9 Diversified Stocks With 100% Buy Ratings

NEW YORK (TheStreet) -- Analysts favor these nine stocks, as indicated by the 100% buy ratings. In addition, most of these stocks will likely outperform their peers and broader markets, based on the upside implied from their respective 12-month price targets. These stocks have an upside potential of up to 262% with a mean upside value of around 74%.


9. WR Grace & Co ( GRA) is engaged in the production and sale of specialty chemicals and materials worldwide. It operates in two business segments: Grace Davison and Grace Construction Products (GCP).

During fourth quarter 2010, the company reported earnings of 60 cents per share compared to 63 cents per share in the year-ago period. However, during 2010, earnings almost tripled to $2.78 per share from 98 cents per share during 2009. At the end of Dec. 2010, cash and cash equivalents stood at $1.02 billion, up 13.7% from $893 million a year earlier.

The company recently opened two new manufacturing facilities in Colombia and Panama, thereby expanding its footprint in Latin America, an emerging region that is key to the company's growth strategy. During 2010, sales from emerging regions contributed 33% to total revenue, up 29% from 2009.

Looking forward to 2011, the company expects revenue growth of 7%-10% to $2.85-$2.95 billion. Key growth drivers are escalating demand, new products, and better pricing. Furthermore, adjusted EBITDA is expected in the range of $365-$385 million, growing 12%-18% year-over-year.

All the five analysts covering the stock rate a buy on it. The stock has 20% upside over the next 12 months with a consensus target price of $45.35, analysts polled by Bloomberg envisage. The stock has gained 32% during the past one year and currently trades at an attractive P/E of 14.2

8. Globe Specialty Metals ( GSM) produces silicon metal and silicon-based specialty alloys -- critical ingredients used to make a variety of industrial and consumer products, ranging from chemical, aluminum, steel, automotive parts, photovoltaic solar cells, computer chips, and concrete.

For second quarter 2011, the company reported 43.9% year-over-year increase in net sales to $155.8 million from $108.3 million as shipments grew 32.9%. EBITDA, excluding one-time items, improved 27.5% to $22.5 million, while earnings per share, excluding one-time items, reported was 13 cents compared to 10 cents in the year-ago quarter. Moreover, the company generated $3.6 million cash flow from operating activities compared to an outflow of $8.4 million during the quarter ended Dec. 2009.

The company recently unveiled plans to build a world-class, low-cost silicon metal plant in Iceland with an expected in-service date of mid-2013, and output capacity of 40,000 million tonnes of silicon metal annually.

The company is striving to lower operating costs and expects significant earnings growth during 2011 as its existing low-priced silicon metal contracts expired at the end of 2010.

All the six analysts covering the stock rate a buy on it. The stock is expected to deliver 26% over the next 12 months with a consensus target price of $27.73, according to analysts polled by Bloomberg. The stock has gained 90% during the past one year.

7. Quaker Chemical ( KWR) develops, produces, and markets a range of formulated chemical specialty products including rolling lubricants, corrosion preventives, metal finishing compounds and hydraulic fluids for various heavy industrial and manufacturing applications.

For 2010 fourth quarter, the company reported 7.9% year-over-year increase in net sales to $142.1 million from $131.7 million owing to an 8% volume increase worldwide. However, earnings declined to $6.9 million or 59 cents per share from $7.9 million or 71 cents per share in the year-ago quarter. During the quarter, cash flow from operations was $18 million on robust earnings and improved working capital. In addition, the company completed the acquisition of Summit Lubricants, a specialty grease manufacturer, for a total consideration of $29.1 million. The acquisition is expected to be accretive to 2011 earnings.

For full year 2010, revenue surged 20.5% to $544.1 million from $451.5 million, driven by a significant increase in volumes worldwide, although partially offset by lower chemical management services (CMS) revenue, which decreased total revenue by ~4%. At the end of Dec. 2010, cash and cash equivalents increased marginally to $25.8 million from $25 million a year earlier.

