Top March Stocks to Buy in 2011

Coca-Cola (KO, news) is gaining attention as an undervalued blue chip that's ideally positioned to help many investors get where they want to go as the bull market enters its third year.


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As with other mega-cap stocks, Coca-Cola shares are cheaper than their average price over the last decade -- investors are paying 13 times per-share earnings over the past 12 months, a discount from Coca-Cola's 10-year average P/E ratio of 25.
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The Dow component is a reliable source of dividends -- it has raised its payout for 49 consecutive years. The most recent increase was in February, when directors approved a 6.8% increase to 47 cents a share.


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Invest in Coca-Cola or PepsiCo?

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Dividends are a big reason Warren Buffett is so bullish on Coca-Cola. His investment vehicle, Berkshire Hathaway (BRK.B, news), is Coca-Cola's largest shareholder, with 8.6% of the company's stock. Berkshire last purchased Coca-Cola shares in 1995.



•What's ahead for the stock market
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Investors sat up and took notice this year when Buffett, in his much-anticipated annual letter to Berkshire shareholders, said he expects Coca-Cola dividends to double within a decade. If Buffett's right, the Atlanta company's dividend yield could jump to above 5.5% in 10 years, from 2.8% today.





Coca-Cola chief on growth plans



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"By the end of that period, I wouldn't be surprised to see our share of Coke's annual earnings exceed 100% of what we paid for the investment," Buffett wrote in the Feb. 26 letter. "Time is the friend of the wonderful business."



Coca-Cola appears on a daily ranking created using StockScouter, an MSN Money tool that identifies stocks with strong growth prospects in the near term. All stocks with Scouter ratings of 8, 9 or 10 are considered for the list, which is then shortened to exclude stocks with a trading volume below 50,000 shares a day. The remaining stocks are ranked on the basis of market capitalization, sector membership and whether they are growth or value stocks.
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With operations in more than 200 countries, Coca-Cola is the world's biggest soft-drink company. It owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite). Other brands include Minute Maid juices, Dasani water and Honest Tea.


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Global sales rose in the fourth quarter despite a soft economy, the company said, with emerging markets like Brazil and India providing the fastest growth. It's also making a big push into Africa, where Coke is the dominant brand and a middle class is just emerging.



Coca-Cola also took market share from rival PepsiCo (PEP, news) in North America in the fourth quarter. Wall Street has been more bullish on Coca-Cola than on Pepsi in recent quarters because of Coca-Cola's strong global brands and its absence of snack foods, which tend to have lower profit margins and are more susceptible to rising commodity prices.







.

Of 15 analysts covering the company, 11 rate Coca-Cola a "strong buy," three rate it a "moderate buy" and one has a "hold" rating.



The stock has a StockScouter rating of 9, meaning it is expected to significantly outperform the market over the next six months with very low risk by MSN.com/money

top 10


Company Sector Friday's close Forward P/E Scouter score

Chesapeake Energy (CHK, news) Oil and natural gas $32.81 10.9 10

Gap (GAP, news) Apparel $21.97 10.4 10

Coca-Cola (KO, news) Soft drinks $64.81 15.1 9

Exxon Mobil (XOM, news) Oil and natural gas $82.12 10.1 9

América Móvil (AMX, news) Telecommunications $55.10 13.1 9

Yamana Gold (AUY, news) Gold mining $12.73 12.3 9

ConocoPhillips (COP, news) Oil and natural gas $76.30 9.7 9

Chevron (CVX, news) Oil and natural gas $99.93 8.5 9

Lowe's (LOW, news) Home improvement $26.94 13.6 9

Macy's (M, news)









 

Stocks to watch this week .....

BTU -
IRBL.PK-InRob Tech Ltd.
JALSY.PK-Japan Airlines.
MEXP.OB-Marine Exploration, Inc.
MMUH.PK-Mobile Media Unlimited Holdings, Inc.
NXCO.PK-Nexicon Inc
PWRM.OB-Power 3 Medical Products Inc.
QASP.PK-Quasar Aerospace Industries, Inc.
SNWT.OB-San West, Inc.
SGTI.OB-Shengtai Pharmaceutical Inc.
TADF.OB-Tactical Air Defense Services Inc.
VRML.PK-Vermillion, Inc.
YASH.OB-Yasheng Eco-Trade Corporation.
GGWPQ-. General Growth Properties Inc.
NXTH.OB-NXT Nutritionals Holdings, Inc.
POSC.OB- Positron Corp.
ACTC.OB- Advanced Cell Technology Inc.
MTLQQ.PK-Motors Liquidation Company
LTUM.OB- Lithium Corporation
MDCE.OB- Medical Care Technologies, Inc
WDRP.PK- Wanderport Corp.
AXCG.PK- Avenue Exchange Corp.
IMGG.OB- Imaging3 Inc.
CRWG.OB- CrowdGather, Inc.
ZVTK.OB- Zevotek, Inc.
CBAI.OB- Cord Blood America Inc.
PWRM.OB-Power 3 Medical Products Inc.
QASP.PK-Quasar Aerospace Industries, Inc.
SNWT.OB-San West, Inc.
SGTI.OB-Shengtai Pharmaceutical Inc.
TADF.OB-Tactical Air Defense Services Inc.
VRML.PK-Vermillion, Inc.
YASH.OB-Yasheng Eco-Trade Corporation.
TPHM.PK- Thomas Pharmaceuticals Ltd.
ISCO.OB- International Stem Cell Corporation
CHTL.OB- China Tel Group Inc.
BIEL.PK-BioElectronics Corporation
SPNG.PK- SpongeTech Delivery Systems, Inc.
GGWPQ.PK- General Growth Properties Inc.
RCYT.OB- Recycle-Tech Inc (RCYT.OB)
CCTC- Clean Coal Technologies, Inc. (CCTC.PK)
JYHW.OB- JayHawk Energy, Inc. (JYHW.OB)
DNLH.PK- FINELINE HDLGS INC (FNLH.PK)
CCTR.OB-China Crescent Enterprises, Inc. (CCTR.OB)
WAMUQ.PK-Washington Mutual Inc. (WAMUQ.PK)
VCTY.PK- Videolocity International Inc. (VCTY.PK)
PVCT.OB- Provectus Pharmaceuticals, Inc.


