Top Stocks

Written by Douglas Estadt

We've just begun buying a few shares in NED after hearing their management present, and we bought more today. Here are the main reasons:

 

• Extremely low p/e ratio for such strong results/growth prospects

• Knowledgeable passionate management team

• Top of the line products, with well thought-out strategies 

• Sitting on a ton of cash - 3 dollars/share

 

To learn more about our thoughts on Noah Education Corp, view the video below

 

Strange doings in China. And they should have you scratching your head and asking, “How do you invest in this market?”

I'm not talking about Google's (GOOG) decision to stop self-censoring its China search engine and retreat to Hong Kong in the hope -- delusional, I suspect -- that the Chinese government will let Google Hong Kong operate outside the censorship rules.

And I'm not talking about the spying bribery trials of four Rio Tinto (RTP) executives and employees that have resulted (so far as anyone can tell, since today the proceedings were moved to a closed court) in guilty pleas from some defendants on bribery charges but denials of the commercial spying charges.

 

This post comes from The Motley Fool's Dave Mock.

 

Investors are always hunting for the next big thing -- the dream stock that will soar into the stratosphere once the market discovers it.

 

MSN CAPS offers a variety of resources to help investors find tomorrow's leaders. The organizing principle behind the 160,000-member community is that collective estimates are often superior to the judgments of most individuals, and that a system that incorporates the knowledge, information and skills of the many can help individuals beat the market.

• Check out hot ETFs

We used CAPS' handy stock screening tool to quickly find real-estate companies with a market value of at least $100 million, revenue growth of at least 30% over the past three years and shares trading at a price-to-earnings ratio of less than 25.

 

Then we tapped the collective intelligence of CAPS members to see whether the numbers tell the true story.

 

Our screen recently returned this trio of stocks:

 

Written by Douglas Estadt

Rumors are again swirling around General Growth Properties. The latest one floating around is that Simon Properties is preparing another lowball bid around $13 for GGP shares.  Todd Sullivan from http://ValuePlays.net helps us with reasons to not take this too seriously:

 

• $13/share is $3 less than GGP's price at its lowest point today

• People want these properties, so it's hard to see shareholders selling out for such a low bid

• Other, more serious potential bidders are taking action as we get closer to  deadlines

• Regardless if this low-ball materializes, many others will bid for these assets

 

For more with Todd on GGP, see the video below

 

Lost in all the health care hullaballoo this week is an interesting finding released by the government: Of the 104 senior bankers whose pay was drastically reduced by federal regulators, nearly 85% are still at their companies.

This appears to contradict the banks' claims that cutting executive salaries would cause everyone to up and leave in a mass exodus of talent.

Pay czar Kenneth Feinberg is releasing these findings as he gives the green light to pay packages for the 25 highest earners at banks that received government bailouts, The New York Times reports. He's still figuring out what the next 75 highest-paid will receive. 

Hey, we put everyone else's stock picks in here, so why not give this kid a turn?

Shia LaBeouf, all of 23 years old, apparently now knows a thing or two about investing after finishing filming on "Money Never Sleeps," in which LaBeouf plays a Wall Street trader named Jacob Moore. This is the sequel to Oliver Stone's 1987 hit "Wall Street."

• MSN Entertainment: On the set of 'Tron Legacy'

LaBeouf is becoming known for his investing prowess. He brags in this video that he put $20,000 into a Schwab online trading account, and in a matter of months that $20,000 turned into $489,000.

 

By Lauren Tara LaCapra, TheStreet

 

Now that other major agenda items are on the road to passage, the Obama administration has set its sights on the two big, gaping holes in America's balance sheet: Fannie Mae (FNM) and Freddie Mac (FRE).

 

Though the mortgage-finance giants stand to vaporize more taxpayer funds than any other bailed-out company, and are hugely important to economic policy goals, little has been said about Fannie and Freddie's future so far.

On Tuesday, Treasury Secretary Timothy Geithner spoke in broad terms about the plan to address Fannie and Freddie before the House Financial Services Committee. The plan appears to be for another hybrid public-private entity, but one whose government support is explicit, with risk priced more "appropriately" than it has been for decades.

 

I was just watching the President sign the health care bill and I was watching the stock market action in the margins. What is all the fear about? Why are people afraid of change?

Over the past few weeks as I listened to my favorite stations, congressmen and commentators I sensed that there was a lot of fear and anxiety in their voices. In spite of all their protests and the protests they were covering the bill passed anyway. I started to ask myself how could something pass that it seemed everyone was against and then it hit me. Maybe I was listening to the wrong people. I stepped back to see what was happening.

I don't think there is anyone, rich or poor, Democratic or Republican that really wants someone to die or stay sick because they haven't got the financial means to purchase the services or drugs that will save their life or ease their pain. Americans are just too carrying to let that happen. Things will be different and we shouldn't fear that. But how will I change my plan? 