The company recently declared its regular quarterly dividend of $0.235 per share payable on Apr. 29, 2011. Going forward, the company foresees strong growth due to its leadership position in emerging economies like China, Brazil, and India, as well as continued recovery in the more mature markets of the U.S. and Europe.

All the three analysts covering the stock recommend buying it. Analysts polled by Bloomberg expect the stock to gain around 30% over the next 12 months with a target price of $51.75. The stock has gained 37% during the past one year, while it currently trades at a P/E of 13.1.

6. Richmont Mines ( RIC) is engaged in the acquisition, exploration, operation, financing and development of mineral properties. The company has produced over 1.2 million ounces of gold from its operations in Quebec, Ontario and Newfoundland since production started in 1991. Richmont currently produces gold from its Island Gold and Beaufor mines, and expects to begin production from its Francoeur Mine in mid-2011, taking its total annual production to 100,000 ounces of gold.

Earnings per share for 2010 fourth quarter came in at 15 cents, against nil reported in the year-ago quarter. Revenue grew 53% to $26.2 million. Full-year earnings multiplied to $9 million or 31 cents per share from $336,000 or 1-cent per share during 2009. Furthermore, revenue increased 26.3% year-over-year to $90.8 million from $71.9 million. Cash flow from operating activities stood at $18.5 million, compared to $3 million in 2009. Subsequently, at the end of Dec. 2010, cash and cash equivalents soared to $40 million from $21.1 million. The company continues to remain debt-free.

During 2010, gold production increased 13.3% to 66,849 ounces. Gold sales stood at 68,123 ounces, up 14% from 59,733 ounces a year earlier, while average selling price of gold per ounce rose 28.3% to $1,243 from $969.

Going forward, the company intends to meet its gold production forecast of 80,000-85,000 ounces during 2011. The company plans to complete 90,500 meters of exploratory drilling during 2011 with a budgeted expenditure of $12 million.

All the four analysts covering the stock rate a buy on it. Analysts polled by Bloomberg expect the stock to gain around 36% over the next 12 months with a consensus target price of $10.02. The stock has gained 63.8% during the past one year.

5. Zagg ( ZAGG) designs, manufactures and distributes protective coverings, audio accessories, and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD, ZAGGaudio, and ZAGGskins.

During the quarter ended Dec. 2010, the company's earnings multiplied to $3.4 million or 13 cents per share from $0.2 million or 1 cent per share in the year-ago quarter. Earnings grew on the back of strong revenue growth of 157%. For full year 2010, revenue almost doubled to $76.1 million from $38.4 million a year earlier, while earnings tripled to $10 million or 41 cents per share.

The company recently introduced a new line of ZAGGskins protective accessories designed to match Apple's new iPad 2 device and cover. The company also signed a master license and distribution agreement with Logitech for its tablet accessory, the ZAGGmate case with keyboard. Looking forward to 2011, the company expects revenue in the range of $95-$100 million, representing 25%-30% year-over-year growth.

All the five analysts covering the stock rate a buy on it. Analysts polled by Bloomberg foresee 63% upside for the stock over the next 12 months with a consensus target price of $12.17. The stock has already gained a whopping 152% during the past one year and currently trades at a P/E of 18.6

4. Brigus Gold ( BRD) engages in gold mining including extraction, processing, and related activities such as exploration and development. The company owns Black Fox, an open pit and underground mine and mill located near Matheson in the Province of Ontario, Canada.

During 2010, gold sales returned revenue of $85.9 million, up 82.8% from $47 million, as sales volume increased 52% to 69,922 ounces from 46,016 ounces during 2009. Average realized selling price stood at $981 per ounce, up 12% from $876 per ounce a year earlier. The company reported cash and restricted cash of $22.8 million at Dec. 31, 2010, compared to $6.7 million at end 2009.

As of Dec. 2010, the company had proven and probable gold reserves of 1.9 million ounces, while measured and indicated resources stood at ~3 million ounces. The company recently raised $70 million in net proceeds from equity financing during the year and sold a future gold stream to Sandstorm Resources Ltd. for $56.3 million, with the proceeds used to reduce the Black Fox project facility debt.

