Australian (ASX) Stock Market Forum

Favourite Stocks for 2010

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I have had a great last few of years investing. Thinking this over I give credit to stocks purchased after interest was gained from reading the posts on some stock forums. It all started with reading on ASF about AOE. I was lucky and purchased these near the bottom, traded them a little, sold at a good price and within 18 months had a 400%+ return. Then there was ADI. Initially I purchased 5000 ADI. I have followed its progress and its lack of progress on Stock chat forums and traded according to sentiment and ended up with hundreds of thousands of ADI to show for my original 5000.

Then there were shares like LYC, OZL, SMY, OSH, , AGM, YTL, AZR to name a few, that were very kind to me. All the time I invested or traded these I was able to get more information from stock forums than from news items or company announcements.

Now I am working on CER, CNP, LYC, ADI, BUL, CFE, EDE, TAS, VPG, etc and never do anything with them without referring to all the chat first. They are my favourite stocks for 2010.

Why?

CER. The nett value, after debt, of their assets is way below their replacement costs. They have not traded at a loss or near a loss right through this trying time and I see no reason why they will not continue to trade profitably. Their bricks and mortar will increase in value through inflation if for no other reason.

LYC. Had trouble with funding but is now fully funded to production. Will establish itself as a dominant force in the rare earth sector. Rare earths are the next resource to boom.

ADI. Still a spec stock but could have a great future in oil and gas. Not expensive.

BUL. BUL has large areas with major coal seam gas potential. They also have credible partners in Stanwell (power generation) and Kogas ( a large Korean gas company).

CFE. CFE seem to be on a money making treck. The value of their assets have a cash value well in excess of the MC. A 10c dividend looks certain this year. Companies and shares in companies bought at the very bottom are being sold or spun off at quite profitable prices and new ventures look like being great money earners.

CNP and VPG. Similar to CER

EDE. The technology that EDE have under its control with Hythane, the trials under way with Hythane as fuel and the potential for the sale of Hythane in the USA and India place EDE beyond the development stage and near the production and sales stage.

TAS. TAS is still a spec stock but it has a lot of interests, including a major shareholding in EDE. It has great lease areas prospective for copper and uranium along with other interests any one of which could be a company maker.

Some will see this as a ramp. So be it. Some see every favaouable post on a stock as an up ramp and criticism as a down ramp. I look at each post as information, do my own research and make my own decision. I expect others to do the same.

I'm interested in other peoples favourite stocks for 2010. I'm hoping for a couple of good tips to add to mine.

Make ASF a real stock forum. There is more to discuss here than whales.:2twocents
 
Nioka,

Interesting choices - I'll have to look into them.

I trade in speccies and have had some small success. I currently hold VIL, OBJ and GOA, these being stocks which have changed from high risk to somewhat lower.

VIL, for instance has recently found significant shows of gas and oil and are currently conducting tests as to its commercial vaue. They are about a couple of weeks away from releasing an annoucement to that effect.

OBJ also about 2 weeks away from issuing an announcement as to whether 3M will purchase the rights to use OBJ's dermal patches, after conducting trials for the last 3 months.

GOA have several projects at the moment, least of which is the Sao Chico and Crater Mountain projects, both of which have great potential for gold production. They have found gold at Sao Chico and will go into production in May of this year.

Check out their anouncements for all 3 of these.

Geordie
 
One of my choices is CAP : small mkt capital and small share issue with up side of location of tenaments and should have a infer. res. about march 2010,
near rail/ports is magnetite grade so a bit down side but amount/cost of benefication ???? ps imo dyor:cool:
 
My pick for the year - maybe a surprise that it's not a regular CSG stock - is CXY - it's a UCG (underground coal seam gasification) stock.

Bit of a long shot - but if it goes I think it will go hard... very hard. They might just take the jump on their competitors.

for justification - see the CXY thread (bit quite lately).
 
Totally agree on CER and LYC; at current I keep topping up these two when I can.

Not really familiar with the rest.
 
I am completely out.

Highest probability trade imo is to buy gold on the next major correction.
 
I hope you're right UBIQUITOUS. UNS is the only small cap stock I currently hold in my portfolio. Been very strong in the last few sessions.

I was looking at GOA also, because of their geo team and PNG gold potential. A bit more speculative though.
 
I hope you're right UBIQUITOUS. UNS is the only small cap stock I currently hold in my portfolio. Been very strong in the last few sessions.

I was looking at GOA also, because of their geo team and PNG gold potential. A bit more speculative though.


Bilo83, the news which will be announced in the lead up to NASDAQ will be key. Unilife must deliver the SA contract. If, as expected, they do, then the $3.65 August price target will be achieved much sooner in my opinion. Happy to discuss further on the UNS thread.
 
PRU and GXY are my hopes for 2010

PRU has a couple of big gold deposits in africa, and if not taken over will become a very profitable business in it's own right..

GXY is all about lithium, and with so many car manufacturers giving hyrids a go , along with lit-ion battery use on the increase in a lot of other applictions, and deals done with the chinese, coupled with expected first production this year, leads me to believe that this is a no brainer, but that is only my oppinion..
 
Hope you are right namrog

hold PRU and GXY

PRU is an excellent T/O proposition, about to be listed on TSX and have likely upgrades to gold reserves upcoming soon, its got a few tipsters riding on its back though, so expectations may be priced in.