ANR -
JRCC-
PCX -
ACI -
LEAP-Leap Wireless International Inc.
PARL-Parlux Fragrances Inc.
NEWS-NewStar Financial, Inc.
PZZA-Papa John's International Inc.
NR-Newpark Resources Inc.
ACXM-Acxiom Corporation.
BEXP-Brigham Exploration Co.
ARRY-Array BioPharma, Inc.
BEAT-CardioNet, Inc.
RXII-RXi Pharmaceuticals Corporation
XRTX-Xyratex Ltd.
MGPI-MGP Ingredients Inc.
JASO-JA Solar Holdings Co., Ltd.
HOKU-Hoku Scientific, Inc.
DROOY-DRDGOLD Ltd.
USEG-US Energy Corp.
HXL-Hexcel Corp.
FLR-Fluor Corporation.
AMED-Amedisys Inc.
NSU-Nevsun Resources Ltd.
APL-Atlas Pipeline Partners LP
BPSG-Broadpoint Gleacher Securities Group, Inc.
ONCY-Oncolytics Biotech, Inc.
ARAY-Accuray Incorporated
SNIC-Sonic Solutions
PWER-Power-One Inc.
LEAP-Leap Wireless International Inc.
PARL-Parlux Fragrances Inc.
NEWS-NewStar Financial, Inc.
PZZA-Papa John's International Inc.
NR-Newpark Resources Inc.
ARNA-Arena Pharmaceuticals, Inc.
CSUN-China Sunergy Co. Ltd.
RMBS-Rambus Inc.
THC-Tenet Healthcare Corp.
TSL-Trina Solar Ltd.
OPTT-Ocean Power Technologies, Inc
PLXT-PLX Technology Inc.
ARTG-Art Technology Group Inc.
SQNM-Sequenom Inc.
LVS-Las Vegas Sands Corp.
SOMX-Somaxon Pharmaceuticals, Inc.
OPTT-Ocean Power Technologies, Inc
PLXT-PLX Technology Inc.
ARTG-Art Technology Group Inc.
LVS-Las Vegas Sands Corp
SEED-Origin Agritech Limited
RINO-RINO International Corporation
IPGP-IPG Photonics Corporation
MITI-Micromet, Inc.
SQNM-Sequenom Inc.
GPK-Graphic Packaging Holding Company
XRA-Exeter Resource Corporation
NLST-Netlist Inc.
SEED-Origin Agritech Limited
INAP-Internap Network Services Corp.
OSUR-OraSure Technologies Inc.
PCS-MetroPCS Communications Inc.
SWSI-Superior Well Services Inc.
BZH-Beazer Homes USA Inc.
CYCC-Cyclacel Pharmaceuticals, Inc.
ATHX-Athersys, Inc.
CNLG-Conolog Corp.
BBEP-Breitburn Energy Partners LP
SMTB-Smithtown Bancorp Inc.
PNX-Phoenix Companies Inc.