By Lauren Tara LaCapra, TheStreet

 

Drilling down into the terms and details of American International Group's (AIG) massive derivative book shows why unwinding thousands of these bets has been so difficult and time-consuming.

 

AIG's financial products division has made incredible strides in whittling down its often-complex trades. Progress has sped up since the markets have recovered and the firm has been standing on more solid ground, both managerially and operationally.

 

As of March 9, AIG had reduced the notional value of its derivatives book to $800 billion, with 14,800 trades outstanding. That's $140 billion less exposure and 8% fewer trades than at year-end alone, and less than a third of the $2.7 trillion in exposure at its 2007 peak.

 

By David MacDougall, TheStreet

 

Bank of America (BAC) shares have outperformed those of rivals JPMorgan Chase (JPM) and Wells Fargo (WFC) during the past year. But the source of Bank of America's strength could also be its biggest risk.

 

As the largest US bank by assets with a market cap that's only slightly smaller than that of JPMorgan, Bank of America will likely be targeted by new regulations designed to clamp down on "too big to fail" institutions. While proposed regulations haven't been finalized, it's near certain that something will be signed into law that will restrict its banking operations, and the uncertainty of this process will weigh on Bank of America shareholders.

 

Bank of America stock has almost tripled during the past year as the company cut its leverage level and paid a dividend of about 2%. Bank of America's beta value is very high at 2.6, indicating the stock is extremely sensitive to market risk. With about 50% of the company's revenue coming from home loans, card services and deposits last year, Bank of America is more tied to personal finance than most of its competitors.

 

Gamestop (GME) is Wall Street’s favorite dog to kick around. Shares are down 20% from the lows of 2009 despite a red-hot rally of about 70% in the broader market. That makes it one of the 10 worst performers in the last year.

 

The reasons are crystal clear: As consumer spending dried up, all but the hard-core gamers cut back on spending. And despite a bit of strength around the holiday season, video game sales have done nothing but drop. The details from February’s video game sales report a few weeks back showed more of the same, and GME continues to pay the price.

• Two other stocks that could buy Gamestop

But is the brutal fall of GME entirely fair? Some companies say the answer is no, and they are looking to game Gamestop’s decline as a shot for a bargain basement acquisition. And if execs at Blockbuster (BBI) can work some accounting magic, could be a potential buyer of GME.

 

By Jim Cramer, TheStreet

 

Nothing was more important than health care in Monday's session. Can't take away from it. But the eye-opening, I should say eye-popping, Williams-Sonoma (WSM) call may have been more of a catalyst than anyone who wasn't on it might have realized.

 

WSM basically said the public is spending again for everything from high-end bedding and nice cookware to expensive furniture and glassware. It was like something you would have heard not only before the Great Recession but maybe in the midst of the housing boom.

 

You could learn so much from it. First, you recognized that, like Bed Bath & Beyond (BBBY), when Linens 'n Things went under, WSM picked up great share when Smith & Hawken -- a unit of Scotts Miracle-Gro (SMG) -- closed its retail arm. (That was a two-birds-with-one-stone call because SMG moved up huge, too, on it).

 

 

You've been warned about the next bubble. (Don't panic yet. It looks like it's a way off.)

A recent survey of 109 institutional investors based in Asia and Europe, commissioned by Fidelity from the Economist Intelligence Unit, shows that 63% of respondents plan to increase their allocation to stocks in Asia, excluding Australia and Japan, in 2010, even though they think Asian assets are riskier than their counterparts in developed markets, and they admit that they lack knowledge and expertise in these markets.

In other words, they're jumping on the bandwagon. (I doubt that the survey would find very different results for U.S. institutional investors. Fidelity itself, for example, is moving one of its stars, Anthony Bolton, to Hong Kong this month to set up a $971 million China investment trust that will be listed in London.)

 

By Lauren Tara LaCapra, TheStreet

 

Bank of America (BAC) is on a better track with its reinvigorated business strategy, but mistakes from the past will keep the bank's profit on shaky ground for some time.

 

Bank of America Chief Executive Brian Moynihan has outlined his broad plan to pursue new business in high-growth emerging markets, and develop better relationships with wealthy clients in mature markets. He left this week for a trip to China, according to The Wall Street Journal, in an effort to build ties with leaders and business partners there.

 

But Bank of America is a laggard in respect to its newfound priorities abroad, and it will take time and effort to catch up. Major competitors are already established in China or building a presence there.

 

James Surowiecki at The New Yorker sets off on a well-traveled path, writing about how Apple (AAPL) succeeds because it ignores the middle of the market.

But the idea is worth revisiting as the company gears up to sell its iPad tablet next week. There are other worthy competitors out there, and their products are cheaper.

"Apple’s assumption is that, if the iPad is also significantly better, people will happily shell out for it," Surowiecki writes. It's an assumption that has paid off handsomely for the company, as people flocked to the iPod and iPhone, gladly paying a premium when they could have bought a sufficient competitor for less money.