Big Investing Opportunities for 2013

Tuesday, January 22, 2013
By Faisal Laljee

As we kick off 2013 the economy is still one of the main concerns for many people.  The housing bubble and resulting recession are still all too fresh in our memories.  However this should not scare you away from investing in the stock market.  In fact the uncertain economy is just one more reason why you should be investing in your financial future.  Part of the key to successful investing is choosing the right investments.  Therefore here are three big investment opportunities to consider in 2013.

Church & Dwight Company (CHD)

Church & Dwight develops, manufactures and markets a broad range of consumer goods found in many homes.  The company’s core brands include Arm & Hammer, First Response, Nair, Orajel, OxiClean, Spinbrush, Trojan, and XTRA.  From an economic standpoint, consumer goods companies typically fare better in a down economy than many other industries.  Church & Dwight has the added benefit of producing a diversified range of products.  The company also has a solid track record of growth, financial stability, and profits.  They completed a two-for-one split in 2011, have paid uninterrupted quarterly dividends for more than 100 years, and experienced an 18% net increase for third quarter 2012.

Whole Foods Market (WFMI)

Whole Foods Market occupies a significant portion of the natural and organic supermarkets niche.  Whole Foods’ strengths include robust revenue growth of 26.3%, well above the industry average of 6%; a solid financial position and reasonable debt management with a debt to equity ratio of 0.01; an impressive 42.9% earnings per share growth and 49.4% net income growth for the last quarter compared the a year ago, due in part to their expanding profit margins.

Coca-Cola (KO)

The beverage industry is another that tends to weather an economic storm quite well, and Coca-Cola is no exception.  Their main areas of strength include revenue growth, increased profit margins, and good cash flow.  Although the company underperformed in revenue growth last year compared to the rest of the industry, the revenue growth has affected the company’s bottom line, improving their overall earnings per share.  They currently have a healthy gross profit margin of 64.80% and an above average net profit margin of 18.72%.  Cash flow increased to $3,662.00 million or 15.95%, well above the industry average of 5.92%.

Note:

Fortress Investment Group, Pete Briger Principal and Co-Chairman of the Board of Directors joined Fortress in 2002 after 15 years with Goldman, Sachs & Co, reaching partner in 1996. Fortress offers a range of investment strategies for clients around the world.

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