3 Stocks to Get on Your Watchlist

I follow quite a lot of companies -- some more closely than others -- so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I'd be unable to keep up on my favorite sectors and what's really moving the market. Even worse, without my watchlist, I'd be lost when it came time to choose what stock I'm buying or shorting next.

What I intend to do as an experiment is to make every Wednesday "Watchlist Wednesday," where I'll discuss three companies that have crossed my radar in the past week and at what point I may consider taking action on these calls with my own money. Keep in mind these aren't concrete buy or sell recommendations, nor do I guarantee I'll take action on the companies being discussed weekly. What I can promise is that you can follow my real-life transactions through my profile, and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.

Broadvision (Nasdaq: BVSN  )
What a difference a decade makes. In 1999, business-to-business software was supposed to revolutionize the Internet, and Broadvision commanded a market value of $10 billion. Today, after a one-for-25 reverse split, Broadvision trades at a market cap of just north of $120 million and is still losing money.

That, however, hasn't stopped the B2B company and its now-small float from attracting hoards of day traders, who have flocked to the stock in droves over the past month. Up 250% over just the past month, Broadvision doesn't have much going for it beyond its $57 million in cash and no debt. Broadvision's erratic history has yielded six annual losses in the past 10 years, and its sales have contracted from $244 million in 2002 to only $18 million over the trailing-12-month period. From what I can see, nothing has changed fundamentally in years, and if Broadvision's volume remains this high, I may attempt to take a short position in the stock.

Integra LifeSciences (Nasdaq: IART  )
If you haven't taken the hint already that I'm generally a life sciences and medical devices bull, then perhaps now is the time to cement it in stone.

Integra has issued two straight cautious earnings forecasts which have tanked its stock price, yet these "warnings" haven't amounted to more than a 2%-4% EPS miss at the worst in each case. Integra's core surgical implants and devices business is growing in the mid-single digits, and it's suffering from the same global slowdown that life sciences instrumentation provider Waters (NYSE: WAT  ) alluded to yesterday when its shares actually popped 10% higher. However, Integra's forward P/E of 8 puts it at half that of Waters, and its 10-year annualized sales growth of 22.9% absolutely crushes Waters' 6.7% annualized growth rate. I can't say I'm a huge fan of the GARP model (growth at a reasonable price), but Integra fits the bill perfectly, and I may look to take a position.

Baker Hughes (NYSE: BHI  )
Just because Baker blew it doesn't mean you should ignore this drilling darling. Yesterday, Baker Hughes released fourth-quarter results which highlighted a 45% jump in earnings and a 22% jump in sales. You'd think that'd be enough to satisfy Wall Street, but these both missed the Street's consensus figures as costs rose an unexpected 26%. But I'm not giving up on Baker Hughes, and neither should you.

Although rival Schlumberger (NYSE: SLB  ) was able to surpass consensus estimates last week, it also warned that a slowdown in Europe could be troublesome to its bottom line in 2012. With everyone in the oil service equipment provider sector going through similar growing pains and dealing with abnormally low natural gas prices, it doesn't make sense to me that Baker Hughes should trade at only nine times forward earnings and 1.3 times book value while Schlumberger is valued at 12 times forward earnings and more than three times book value. I may look to buy soon.

Foolish roundup
Is my bullishness or bearishness misplaced? Share your thoughts in the comments section below and consider following my cue by adding these three companies to your free and personalized watchlist to keep up on the latest news with each company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. He's a total nerd when it comes to making lists. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Motley Fool newsletter services have recommended buying shares of Schlumberger. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that believes transparency comes first.


Read/Post Comments (3) | Recommend This Article (7)

Comments from our Foolish Readers

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  • Report this Comment On January 25, 2012, at 11:46 AM, sevenseaman wrote:

    Great write up about Broadvision. Cash flow has also been negative, hence their cash position will decline also over time. Without a product that nets them a cash stream and net profit, Broadvision will continue to underperform as Chen is at the helm. Over the past decade they have not produced results that anyone can justify.

    This link from CNBC saids it all regarding the recent runup from a penny stock promoter, when the hot air from the balloon pops watch out above:

    http://video.cnbc.com/gallery/?video=3000069151

  • Report this Comment On January 26, 2012, at 12:10 AM, shamilben wrote:

    @sevenseaman who cares what so called professional financial advisor might say....some people like me made good money on this stock in a matter of 4 weeks it went from $8 to $44 and now its rolling back....I personally do what is best for me I bought not to many shares because i have small funds available…bought it @ $8 300 shares sold @ $29 dollars….not bad for a small fish like myself….those bastards like Cramer wont and cant recommend nothing at all that will make some money for a small guy like myself…This stock was a defiantly not a LONG term position, unlike I have 450 shares of GE which I bought for $16.60 and getting dividends and also Pfizer 200 shares @ 15.50…these stocks are long term

  • Report this Comment On January 26, 2012, at 12:33 PM, sevenseaman wrote:

    @shamilben I'm not saying that you can't make good money on this. You could also buy a lottery ticket with a biotech stock and make 1000x your money. Or you could also lose a majority of your money. The point is that this stock went on a massive pump and dump promote. If you don't know what that means look it up on Wikipedia. You'll find Lebed and a desciption of what he is famous for.

    You did a good job to make a profit. However what I am referring to is Broadvision the company itself. Over the course of a decade Broadvision had lost over 98% of investor's money. Now if you had bought over a decade ago you would have lost money besides being short.

    You could continue to follow Lebed advice and follow his touts. However I can provide you of what could possibly go wrong.

    Take this Fox interview for example:

    http://www.youtube.com/watch?v=MFcgwZ3xjJg

    Lebed had touted this stock that ended up trading at its current price of 0. You would have lost your whole investment if you would have followed his advice. Again, if you were to follow a professional LICENSED advisor their would be legal representation if you were to lose your money. With Lebed you are buying a chance and riding the pump and hopefully not get caught when the hammer comes down.

    However back to Broadvision. If you had followed this company over the past ten years, you would understand how the CEO Chen had ran it into the ground with gross mismanagement. His low point was when the company was put up for sale and had accepted an offer to sell itself to Vector Capital for 84 CENTS a share. Now if you take into account that offer why would anyone pay 8 Dollars let alone 29 Dollars a share.

    Yes they have 12 dollars a share. However their business is causing it to lose CASH every quarter because they are negative cash flow and profits. As I mentioned before you are buying a company with no growth as revenue has been down yoy for the last FOUR years. And on a tout from Lebed that this is similar in ANY WAY to Facebook, or Jive. Both of which have insitution backing and have actual growth and potential for profits.

    Trying buying a business and try losing money year after year, does that seem to be a prudent excerise to pour more money? Investing in Broadvision is the same way. Without any coverage from Wall Street who left in droves during 2005, you are buying simply on a promote. If Lebed were to halt its promote this stock will go into a freefall as it had during the past 10 years.

    I like to know your rational for investing besides it going up.

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