BP
X
BTU
ANR
CLF
MEE
RINO
BCSI
FSLR -
STP -
TSL -
JASO -
CSIQ -
SIR -
CPTC-
C -
YGE -
ENER -
SPWRA-
IFLG
SIRI
CNAM
RTK
GNVC
CNLG
SEED
VVUS
Mar
LOW
LEAP-Leap Wireless International Inc.
PARL-Parlux Fragrances Inc.
NEWS-NewStar Financial, Inc.
PZZA-Papa John's International Inc.
NR-Newpark Resources Inc.
ACXM-Acxiom Corporation.
BEXP-Brigham Exploration Co.
ARRY-Array BioPharma, Inc.
BEAT-CardioNet, Inc.
RXII-RXi Pharmaceuticals Corporation
XRTX-Xyratex Ltd.
MGPI-MGP Ingredients Inc.
JASO-JA Solar Holdings Co., Ltd.
HOKU-Hoku Scientific, Inc.
DROOY-DRDGOLD Ltd.
USEG-US Energy Corp.
HXL-Hexcel Corp.
FLR-Fluor Corporation.
AMED-Amedisys Inc.
NSU-Nevsun Resources Ltd.
APL-Atlas Pipeline Partners LP
BPSG-Broadpoint Gleacher Securities Group, Inc.
ONCY-Oncolytics Biotech, Inc.
ARAY-Accuray Incorporated
SNIC-Sonic Solutions
PWER-Power-One Inc.
LEAP-Leap Wireless International Inc.
PARL-Parlux Fragrances Inc.
NEWS-NewStar Financial, Inc.
PZZA-Papa John's International Inc.
NR-Newpark Resources Inc.
ARNA-Arena Pharmaceuticals, Inc.
CSUN-China Sunergy Co. Ltd.
RMBS-Rambus Inc.
THC-Tenet Healthcare Corp.
TSL-Trina Solar Ltd.
OPTT-Ocean Power Technologies, Inc
PLXT-PLX Technology Inc.
ARTG-Art Technology Group Inc.
SQNM-Sequenom Inc.
LVS-Las Vegas Sands Corp.
SOMX-Somaxon Pharmaceuticals, Inc.
OPTT-Ocean Power Technologies, Inc
PLXT-PLX Technology Inc.
ARTG-Art Technology Group Inc.
LVS-Las Vegas Sands Corp
SEED-Origin Agritech Limited
RINO-RINO International Corporation
IPGP-IPG Photonics Corporation
MITI-Micromet, Inc.
SQNM-Sequenom Inc.
GPK-Graphic Packaging Holding Company
XRA-Exeter Resource Corporation
NLST-Netlist Inc.
SEED-Origin Agritech Limited
INAP-Internap Network Services Corp.
OSUR-OraSure Technologies Inc.
PCS-MetroPCS Communications Inc.
SWSI-Superior Well Services Inc.
FREE-FreeSeas Inc.
CDII-China Direct Industries, Inc.
ABCW-Anchor BanCorp Wisconsin, Inc.
CTBK-City Bank
FTK-Flotek Industries Inc.
CPRX-Catalyst Pharmaceutical Partners Inc.
LTS-Ladenburg Thalmann Financial Services Inc.
JOEZ-Joe's Jeans Inc.
AKRX-Akorn Inc.
DPTR- Delta Petroleum Corp.
ANX-Adventrx Pharmaceuticals, Inc.
VG-Vonage Holdings Corporation
YRCW-YRC Worldwide Inc.
DSCO-Discovery Laboratories Inc.
HEB-Hemispherx Biopharma, Inc.
LVLT-Level 3 Communications Inc.
AMFI-AMCORE Financial, Inc.
COOL-Majesco Entertainment Co.
SIRI-SIRIUS XM Radio Inc.
VG-Vonage Holdings Corporation
RTK-Rentech, Inc.
YRCW-YRC Worldwide Inc.
CVM-CEL-SCI Corp.
RTK-Rentech, Inc.
SNSS-Sunesis Pharmaceuticals Inc.
ABK-Ambac Financial Group, Inc.
HEB-Hemispherx Biopharma, Inc.
IRSN-Irvine Sensors Corp.
GNVC-GenVec Inc.
NEXM-NexMed Inc.
CHIO-China INSOnline Corp.
BGP-Borders Group, Inc.
CDII-China Direct Industries, Inc.
ABCW-Anchor BanCorp Wisconsin, Inc.
CTBK-City Bank
FTK-Flotek Industries Inc.
CPRX-Catalyst Pharmaceutical Partners Inc.
LTS-Ladenburg Thalmann Financial Services Inc.
JOEZ-Joe's Jeans Inc.
SSN-Samson Oil & Gas Limited
AEN-Adeona Pharmaceuticals, Inc.
PEIX-Pacific Ethanol, Inc.
SNSS-Sunesis Pharmaceuticals Inc.
DSCO-Discovery Laboratories Inc.
HEB-Hemispherx Biopharma, Inc.
LVLT-Level 3 Communications Inc.
CPST-Capstone Turbine Corp.
RAS-RAIT Financial Trust
CTZN-Citizens First Bancorp Inc.
RPC-Radient Pharmaceuticals Corporation
INUV-Inuvo, Inc.
DPTR-Delta Petroleum Corp.
CAPS-Orthologic Corp.
LEI-Lucas Energy, Inc.
JSDA-Jones Soda Co.
HEB-Hemispherx Biopharma, Inc.
ABK-Ambac Financial Group, Inc.
SNSS-Sunesis Pharmaceuticals Inc
BNVI-Bionovo, Inc.
AEZS-AEterna Zentaris Inc.
GORX-GeoPharma Inc.
SMTX-SMTC Corp.
ARWR-Arrowhead Research Corp.
SUPR-Superior Bancorp.
HSWI-HSW International, Inc.
GSX-Gasco Energy Inc.
NENG-Network Engines Inc.
MERX-Merix Corp.
XRM-Xerium Technologies Inc.
LXRX-Lexicon Pharmaceuticals, Inc.
ANSV-Anesiva, Inc.
HYTM-Hythiam Inc.
DPRT-Delta Petroleum Corp.
ACAD-ACADIA Pharmaceuticals, Inc.
TMR-Meridian Resource Corp.


