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Top Picks 2012 Updates Part 2

Today we have the second batch of updates on the 2012 Top Picks, with the advisors’ current recommendations on the stock wherever possible. Today’s updates cover stocks beginning with letters F-I.

First Citizens BancShares, Inc. (FCNCA, $165)
was picked by Positive Patterns Editor Bob Howard. Howard recommended selling FCNCA in October...

Today we have the second batch of updates on the 2012 Top Picks, with the advisors’ current recommendations on the stock wherever possible. Today’s updates cover stocks beginning with letters F-I.

First Citizens BancShares, Inc. (FCNCA, $165) was picked by Positive Patterns Editor Bob Howard. Howard recommended selling FCNCA in October and his sell recommendation was included in the October 10 Investment Digest. He wrote: “Sell First Citizens BancShares. Last year I picked it as my favorite bank stock and all the other seven or eight banks stocks we follow have done much better! This business confounds us, but, that being said, we have to learn to deal with disappointment and move on.” SOLD.

Fortuna Silver Mines, Inc. (FSM, $4) was picked by Small Cap Investor PRO. Editor Tyler Laundon wrote in an update last month: “Fortuna Silver reported another solid quarter as the positive impact of the San Jose mine continues to boost production numbers and revenue, which was up by 35% compared to Q3 of 2011. The 23% decline in silver prices didn’t help profitability, which was down by 22%, but that number is also hurt by the lack of by-product credits from zinc and lead at the Caylloma mine. That’s been the case for some time now, so no surprise there. We’re about 8% below break-even on Fortuna after we stuck with the stock through its 2012 slump. Let’s continue to hold the line here. San Jose silver and gold production was 19% and 25% above plan, respectively, and I think this stock will continue to rise in 2013.”

Franco Nevada Corp. (FNV, $57), picked by Adrian Day’s Global Analyst, was the fifth-best performing Top Pick of 2012, with a gain of about 40%. Day still lists the stock among his favorites and wrote earlier this month, “If you don’t already own Franco Nevada, this wouldn’t be a bad time to pick some up.”

G

GlyEco, Inc. (GLYE, $1.50) was chosen as a mid-year replacement pick by On the Market Editor John Faessel. In a November update, Faessel wrote, “Superstorm Sandy flooded the New Jersey plant that the company is finalizing the purchase/acquisition of this month, but miraculously no real damage was sustained. ... I believe that the asset purchase of Full Circle Manufacturing is scheduled to close shortly and the company is expecting to produce Type 1 material on schedule in Q1 2013. To repeat; from what I understand, everything is on schedule at this point.” He still rates the company a “Best Idea.”

H

HollyFrontier Corp. (HFC, $47), recommended by The Stock Prospector Editor Eric Dany, was this year’s third-best performing Top Pick, with a gain of about 70% to date. In his most recent update, Dany wrote, “Holly is still undervalued with a P/E ratio of 7.0x compared to the industry average of 9x-11x. ... The company has little debt and $1.9 billion in cash, which could be used for an acquisition or to buy back additional shares. HollyFrontier is a major petroleum refiner in the mid-continent, southwest and west. HFC’s $350 million share repurchase program will reduce outstanding shares and increase earnings per share by approximately 6%. My 12-18 month earnings estimates are $4.75 in 2013 and $5.25 in 2014. Applying a P/E ratio of 10x provides a 12-18 month target price of $52.50. Because the stock may be a little ahead of itself, let’s take some profits at this level. We can repurchase if the stock sells off. Sell 25% of the position in HFC. Hold the rest.”

Hologic, Inc. (HOLX, $21), recommended by Shortex Market Letter Editor Joseph Parnes, is up about 6% since the recommendation.

I

IAMGOLD Corp. (IAG, $11), recommended by Professional Timing Service, is down about 30% since the recommendation.

Insperity, Inc. (NSP, $32), picked by US Investment Report Editor Stephen Quickel, is up about 20% since the recommendation.

InVivo Therapeutics Holdings Corp. (NVIV, $1.70) was picked by BI Research publisher Tom Bishop. In a December 18 update, Bishop wrote, “InVivo is out with some interesting comments in connection with a new member being added to the board from Biogen. Frank Reynolds, InVivo’s Chief Executive Officer, took the opportunity to say, ‘We expect that 2013 will be a breakout year for InVivo and that the next six months will mark a major inflection point in our growth.’ Continued Reynolds, ‘We have built out strong R&D capabilities in neurotrauma and we’ve completed important manufacturing runs for our final submission to the FDA in early 2013. We’re poised to move our SCI devices into clinical trials and are aggressively developing multiple neurotrauma products for pain, fibrosis and dural sealing.’ Like I have been saying there nothing is wrong here. It’s just that these things take time (more than anticipated) and some investors don’t seem to have the patience of it or misinterpret the situation. The shares remain a Buy.”