Great Stocks To Buy In 2012

Given the recent stock market downturn, right now could be the perfect time to build your position in a unique set of investments called “Forever” stocks.

These are the only stocks we know of that you can buy today and hold for the rest of your life.

The idea is that when you load your portfolio with “Forever” stocks, you may no longer need to worry about things like inflation or deflation… bear markets or recessions… flash-crashes or rising interest rates.

It’s for this reason super investors like Warren Buffett, Bill Gates and George Soros have owned these stocks for years… and it’s why they’re piling billions of dollars into them today as well.

Great Stocks To Buy In 2012:Canadian National Railway Company (CNI)

 Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business in North America. It provides transportation for various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, and intermodal and automotive products. The company operates a network of approximately 20,600 route miles of track that spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico. It serves the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis, and Jackson (Mississippi), with connections to various points in North America. The company was founded in 1922 and is headquartered in Montreal, Canada.

Advisors' Opinion:

• By Vodicka At 2011-10-29

  Montreal-based Canadian National Railway (CNI) operates
  about 21,000 route-miles of rail that span all the way from the frozen north down to the Mississippi Delta — nearly enough track to wrap around the entire world. Since Canada is one of the largest countries in the world by geography (second only to Russia with an area of about 4 million square miles), the transportation and freight industries are vital and very lucrative parts of the nation’s economy.

  The reason I’m so bullish on CNI right now is that the company is a large player in transporting commodities, including Canada’s exports of timber and metals and imports of energy from the United States. In Canadian National’s latest earnings report in January, the company stated that Q4 shipments grew for coal, grain and fertilizers and petroleum and chemicals — and this is in spite of bad weather and a five-day strike that really messed with CNI’s schedule. Just imagine how CNI will do in the warmer months as the economy continues to improve.

Great Stocks To Buy In 2012:American Medical Alert Corp. (AMAC)

 American Medical Alert Corp. provides healthcare communication and monitoring services. It operates in two segments, Health Safety and Monitoring Services (HSMS) and Telephony Based Communication Services (TBCS). The HSMS segment develops and markets personal emergency response systems, medication reminder and dispensing systems, telehealth/disease management technologies, and safety monitoring systems to pharmacies. The TBCS segment provides centralized call center solutions primarily to the healthcare community, including traditional after hours services, daytime services applications, and pharmaceutical support and clinical trial recruitment call center services. The company markets its products and services to healthcare providers, pharmaceutical companies, managed care organizations, and consumers directly, as well as through a network of distributors. American Medical Alert Corp. has a joint venture agreement with Hughes Telematics, Inc. and Qualcomm Incorporated to deliver mobile health services. The company was founded in 1981 and is based in Long Island City, New York.

Great Stocks To Buy In 2012:Smith Micro Software Inc. (SMSI)

 Smith Micro Software, Inc. designs, develops, and markets software products and services primarily for the mobile computing and communications industries worldwide. The company operates in two segments, Wireless, and Productivity and Graphics segments. The Wireless segment develops mobile connectivity, mobile information management, and mobile security solutions, including QuickLink Mobile that provides mobile users to connect a notebook or other wireless device to wireless wide area networks (WWANs) and wireless local area networks (WLANs) or Wi-Fi hotspots; QuickLink Mobility suite, which allows connectivity for the user operating on WWANs, corporate local area networks (LANs), and Wi-Fi networks; and QuickLink Media for managing the media on the mobile devices. It also provides SendStuffNow, which secures cloud-based large file delivery solution; Device Management suite that provides intelligent, automated mobile device provisioning, and configuration; and push-to-talk, visual voicemail, and mobile video solutions. The Productivity and Graphics segment develops various software products for the consumer, prosumer, and professional markets. It provides StuffIt Deluxe, a lossless compression solution for documents and media; CheckIt Diagnostics and CheckIt Netbook suite, a diagnosis and troubleshooting solution for hardware and system problems; Poser, a solution for creating 3D character art and animations; Anime Studio, an animation tool for professional and digital artists; and Manga Studio, a solution for creating manga and comic art. This segment distributes its products through online stores, and third-party wholesalers, retailers, and value-added resellers. The company serves mobile network operators, original equipment manufacturers, device manufacturers, and enterprise businesses, as well as directly to consumers. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.