BZH-Beazer Homes USA Inc.
CYCC-Cyclacel Pharmaceuticals, Inc.
ATHX-Athersys, Inc.
CNLG-Conolog Corp.
BBEP-Breitburn Energy Partners LP
SMTB-Smithtown Bancorp Inc.
PNX-Phoenix Companies Inc.

Stocks to buy in May ( RT,LOW,AWR,ESL,ESYL )

1.Ruby Tuesday, Inc.

(Public, NYSE:RT) 11.50 a sahre / target price 15.00

Ruby Tuesday, Inc. (RTI) develops, operates and franchises casual dining restaurants in the United States, Puerto Rico, Guam, and 13 other countries and regions under the Ruby Tuesday brand. The Company also owns and operates two Wok Hay restaurants. At June 2, 2009, it owned and operated 672 Ruby Tuesday restaurants primarily in the Northeast, Southeast, Mid-Atlantic and Midwest of the United States. As of June 2, 2009, there were 229 domestic and international franchise restaurants located in 27 states primarily outside the Company’s existing markets primarily the Western United States and portions of the Midwest and Northeast and in the Asia Pacific Region, India, Middle East, Puerto Rico, Guam, Canada, Iceland, Eastern Europe, and Central and South America. On March 18, 2009, the Company acquired a Ruby Tuesday restaurant in Rockwall, Texas from a traditional domestic franchise. Credit Suisse analyst raised his rating on the restaurant operator based on an improving revenue picture and brand positioning.

Credit Suisse analyst Keith Suisse analyst Keith Siegner on Wednesday upgraded Ruby Tuesday to “Outperform” from “Neutral,” saying expectations are too low for the company.

“We believe a nascent recovery in the lower-income consumer can accelerate Ruby Tuesday's outperformance versus the industry,” he wrote in a note to investors. That in turn could lead to better-than-expected fourth-quarter results, he added.

“We continue to believe that the menu and brand repositioning are working, with Ruby Tuesday successfully driving trial and converting trial to repeat customers,” he said.The expansion was very good for the restaurant and they have struggled because they finished in time for the "credit crunch". However, I think that their balance sheet will turn around in the next few years to make them some great profits. RT is currently undervalued and should be making a rebound from a test of its 52 wk low. Look for a steady improvement over the next year or so.

2.Lowe's Companies, Inc.

(Public, NYSE:LOW) 25.88 a share / target price 32.00

Lowe’s Companies, Inc. (Lowe’s) is a home improvement retailer. As of January 29, 2010, the Company operated 1,710 stores, consisted of 1,694 stores across 50 United States states and 16 stores in Canada. Its 1,710 stores represent approximately 193 million square feet of retail selling space. The Company serves homeowners, renters and commercial business customers. Homeowners and renters primarily consist of do-it-yourself (DIY) customers and do-it-for-me (DIFM) customers who utilize its installed sales programs, as well as others buying for personal and family use. Commercial business customers include those who work in the construction, repair/remodel, commercial and residential property management, or business maintenance professions. During the fiscal year ended January 29, 2010 (fiscal 2009), it opened 62 stores, including five Canadian stores. Lowe's Cos. said Monday its net income rose 2.7 percent in the first quarter as people spent more money on home-improvement projects and bought more big ticket items.

The No. 2 home-improvement retailer raised its guidance for the year, though it fell shy of analyst expectations and shares fell in premarket trading.

The company, based in Mooresville, N.C., said it earned $489 million, or 34 cents a share, in the three-month period ended April 30. In the same period last year the Mooresville, N.C., company earned $476 million, or 32 cents a share.

Revenue rose 4.7 percent to $12.39 billion.

The results handily beat the expectations of analysts."While we are optimistic we will experience solid demand through the balance of the year, we view 2010 as a year of transition for our industry," he said in a statement.

Revenue at stores open at least a year rose 2.4 percent in the quarter. That's a key figure for retailers because it measures growth at existing stores, rather than new ones.

The company opened 11 stores in the quarter to finish with 1,721 in North America.

For the second quarter and full year, Lowe's said it expects revenue to rise between 5 percent and 7 percent over the prior year and revenue at stores open at least a year to grow between 2 percent and 4 percent. Previously for the year, the company expected sales to rise between 4 percent and 6 percent, and revenue at stores open at least a year to increase 1 percent to 3 percent.

