Buy Freeport McMoRan Copper & Gold (FCX)
Maybe the company should change its name to Copper & Gold & Molybdenum. Total proven and probable reserves of molybdenum, a metal used in high strength steel alloys, total 1.9 billion pounds and the metal made up 12% of 2006 sales. With proven and probable...
Buy Flowserve (FLS)
Flowserve makes pumps, valves and seals and sells to customers in the industrial, nuclear, oil and gas, and water supply markets. Capital spending in the water/wastewater sector is projected to grow by 10% a year in 2008-2010. Nothing to sneeze at. But growth in the...
Buy Vale (VALE)
Formerly known as Companhia Vale do Rio Doce, this Brazilian company is the second largest producer of iron ore in the world. The company’s iron ore mines are the lowest-cost producers in the world.Buy Tenaris (TS)
You can make a very nice little $10 billion (in sales) business out of selling something as seemingly mundane as drilling pipe if you realize that as companies drill in ever more challenging geologies, they’ll pay extra for pipes that can withstand extremely...Buy Tejon Ranch (TRC)
Raw land, despite the 2007 meltdown in the housing market, is a great way to profit from inflation. As they say, God isn’t making any more land so the world has got a limited supply and increasing demand. That’s even more true if we’re talking about...Buy Suntech Power (STP)
You can actually follow the technology path that produces higher yields and increased profits at this Chinese solar cell maker. That’s critical to investors because the solar industry is–or soon will be–all about increasing efficiency (in...Buy State Street (STT)
State Street is one of the largest global custodians and asset managers in the world. Clients such as mutual funds or insurance companies use State Street for their back office bookkeeping in exchange for a fee. And since clients don’t want to muck up their...
Buy Schlumberger (SLB)
If Schlumberger did its work in clean rooms in Silicon Valley, everyone would understand that this is a world class technology company and would price the shares accordingly. Fortunately for us, most investors don’t get it so in 2008 you could buy Schlumberger...Buy Rayonier (RYN)
Rayonier owns, controls or leases about 2.7 million acres of timberland. Some of those 2.7 million acres–what’s known as higher-and better-use land — are more valuable for development than as timberland. I’d estimate that about 400,000 acres...Buy Q-Cells (QCLF)
This German company is the largest independent producer of solar cells in the world. (Sharp’s silicon division is the No. 1 producer.) Q-Cells will be one of the major beneficiaries of the end of the silicon supply bottleneck in 2008-2010 (whenever capital...
Buy Potash of Saskatchewan (POT)
They may not be making any more real estate or railroads, but they sure are using a lot more fertilizer. Not surprising in a world that needs more food and more plant-based fuel at the same time. Potash is the world largest producer of, what else, potash, a key...Buy PepsiCo (PEP)
This company delivers like clockwork. Take operating margins: 18% in 2004, 18.2% in 2005, 18.5% in 2006, and 18.2% in 2007–even as the cost of such raw materials as corn and corn syrup soared. Part of the reason is that PepsiCo is the U.S.-based company that has...Buy Petroleo Brasileiro (PBR)
Petrobras isn’t just discovering a lot of oil and natural gas. It’s discovering them in really tough geologies and then drilling for them in really challenging environments. That combination shows Petroleo Brasileiro’s emergence as an oil company...Buy Nokia (NOK)
Nokia owns huge market shares in the markets that are the future of wireless phone technology. The company has about two-thirds of the handset market in India, for example, and a 40% share in China. That’s turned Nokia into a huge annuity on phone sales in the...
Buy Monsanto (MON)
The world needs more food from a relatively fixed amount of farm land–and seed technology is the likeliest fix for the problem. Monsanto created the global seed market–for better (if you’ve been a shareholder) or worse (if you’re a subsistence...
Buy Luxottica (LUX)
Luxottica manufactures and sells eyeglasses and sunglasses under its own brands (such as Ray-Ban and the recently acquired Oakley) or licensed brands (such as Versace, Chanel, and Prada) through a network of 4,611 branded stores including LensCrafters in the United...
Buy Lan Airlines (LFL)
Based in Chile, LAN Airlines flies passengers in that country, Argentina, Peru and Ecuador. Freight operations, which include a trucking hub in Miami, account for more than 30% of revenue. Investors used to money-losing U.S. airlines take note: This isn’t your...Buy Kinross Gold (KGC)
Kinross Gold has merged its way from junior to senior status but it’s still small enough to get a buyout bid in the rapidly consolidating gold mining industry. That gives an investor a second way to score on this inflation play. Of course, if the company...Buy First Solar (FSLR)
The Holy Grail of cost-cutting in the solar industry is finding something cheaper than semiconductor-grade (99.99% pure) crystalline silicon that will deliver the same or better energy efficiency. One of the most promising technologies is called “thin...
Buy ExxonMobil (XOM)
This is the one Western oil major that has found a way out of the box that was created by the hammerlock that national oil companies have on so much of the world’s new oil. ExxonMobil has decided put its huge cash flow to work by investing in the big capital...Buy Encana (ECA)
Encana has spent the last two years divesting itself of overseas oil and natural gas operations and using the cash to build a leading position in unconventional oil and gas reserves in North America. The company’s properties now include the Barnett Shale...Buy Enbridge (ENB)
Enbridge has an impressive number of pipeline projects set to start pumping up revenue in the next two to three years. The Alberta Clipper Expansion is projected to deliver heavy crude from Alberta’s oil sands to Wisconsin by mid-2010. The Southern Access...Buy Embraer-Empresa (ERJ)
One of the world’s two major producers of regional jets and a growing presence in the business jet market, Embraer is a major beneficiary of the boom in in-country travel in developing economies. In these countries, it’s often cheaper to link cities by air...
Buy Deere (DE)
Earnings as high as an elephant’s eye. Yes, I’m being corny but corn is the big story for Deere. Deere gets about 55% of its sales from farm equipment and the company controls about 50% of the North American market for agricultural equipment. So you can...
Buy Corning (GLW)
I like Corning for what its incredibly strong and orderly pipeline says about the company’s ability to produce a steady stream of new technology products. In Corning’s diverse business mix there’s the mature but still growing technology of fiber...
Buy Coach (COH)
First Japan and now China. Coach has successfully learned how to translate “accessible luxury” from the U.S. market to Asia. Beginning in 2000 with just 2% of the Japanese market, the company went on to grab a 12% share by 2008. Coach has plans to open 50 more stores...Buy Cisco Systems (CSCO)
Cisco Systems today isn’t the fast growing technology company that rode the Dotcom boom to revenue growth of 44% in 1999 and 56% in 2000–before the bottom fell out. And that’s a good thing. The company owns more than 50% of the market for Internet...Buy Central European Distribution (CEDC)
This is the largest producer and distributor of vodka in Poland (as well as one of the leading importers of alcoholic beverages into the country. With Poland’s entry into the European Union, Central European Distribution can use its solid base in Poland to build...
Buy Cemex (CX)
This Mexican company has used free cash flow from its protected and highly profitable home market to build itself into what was the second largest player in the global cement industry. Even after selling off assets to pay down some of its huge debt, Cemex will be in...Jim’s Daily Email Alerts:
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