Pick the stock that you think will perform the best in 2010. Give your reasons for why you think your stock will be the best performer of the year. The contest should have at least 20 contestants. The winner will receive $25 via paypal!
The only rules are:
You need to have a paypal account in order to receive payment.
Your stock pick must be original. Do not repeat any stock entry already submitted.
Your stock pick must be a US stock.
The stock must have a minimum value of at least $5.
Only 1 stock pick per person.
All picks should be in by Monday, January 4th, 2009 at 9am.
I choose BreitBurn Energy Partners (BBEP). They are a small-cap oil & gas partnership currently trading for $10.65 a share. They are trading at a steep discount to book value despite strong cash flow and a fairly good balance sheet.
After a blowout 2008, BBEP ran into difficulties with the winter 2008 plunge in oil & gas prices and had to cut the dividend. They have posted some quarterly losses in 2009 and the share price is now down about 70% from the high. But analysts expect earnings to rebound to around $1.50 in 2010, giving a forward P/E of just 7. Comparing the forward PE, trailing free cash flow, and price to tangible book, they are significantly undervalued compared to similar oil & gas production companies.
Citigroup will be a winner.