The company expects second-quarter earnings per share to range from 57 cents to 59 cents, shy of the 62 cents a share analysts expect.Recession has everyone making things last as long as possible. How better to make things last than to invest in your own home? Seems as we come out of this recession home improvement companies like LOW for the long term play.My anticipation of investors and home buyers return to real estate and home improvement on the 2yr to 4yr time horizon may bring along for the ride the big box home improvement retailers. Buy, on the dips down today ......

3. American States Water Company

(Public, NYSE:AWR) 39.06 a share / target price 45.00

American States Water Company (AWR) is the parent company of Golden State Water Company (GSWC), Chaparral City Water Company (CCWC) and American States Utility Services, Inc. (ASUS). AWR has three segments: water, electric and contracted services. Within the segments, AWR has three principal business units: water and electric service utility operations conducted through GSWC; a water service utility operation conducted through CCWC, and contracted services conducted through ASUS and its subsidiaries. ASUS’ subsidiaries include Fort Bliss Water Services Company (FBWS), Terrapin Utility Services, Inc. (TUS), Old Dominion Utility Services, Inc. (ODUS), Palmetto State Utility Services, Inc. (PSUS) and Old North Utility Services, Inc. (ONUS). FBWS, TUS, ODUS, PSUS and ONUS are collectively referred to as the Military Utility Privatization Subsidiaries. has a potential upside of 15.5% based on a current price of $39.06 and an average consensus analyst price target of $45.Drought creates water crisis. The resource and delivery price increases have to some extent already been considered. Seasonal rains & snow COULD alleviate the problems. the need for water infrastructure buildout/improvement in both the U.S. and globally. 3.0% yield, 54 straight years of increases, unflashy water company in CA, this is in every dividend investors portfolio.water play-water is about to go into a
oil/copper bull run ..

4. Easylink Solutions Corp.

(Public, OTC:ESYL) .42 a share / target price .65

Easylink Solutions Corp., formerly AlgoDyne Ethanol Energy Corp., is a development stage company. The Company effected a change in business and commenced concentrating on developing ethanol and bio-diesel technologies. Up until July 2007, the Company was engaged in the business of buying and selling reclaimed textiles. It generated revenues by arranging the sale of reclaimed textiles to large, international wholesale buyers and, occasionally, to a small number of vintage clothing stores. Since July 2007, AlgoDyne had been seeking business opportunities in the alternative energy industry. The Company’s focus is to create a portfolio of three primary activities (raw materials, wholesale/manufacturing, and retail) in the ethanol and bio-diesel industries. During the year ended August 31, 2007 (effective June 1, 2007), the Company abandoned the business operated by its wholly owned subsidiary, Freshly Pressed Enterprises, Inc. Easylink Solutions Corp. announced the launch of a new consumer electronics product in Portable Multimedia Players (PMPs) Market in the next 30 days. The new product is a high quality home digital media center to play digital multimedia files on your TV/home entertainment or computer system. Risky play , however this can be rewarding ...

5. Esterline Technologies Corporation

(Public, NYSE:ESL) 55.47 a share / target price 70.00

Esterline Technologies Corporation (Esterline) is a manufacturing company principally serving aerospace and defense customers. It designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company has three segments: avionics and controls, sensors and systems, and advanced materials. The Company’s products are supplied to Airbus, regional and business jet manufacturers, and the aircraft engine manufacturers. The Company’s sales are diversified across three markets: defense, commercial aerospace and general industrial. On December 15, 2008, the Company acquired NMC Group, Inc. (NMC) and on January 26, 2009, it acquired Racal Acoustics Global Ltd. (Racal Acoustics). to report earnings of $0.85 on sales of $373 million on May 28, 2010.
For the full year, analysts expect the company to post EPS of $3.40. In the year-ago period, the company reported EPS of $0.85 on sales of $360 million.
In the previous quarter, the company reported EPS of $0.42, missing consensus estimates of $0.48.Strong financials and undervalued .
Mad Money Fund is bullish on shares of Esterline Technologies Aerospace small hardware provider. Company has growth and is currently a leader in its market space. With strong fundamentals and strong earnings .They are a well diversified company..

