The Best Stocks for 2010

[Groove Armada]

The Best Stocks for 2010

By Dan Caplinger
December 30, 2009 | Comments (6)

<script language="javascript" type="text/javascript"> //Create your sharelet with desired properties and set button element to false var object = SHARETHIS.addEntry({ title: "The Best Stocks for 2010" ,summary: "Which investments will make you the most money in the coming year?" }, { button: false }); //Tie customized button to ShareThis button functionality. var element = document.getElementById("shareThisWrapper"); object.attachButton(element); </script> You've had your chance. Now, it's our turn.
Two weeks ago, we asked the Fool community which stocks they thought would be among next year's best performers. They came up with some great ideas:

• wolfman225 suggested that Intuit's foray into website design software would complement its traditional tax and personal finance software business well, letting it tap into small businesses and unemployed people seeking to build their own websites.
• Several dividend-paying stocks made an appearance among readers' picks, including Southern Company (NYSE: SO), Novartis (NYSE: NVS), and Caterpillar (NYSE: CAT). The combination of attractive payouts at fairly inexpensive valuations gave readers confidence about their future prospects.
• Outsized gains among some of 2009's top comeback stories didn't stop folks from choosing them to outpace their peers in 2010. Ford Motor (NYSE: F), Citigroup (NYSE: C), and even Fannie Mae (NYSE: FNM) all came back from the brink back in March to post strong gains -- and some see them as repeat performers next year.

A good year
2009 was good for many investors, and our past-year picks were no exception. Out of 14 stocks we looked at last December, two more than doubled in price, and only two stocks -- ExxonMobil (NYSE: XOM) and General Electric -- were down year-to-date.
But unlike some competitions, you won't see us coasting on our winning record. Most of our Foolish contributors are back again for another shot at the glory of choosing the best stock for 2010. And we need your help.
Take a look at this year's selections and see what you think. At the bottom of each article, you'll have the opportunity to vote whether you believe that stock is the best stock for 2010. Once we've tallied the votes, we'll be back to tell you which ones are best poised for big gains next year.
The Best Stocks for 2010:

• Akamai Technologies
• Apple
• ATP Oil & Gas
• Berkshire Hathaway
• Costco
• Exelon
• Google
• Intel
• Intuitive Surgical
• NVIDIA
• Silver Wheaton
• Smart Balance
• UPS

 

[Groove Armada]

The Best Stocks for 2010: Intuitive Surgical

By Brian Orelli, Ph.D.
December 30, 2009 | Comments (1)

Disney Buys Marvel!



David Gardner called it. He’s up 1,334%! See what David’s recommending that you buy NEXT.

Intuitive Surgical (Nasdaq: ISRG) never looks cheap. Then again, growth stocks usually don't. This isn't your daddy's value stock.
The purveyor of robotic systems that assist doctors in performing surgery has had a roller coaster of a year. At a P/E near 60, there's a lot of growth priced into the stock, but it looks like its regaining its legs -- and I think it'll do fine in 2010.
Not for the faint at heart
While Intuitive Surgical is up 261% off its low for the year, that's partially deceiving because the company has a fairly high beta. High-beta stocks tend to rise higher in the good times, but they also fall farther when the bear roars its ugly head.
<table class="ed-table" cellspacing="0"> <tbody> <tr> <th>

Company​

</th> <th>

Beta
(3-year)​

</th> <th>

(Fall) From
2007 Highs​

</th> <th>

Increase From
2009 Low​

</th> </tr> <tr> <td> Sirius XM Radio (Nasdaq: SIRI)
</td> <td> 2.15
</td> <td> (99%)
</td> <td> 1054%
</td> </tr> <tr> <td> Las Vegas Sands (NYSE: LVS)
</td> <td> 4.67
</td> <td> (99%)
</td> <td> 1002%
</td> </tr> <tr> <td> Ford (NYSE: F)
</td> <td> 2.77
</td> <td> (85%)
</td> <td> 580%
</td> </tr> <tr> <td> Advanced Micro Devices (NYSE: AMD)
</td> <td> 2.12
</td> <td> (91%)
</td> <td> 428%
</td> </tr> <tr> <td> American Express (NYSE: AXP)
</td> <td> 2.27
</td> <td> (85%)
</td> <td> 323%
</td> </tr> <tr> <td> Intuitive Surgical
</td> <td> 1.89
</td> <td> (76%)
</td> <td> 261%
</td> </tr> <tr> <td> Citigroup (NYSE: C)
</td> <td> 2.98
</td> <td> (98%)
</td> <td> 249%
</td> </tr> <tr> <td> S&P 500
</td> <td> 1
</td> <td> (58%)
</td> <td> 69%
</td> </tr> </tbody> </table> Source: Motley Fool CAPS and Capital IQ, a division of Standard & Poor's. As of Dec. 28.
Most of those stocks are still well off their 2007 highs -- remember a 50% increase doesn't cancel out a 50% drop. Of the stocks listed above, only Ford has completely recovered to 2007 levels. But Intuitive Surgical is within striking distance of its all-time high as investors have some confidence that the company can get back to the crazy revenue growth that topped 60% annually in years past.
You can't have one without the other (for very long)
Intuitive Surgical has three main forms of revenue. It sells da Vinci systems used to perform surgeries and service contracts to repair the installed systems. It also sells disposable instruments used by the system. In other words, it's a variation of the standard "razor and blade" model made famous by Gillette.
The difference is that Intuitive Surgical isn't giving away the razor. In fact, at a cost of more than $1 million each, the company saw a substantial slip in the number of da Vinci systems sold in 2009, as hospitals didn't have the capital to buy them.
Surgical procedures, on the other hand, galloped along at their usual stellar rate.
<table class="ed-table" cellspacing="0"> <tbody> <tr> <th>

Change​

</th> <th>

Q1 2009​

</th> <th>

Q2 2009​

</th> <th>

Q3 2009​

</th> </tr> <tr> <td>

(Decrease) in system sales (YOY)​

</td> <td>

(11%)​

</td> <td>

(11%)​

</td> <td>

(5%)​

</td> </tr> <tr> <td>

Increase in procedures (YOY)​

</td> <td>

60%​

</td> <td>

52%​

</td> <td>

49%​

</td> </tr> </tbody> </table> Source: Company press releases. YOY = Year over year.
The only way to account for the discrepancy in growth rates is that hospitals are increasing their usage of the system(s) that they own. Instead of doing one procedure per day, for instance, perhaps they've upped it to two. That can only last for so long; there's only so many hours available in a day.
Besides, once different departments start fighting for time on the system, hospital management is bound to pony up for a new machine to keep the cash-cow surgeons happy. In fact, the procedure growth may already be forcing hospitals to increase the number of da Vinci machines they own. In the third quarter, about 25% of new installations went to repeat customers, including a sixth system to Methodist Medical Center in Houston.

Earning its keep
Intuitive Surgical isn't a slam dunk. The company needs to increase revenue growth back near the 60% level it's seen previously in order to justify its current valuation. Unlike a value play where investors just need the pessimism to go away to profit, Intuitive Surgical actually has to deliver.
Investors should keep an eye on the procedure growth. As long as Intuitive Surgical can keep it up, revenue growth is bond to rebound. Eventually.
Think Intuitive Surgical has what it takes to slice and dice its way to the top in 2010? Vote in our poll and then check back when the finalists square off.

 

[po2wq]

as in ze last few yrs ...

gahmen wil still favor ft stock ...

 

[Naturefarm2]

i had C, Fre, FNM with me.
Try LYG also, at low now, i think this is a potential.

any recommedation that is below USD2.00 and had potential to keep?