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Déjà Vu Stock Market
Ken Fisher, 09.07.11, 06:00 PM EDT
Forbes Magazine dated September 26, 2011
Page 2 of 2

A similar "It should do better if"story is a good reason for liking toy-maker HASBRO (HAS, 39). Toys are economically sensitive. You can stall spoiling the grandkids in bad times. The stock is off 18% this year. I’ll bet by Christmas grandparents and parents will start spending again. It sells at 14 times my 2011 earnings estimate and has a 3.2% dividend yield.

New York’s HESS CORP. (HES, 59) is a solid second-tier integrated oil-and-gas firm—with scores of gas stations across the eastern U.S. It’s got 1.5 billion barrels of oil-equivalent reserves (versus 17.2 billion at Exxon). It’s cheaper than peers at seven times trailing earnings versus the industry average of nine--and 50% of annual revenue. It’s a bargain that should produce nice gains. Its dividend payout is puny at only 0.7%.
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I recommended Houston’s CARBO CERAMICS (CRR, 160) in July 2010 at $73 as a leading maker of ceramic "proppant,"the grist of hydraulic fracturing, or fracking. Despite the misguided efforts of environmentalists this business will grow exponentially. In the most recent fiscal quarter ending July 28, for example, revenues climbed 34% and net income rose 60%. The $538 million (sales) company has increased its dividend for 11 consecutive years.

The recent dip in its stock price, from its $183 peak, gives you a second chance. Buy Carbo Ceramics despite the fracking fretters. Last month I recommended Olathe, Kans. GPS maker Garmin at $33 per share for its improving product mix. Add to your list Silicon Valley’s TRIMBLE NAVIGATION (TRMB, 37). It’s the leader in expensive high-end positioning technologies, including GPS, laser and optical systems for the military, aviation, surveying, mapping and construction. While it sells at 28 times trailing earnings, it is growing like gangbusters and thus trades at only 14 times my 2012 earnings estimate.