Tuesday January 19, 2010
"Old-fashioned American industrial companies that are poised to benefit from growing international markets will be good investments in 2010," explains Daniel Frishberg,
The host of Bizradio and editor of The MoneyMan Report adds, "Our latest buy recommendation is Timken Company (NYSE: TKR), which fits perfectly into this model."
"Our current strategy is to participate in global growth through U.S. companies poised to benefit from money we expect to see flowing into the U.S. stock market in the coming year.
"We specifically are targeting companies with large exposure to international trade. We are also risk to reward, not just sheer growth.
"Anyone can make great returns intermittently by taking excessive risk, but the odds are it will eventually catch up with them. Long term success can only be achieved by balancing risk and reward.
"Timken Company has been located in Ohio for over 100 years and have been on the NYSE since 1922, but they have operations in 26 countries. They have paid a dividend for the last 350 quarters.
"They are the world leader in bearings, the essential component in anything that moves. Their products are fundamental to many industries (automobiles, defense, energy, medical, mining, construction, ttransportation, etc.) so they are positioned to benefit from an increase in economic activity in any area.
"Revenue was down 40% in 2009 due to lower demand, but they predict large revenue and profit increases for 2010. TKR is a stable American company that provides essential products for global growth. It is currently trading just slightly above book value.
"The stock may not be the largest gainer over the coming year, but we think it has one of the best risk/reward profiles right here, right now."
