Today's trading in the Dow Jones Industrials (DJINDICES: ^DJI ) demonstrates the ongoing battle between bulls and bears over the prospects for the economy. On one hand, signs of strength in the housing sector have bolstered hopes that the key driver of economic activity will continue to pick up and benefit workers throughout the economy. Yet this morning's data on jobless claims added to concerns that overall employment trends continue to lag behind, raising fears that the U.S. may join other countries around the world in seeing already-sluggish growth rates decelerate further. After yesterday's big drop, the Dow has regained 37 points, or 0.25%, as of 11 a.m. EDT today. The S&P 500 is up by a similar percentage, and the Nasdaq is down slightly.
Yet even if the economy is poised for a slowdown, certain stocks will likely benefit. McDonald's (NYSE: MCD ) is up more than 1% this morning, climbing above the $100 mark and approaching all-time highs. Even as the company faces a strike in New York City by workers who want better pay, McDonald's attracts defensively minded investors because of its record of holding up well in past downturns. The fast-food giant was one of the few stocks that actually rose during 2008's bear market, and with stocks teetering at current high levels, investors want that kind of protection again.
Top 5 Defensive Stocks To Watch Right Now: Ashley(l)
Laura Ashley Holdings plc, together with its subsidiaries, engages in the design, manufacture, sourcing, distribution, sale, and licensing of clothing, accessories, and home furnishings in the United Kingdom and internationally. It offers various furniture products, including beds, upholstered furniture, mirrors, and cabinet furniture; home accessories, such as lighting products, gifts, bed linen, rugs, throws, cushions, and children?s accessories; and decorative products comprising curtains, blinds, fabrics, paints, decorative accessories, and wall coverings. The company also offers fashion products, such as clothing that include dresses, knitwear, tops, blouses, skirts, trousers, leggings, coats, jackets, swimwear, and shoes, as well as accessories comprising bags, purses, jewellery, and scarves. In addition, it provides design services for homes; and licenses various products, such as stationery, wooden flooring, blinds, interior window shutters, carpets, nursery produ cts, fireplaces, garden products, eyewear, tiles, promotional gifting, toiletries, shoes, and Fairtrade clothing. The company sells its products through retail stores, online, and mail order. As of January 29, 2011, it operated 217 stores, including 138 mixed product stores, 55 home stores, 22 home concession stores, 1 gifts and accessories store, and 1 clearance outlet in the United Kingdom; and 240 franchised stores in 29 countries. The company is based in London, the United Kingdom.
Advisors' Opinion:- [By Michael Brush]
This holding company is one of the best long-term investments you could ever own. Controlled by the Tisch family, they've earned their stripes over the years by buying assets on the cheap and patiently waiting for the markets to recognize the intrinsic value of those assets. Three of its holdings, one of which is privately owned, are energy related. The first is Diamond Offshore Drilling (NYSE:DO), which owns and operates one of the world's largest fleet of offshore drilling rigs. Loews owns 50.4% of the company and although revenues and earnings suffered in 2012, its future appears strong given all the offshore drilling that's taking place around the world. With over $1.3 billion in EBITDA earnings heading into 2013, the fact that it has been able to sign a contract for its Ocean Endeavor 10,000-feet rig that ups the daily rate from $285,000 to $505,000 suggests that the offshore drilling business is picking up steam; Diamond Offshore looks ready to take advantage of the changing tide.
Top 5 Defensive Stocks To Watch Right Now: Kootenay Gold Inc. (KTN.V)
Kootenay Silver Inc., an exploration stage company, engages in the acquisition and exploration of mineral properties in North America. The company explores for gold, silver, copper, lead, and zinc ores. It principally has interests in the Promontorio silver mine that covers an area of approximately 79,000 hectares and is located in Sierra Madre region of northwest Mexico. The company was formerly known as Kootenay Gold Inc. and changed its name to Kootenay Silver Inc. in February 2012. Kootenay Silver Inc. is based in Vancouver, Canada.
Top 10 Mid Cap Companies To Watch In Right Now: COLT TELECOM GROUP S.A. ORD EUR1.25(COLT.L)
Colt Group S.A., together with its subsidiaries, provides business communications and information technology (IT) solutions and services in Europe. The company operates in three segments: Enterprise Services, Communication Services, and Data Centre Services. The Enterprise Services segment provides a range of technical solutions, including managed networking, managed IT services, and unified communication solutions through its information delivery platform to medium and large sized corporates in the financial, public, media, and professional services sectors. The Communication Services segment offers a range of voice, broadband, and data communications services, such as IT and network services for fixed and mobile network operators, Internet service providers, and telecoms and IT resellers through indirect sales channels. The Data Centre Services segment serves enterprises and corporates that require data centre space to support their compute infrastructure. This segment d esigns, builds, and operates data centers. The company offers its services through resellers, agents, and franchises. COLT Group S.A. was founded in 1992 and is headquartered in Luxembourg.
Top 5 Defensive Stocks To Watch Right Now: First California Financial Group Inc.(FCAL)
First California Financial Group, Inc. operates as the holding company for First California Bank, which provides commercial banking services to individuals, professionals, and small- to mid-sized business in California. Its deposit products comprise non-interest bearing checking, interest checking, savings accounts, time deposits, and money market accounts. The company?s loan portfolio includes revolving lines of credit, term loans, commercial real estate loans, construction loans, consumer and home equity loans, entertainment finance, and small business administration loans. As of March 18, 2010, it operated through 17 full-service branches in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties. The company was founded in 1981 and is headquartered in Westlake Village, California.
Top 5 Defensive Stocks To Watch Right Now: Adelaide Resources Ltd(ADN.AX)
Adelaide Resources Limited engages in the exploration and development of mineral properties in Australia. It primarily focuses on gold, copper, and uranium deposits. The company holds interests in 25 exploration licenses covering approximately 8,000 square kilometers in South Australia, the Northern Territory, and Queensland. Its projects include the Rover, Eyre Peninsula, Eyre Peninsula Basement, Yalanda Hill JV, Corrobinnie Palaeochannel JV, Cleve, Anabama, Moonta, and Glenroy. The company is based in Unley, Australia.
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