My Best Stock Picks For 2009

1. Lowe's Companies ( LOW ) 21.52 a share 1/1/2009 Target price 35.00 a share.
Lowe’s Companies, Inc. is a home improvement retailer, with specific emphasis on retail do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers, who utilize its installation services, and commercial business customers. The Company offers a line of products and services for home decorating, maintenance, repair, remodeling and property maintenance. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada, with 174 million square feet of retail selling space. Lowe’s Companies, Inc. serves homeowners, renters and commercial business customers. Homeowners and renters primarily consist of do-it-yourselves, and others buying for personal and family use. Commercial business customers include repair and remodeling contractors, electricians, landscapers, painters, plumbers, and commercial and residential property maintenance professionals, among others . The latest existing home sales report from the National Association of Realtors showed an increase of 3.1% over the previous month with sales rising to about 5 million units a year annualized. When the last twelve months of data is plotted, there’s a clear bottoming pattern being formed. The report also shows home prices continuing to fall and the inventory of unsold homes increasing. That’s bad news for sellers but good news for buyers since the increasing inventory should continue to put pressure on prices. The AP release listed on MSNBC.com includes this additional information, “Between 33 and 40 percent of sales activity is coming from foreclosures or other distressed properties, estimated Lawrence Yun, chief economist at the Realtors group.” If existing home sales have bottomed, it should be good news for home improvement retailers Home Depot (HD) and Lowes (LOW). The high percentage of sales coming from foreclosures should also be a positive for their business. I haven’t found any data to back this up, but it’s logical that on average a foreclosed home will need more repairs than an owner-to-owner purchase. Granted, logic doesn’t necessarily apply to the stock market.Both companies are profitable even in the current soft housing market. Valuations are similar with both companies trading at about 15.5 times the next 12 months earnings. Cramer did a head-to-head between HD and LOW on Wednesday’s Mad Money and concluded LOW was the better bargain primarily because of better growth prospects. One key difference between the companies is the dividend. HD yields about 3.3% vs about 1.4% for LOW. Obviously, Lowe’s has a much lower payout ratio so more of its earnings are available to invest in expansion. If home sales have bottomed, LOW and HD sales traffic should start increasing, particularly with a high percentage of sales and housing inventory coming from foreclosures. Both companies should benefit from easy same-store-sales comparisons going forward. Analysts’ earnings estimates for both companies have been lowered over the past 90 days. I think that’s a mistake. Cramer based his opinion of the two stocks partly on his prediction that new home sales will start improving late next year. I suspect many analysts are also considering new home sales for their models. They may be overlooking stabilizing and improving existing home sales volume (not necessarily prices) providing a lift to home improvement centers. I believe LOW is a slightly better buy than HD based on better growth prospects and a lower debt ratio. The higher dividend makes HD attractive to income investors and should provide more support to the share price if the thesis is wrong; the dividend is comfortably covered so there isn’t much chance of a cut. If stabilizing home sales drive an increase in traffic, both companies should benefit.Two words CUSTOMER SERVICE! Although HD is geographically closer to my home, I prefer Lowes. The product mix and prices are similar but, Lowes has people that can answer questions and assist the customer, and they even have humans at the cash registers.Cash on hand and cash flow can handle required debt payments. People will continue to maintain and improve their homes as they spend less on other non-essentials .

2. The Kroger Co. ( KR ) 26.25 a share 1/1/2009 , Target price 39.00.
The Kroger Co. is a retailer in the United States. The Company also manufactures and processes some of the food for sale in its supermarkets. As of February 2, 2008, the Company operated, either directly or through its subsidiaries, 2,486 supermarkets and multi-department stores, 696 of which had fuel centers. Approximately 43% of these supermarkets were operated in Company-owned facilities, including some Company-owned buildings on leased land. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. The Company operated 42 manufacturing plants, primarily bakeries and dairies, which supply approximately 43% of the corporate brand units sold in the retail outlets. Ultra-solid grocer with a strong private brand and good real estate management.
Safe harbor.If you paid attention when you were shopping you've noticed the sharp jump in grocery prices that coincided with the rise in fuel prices. Now that fuel prices have fallen, it is equally as noticeable that the price of groceries and consumer goods hasn't. This means higher profits for Grocery stores in the near term. With an uncertain economy and high gas prices, consumers are pinching pennies wherever they can, and that includes doing things like buying Kroger brand soup or Kroger brand milk instead of Campbell's Soup or Trauth milk. This penny pinching will continue into the foreseeable future because shoppers aren't going to pay higher prices when they can get the same thing for less. This is a definite buy for 2009 .

3. AeroVironment 36.80 a share 1/1/2009 , Target price 49.00.
AeroVironment, Inc. (AeroVironment) designs, develops, produces and supports a portfolio of small unmanned aircraft systems (UAS) that it supplies primarily to organizations within the United States Department of Defense (DoD), and fast charge systems for electric industrial vehicle batteries that it supplies to commercial customers. AeroVironment derives the majority of its revenue from these two business areas. The Company's core technological capabilities include lightweight aerostructures and electric propulsion systems, electric energy systems and storage, high-density energy packaging, miniaturization, controls integration and systems engineering optimization. The Company is organized into two segments: UAS and Efficient Energy Systems, which focuses primarily on the development of electric energy technologies for internal and external customers, and also develops, produces and supports a line of electronic test equipment used for research and development activities.With cuts in defense spending likely, drones offer a cheaper alternative to full sized aircraft.I've been watching this stock go up since its IPO opening , and there is a little downturn now. With their drone business, Aerovironment is a good candidate for a buyout by the big boys. Drones are not going away -- the local air national guard changed to drones, and the Air Force secretary was fired for his slow adoption of the technology.