Great Stocks To Buy In 2012:Western Digital Corporation (WDC)

 Western Digital Corporation primarily engages in the design, development, manufacture, and sale of hard drives worldwide. It offers hard drives, including 3.5-inch and 2.5-inch form factor drives under the WD Caviar, WD RE, WD VelociRaptor, WD Scorpio, WD Elementstm, WD AV, WD ShareSpacetm, WD S25, My Passport, My Book, and My DVR Expander brand names. The company?s hard drives are used in desktop and notebook computers, corporate networks, home entertainment equipment, and stand-alone consumer storage devices. It also offers hard drives as stand-alone storage products for personal data backup, and portable or expanded storage of digital music, photographs, video, and other digital data. In addition, the company provides solid-state drives under the SiliconDrive and SiliconEdge brand names for use in the embedded systems and client PC markets; and media players under the WD TV brand name. It offers its products to original equipment manufacturers, systems manufacturers, select resellers, and retailers. The company was founded in 1970 and is headquartered in Irvine, California.

Great Stocks To Buy In 2012:Northeast Utilities (NU)

 Northeast Utilities, a public utility holding company, provides electric and natural gas energy delivery services to residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. The company engages in the purchase, delivery, and sale of electricity; and owns and operates approximately 1,200 megawatts of primarily fossil-fueled electricity generation assets. As of December 31, 2010, it served approximately 1.2 million customers in 149 cities and towns in Connecticut; 497,000 retail customers in 211 cities and towns in New Hampshire; and 206,000 retail customers in 59 cities and towns in western Massachusetts. The company also operates a natural gas distribution system in Connecticut and serves approximately 206,000 customers in 71 cities and towns. It offers gas supply to commercial and industrial customers; and to residential customers for heating, hot water, and cooking needs, as well as provides gas transportation services to commercial and industrial customers. In addition, the company offers electric transmission services. Northeast Utilities was founded in 1927 and is headquartered in Hartford, Connecticut.

Great Stocks To Buy In 2012:Rent-A-Center Inc. (RCII)

 Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. The company?s stores offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. It also provides merchandise on an installment sales basis in its stores. As of December 31, 2010, the company operated 3,008 company-owned stores in the United States, and in Canada, Puerto Rico, and Mexico, including 42 retail installment sales stores under the names ?Get It Now? and ?Home Choice?; and 18 rent-to-own stores located in Canada under the ?Rent-A-Centre? name. It also operates 209 franchised rent-to-own stores in 32 states under the ColorTyme trade name; and 384 kiosk locations under the ?RAC Acceptance? model. In addition, the company, through its ColorTyme?s franchised stores, offers custom rims and tires for sale or rental under the trade names ?RimTyme? or ?ColorTyme Custom Wheels?. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

Advisors' Opinion:

• By Chris Stuart At 2011-8-31

  Rent-A-Center(RCII), the largest rent-to-own operator in the U.S., rents furniture and electronics to low- to middle-income customers.

  The company has struggled in the past three months, underperforming its closest competitor, Aaron's Rents(AAN), by over 25%. While Aaron's has executed flawlessly, Rent-A-Center has not, as the company missed earnings estimates. Management blamed the first-quarter fallout on poor weather conditions in February and limited availability of refund-anticipation loans for consumers. Despite the hiccup, management has stuck to its 2011 guidance of $2.90 to $3.10 in EPS, equating to revenue growth of 5% to 7% and earnings-per-share growth of 3% to 10%.

  Key initiatives to boost growth, such as RAC Acceptance (kiosks in third-party stores that arrange rent-to-own programs) are in place. Management has done a good job of managing its debt position and recently boosted the dividend by 167% (now at a 2.2% yield). If management can achieve $3 in EPS for the full year, the stock looks cheap, trading at just 9.7 times earnings (a discount to 15 times P/E for Aaron's). TheStreet Ratings has a $41 price target on shares of Rent-A-Center.