Great Stocks To Buy In 2012

The market has been on fire since the dark days of the financial crisis. The S&P 500 has soared an astounding 85% since the lows of March 2009. Market returns have been propelled by more cyclical sectors like technology and consumer products, while the more defensive sectors have badly lagged the market. In short, it's the go-go stocks that have been the first to benefit in the post crisis market, but things might be changing...

The bull market has gotten long in the tooth while at the same time uncertainty is growing as the Middle East erupts in turmoil. Oil prices are soaring near $100 a barrel from just $85 a month ago and may climb still higher, threatening economic recovery.

It may be time for investors to look at defensive stocks that can perform in any economy. Health care, more specifically major drug manufacturers, earn consistent income in any economy and, best of all, pay fat dividends.

Health care stocks have their critics, however. Most large drug companies are facing steep patent cliffs and an accompanying fall in revenue in the years ahead. In addition, uncertainty regarding health care legislation and possible higher costs going forward are weighing on prospects.

However, these problems are largely factored into share prices already.

 

Three stocks in particular stand out as having strong business prospects, cheap valuations and high dividends.

Great Stocks To Buy In 2012:Integrated Silicon Solution Inc. (ISSI)

 Integrated Silicon Solution, Inc., a fabless semiconductor company, designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Its primary products include low and medium density DRAM; and high speed and low power SRAM. The company?s low and medium density DRAM products are used in wireless local area networks (WLANs), base stations, networking switches and routers, fiber to the home (FTTH), DSL and cable modems, set top boxes, digital cameras, MP3, flat panel TVs, LCD TVs, HDTVs, video phones, Voice over Internet Protocol, printers, disk drives, tape drives, audio/video equipment, instrumentation, global positioning systems (GPS), telematics, infotainment, smart meters, and other applications. Its SRAM products are used in WLANs, cell phones, base stations, networking switches and routers, FTTH, DSL modems, LCD TVs, set-top boxes, GPS systems, instrumentation, engine control systems, medical equipment, telematics, audio and video equipment, satellite radio, POS terminals, fax machines, copiers, tape drives, and other applications. Integrated Silicon Solution, Inc. also designs and markets application specific standard products, including high performance serial EEPROMs for use in TVs, networking systems, modems, telephone sets, security systems, video games, automobiles, and other consumer products; and SmartCards that have applications in transportation passes, payment cards, health care cards, and other cards that store secure data. The company markets and sells its products in Asia, the United States, and Europe through direct sales force, independent sales representatives, and distributors. Integrated Silicon Solution, Inc. was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:

• By Arohan At 2012-2-12

  ISSI is another memory chip designer and marketer. It is a fabless semiconductor company so it outsources its manufacturing. The market currently values the company at $283 million ascribing a PE ratio of 4.75. The company has delivered an EPS growth of 39% in the last 5 years and its future outlook appears to be of modest growth as well, with a slight decline in the up coming year. The company has $88 million in cash and no debt and is well positioned to handle the slowdown in demand next year.

Great Stocks To Buy In 2012:National Presto Industries Inc. (NPK)

 National Presto Industries, Inc. engages in the production and sale of housewares/small appliances, defense products, and absorbent products in North America. The company operates in three segments: Housewares/Small Appliance, Defense Products, and Absorbent Products. The Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; the Presto Control Master heat control single thermostatic control line of skillets, griddles, woks, and multi-purpose cookers; deep fryers of various sizes; waffle makers; pizza ovens; slicer/shredders; electric heaters; corn poppers; microwave bacon cookers; coffeemakers and coffeemaker accessories; electric tea kettles; electric knife sharpeners; shoe polishers; and timers. It sells its products directly to retailers in the United States and Canada, as well as through independent distributors. The Defense Products segment manufactures 40mm ammunition, and precision mechanical and electro-mechanical products for the United States Department of Defense (DOD) and DOD prime contractors. Its products include training ammunition, fuzes, firing devices, and initiators, as well as offers munitions and ordnance-related products, and medium caliber cartridge cases. This segment also performs load, assemble, and pack operations on ordnance related products. The Absorbent Products segment manufactures and sells private label adult incontinence products and diapers. This segment sells its products to distributors and other absorbent product manufacturers. The company was founded in 1905 and is based in Eau Claire, Wisconsin.

Great Stocks To Buy In 2012:Tandy Leather Factory Inc. (TLF)

 Tandy Leather Factory, Inc. operates as a retailer and wholesale distributor of leather and related products in the United States, Canada, and the United Kingdom. The company?s leather and related products consist of leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It also manufactures leather lacing and do-it-yourself kits. As of June 14, 2011, the company distributed its products through its 29 Leather Factory stores and 77 Tandy Leather retail stores in the United States and Canada, as well as one combination wholesale/retail store located in Northampton, the United Kingdom. It sells its products to individuals, wholesale distributors, tack and saddle shops, western stores, craft stores and craft store chains, other large volume purchasers, manufacturers, and retailers, as well as institutions, such as prisons and prisoners, schools, hospitals. The company was formerly known as The Leather Factory, Inc. and changed its name to Tandy Leather Factory, Inc. in 2005. Tandy Leather Factory, Inc. was founded in 1980 and is based in Fort Worth, Texas.