4. PowerShares Water Resources (ETF) ( PHO ) 14.39 a share 1/1/2009 target price 19.75
PowerShares Water Resources Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of the equity index, the Palisades Water Index (the Index). The Index seeks to identify a group of companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption. The Index includes United States exchange traded companies drawn from water sectors, such as water utilities, treatment, analytical, infrastructure, water resource management and multi business.water - can't replace it can't get enough of it, enough said .world is going to get hungry due to a larger stomach and of course we will need water to wash it all down not to mention grow everything we eat in the first place. 1% of the worlds water is drinkable and our demand for that water double every 6-8yrs.With Obama's new public works stimulus should include some spending towards the aging water infrastructure, and this sector would definitely benefit from that !

5. Amazon.com ( AMZN ) 51.13 a share , target price 76.00
Amazon.com, Inc. (Amazon.com) operates retail Websites, which enables its consumer customers to find and discover anything they might want to buy online. The Company’s retail Websites include www.amazon.de, www.amazon.fr, www.amazon.co.jp, www.amazon.co.uk and the Joyo Amazon Websites at www.joyo.cn and www.amazon.cn. Amazon.com has organized its operations into two principal segments: North America and International. The North America segment includes Websites, such as www.amazon.com, www.amazon.ca, www.shopbop.com and www.endless.com. The International segment includes www.amazon.co.uk, www.amazon.de, www.amazon.co.jp and www.amazon.fr. In June 2008, the Company announced the acquisition of Fabric.com, an online fabric store that offers custom measured and cut fabrics, as well as patterns, sewing tools and accessories.Good earnings growth. I have made several purchases from their site, and they have one of the most user-friendly and convenient marketplaces on the web. I get what I want on time and at competitive prices. They seem well positioned to profit from Internet shopping. This isn't a massive growth stock.Upside is that it is growing right through the recession. Nevertheless, this has to be a long-range investment. I plan to add to my investment in modest increments over a substantial period of time.

6. Molson Coors Brewing Company ( TAP ) 48.92 a share, target price 71.00
Molson Coors Brewing Company (MCBC) is a global brewer of beers. The Company’s subsidiaries include Molson Canada (Molson), Coors Brewing Company (CBC), Coors Brewers Limited (CBL), and other corporate entities. The segments of the Company include Canada, the United States and Europe. The brands sold in Canada include Coors Light, Molson Canadian, Molson Dry, Molson Export, Creemore Springs, Rickard's Red Ale, Carling and Pilsner. The brands sold in the United States include Coors Light, Coors, Coors Non-Alcoholic, Blue Moon Belgian White Ale and Blue Moon brands, George Killian's Irish Red? Lager, Keystone, Keystone Light, Keystone Ice and Zima.I'm not a drinker, but in times like these I'll make an exception. a case of 24 for $15 exception.Solid financials. Cash on hand. Great products. Cheap stock price.With recession on the horizon, this is a great hedge against it. With the overall market going down, TAP may go down too, but not nearly as much. Therefore, it will outperform. TAP pays a .20 Dividend.

7. Verizon Communications ( VZ ) 33.90 a share 1/1/2009 , target price 49.00.
Verizon Communications Inc. (Verizon) is engaged in providing communication services. The two segments of the Company are Wireline and Domestic Wireless. Wireline communications services include voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, long distance and other services. The Company provides these services to consumers, carriers, businesses and government customers both domestically and internationally in 150 countries. Domestic Wireless’s products and services include wireless voice, data products and other services, and equipment sales across the United States. In March 2008, Verizon announced the completion of the spin-off of Northern New England Spinco Inc. In July 2008, MTN Group Limited acquired 100% of Verizon South Africa Ltd. In August 2008, Verizon announced that Verizon Wireless, a joint venture of the Company and Vodafone Group Plc, had completed its purchase of Rural Cellular Corporation.I just switched to FIOS so now VZ do all my telecom ( winches, ISP, TV) and it rocks! l don't see the cable co's keeping customers from switching .I like both T and VZ for their dividend; but I like VZ more for it's dividend. For now in tough times Utilities are king, VZ is set to continue giving steady returns.They pay a reasonable dividend and are a cash vacuum !

8. Johnson & Johnson ( JNJ ) 59.70 a share , target price 69.50
Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies. The Company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Sales of the Company's two largest products.Long term, solid company. A vast stable of staples, products that consumers will want and need to buy regardless of the recession/depression. It's hard to imagine any company as being recession-proof, but I think Johnson & Johnson comes very close to that wishful ideal. During the recession of 1992-1993, it lost about 20% of its value, but other companies lost much more. During the gloomy times of mid-2001 through 2003, it traded sideways while most other large-cap companies lost money. It currently has nice profit a 6.4 quarterly revenue growth with a 29.9% quarterly earnings growth. Very nice. Hopefully, that will continue. For a large cap, it also seems to have its debt load under control, something that will separate the strong from the weak in the coming months. To wit, JNJ's Debt/Equity ratio is 32%, and has a book value of $16.45/share, which is twice better than my internal yardstick of 1/7th that of its price (currently $58.70). While we wait for the stock to appreciate, the dividend yield will help us out a bit at its current 5-year average of 2.1% (hey, it's not great, but it's there!). Finally, very few people are going against this stock, as the short interest is extremely low at only 0.80% of the float (yep, less than 1% -- nice & stable). This would be a good place to park your money for the next 1-3 years.

