Top 50 stocks to buy in 2009 & 2010 & 2011

Gentex (GNTX, news, msgs) and other auto parts suppliers are transforming the rearview mirror from a low-tech assemblage of plastic and glass to a sophisticated electronic module that automakers use to introduce safety and communications features to their vehicles.


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Gentex's specialty is a rearview mirror that uses electricity to automatically dim the headlight glare from trailing vehicles. It also has mirror devices that display the temperature, hold microphones that permit hands-free cell phone conversations, open your garage door and turn on your home's lights.

The Zeeland, Mich., company is a leader in the drive to incorporate cameras into automotive mirrors. It has a system that links a rear-mounted camera to a video monitor embedded in the rearview mirror that gives drivers a better view of what's behind them as they back up. The company's cameras can distinguish between red and white lights, and between streetlamps and the lights of oncoming vehicles.

The 35-year-old company's focus on innovation was cited by Wells Fargo on Oct. 16 as it raised its rating on Gentex to "outperform" from "market perform." Analyst Richard M. Kwas said the stock was attractive "given earnings growth prospects." Kwas raised his earnings estimates for 2009 and 2010, saying he expects production to rise as the company's SmartBeam and rear camera mirror systems push into new markets.

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Gentex appears on a monthly list of stocks created with MSN Money's StockScouter tool, which since 2001 has helped investors assess individual stocks' likelihood of outperforming the broad market.

Investment research firm Gradient Analytics uses StockScouter to create daily and monthly stock lists. MSN Money columnist Jon Markman collaborated with the company to devise strategies for putting the tool to work.

One of Markman's strategies involves investing an equal amount of money in each of the stocks in the computer-generated portfolio at the start of the month, selling them at the end of the month, then beginning the process again the next month. For investors who prefer to handle fewer stocks, Markman recommends using the strategy with the top 10 stocks on the list. An investor who followed Markman's 10-stock strategy since it was launched would have realized a gain of 455% through Oct. 31, according to Gradient Analytics, and had an annual average return of 22.9%. Over the same period, the Standard & Poor's 500 Index ($INX) was down 14.4%.
Coach rolls out China strategy
Coach (COH, news, msgs) is also on the November list. The designer and marketer of handbags and fashion accessories is touting early success with its lower-priced Poppy collection, introduced in July to stem the slide in same-store sales and lure younger shoppers.

The New York company is also bullish about prospects in mainland China, where it's set to open its first store next spring, in Shanghai. Coach already has stores in Hong Kong and Macau.

Coach hopes its aggressive expansion in China will replicate the success it's had in Japan, which accounts for about 40% of the global handbag market. Coach sees the Chinese market for luxury handbags and accessories more than doubling, to $2.5 billion, by 2013.

"We're squarely focused on the abundant growth opportunities available to us as we begin to emerge from this downturn," CEO Lew Frankfort told investors and analysts last month during a conference call to analyze fiscal-first-quarter financial results.

Video: Coach's mixed bag

The downturn knocked demand for apparel and accessories back to 2005 levels, said Standard & Poor's Equity Research analyst Marie Driscoll in an Oct. 23 note to clients. She also said Coach should benefit from the resulting "shakeout of extraneous brands."

Jefferies on Oct. 30 raised its rating on Coach to "buy" from "hold," citing valuation and saying that "sales trends are about to accelerate" as consumers return to the malls and department stores restock depleted inventories. The investment bank raised its target price on the stock by $2 to $40. "We believe shares deserve a premium given stronger global-growth prospects, industry-leading returns and a strong management team," Jefferies said in its research report.
Tenaris (TS, news, msgs) is entering the "sweet spot of its cycle," according to Goldman Sachs, which on Oct. 20 added the world's biggest manufacturer of steel pipes for the energy industry to its "conviction buy" list, upgrading the stock to "buy" from "neutral" in the process.


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Potential catalysts include a recovery in European sales, Goldman said, as well as a spike in prices for the welded steel tubular products used in pipeline construction. Tenaris dominates the high-end market for OCTG (oil country tubular products) required by companies that gather, transport and process oil and natural gas, Goldman noted.

Tenaris, headquartered in Luxembourg, should benefit from increased exploration and production activity if oil prices rise next year, as expected, Deutsche Bank analyst Marcus Sequeira said last month in raising his earnings estimates for the company to $41 per share from $30. The analyst also raised his 2010 oil price forecast by $10 a barrel to $65.

Crude oil prices have been rising over concerns about the weakening dollar. But skeptics say the energy market fundamentals remain weak and that crude's gains could evaporate.

Video: 3 drillers worth a look

The outlook for natural-gas prices remains bearish, as producers keep producing despite falling prices, Credit Suisse analyst Jonathan Wolff wrote on Oct. 7 as he slashed his natural-gas price forecasts for 2009 and 2010.

"We see an industry that has the desire, near-term liquidity and capital-market access to pursue volume growth," the analyst said
In deep
Noble Energy (NBL, news, msgs) cited weak energy prices in posting third-quarter earnings that were down 89% from the same period last year.