Great Stocks To Buy In 2012:Transportadora De Gas Sa Ord B (TGS)

 Transportadora de Gas Del Sur S.A. engages in the transportation of natural gas, as well as production and commercialization of natural gas liquids primarily in Argentina. It operates approximately 8627 km long pipeline system. The company transports its natural gas to distribution companies, industries, traders, producers, and power plant operators. The company?s production and commercialization activities are conducted at the Cerri Complex located near Bahia Blanca. Its natural gas liquid products comprise ethane, propane, butane, and natural gasoline. It also provides midstream services, which consist of gas treatment, gas compression, and wellhead gas gathering services; removal services for impurities from the natural gas stream; and pipeline construction, operation, and maintenance services. In addition, the company offers telecommunication services for telephone operators and other corporate users. Its telecommunication network includes a microwave's digital system with synchronous digital hierarchy technology. The company was founded in 1992 and is based in Buenos Aires, Argentina. Transportadora de Gas Del Sur S.A. is a subsidiary of Compania de Inversiones de Energia S.A.

Great Stocks To Buy In 2012:ConAgra Foods Inc. (CAG)

 ConAgra Foods, Inc. operates as a food company primarily in North America. It operates in two segments, Consumer Foods and Commercial Foods. The Consumer Foods segment provides branded, private label, and customized food products, which are sold in various retail and foodservice channels. It offers products in various categories, such as meals, entrees, condiments, sides, snacks, and desserts in frozen, refrigerated, and shelf-stable temperature classes. This segment?s principal brands include Alexia, ACT II, Banquet, Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Healthy Choice, Hebrew National, Hunt?s, Marie Callender?s, Orville Redenbacher?s, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack Pack, Swiss Miss, Van Camp?s, and Wesson. The Commercial Foods segment provides commercially branded foods and ingredients that are sold to foodservice, food manufacturing, and industrial customers. Its primary products consist of specialty potato products, milled grain ingredients, a range of vegetable products, seasonings, blends, and flavors. This segment sells products under brands, such as ConAgra Mills, Lamb Weston, and Spicetec Flavors & Seasonings. The company was founded in 1919 and is headquartered in Omaha, Nebraska.

Advisors' Opinion:

• By Jonson At 2011-10-17

  Paul T Maass, who is President, Commercial at ConAgra Foods, Inc. (NYSE:CAG), sold 4,781 shares on Sep 26 at $23.90 per share for a total value of $114,242. About the company: ConAgra Foods, Inc. manufactures and markets packaged foods for retail consumers, restaurants and institutions. The Company offers a wide range of food products, including meals, entrees, condiments, sides, snacks, specialty potato products, milled grain ingredients, dehydrated vegetables and seasonings, and blends and flavors.

• By Jonson At 2011-10-17

  Kenneth E Stinson, who is s Director at ConAgra Foods, Inc. (NYSE:! CAG), so ld 8,316 shares on Sep 26 at $23.81 per share for a total value of $198,013. About the company: ConAgra Foods, Inc. manufactures and markets packaged foods for retail consumers, restaurants and institutions. The Company offers a wide range of food products, including meals, entrees, condiments, sides, snacks, specialty potato products, milled grain ingredients, dehydrated vegetables and seasonings, and blends and flavors.

• By Carlson At 2011-9-22

  ConAgra (CAG) withdrew its $94-per-share offer for Ralcorp (RAH) after the Ralcorp board rejected its most recent proposal, the company said in a statement released 2 minutes after Ralcorp’s deadline to enter into discussions had passed.

  ConAgra has said in recent days that it has heard from Ralcorp shareholders who wanted the company to consider selling to ConAgra. Clearly the pressure now is on Ralcorp. If the company can’t find a way to boost its value to its shareholders through a spin-off of its Post brands, which includes Grape Nuts, the $94-per-share offer will look like a big missed opportunity.

   

Great Stocks To Buy In 2012:JAKKS Pacific Inc. (JAKK)

 JAKKS Pacific, Inc. designs, produces, markets, and distributes toys and consumer products worldwide. The company offers traditional toys and electronics, such as action figures and accessories, including licensed characters under Pokemon name; toy vehicles and accessories under Road Champs, Fly Wheels, and MXS names; electronics products under EyeClops Bionic Eye, Laser Challenge, and Plug It In & Play TV Games names; dolls and accessories, including small and large dolls, fashion dolls, and baby dolls under Disney Princess, Disney Fairies, Cabbage Patch Kids, Taylor Swift, Fancy Nancy, Hello Kitty, Graco, and Fisher Price names; private label products; pet products, including toys, consumables, and accessories under American Kennel Club and The Cat Fanciers? Association; and vehicles, play sets, plush products, construction toys, and infant and pre-school toys. It also offers role play, novelty, and seasonal toys, including food play and activity kits under Girl Gourmet, Creepy Crawlers, and BloPens names; role-play, dress-up, pretend play, and novelty products for boys and girls under Black & Decker, McDonald?s, Dirt Devil, Disney Princess, Disney Fairies, Barbie, and Dora the Explorer names; indoor and outdoor kids? furniture, activity trays, tables and room d�cor, and seasonal and outdoor products under Crayola, Disney, and Funnoodle names; and Halloween and everyday costumes under Spiderman, Iron Man, Toy Story, Sesame Street, Power Rangers, Hasbro, and Disney Princess names. JAKKS Pacific, Inc. sells its products through own in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, toy specialty stores, and wholesalers. It also licenses various trademarks, including Disney, Nickelodeon, Warner Bros., Ultimate Fighting Championship, Hello Kitty, Graco, and Pokemon. The company was founded in 1995 and is based in Malibu, California.

Advisors' Opinion:

By iStockAnalyst At 2011-9-24

JAKK is a multi-line, multi-brand toy company that designs, produces, markets and distributes toys and related products, writing instruments and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. It also develops products marketed under its own trademarks and brand names.

The company is in the midst of evaluating Oaktree Capital Management's $20 per share cash buyout offer.