9. Pfizer Inc ( PFE ) 17.71 a share 1/1/2009 , target price 24.00
Pfizer Inc. (Pfizer) is a research-based, global pharmaceutical company. The Company discovers, develops, manufactures and markets prescription medicines for humans and animals. It operates in two business segments: Pharmaceutical and Animal Health. The Company also operates several other businesses, including the manufacture of gelatin capsules, contract manufacturing and bulk pharmaceutical chemicals.PFE is a cash cow, easily a $25 stock and with a rally in the market, PFE is set to go higher.PFE will likely outperform the S&P 500 for the near future simply because the recession hurts others more than it hurts this company. Also the incoming Obama administration favors health care reform, which although could dampen some healthcare sector stocks, will not likely have much direct effect on R&D or capsule manufacturing. Although the cost of medicine is high in some cases, it is tiny when compared to all other medical costs as a whole. High medicine costs are usually pass-on costs but, Obama will likely encourage more R&D, and the government will favor this sector in subsidies. Baby boomers keep on retiring in ever growing numbers and they need medications… there is an ever growing demand for the products of the company over the long term, recession or not .

10. Google ( GOOG ) 307.00 A share 1/1/2009 , Target price 355.00
Google Inc. maintains an index of Websites and other online content, and makes this information freely available to anyone with an Internet connection. The Company’s automated search technology helps people obtain nearly instant access to relevant information from its online index. Google generates revenue primarily by delivering online advertising. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the thousands of third-party Websites that comprise the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience.Long term play, good value, buying at a discount. Will rebound powerfully when the global economy improves in the coming years.Google is becoming the Top search and work engine in the world including in Peru South America. Besides the ever growing Pay Per Click business model, Google will eventually open up a Pay per call model (google both these items to learn about them). Pay Per Call is still a very lucrative industry and is expected to grow incredibly over the next five to ten years (google search will lead you to this information as well, as would yahoo or microsoft or whatever search you use, but i'm making a pseudo-subliminal point by saying 'google it'.)Beyond advertising, Google's dark horse will be cloud computing in my opinion. It will save companies thousands upon thousands of dollars in that they wont have to purchase on site storage of information, it is stored elsewhere. Computer security can also be cut back. Network administration can also be cut back. All this money that will be saved can now be thrown at various other optimizations (or just added to a bottom line). Cloud computing is Google's oft misunderstood, nary a mentioned monster. Its most recent deal with IBM will show this as a rapidly growing income stream. With Cloud computing, the bearish sentiment on the possible failures of online advertising will quickly have to brainstorm new critiques of what will become a vast lucrative market. What about Google's Android? It seems a fight may be brewing with Verizon and the FCC over definition of terms, but if the OS is as easy to ingest as google's website itself, I can only see upward motion in its future.

11. Altria ( MO ) 15.05 a share 1/1/2009 , target price 24.50
Altria Group, Inc. (ALG) is the holding company of Philip Morris USA Inc. (PM USA) and John Middleton, Inc., which are engaged in the manufacture and sale of cigarettes and other tobacco products. Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary, maintains a portfolio of leveraged and direct finance leases. In addition, at December 31, 2007, ALG held a 28.6% economic and voting interest in SABMiller plc (SABMiller), which is engaged in the manufacture and sale of various beer products. The Company’s segments are U.S. tobacco; European Union; Eastern Europe, Middle East and Africa; Asia; Latin America, and Financial Services. In March 2008, the Company completed the spin-off of Philip Morris International Inc., a wholly owned subsidiary. On December 11, 2007, ALG acquired 100% of John Middleton, Inc., a manufacturer of machine-made large cigar .Incredible dividend, controls majority of tobacco products in America, also has a stake in SABMiller. The only reason I don't have real money invested in this one is because the gov. is clamping down on smokers and will become even more strict in the future. With the way things are going, smoking could become illegal within 20 years. This is why I think PM is a better growth play because it focuses on countries whose govs don't mind if their citizens smoke themselves to death (i.e. China, South Korea, Japan, Russia, etc). In the near term the stock will outperform the market, but in the long term its performance will depend on how healthy or unhealthy Americans choose to live and gov regulations. I forecast a diminishing number of Americans choosing to pick up this bad habit in the long term .Great company, great management, great lawyers, great dividend. Only problem is they sell a product people have a strong opinion on. Will be a strong performer for years to come .. Many people will miss this one just because it is a sin stock. However, when times get hard to is a proven fact that PEOPLE smoke consume more alcohol, Even people that have stopped for long periods start back to smoking. It is one of those things that take your mind off of the here and now for 6 minutes. After the 9-11 devastation, their sales went up.

What are your thoughts on the 2009 top stock picks ??