This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Top Stock Picks for the Fourth Quarter

Stocks in this article: OII TTWO MSG CCO NFG NIHD PAG AN

By Gene Marcial, DailyFinance

Every quarter, stock pickers at investment firm Gabelli & Co. come up with five value stocks that are trading way below their intrinsic worth. It's a nervy and challenging task, especially because the Gabelli analysts identify the catalysts they believe would catapult the shares to their utmost potential. And each quarter, their choices deliver enviable results.

The Gabelli team has been picking what it calls its "Focus Five" stocks since Jan. 31, 2006, and within that time span their calls have advanced a mighty 168.6%, outdistancing by a wide margin the Standard & Poor's 500 stock index, which lost 3.7% in that period. During the previous quarter (Aug. 1 to Oct. 29), the Focus Five also outperformed the S&P 500, with a gain of 13.53% vs. S&P's 7.41% gain.

More from DailyFinance
America's 10 Biggest Real Estate Deals
Are Municipal Bonds Getting Riskier?
New Data Reviving Investors' Hunger for Stocks

Daniel M. Miller, who heads the Gabelli Focus Five team, notes that each chosen stock, for the most part, outperformed the S&P quite convincingly. One such super-performer was Take Two Interactive (TTWO), which advanced 84% in the first quarter of 2008, beating the S&P's 4% gain. And Oceaneering International (OII), which jumped 44% in the second quarter of 2006, handily outperformed the S&P, which declined 5.84% during that quarter.

Here are the latest Focus Five hopefuls for the final quarter of 2010:

Madison Square Garden (MSG), spun off in February 2010 by Cablevision (CVC). It controls leading sports and entertainment assets, including the New York Knicks of the National Basketball Association, the New York Rangers of the National Hockey League and a number of cable networks and real estate properties.

Clear Channel Outdoor Holdings (CCO), the leading global outdoor advertising company. It operates in several top markets in the U.S. and in 20 other countries.

National Fuel Gas (NFG), an integrated energy company with six operating segments. Its businesses include utility operations, natural-gas transmission pipelines that provide interstate gas transportation and storage services from Pennsylvania to the New York-Canadian border, and exploration and production, primarily in California, Appalachia and the Gulf of Mexico.

NII Holdings (NIHD), a Reston, Va.-based leading provider of digital wireless services. It offers products and services for individuals and businesses in Argentina, Brazil, Chile, Mexico and Peru.

Penske Automotive Group (PAG), which operates dealerships that sell new and used vehicles and aftermarket auto products. It operates mostly in the U.S. and Britain.

Miller believes that Madison Square Garden, currently trading at $20 a share, is priced way below its real worth because it owns some of the most valuable assets in New York City. Apart from its legendary Madison Square Garden sports and entertainment arena, the company also owns the world-famous Radio City Music Hall, the Beacon Theater and Chicago Theater. The now-publicly traded MSG, says Miller, is fully focused on enhancing shareholder value in an effort to attract more investors. Miller argues that MSG's sports networks alone are worth the current price of the stock and that investors are paying practically nothing for the rest of company's assets. Miller puts the private market value of MSG at $50 a share.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs