As we are passing in 2010 I would give you some investment ideas.

Finance and Investment

 

First of all I would like to talk the market in general. Not pretend to know exactly how the market will fluctuate, but what I am sure of is that the market is still having fluctuation.It is that opportunities to acquire cheap but are held at fair value. 

Currently there are areas where we can find attractive actions, especially when compared to their historical value or profits. We are not far from that it can produce an economic bubble, but what if I reaffirm it for a longer bearish for the situation we are experiencing. So I think that the highest percentage of easy money in the markets has already been made. 

One of the things we are talking about is a possible second recession. That could have an impact much broader than the first recession for financial markets. But now the market is recovering from a very slow.

The terrain through which we are passing today is very hard and I think the lake-term investors are the big winners in this recession. I would not recommend it to focus on day trading, although good opportunities arise anyway. If we do a bit of memory we will remember the crisis in the mid-seventies where the S & P 500 had a ininmaginable recovery after one year. But from the way that recovery remained very irregular. That's why we must be attentive to what may happen in the market. I think we still have a small drop is misleading makeup for this rally. Recall that there still exist some lost assets are overvalued, which could produce so-called asset bubbles especially in emerging markets. 

I think the market will continue to recover slowly, but will have a fall than another and will continue with many ups and downs throughout 2010.

In my opinion the actions that offer less risk and are quite safe are the large-cap companies. Since September, the worst has been the financial sector, while the others served acceptably. The micro - enterprises had no great performances, while large-cap companies were those that had a relatively positive performance and fairly regular. The financial sector was undoubtedly the most affected sectors, but I think beyond the large debts to the U.S. government to which they have had banks like Citigroup will start to grow very slowly. So I think that is an area for further study, but I recommend that you invest at the moment but not to miss small opportunities that may arise.

Now I want to comment about a stock that I studied. One company that I found rather interesting was that MGC Capital Corp and currently worth less than its real value in calls BDCs (buisnesses development company). Currently this company is not paying dividends, obviously that is a point against but is restructuring its dividend policy for 2010. The dividend policy they seek to require a minimum of 2010 is growing year after year.

Fifth Street Financial is another BDC (business development company) that focuses on lending to private companies. It has almost no debt and have a significant amount of cash on hand along with 10% of dividends among other things. All this influences their policy to further increase the percentage of dividends for the future. I think the share price will move along with the dividends as they are very conservative.

Prospect Capital Corporation is another business development company that I like. Good dividends, fairly inexpensive and worth the purchase of another major firm transform it into an attractive investment.


Another option to consider is Allied Capital Corporation since the company solid Ares Capital Corporation is taking the company's position by 0.325 per share. Allied Capital Corporation is trading at a price representing 0.325 * Ares Capital action and I think that many opportunities to continue growing. This is one of the arbitration plays I like to apply for big profits.

Another company to consider is Conesco. One of those who put the eye at the company was John Paulsen, one of the largest fund managers in history. It is a very profitable company and is currently trading at half its true value. Made sweeping changes that helped pass with ease the financial crisis at a reduced impact of action to $ 1. Price Earning a 6 and a market value of 1 we can say that Conesco is very cheap.

Genworth Financial Inc is another interesting company to study. Presents its lowest valuation for a long time but we do not have very clear is its dividend policy and its potential for growth. But anyway I think it will continue to rise. XL Capital is another company that is in the best time because it shows a figure its attractive valuation, provides good percentage of dividends and most importantly profitability. A company that is not going through its best time is Hartfold Financial Group.Tiene low valuation at this time, but anyway I think it has potential for growth.

We can not stop talking about the largest bank lender in the United States (Bank of America) that is not having his best time after acquiring the prestigious Merrill Lynch. You are having some problems due to their debts by borrowing, but still believe that the action will be worth between 25 and 30 dollars. Of course it is far from JP Morgan Chase that I consider the strongest at this time, but I think the time has passed by Citigroup which was always one of its main competitors.

While the financial sector was the most beaten by the crisis, I see great opportunities like those I mentioned above. It is logical that most financial instuciones esten valued below their historical values, but that does not mean they can not receive large returns.

One of the companies I like are Republic Airlines Holdings. Historically, this company is dedicated to fly aircraft of other airlines. But this year the company acquired Midwest Airlines and Frontier which changed the historical landscape of the company. Midwest Unfortunately not closed with a great performance this year, but Frontier was extraordinary. I think the business to the company pointing when you first started has a great future, so it was that made these important acquisitions. One of the great advantages of this company is its efficient management. That's one of the many keys by which I believe has great potential for development compared to their market capitalization. This trading at a price on sales of 0.1 and has a market value below 0.5. There is some debt due to the large impact that created the recession in the aviation sector. Frontier was operating $ 10 million in profits per month, leaving $ 19 million in the quarter. Now they are focusing for Midwest begins to be profitable and generate good profits. Estimated earning potential of $ 200 million once they have been able to improve and eliminate unnecessary costs from their balance sheets. Keep in mind that market capitalization is 250 million. In conclusion all I can say is that they generally consider that market opportunities will appear. Consider that the airline industry is still trying to get out of the blow that gave them rise in fuel prices.

Other companies that I am studying is Dow Chemical. Is quoted at 5.5% of their dividends. I think in the not too distant future the percentage will increase as was in earlier years. I think the strategy would work with this company is to buy and maintain. 

Do not take at face value everything that I said. What if I can say is that they are good ideas and you would study and draw their own conclusions. Do not feel great investment but I think it could generate happiness.


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