You can slice it as many ways as you want to, but you get the same piece of pie each time; hysterics and headlines have hijacked logic and valuation over the last month. - over the last several months, for that matter. That's not necessarily a bullish call in the face of a clearly steep downtrend. It's just an observation that investors are choosing to read-in the worst over and over again. Once is usually sufficient.
No big deal, as emotion-driven trends tend to be short-lived. In the meantime, however, the market is killing those investors who invest based on fundamentals. And yes, there are still some of those people out there who are more interested values than in momentum. If that's you, then today's picks may be of particular interest. They combine the strong underlying fundamentals that you like with the strong bullish momentum that with the strong bullish momentum you need as we head into what appears to be another nasty period for stocks.

IN PICTURES: 5 Tips To Reading The Balance Sheet

They Got It All
No fanfare needed here, just know that these stocks were picked based on persistent gains supported by respectable corporate results. Where applicable, high volatility was avoided.

Not Gold, But Just as Shiny
Though gold and gold stocks may be speculatively trader too much for their own good, silver isn't. As such, the consistent gains we've seen from Silver Wheaton Corp. (NYSE:SLW) this year - it's up 46% in a well paced trend that's actually been running since late 2008 - may reflect increasing value.

With a projected P/E of 24.2 for 2011, it's difficult to consider SLW cheap. It's not exactly expensive though, with the understanding that you've got to pay something of a premium for a chance to stave off a potential double-dip.

People Need Medicine
It's something of a running joke that medicine, food processors and funeral parlors are recession-proof business. At the heart of the joke, however, is a big kernel of truth. That's great news for China's BMP Sunstone Corp. (Nasdaq:BJGP), which distributes pediatric OTC pharmaceuticals and pharma products.

And, the market seems to get that. Though the ebbs and flows have been wide, BJGP has yet to waver from a long-standing string of higher lows and higher highs. It's up more than 100% from March 2009's lows, and still going strong.

Slow and Steady
Slow and steady may not be sexy, but it's why the tortoise won the race. And, though Home Properties Inc. (NYSE:HME) has actually lagged other residential REITS year to date, what it lacks in fireworks, it more than makes up for in reliability. (To learn more, see What Are REITs?)

To be fair, the payout rate did sink from usual 67 cents to 58 cents for the last two quarters. Net income seems to be stabilizing at their recent lower levels though, so that quarterly payment in the 50 cent area should hold steady - just as the stock's modest uptrend has.

Let Them Eat
Economic woes or not, consumers don't seem to be holding back when it comes to treating themselves to dinner out, and it's showing up on the bottom lines of restaurants like Famous Dave's (Nasdaq:DAVE). After almost dipping into the red in 2008, the restaurateur came within about 5% of reproducing 2007's income in 2009. In fact, 2009's revenue was better than 2007's.

Though restaurant stocks are still a case-by-case arena, the aforementioned numbers paired with a P/E around 11 make a solid bullish case. The icing on the cake is that over the last two weeks the stock seems to have rekindled its strong uptrend started over a year ago and, with its year-to-date gain of 44%, it is easily beating the market.

Common Ground
You can identify the common element, aside from the obvious fact that these stocks are still rising, with a quick glance. With the exception of Silver Wheaton, these businesses are recession-resistant cash flow machines - even the restaurant operator, thanks to casual dining at casual prices.

Bottom Line
It's far from exciting, but as long as the rest of the market digs that sustainable cash flow - or thinks of silver as a defensive posture - the buying effort is likely to continue. And with recession fears being stoked, investors' love for cash flow is being prodded more than usual. This means these stocks are still finding a steady stream of buyers. Maybe you should be one of them.

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Tickers in this Article: HME, DAVE, BJGP, SLW

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