This week’s economic reports included a rise in factory orders, fewer job cuts, declining unemployment claims (although I’ll concede they weren’t as good as estimated), and an unemployment rate that has fallen to 8.2%.
So let’s forget about the naysayers for now. I don’t believe that every single stock is going to jump through the stratosphere, but I do think it’s a good time to be a stock picker, searching for companies that have fabulous potential. This week, I even narrowed my criteria a bit more, and still came up with 22 companies who look very enticing.
Here are my two favorites:
Leggett & Platt Inc., (NYSE: LEG) makes products for the residential bedding and upholstered furnishings market; the commercial fixture and furniture sector; the industrial materials segment, including bedding and furniture, and mechanical spring makers; automotive seating, and lawn and garden equipment manufacturers; waste recyclers and waste removal, and medical supply businesses; and aerospace suppliers and original equipment manufacturers; and specialized products markets.
Market cap: $3.25 billion
Dividend yield: 4.9%
Why I Like It: Improving economic conditions should strengthen each segment for LEG; new analyst upgrades; nice dividend yield if market decides to rest for awhile
Skullcandy (Nasdaq: SKUL) manufactures headphones and other audio accessories to retailers in the United States and to global distributors
Market cap: $466.32 million
Why I Like It: Good margins; possible takeover candidate; smart marketing to young adults via mobile and social media outlets—a growing demographic base
SKUL is a small-cap stock, so please understand that investing in the company may entail more risk than buying shares in its larger competitors. Consequently, if you decide to purchase shares in SKUL, please make sure that they constitute only a small portion of your portfolio.
Note: I intend to establish a portfolio of similar picks, some 25-30 stocks that I’ll update on a regular basis. I will discuss them from time-to-time in my blog and on this web site, but a full analysis of each stock—as well as detailed updates—will be available only via subscription. If you’d like more information, just contact me directly, at firstname.lastname@example.org