This Day On The Street
Continue to site
ADVERTISEMENT
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

Outwit the S&P in 2013 With 5 Hated Stocks

Johnson & Johnson is the biggest healthcare company in the world; it makes everything from consumer products like Band-Aid brand bandages to pharmaceuticals and medical devices. While patent loss concerns on JNJ's pharma unit contribute some to the negative sentiment in this stock, they don't account for the pile of short sellers that's currently positioned in shares. That's especially true now that the Synthes acquisition is closed, boosting JNJ's medical device business.

Financially, they don't get much better than JNJ. The firm's positive net cash position is attractive, and it's understated because of the mountain of cash that Johnson & Johnson parted with as part of the Synthes deal. In reality, JNJ's cash generation capabilities are impressive, and they should continue to fuel the firm's 3.43% dividend yield for the foreseeable future. Late January earnings could be a big catalyst for a short squeeze.

Ecopetrol

Colombian oil and gas company Ecopetrol (EC - Get Report) is another large-cap name that's getting hated by investors right now. The Bogota-based firm is a $120 billion is the biggest energy company in Colombia, generating around 70% of the country's output. And with a 90% stake held by the country's government, that market-leading position isn't likely to get ceded any time soon.

Ecopetrol is a vertically-integrated oil and gas firm, with operations ranging from exploration and production to refining and transportation. That integration helps keep EC's profitability numbers strong -- and crude oil prices resting near historic highs for sustained periods don't hurt either. That said, exposure to the volatile Colombian Peso doesn't help investors' love affair with this stock, particularly given the strong performance of the U.S. dollar in recent years.

In 2007, Ecopetrol made the move from being a part of the government to being a self-run corporation whose largest shareholder just happened to be the government. While that separation has helped increase investors' willingness to buy stakes in EC, it's important for investors to remember that the powers-that-be in Bogota still have the reins of this firm. Even so, the sheer size of Ecopetrol makes maximizing profitability strategically important -- and puts investors and the Colombian government on the same side. A short interest ratio of 20.2 means that it would take more than a month of buying pressure for short sellers to cover their positions at current volume levels.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DLR $64.27 0.00%
EC $11.29 0.00%
INFY $16.91 0.00%
ISRG $533.17 0.00%
JNJ $100.21 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs