It's time to put The Motley Fool's money where my mouth is.
I've been running a public real-money portfolio since November 2010, and today I'm announcing three buys based on my research and articles over the past few months.
Stock No. 1: Corning (NYSE: GLW)
Here's what I like about Corning:
- Its history of innovation in the glass industry.
- The market's underestimating of the strength of the LCD market.
- Its Gorilla Glass protective covering product for smartphones, tablets, and possibly widely in TVs.
- Management's commitment to paying shareholders through dividends and buybacks.
- All for a trailing earnings multiple well below 10.
Read more of my thoughts and Rich Smith's preview of 2012.
Stock No. 2: Ford (NYSE: F)
Here's what I like about Ford:
- Many are counting out both Ford and GM (NYSE: GM) because of their history, including GM's bankruptcy.
- I like the prospects relative to price for both Ford and GM. What makes Ford especially interesting versus GM is that (1) it didn't need a direct government bailout and (2) it has shown a greater degree of operational and quality improvement.
- Ford has announced it will resume paying a dividend in 2012.
- Though CEO Alan Mulally is planning to retire in a few years, I have faith that his goal is to leave behind a fully healthy business for his successor.
- Like Corning, all this is for a sub-10 P/E ratio.
Read more of my thoughts my thoughts.
Stock No. 3: Staples (Nasdaq: SPLS)
Here's what I like about Staples:
- It's far more than a bricks-and-mortar retailer. In fact, it gets 80% of its business from business customers, most of whom order online.
- It's managed to put up good profitability in a down market even as direct competitors Office Depot (NYSE: ODP) and Office Max falter.
- Management's strategy of expanding offerings and increasing private-label sales is wise, assuming its customer-centric focus proves true.
- Staples is trading near five-year lows and at low price multiples.
Read more of my thoughts.
None of the three stocks is at its absolute low in recent months, but I think each is a good value, so tomorrow I'm going to buy a moderate position in each in my real-money portfolio. I'll consider adding more money on dips.
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