Another one to look at could be LNC

Linc Energy is a UCG/GTL company with large reserves of coal up for sale atm

Conservative value of for-sale excess reserves is above market cap

MD Peter Bond who holds about 45% of stock is holding out for a good price on the tenements
 
My spec is a bet on gold: RED, which has fundamentals that should make it crazy-good value at 14c unless the price of gold really tanks (and so far 14c is holding nicely through the recent wobbles). If it looks like gold can hold up this year and maybe even start a bit of a move up against the AUD, and I think it will, RED will take off.

The Chief of my Boring Nanna Stocks is WOW. Solid outfit, no crazy expectations about growth priced in, but likely to have a good run this year IMO - the hardware business is a cash cow and they're devious buggers all 'round (in a good way). Still, holding tight to this one (and the other Nannas) shows I'm a bit worried about the next few months.

One I'm not holding but keeping an eye on is BTA. It's dropped more than it should have, and there's a good chance of some governments moving over to favour Relenza for stockpiling. Also has some excellent new stuff well on the way to production. I really think this one is worth something close to $3, and certainly more than the $2-odd it's bouncing off right now. Good crazy panic stock - flies all over the place - and the previous big run will mean plenty of opportunists like me are looking to jump onto the next one. It's also a medical stock at pretty much the bottom of its value coming into a jittery period for the markets (well jittery for me, at least)... hmmm, I wonder if I've got some money lying around?

The other one I squint at is FKP. It's had the living crap kicked out of it, but bloody hell: 0.25 P/B (which is good even for a REIT). They've had to do some fancy footwork (DYOR, of course), but the pain is out of the way, now, and it's in a good position to benefit from property coming back. Every day I wince when I check the price, because I don't own any and some day soon this one's going to fly and I'll kick myself.

Most of my activity is in my two-weekers. Not really material for this thread.

(Summary: holding WOW and RED, not holding BTA or FKP).
 
Ladies and Gentlemen,

I thank you all for providing reasons for nominating the stocks that you have.

I think it is important that everyone explain their reasons for drawing the attention of others to particular companies as a "Favourite stock of 2010" as it provides a little context, as well as the starting point for additional research.

I do not wish to see posts that just list company names or ASX codes as I do not feel that information is particularly helpful on its own. The more detail you can provide the more value you add to the thread.

Thank you all for your co-operation. :)
 
QRX-Qrxpharma is a favourite of mine in 2010

QRxPharma is a clinical-stage specialty pharmaceutical company with a core focus on the development and commercialisation of pain therapy products. The market for treatment of moderate to severe pain is commonly classified as a ‘specialty pharmaceutical’ market, and is served by a number of pharmaceutical firms in the pain therapy area. Opioids are highly regulated by authorities such as the FDA and the Drug Enforcement Agency (DEA) in the US, and the Therapeutic Goods Administration (TGA) in Australia.

The first target market for QRxPharma’s pain therapy drugs is the US. This is the largest and most commercially attractive market for pain drugs in the world. The total market value of prescription opioid sales in the US was US$8.4 billion in 2007, just over 70% of the global total. The opioid market in the US has grown on average by 13% each year since 2001.

Now conducting a Phase3 study of MoxoduoIR with excellent earlier rusults.
Fully funded after recent rights issue QRX will on track in 2010 for a marketing agreement on successful completion of the Phase3 trials.
Very large target market with other products in the pipeline.
 
I am liking BUY (Bounty Oil).

  • Their Utopia oil field is ready to start production this year, giving them revenue to work with.
  • Their PEP 11 project will make much progress this year, leading to either massive positive results or fairly negative results.

I like the huge potential (and risk) of PEP 11 but I still feel the share price is safe because they will make good progress in several smaller projects throughout the year.


I like BBP/AEJ. Their price is just $0.09, yet they have $300m annual profit. Their $3b of debt is bad, but their profit feels safe. I need to check their annual report again though.
 
gbp they are drilling in uganda for oil
there is a two week delay to deliver the drilling rig cos it was held up drilling for tallowUK this has seen share price fall fairly close to cash backing
been trading and accumulating all month great risk to reward ratio
 
I really hope IRD start doing well, as with AGI (but i'm not holding my breath with that one) they still dont really have a winning formula and i think Lenny wants back into ALL which he does own alot of.

ALL should fall a great deal again with their current law suits that are public in the US could be a good buy when that happens..

I really should really stop gambling with gambling companies..

KRL - Which i am a little new to but sound good.
 
Many analysts are tippping thermal coal to be bulllish this year.

This is why I have chosen JAL (Jameson Resources) as my pick for 2010

reasons:

- current JORC high quality resource 124 mt (currently being expanded)

- in existing Canadian coal province

- most infrastructure already in place

- capex estimated as being a third of a typical aussie operation startup

- will be producing by years end

- coal is highly sought after from this area

- tiny 25 million market cap


let's have a look at some rough calculations:

The expanded mine case BFS is due out Q1 this year. I guess JAL had some revised estimates they wanted incorporated in the draft BFS and had Norwest ammend to their liking,

They have estimated $20 operating margin per tonne.

Initial estimates of 500000 tonne operation per annum. This gives operating profile of 500k x $20 = $10m. Lets say repayment of interest of $1m gives $9m x 0.70 = $6.3m NPAT.

Given the above and a market PE of 13, then we get 6.3x13 = $81.9m / 62m = $1.32 per share.

Now lets revise our estimate when JAL increases to 1m tonne a year production. That gets us to 2 x 1.32 = $2.64 a share.


Obviously there is further upside given any increase in the price of thermal coal.
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I've been completely out for a little while and won't be back into anything until we see the real bottom. Then, anything that mines PMs, if the market still exists.
 
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