Alpha" stocks for your "portfolio

Looking for CGs of 20% to 40% on your investment looking 18 months out?

I mange $400,000 of family funds and I haven't purchased one losing STOCK in over two years, and I ain't starting here.

Consider shares in these 4 companies.


Barrick Gold (ABX) (44.32) is a good way to play the current, multi year bull market in Gold. ABX's most recent quarterly revenues of $3 billion dollars were its best single quarterly revenue numbers in over 20 quarters. Moreover, ABX's corresponding 1st quarter earnings (EPS) of $1 a share were ABX's best EPS in more than 20 straight quarters. This upward trend in sales and earnings should/will continue for at least the next two year, even if Gold drops below $1,450. ABX management says the total costs to produce an ounce of gold is in the $450 to $480 range. Heck, that means they should make money with GOLD at $600 an ounce! I have a target price of $75 a share within 18 months for a CG of 65%.

Applied Materials (AMAT) (12.73) is the world's largest manufacturer of wafer fabrication equipment for the semiconductor industry. AMAT is a great turnaround story, and the stock is super cheap at these price levels. AMAT's stock traded below $10 a share only briefly (for about 3 months in late 2008) in the last ten years. But with EPS and revenues on the rise quarter to quarter in a highly comparative fashion, we expect good things from this undervalued big technology.

Looking at AMAT's earnings history... In May of 2002, EPS (TTM) were under 10 cents a share - but the stock traded above $20 a share. For 2011, the consensus expect EPS of $1.40 a share - with record company revenues to match. That's should be enough "drive" to put AMAT's stock right back at $20 a share again. We've put a target price of $21 on AMATs shares within 18 months. Give the dog a bone!

Enterprise Products Partners LP (EDP) 40.52 (with a 5.9% dividend) is a an integrated provider of natural gas and natural gas liquids - with 16,900 miles of NGL pipelines, and related product storage and terminal facilities of 160 MMBbls. EDPs last quarter revenues topped $10 billion for the first time ever. Even Google has yet to show us $10 billion dollars in revenues in a single quarter. I look for EPS for 2011 of $2.04 a share and $2.25 for 2012. My target price for EPD is $54 a share within 18 months. There's no problem for EPD meeting their dividend payments either. EPD has increased its dividend for 26 consecutive quarters, and 35 times since its IPO in 1998.

Magna International Inc (MGA) (45.94) is a Canadian company that manufacturers automotive components for Ford and GM. Revenues and EPS for 2011 should be 5 year records for the company - with estimated EPS of $5.05 on revenues of $28 billion. Standard and Poors currently have MGA rated 5 STARS with a 12 month target price of $72 a share. That would be a 60% capital gain - if you are counting. The Street, Jaywalk Consensus and Ford Equity currently rate MGA a BUY as well.

This writer has no long or short positions in any of these companies.



Thomas Azzara
AZZARA Security Advisors Ltd.
54 Sandyport Drive
P.O. Box CB 11552
Nassau Bahamas

Fax/phone: (242) 327-7359
E-mail: taxman@batelnet.bs
www.bahamasbahamas.com

Overseas agent - Anguilla registrar (since 2001)
(Company formations - foreign trusts)