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5 Stocks That Could Rebound in 2011

Stocks in this article: TLBCHRSCWTRMDTSWN

Medtronic comprises 0.7% of Renaissance Technologies' portfolio and 1.4% of Daniel Tepper's at Appaloosa Management. It was one of the top three health care stock picks for 2011 from Action Alert PLUS' Stephanie Link and one of Morningstar's five-star large-cap stocks for 2011.

Southwestern Energy

Southwestern Energy (SWN) engages in the exploration, development and production of natural gas in the U.S. In 2010, Southwestern Energy declined by more than 22%, making it one of the worst-performing energy stocks of the year.

Natural gas prices were weak in 2010, while crude oil prices rose dramatically. Despite that weakness in natural gas prices, Southwestern Energy still is expected to generate 14% earnings growth in 2010. The declining price for natural gas is likely to reverse as demand for natural gas is certain to be on the rise as a cheaper alternative to soaring crude oil prices.

Furthermore, with a Republican House of Representatives, more attention may be shifted toward favoring natural gas after those measures were blocked by the former Democratic controlled legislative body. In contention is the issue of "fracking," a process by which fractures are made in rocks in order to recover more natural gas. Environmentalists are concerned that fracking will result in pollution to drink water supplies.

Anaylsts expect Southwestern's earnings to decline 4% for full-year 2011, but I think they're wrong. Southwestern is a well-run company with an excellent track record of earnings and stock price growth. Exxon Mobil (XOM) recognized the importance of natural gas with its purchase of XTO Energy for about $31 billion in 2010. If the stock price of Southwestern does not improve, I would expect another larger global integrated oil and gas company to swoop in and purchase Southwestern Energy.

Southwestern comprises 2.5% of T. Boone Pickens' portfolio and 1.5% of Westport Asset Management's. It was one of the 10 best S&P 500 stocks of the past decade, and Dan Dicker selected it as one of his six natural gas stocks for 2011.

-- Written by Scott Rothbort in Millburn, N.J.

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At the time of publication, author was long Sears Holdings calls. Scott Rothbort has over 25 years of experience in the financial services industry. He is the founder and president of LakeView Asset Management, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of TheFinanceProfessor.com, an educational social networking site, and publisher of The LakeView Restaurant & Food Chain Report. Rothbort is also a professor of finance at Seton Hall University's Stillman School of Business.

At the time of publication, Rothbort was long Sears Holdings calls, although positions can change at any time.

Scott Rothbort has over 25 years of experience in the financial services industry. He is the Founder and President of LakeView Asset Management, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of TheFinanceProfessor.com, an educational social networking site; and, publisher of The LakeView Restaurant & Food Chain Report. Rothbort is also a Term Professor of Finance at Seton Hall University's Stillman School of Business, where he teaches courses in finance and economics. He is the Chief Market Strategist for The Stillman School of Business and the co-supervisor of the Center for Securities Trading and Analysis.

Mr. Rothbort is a regular contributor to TheStreet.com's RealMoney Silver website and has frequently appeared as a professional guest on Bloomberg Radio, Bloomberg Television, Fox Business Network, CNBC Television, TheStreet.com TV and local television. As an expert in the field of derivatives and exchange-traded funds (ETFs), he frequently speaks at industry conferences. He is an ETF advisory board member for the Information Management Network, a global organizer of institutional finance and investment conferences. In addition, he is widely quoted in interviews in the printed press and on the internet.

Mr. Rothbort founded LakeView Asset Management in 2002. Prior to that, since 1991, he worked at Merrill Lynch, where he held a wide variety of senior-level management positions, including Business Director for the Global Equity Derivative Department, Global Director for Equity Swaps Trading and Risk Management, and Director for secured funding and collateral management for the Global Capital Markets Group and Corporate Treasury. Prior to working at Merrill Lynch, within the financial services industry, he worked for County Nat West Securities and Morgan Stanley, where he had international assignments in Tokyo, Hong Kong and London. He began his career working at Price Waterhouse from 1982 to 1984.

Mr. Rothbort received an M.B.A., majoring in Finance and International Business from the Stern School of Business, New York University, in 1992, and a B.Sc. in Economics, majoring in Accounting, from the Wharton School of Business, University of Pennsylvania, in 1982. He is also a graduate of the prestigious Stuyvesant High School in New York City. Mr. Rothbort is married to Layni Horowitz Rothbort, a real estate attorney, and together they have five children.

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