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TheStreet.com Power Stock Rankings

03/11/08 - 08:48 AM EDT

Patrick Schultz

During the week of March 3, TheStreet.com readers searched for 10 stocks more than any others. This week, new entrants Agnico Eagle MinesAEM and Permian Basin TrustPBT join the list on soaring energy and precious metal prices. Research associate Patrick Schultz makes the Buy, Sell or Hold call on them below, in the order of their popularity.

1. AppleAAPL: When John Doerr from Kleiner Perkins spoke last week saying the iPhone opportunity is "bigger than the PC", everybody should have taken notice. Of course, he is talking about the longer-term prospects for Apple, but bold statements like that need to not only be heeded, but burned into your brain. I am sticking with my position that Apple is a solid "value" play with a huge upside opportunity from the iPhone. -- BUY

2. GoogleGOOG: Last week, I said to not be aggressive and wait on the $450 price level to start a position. Well, we hit that price level very quickly. Although it's hard to believe, Google is now a full-fledged value stock. It trades at 21 times this year's consensus estimates of $20, with a long-term growth rate of 36% (PEG ratio of 0.58). I am a cautious buyer here. -- BUY

3. Annaly Capital ManagementNLY: The action last week in Annaly shows that even the best house in a really bad neighborhood is still bad news. This financial stock is simply not working in this market. No other way to look at it. -- SELL

4. Agnico-Eagle Mines: Anything and everything related to the gold sector is turning into ... well, gold. The precious metal group has been on fire, but I emphasize the past tense word "has." Agnico-Eagle is up over 40% in the past three months, and failure to sell into that kind of gain is just plain piggish. -- SELL

5. CitigroupC: The tension is palpable in the trading of Citigroup shares. Unfortunately, the blood is not yet on the streets for this ugly stock. I am looking for an ugly and ferocious selling panic on heavy volume (over 200 million shares traded) before getting more aggressive. If you don't own any yet, pick at some here. --- BUY

6.Chesapeake EnergyCHK: Aubrey McClendon, chairman and CEO of this natural gas company, has been a insatiable buyer of his own company's stock, and, more important, he has been dead right. If you followed him when he bought shares of Chesapeake, you are winning big. He is still buying stock, and so should you. -- BUY

7. PotashPOT: My absolute favorite stock in the agriculture bull market. It's a very simple story, like the one we discussed last week with MosaicMOS. As the rest of the world gets wealthier, they will inevitably eat more protein (beef, chicken, pork). It takes 8.3 grams of grains to make one gram equivalent of beef, and that means higher demand levels for feedstock grains. The ag story is just too good to ignore -- a global and secular tailwind will haul this stock much higher. Use any market weakness to buy. -- BUY

8. Goldman SachsGS: Crucial juncture for the not-so-golden-lately child of Wall Street. As I said last week, the August 2007 lows in the mid $150s need to be tested. We are here now, and I am watching the price action closely. Stay tuned for more. -- HOLD

9. BPBP: BP is the story of a former titan of the energy complex that lost its way. With a new CEO in place, I am betting that the business will turn around. Also, the dividend yield of over 5% offers a nice safety net while you wait for the new strategy to work. -- BUY

10. Permian Basin TrustPBT: Permian Basin is an energy trust that owns gas and oil wells. These types of investments are popular because of their tax-efficient structure. Currently, it is paying a delicious 10.14% dividend yield. What's not to like? -- BUY




Patrick Schultz is a research associate at TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. He has previously obtained Securities licenses under the NASD?s Series 7, Series 24, Series 52, and Series 63 exams and has worked in the financial markets on various trading desks in addition to trading for his own account. Schultz appreciates your feedback; click here to send him an email.

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