Benj Gallander is president of Contra the Heard Investment Letter. His focus is on contrarian Investing.
Top Picks:
Bank of America
Bank of America made two major acquisitions during the recession, Merrill Lynch and Countrywide. The first should add handily to the bottom line as the economy improves and the latter, after causing heavy losses, could also eventually prove to be a good asset. Plus, the turn in the housing market will help BAC and there is a reasonable chance that in the next two years, the dividend could grow handsomely.
Target Price: $38.74
Hemisphere GPS
Hemisphere GPS has finally become profitable and the CEO expects a better second half of the year. Agricultural revenues have soared, offering farmers the chance to buy new equipment. HEM should be a beneficiary.
Target Price: $3.49.
Cash (Third pick)
Past Picks: May 31, 2011
Deswell Industries Inc.
Then: $2.88
Now: $2.58
Total return: -6.21%
Bank of Commerce Holdings
Then: $4.20
Now: $3.90
Total return: -4.10%
Cash (Third pick)
Total Return Average: -5.16%
MARKET OUTLOOK
Often from now until the fall, markets do not do that much. Whether or not that happens, this is an excellent time to analyze how to deploy cash, as many good stocks will likely be much cheaper in the last quarter of the year.
Compiled by Rob Moysey, BNN Market Call Tonight
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