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Next PLC - Superior margins (20%) over competitors. Very lean in a tough trading environment. Currently trading at 11 p/e and $ investors are getting a great deal due to the crash in the £ following Brexit.
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I'll go with Gilead Sciences (GILD).
Ridiculously cheap by just about any metric you can use, I have to think at some point this year it either releases a new drug or makes an acquisition that gets the stock price moving again. I realize that the HCV business is seeing declining sales, but you could completely remove that portion of its business and it would still be reasonably priced based off of its other drugs.
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Regarding 2016, I remember seeing your request last year but I was just a newbie (I still am) and didn't feel confident enough to voice an opinion, however my personal bet was CVX and I remember going through the mental exercise of picking just one. CVX YTD is not doing too bad at ~37% (glad I went in heavily in late 2015 and early 2016).
My pick for 2017 is the same as EricL, my vote goes for GILD, insanely low valuation, lots of cash in hand, almost -28% YTD returns in 2016... it "has" to go up. I predict +35/40% in 2017. At +40% it would still trade at a P/E around 9ish at 2016 earnings. Same as CVX last year, I'm putting my money where my mouth is and I already am heavy on GILD and I keep buying more.
Btw, I love this exercise, thanks for doing it and keeping tabs on it!
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Not big on 1 year time frame picks but ...
Echoing the GILD picks. Not expecting a big gain in 2017 but 5 years from now, I'll either be crying or trimming like crazy. Alternatively, I still like Amgen (AMGN).
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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I really like NKE. I wouldn't say it is cheap but is fair value from its historical range and earnings are still growing 10% annually. I am looking forward to adding to my position.
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Thanks for sharing your picks. I have included them and will be tracking over the year.
Last call for getting the picks in...I am planning on publishing before markets open Tuesday morning.
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I like UHT just made new highs and with a 4.7% div
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I like UHT just made new highs and with a 4.1% div to boot.
Happy New Year
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I picked mine many years ago and they are still the ones I hold. If I was adding to my portfolio, I'd be hoping for a dip to invest more in those same stocks.
