Nick Ford, head of US equities at Miton of UK recently wrote an interesting article in Trustnet outlining his thesis for finding investment opportunities in the U.S. market regardless of the state of the direction of the U.S. market. From the article:
Despite valid concerns about the ongoing resolution to the “fiscal cliff” and the issue of the debt ceiling, there are some very encouraging data points for the US economy, including improving consumer confidence, a recovery in the housing market, better employment statistics and a far healthier banking sector, which will be good for companies needing finance to invest for growth.
The share price action of companies whose prospects are highly sensitive to economic activity is also very revealing.
Source: Bull or bear: Finding opportunities in the US market, Trustnet
The four stocks he suggested are the following:
1.Company: Brunswick Corp (BC)
Current Dividend Yield: 0.14%
Sector: Recreational Products
2.Company: Lithia Motors Inc (LAD)
Current Dividend Yield: 0.96%
Sector: Retail (Specialty)
3.Company: American Public Education Inc (APEI)
Current Dividend Yield: No dividends paid
Sector: Schools
4.Company: Concur Technologies Inc (CQNR)
Current Dividend Yield: No dividends paid
Sector: Software & Programming
Note: Dividend yields noted are as of Jan 25, 2013
Disclosure: No Positions
Brunswick Corporation is a designer, manufacturer and marketer of recreation products, including marine engines, boats, fitness equipment and bowling and billiards equipment. The company also owns and operates bowling centers in the U.S. As this is a recreational products company, its fortunes are directly tied to the performance of the economy. Lithia Motors is a car dealer selling new and used cars in 86 stores in the Western and Midwestern regions of the country. From about $25.00 in July, the stock has risen to about $42.00 with the economic recovery.
APEI is a provider of online higher education focused on serving the military and government workers.Concur Technologies sells software to businesses for tracking and processing travel and entertainment expense reports. Its software helps companies save on these expenses.
Overall all four of the stocks noted above are interesting stocks worth further research.
