3 Good Investments for Your Stocking

As the holidays approach, Motley Fool analyst Blake Bos suggests giving a gift that keeps on giving: stocks.

First on the list is actually an exchange traded note. It's the iPath US Treasury Long Bond Bear (NYSEMKT: DLBS  ) , and it increases in value if interest rates go up on long term treasury bonds. With interest rates at historic lows, it could be just a matter of time before interest rates return to historic norms and this instrument is one of the few that allows investors to profit from rising interest rates. 

Among the stocks on Blake's Christmas list are Timken (NYSE: TKR  ) , a manufacturing company focused primarily on friction components. While the business may not sound exciting, Blake likes Timken's strong cash flow, solid dividend, 15% insider ownership, and potential for tremendous return on investment if management can meet its stated sales targets.

For a little more exciting stock idea, Blake recommends SodaStream (Nasdaq: SODA  ) . Based in Israel, SodaStream has generated tremendous growth, as it has built off its success in Europe and expanded into North America and Asia. In addition to growth opportunities, a reasonable valuation, high short ownership, and 10% insider ownership are reasons to be excited about the prospects for the stock. However, Blake notes that any investment in SodaStream should be made with the understanding of the current geopolitical environment facing any company based in Israel.

See more in the following video.

SodaStream's carbonation technology sounds simple, right? Well, this razor-and-blade company offers an intriguing opportunity for growth that may be harder to duplicate than you might think. As Blake discusses in this video, the premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a year's worth of updates, so just click here to get started.


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  • Report this Comment On November 29, 2012, at 8:36 AM, AFoolJeff wrote:

    "In addition to growth opportunities, a reasonable valuation, high short ownership, and 10% insider ownership are reasons to be excited about the prospects for the stock."

    Thanks for the article! Why is high short ownership a reason to be optimistic? Unless you are hoping for a short squeeze?

  • Report this Comment On November 29, 2012, at 2:29 PM, TMFBos wrote:

    Thanks Jeff, as for the high short interest. It's only a reason to be optimistic if the company's fundamentals are in check. Then if all goes according to managements plans the share price will rise and the shorts will cover their position causing the share prices to increase. I personally like high short interest in companies I find to be solid fundamentally because it shows theirs a lot of pessimism and it could be a great value play. The short squeeze is a nice bonus if it does occur, but mostly the pessimism can lead to good value opportunities. I'd caution going after all companies with a high short interest because more often than not you'll find the shorts are there for a reason.

    Fool On!

    Blake

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