This is year six of my end of year exercise to identify what I believe are my top 10 holdings for the coming year. These are the 10 stocks that I already have in my portfolio, that for one reason or another I feel have the best chance of doing well in the next year or so. These are all, of course, only my opinion, and I'd hate for anyone to invest in these, lose their money and blame me. So don't even think of investing in these without doing your own research. Targets are my naive idea of what I think is fair value for each of these. Five (5) stocks from last year return, three (3) return after a year's absence, and two (2) totally new picks. Almost all of them are now large-cap stocks.1) PFE – Pfizer pretty much moved sideways this year, so I still feel it is undervalued. It moves up from #6 to the #1 spot. Good fundamentals and dividend. Target increased to $60.2) HD – Home Depot returns in the #2 spot this year. Unpopular, but fundamentally sound. Like PFE the price is pretty near where it started the year. Target increased to $75.3) WM – Washington Mutual returns this year and moves up to #3 from #7. Good fundamentals and dividend and a history of quarterly dividend increases. WM stayed in a pretty tight range the whole year and finished not far from where it started. Target stays at $60.4) AMAT – Applied Materials is the first new stock on my list this year. Semiconductor companies in general seem to be depressed now and hopefully about due for a turn-around. Target of $30.5) BBOX – Black Box returns after a year's absence. Finished the year down and seems attractive at these levels. Limited downside. Target of $65.6) JNJ – Johnson & Johnson is a new stock on the list. Seems like a good conservative stock with good earnings and yield that is just a little depressed right now, like so many Healthcare stocks are. Target of $90.7) T – AT&T also returns after a year's absence. Nice earnings and attractive yield. Target of $50.8) LTD – Limited returns after a year's absence even with a pretty decent year's stock performance this past year. Target of $40.9) KO – A repeat from last year and the year before. While perhaps not great fundamentals, KO has a great moat and pays a pretty decent dividend. It's been trending down for years. I think it's due to turn around. Of course that's what I said last year. Target unchanged at $90.10) SCHL – Scholastic had a good year, but I think it can still go higher. It drops from #3 down to the final spot in the list. Target stays at $50.Gone from last year's list are JAS, MRK, FRE, DIS, BMY. I continue to hold them, but I've reduced my position in JAS to about half of a normal position after a substantial bounce back.
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