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Experts Pick Best Stock Buys In An Obama Market
Bloggingstocks has culled together two lists of companies to watch -- and invest in -- depending on whether John Mccain or Barack Obama was elected to the presidency. They have keep an keen eye on which sectors might experience a surge, based on what each candidate described or hinted at as his priorities.
Now that President Elect Obama has prevailed, check out some their top choices for an Obama future. The site suggests that these stocks could be good to watch in the months -- and years -- to come, as President Elect Obama realigns our government policy, and attempts to quell the current financial crisis.
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Ford could benefit simply because politically, Obama can't afford to preside over the complete collapse of the American automotive industry. And that collapse is looking more and more like a very real possibility. The Center for Automotive Research issued a report today analyzing the potential effects of serious cutbacks at the Big Three. If Ford, General Motors (NYSE: GM) and Chrysler were to cut production collectively by half, the result would be a loss of two and a half million jobs. If all three gave up the ghost entirely, over three million jobs would disappear in the first year alone.
Unfortunately, these numbers have to be taken seriously given the state of the industry. As David Cole, the head of the Center for Automotive Research, said, "The likelihood of one or two of the Detroit Three manufacturers ending operations is very real." At this point, Chrysler is probably the weakest of the Big Three, and Ford is probably the strongest. That suggests that Chrysler may be forced to pay the price of excess capacity -- and bad design and management -- in the American auto industry. But Obama can't afford to let all of the car companies die, and so his administration is likely to intervene with massive aid to save Ford, and perhaps GM.
StemCells Inc. (STEM):
STEM is not a new company, having been listed on the NASDAQ since 1992, but it's work has become all the rage in the past few years. The Bush administration has been opposed to stemcell research, however, California has been supportive of all biotech companies and I believe president elect Obama will be too.
The stock is volatile trading between $0.66 and and $2.28 over the past 52 weeks. The following story highlights some recent findings StemCells, Inc. Announces Preclinical Results Showing its Proprietary Human Neural Stem Cells Can Prevent Vision Loss. Perhaps a good entry point would be somewhere in the middle.
Best Buy (BBY):
Now that Senator Barack Obama has turned into President-elect Barack Obama, I feel that the retail sector needs to be looked at. And one of the better ideas out there just might be Best Buy.
Under an Obama administration, non-wealthy individuals may begin to feel wealthier. And they will spend. Why will Best Buy prosper because of this? I think if consumer confidence increases due to a positive wealth effect, then an electronics chain that has a lot of brand equity should do well. People might be in the mood to upgrade their television sets, buy a new laptop, purchase a bunch of video-game software, replace an aging appliance, etc. Of course, one could argue that Wal-Mart (NYSE: WMT) or Target (NYSE: TGT) would benefit from Obama just as easily as Best Buy would. I can see that. But the reason I'm singling out Best Buy is that I believe that tech products might be the retail category that receives the biggest boost. Since this electronics chain has a reputation for being an expert in the field, it would seem logical that people will gravitate toward its locations. And it certainly is doing a lot better than Circuit City (NYSE: CC).
Suntech Power Hldgs ADS (STP) and SunPower Corporation (SPWRA):
President-elect Barack Obama has often repeated his stance on alternative energy. He plans to spend $150 billion over 10 years on alternative energy, not only as part of his energy independence plan, but also in order to help clean the environment, and perhaps most important of all, to create 5 million new jobs.
Congress passed a bill that approved about $18 billion of renewable-energy tax credits after repeated failed attempts to do so this year, and now there will be an administration that -- if it sticks to its claims -- will be more supportive of alternative energy. The only question investors should ask, so which do I pick?
Now that Senator Obama is President-elect Obama, what will he do with the economy and how can you profit from it? One way is to look for stocks that will benefit from a part of his proposed economic stimulus plan -- the creation of a National Infrastructure Reinvestment Bank that would spend $60 billion over 10 years on roads, bridges, ports, airports and rail lines.
One company that could benefit from this investment would be Jacobs Engineering (NYSE: JEC), which engineers municipal infrastructure. The stock is down 57% in the last year due to concerns about whether states and cities will build new infrastructure in the face of a crumbling economy. But does the Jacobs' stock drop mean it will go up now that Obama is President?
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Huffington Post | November 5, 2008 04:04 PM