For diversification, we recommend General Electric (GE), our top conservative idea for 2013. This behemoth with revenues of around $150 billion operates in many sectors and also offers geographic diversification.
For more speculative investors, one pick that we feel could double from here is CDI Corporation (CDI), which specializes in engineering, technical and staffing solutions.
General Electric is a behemoth, with revenues of around $150 billion operates in many sectors and also offers geographic diversification.
After suffering dramatically during the recession with the stock price touching below $6, this enterprise has seen an excellent recovery in the stock price.
The dividend was also prudently slashed but as we surmised, it would be increased when times turned better. That has happened four times since, and it is likely that further boosts are ahead.
The initial sell target on this position is $35.24 so we suspect that lots of price appreciation remains. If it indeed happens, coupled with the dividend, that would make for a lovely return.
As to CDI, the company has implemented a new strategic plan. It seems to be working as revenues have grown nicely to top the billion dollar mark, while net income has doubled in the most recent quarter from last year to $5.4 million, equivalent to $0.27 per share.
The balance sheet remains almost unblemished by debt. Throw on a dividend of about 3 per cent and the returns could be grand.
Insiders are aligned with shareholders� interests as they own almost 28 per cent of the company. Four advisors and institutions own about 25 per cent.
One thing we look for is companies that might be taken over. Even though CDI has made an excellent recovery over the last few years, it would not surprise to see another enterprise make a bid for this corporation. If this comes to pass, it would likely be at a significant premium to the current trading price.
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