A well-crafted watchlist is critical to smart investing: It can help you find attractive buying opportunities, and it can save you from rushed, emotional decisions by slowing down the process. The Fool now offers MyWatchlist.com, your free customized hub to follow the performance and Fool news and commentary about the companies you're watching.
But what to put on your watchlist? In the latest entry in our ongoing series, Motley Fool analyst Andrew Sullivan exposes his split personality by offering up two growth companies poised to capitalize on the run-up in gold and two value companies that have taken hits as part of the defense industry.
Having spent time working on Wall Street researching aerospace and defense stocks, Andrew is acutely aware of the gloom and doom that hangs over the industry in the wake of the Deficit Reduction Commission recommendation to slash $100 billion from defense spending. But instead of running from the companies that seem to have their necks on the chopping block, Andrew is seeing opportunity.
But the company has been shaking up its staid and stodgy approach since hiring a new CEO last year, and its small size has allowed it to be nimble in picking up new business. As many of the company's contracts come to an end for its work in Iraq, VSE will need to demonstrate it can keep the flow going with its new, more vibrant approach. A couple quarters of growth will convince Andrew.
As the defense industry has been beaten down, the price of gold has soared, making miners look more attractive given their huge leverage to the price. Andrew thinks there's still room for gold to run and sees a lot of value in mining stocks, many of which have not risen as much as gold over the past few years.
The key is to find the Goldilocks miner -- you don't want a little one that is based on a blend of hope and prayers, but you also want to avoid the big ones that no longer have room for growth. Andrew sees Northgate Minerals
Another miner that has caught Andrew's eye is Minefinders
And that's exactly why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. We Fools may not 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.