Sunday, January 22, 2012

7 Aggressive Stocks to Buy Before February

E-TRACS 2x Leveraged Long Wells Fargo Business Development Company Index (NYSE:
BDCL ) The financial sector has finally gotten some upward momentum, and I
expect the recent strength in bank stocks to broaden out to the rest of the
sector, which includes insurance, brokerages and business development companies
(BDCs). The technical chart for BDCL has improved markedly coming out of a
basing process during the past month. And now, its poised to challenge $20 and
higher. Yield 22.95%. Aberdeen Chile Fund (NYSE: CH ) After severely
underperforming in 2011, its time to step up into the emerging markets where
export economies stand to benefit from a global economic recovery. Chile is the
most successful economic model in South America and also the most advanced
society there. The managers at CH have set the forward quarterly dividend for
2012 at 53 cents per share, and that wont be up for any adjustment until next
October, so the current yield is in the bank. Yield 17.6% . Cheniere Energy
Partners (NYSE: CQP ) Liquefied natural gas (LNG) is Americas newest export
commodity, and we have arguably the worlds largest supply of it. From the
standpoint of getting LNG to foreign markets, Cheniere Partners has a virtual
monopoly in its ownership of the Sabine Pass Terminal in southwestern Louisiana.
The partnership has secured two major contracts for overseas distribution, and
2012 will only see more big deals come its way. Yield 8.3%. Dreyfus High Yield
Strategies Fund (NYSE: DHF ) High-yield corporate debt that carries short
duration in a recovering economy stands to perform quite well especially with
the yield on the 10-year Treasury Note hovering between 1.87% and 2.01% this
week. I look for nonrated corporate bonds to trade back to their 2011 highs in
the next six months. These 10%+ yields take most of the guesswork out of beating
the benchmark averages while paying out on a monthly basis. Yield 10.76% . Fifth
Street Finance (NASDAQ: FSC ) This BDC broke its 11-month downtrend line last
week along with multiple other financials. Shares of FSC traded as high as $14
early last year and bottomed out at $8.38 during the August meltdown. At its
current price of $10.50, theres 20% to 30% upside potential from here. The stock
traded ex-dividend (Jan. 11), so you should be able to buy it around $10 in the
near term. Yield 10.95%. Medical Facilities (TSE: DR ) The company posted an
in-line quarter and looks to expand its footprint of acute-care facilities in
the upper Midwest this year. This well-managed health care provider, which owns
a 51% interest of four of these facilities, offers a very stable monthly income
stream that simply cant be matched by any other stock or REIT in the industry.
Yield 9.17% . Mesabi Trust (NYSE: MSB ) Mesabi has to have enormous upside
potential if the U.S. and global economies see any kind of modest pickup. Theres
fresh positive sentiment surrounding the basic materials sector, and MSB is one
of the two or three highest-yielding names. Yield 7% . Read more about my Mesabi
Trust recommendation here .

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