Excerpt from: "9 experts' stock picks for 2009"
<<Turnaround Letter
Rank: No. 4 for 20-year performance.
Annualized returns: 9.8%.
The big picture: George Putnam, the value investor who pens the Turnaround Letter, expects a sharp snap-back rally later this month or in early January as hedge funds back off on selling because year-end redemptions ease up.
Favorite picks: Two top picks that should benefit -- and do well next year and beyond -- are semiconductor equipment maker Teradyne (TER, news, msgs) and Qwest Communications International (Q, news, msgs), a phone company.
Teradyne controls more than a third of the market for chip test equipment, and it's financially sound with $1.80 a share in cash and no debt. Many of its competitors aren't so well off. As the weak economy grinds them down, Teradyne will either buy them or pick up more market share because they go bust, believes Putnam.
Qwest has stable cash flow that's backing a 10% dividend yield, and it should see growth in the medium term from the sale of new services, such as video over its phone lines. >>
articles.moneycentral.msn.com
If TER has enough cash it'll surely remain the gorilla in this
space.
Woody |
