which Chinese Developer are they teasing here, I have an instinctive clue, but just to make sure I tossed the hint into my memory bank, and I am sure this indeed is a stock I have been following for quite sometime now.
The foolies are touting China Housing & Land (Nasdaq: CHLN) in this teaser ad that’s because CHLN is dirt cheap trading at a very low PE ratio of around 6, the developers gush about sales volumes. And it seems to be on the rise, and they are not postponing constructions anymore, that’s Great News from the investor’s perspective of course if this is sustainable.
Number 2 supplier of sand in the United States. That’s right — sand. Yet as boring as this investment may seem, sand is an essential component for fracking (a technique for extracting oil that’s becoming increasingly more necessary). Which is why demand has grown 28% annually since 2004. Thanks to its geographic and freight advantages, this company is perfectly positioned to quietly cash in on this growth.
Motley Fools Stock Pick # 2
The second stock they are touting in this teaser ad essentially is, U.S. Silica Holdings, Inc. who is a leading supplier of silica and sand with increased focus on performance materials, in industrial applications, such as Oil and Gas.
Owing to the surge in drilling operations, U.S. Silica has a thriving business in spite of the adverse sentiment against fracking, U.S. Silica Holdings, Inc, is one company that is going to greatly benefit from the fracking boom without being directly related to commodity or the pricing mania vis-à-vis oil and gas companies.
In theory at-least the equipment providers and ancillaries ought to have a stable outlook. Although it does not work out so cleanly, there have been drillers and frackers who have seen their share price plummet.
The company that figured out two ways to cash in on virtually every grocery store, pharmacy, and gas station in the country… and how combining these together created an unstoppable profit-making machine. Wall Street hasn’t wised up to this growth story yet, but we see an easy long-term winner.
Motley Fools Stock Pick # 3
Seems like we are seeing a lot more of tech focused teasers from the Motley Fool brothers, who the heck is this. Let’s figure out the no 3 idea. Shall we? OK so here it is, as usual with most of all the Gardner brothers tech picks this stock has already shot up and making waves. This ought to be considered overvalued for the skeptic investor, but before that.
What’s the Big Idea here?
From what I understand there is an upstart payment technology that’s upsetting credit cards wedge in handling small payments, and its called Near Field Communications (NFC). Here’s how it is NFC’s are chips built to specific set of RFID standards that allow smart phones and mobile devices to communicate with each other by bringing them closer say 2 to 4 centimeters away from each other.
Its applications include, but are not limited to handling small payment transactions at stores.
And the foolies are touting the leader in this field that is NXP Semiconductor (NXPI). NXP by the way supplies NFC solutions to most of all Android devices owing to their relationship with Google (GOOG). For instance, Nexus, S2, S3 Sony’s Xperia S and Samsung’s Galaxy series adopt the NFC solutions provided by NXP.
What do you think? Are you interested in jumping onto the Foolie bandwagon, let us know by dropping a few lines into the Magic Box below or simply click ‘Suggest Corrections’ to hook up with me, if you find any issues with this review, I will update any constructive suggestions accordingly.
You probably already know where I’m going with this, If you’re thrilled, by all means, go with them.
Disclosure: I don’t have any positions in any stocks mentioned herein, and no plans to initiate any in the near future as well.