Longer term, though, cheap natural gas could help Noble and other producers by hastening a switch to gas from coal for electric power generation. Finding a way to boost the role of natural gas is a big part of the skirmishing over climate legislation under consideration in the Senate.

Noble, headquartered in Houston, has oil and gas operations in the Gulf of Mexico, the Rocky Mountain region, West Africa, China, Israel, the North Sea and elsewhere.

Analyst Leo Mariani at RBC Capital Markets said Noble shares should rise as the company sheds natural-gas properties and shifts its investments to crude oil. Mariani upgraded the stock to "outperform" from "sector perform" on Oct. 26 and raised his price target by $5 to $90.

"Noble's best economics are in deepwater Gulf of Mexico, West Africa and Israel regions, and we expect it to devote most of its capital to these crude-weighted regions," Mariani wrote. The analyst expects crude to account for 41% of Noble's production this year and rise to 60% by 2013.

Whiting USA Trust I (WHX, news, msgs)
Oil and natural gas
$17.19
9

Alpha Pro Tech (APT, news, msgs)
Medical equipment
$5.99
10

Kayne Anderson Energy Development (KED, news, msgs)
Energy investments
$12.49
8

Golden Enterprises (GLDC, news, msgs)
Salted snacks
$3.70
8

Pioneer Southwest Energy Partners (PSE, news, msgs)
Oil and gas drilling
$21.20
8

Edenor (EDN, news, msgs)
Electricity distribution
$7.91
8

Tenaris (TS, news, msgs)
Steel pipe
$35.62
10

Genesco (GCO, news, msgs)
Apparel retail
$26.07
8

BP (BP, news, msgs)
Oil and natural gas
$56.62
10

Liberty Bancorp (LBCP, news, msgs)
Community banking
$7.85
10

Tortoise North American Energy (TYN, news, msgs)
Energy investments
$19.25
9

MV Oil Trust (MVO, news, msgs)
Oil and gas drilling
$18.83
9

Global Partners (GLP, news, msgs)
Petroleum products
$24.70
9

Intergroup (INTG, news, msgs)
Property management
$11.40
9

Toyota Motor (TM, news, msgs)
Automobiles
$78.89
9

Golden Pond Healthcare (GPH, news, msgs)
Investments
$7.88
9

China Holdings Acquisition (HOL, news, msgs)
Investments
$9.66
9

Enbridge Energy Management (EEQ, news, msgs)
Oil and natural gas
$46.43
8

FEMSA (FMX, news, msgs)
Soft drinks, beer
$43.31
8

Energen (EGN, news, msgs)
Oil and natural gas
$43.88
10

America Movil (AMX, news, msgs)
Telecommunications
$44.13
10

Suburban Propane Partners (SPH, news, msgs)
Fuels
$43.02
10

Noble Energy (NBL, news, msgs)
Oil and natural gas
$65.63
10

Schlumberger (SLB, news, msgs)
Oilfield services
$62.20
10

Saneamento Basico Est Sao Paulo (SBS, news, msgs)
Utilities
$38.52
10

XTO Energy (XTO, news, msgs)
Natural gas
$41.56
10

EOG Resources (EOG, news, msgs)
Natural gas
$81.66
10

Gentex (GNTX, news, msgs)
Auto parts
$16.01
10

Inergy Holdings (NRGP, news, msgs)
Propane
$$49.38
10

USANA Health Sciences (USNA, news, msgs)
Nutritional supplements
$28.82
10

Pengrowth Energy Trust (PGH, news, msgs)
Oil and gas drilling
$9.20
10

Steven Madden (SHOO, news, msgs)
Shoes
$40.50
10

Technology Research (TRCI, news, msgs)
Electrical safety
$3.60
10

Ensco International (ESV, news, msgs)
Oil and gas drilling
$45.79
10

Pride International (PDE, news, msgs)
Oil and gas drilling
$29.56
10

Coach (COH, news, msgs)
Handbags, accessories
$32.97
10

Mirant (MIR, news, msgs)
Electric utilities
$13.98
10

Talisman Energy (TLM, news, msgs)
Oil and natural gas
$16.97
10

Canadian Natural Resources (CNQ, news, msgs)
Oil and natural gas
$64.67
10

Legacy Reserves (LGCY, news, msgs)
Oil and natural gas
$16.12
10

Deckers Outdoor (DECK, news, msgs)
Footwear
$89.67
10

Holly (HOC, news, msgs)
Oil refining and marketing
$29.01
10

Transglobe Energy (TGA, news, msgs)
Oil and natural gas
$3.80
10

DTE Energy (DTE, news, msgs)
Electric utilities
$36.98
9

AGL Resources (AGL, news, msgs)
Natural-gas distribution
$34.96
9

American Electric Power (AEP, news, msgs)
Electric utilities
$30.22
9

El Paso Electric (EE, news, msgs)
Electric utilities
$18.75
9

Chevron (CVX, news, msgs)
Oil and natural gas
$76.54
9

Edison International (EIX, news, msgs)
Electric utilities
$31.82
9

NiSource (NI, news, msgs)
Natural gas, electricity
$12.92
9



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