Going forward, the company estimates gold production of 80,000-85,000 ounces during 2011, while capital expenditure is estimated at $37 million, primarily for underground development and underground mining equipment at Black Fox.

All the three analysts covering the stock recommend buying it. Analysts polled by Bloomberg expect the stock to gain around 73% over the next 12 months with a target price of $2.64

3. Daqo New Energy ( DQ) manufactures and sells polysilicon to photovoltaic product manufacturers, who process the material into ingots, wafers, cells and modules for solar power solutions in China.

The company's earnings more than doubled during 2010 fourth quarter, rising to 95 cents per share from 40 cents per share in the year-ago quarter. Earnings improved on the back of a 158% year-over-year growth in revenue to $81.9 million on higher sales volume coupled with better average selling price of polysilicon product. The company generated $6.6 million and $1.9 million from PV modules and wafer sales, respectively.

During 2010, revenue more than doubled to $242.7 million from $111.2 million, while earnings stood at $65.3 million or $2.32 per share, compared to $30.1 million or $1.45 per share in 2009. At the end of Dec. 2010, cash and cash equivalents surged to $203.6 million from $81.4 million at the end of Dec. 2009.

For the first quarter of 2011, the company expects total revenue in the range of $81.5-$83.5 million on sales volume of 1,075-1,100 million tonnes of polysilicon. Furthermore, revenue from PV module sales is pegged at $7.5 million. The company plans to build its Phase-2 polysilicon production facility in Xinjiang, China. The company will also commence its 250 MW solar wafer production unit, along with expanding its PV module capacity.

All the five analysts covering the stock rate a buy on it. According to analysts polled by Bloomberg, the stock has 74% upside over the next 12 months with a consensus target price of $19.33.

2. China Gerui Advanced Materials Group ( CHOP) is a steel processing company producing high-end, high-precision, ultra-thin, high-strength, and cold-rolled steel products in China. The company sells its products to domestic Chinese customers including the food packaging, telecommunication, electric appliance, and construction material industries.

For 2010 fourth quarter, earnings stood at $11.3 million or 23 cents per share, compared to $11.4 million or 27 cents per share in the year-ago quarter. Revenue increased 15.5% to $66.1 million from $57.2 million owing to a 14.7% increase in sales volume to 75,551 tonnes and a 0.7% increase in average selling price to $875 per ton.

During 2010, revenue soared 16% to $253.9 million from $218.9 million on a 20% increase in sales volume, which more than offset a 3.3% decline in average selling price. Earnings stood at $47.1 million or $1.01 per share, as against $43.4 million or $1.15 per share in 2009. At the end of Dec. 2010, cash and cash equivalents and restricted cash surged to $186 million from $117 million at the end of Dec. 2009. The company has no long-term debt.

The company's board of directors recently approved a $10 million share repurchase program. "The board's decision to implement this buyback reflects our firm belief that our shares are presently undervalued in the marketplace and represent a sound investment decision at recent trading prices. Our board of directors believes that the repurchase program is an effective use of cash to enhance value for our shareholders and demonstrate our confidence in the long-term health and future financial performance of our business," Mingwang Lu, the company's chairman and CEO, said.

All the five analysts covering the stock recommend a buy on it. Analysts polled by Bloomberg project 85% upside over the next 12 months with a consensus target price of $9.60. The stock is currently trading at a P/E of 5.25

1. Golden Minerals ( AUMN) is a mineral exploration and mining services company with a portfolio of precious metals and other mineral exploration properties located in or near the traditional precious metals producing regions of Mexico and South America. The company remains focused on the advancement of the 100% controlled El Quevar silver project in northwestern Argentina.

Net loss reported for 2010 was $33.3 million compared to $20.1 million in 2009, following a 56.7% increase in total costs and expenses. However, on a per share basis, net loss narrowed to $3.72 per share from $6.78 per share in 2009. Total revenue, including management fees, declined to $11.2 million from $12.4 million in the previous year. Cash and cash equivalents soared to $121 million from $8.6 million, boosted by the receipt of ~$143.5 million in net proceeds from the issuance of common stock in two separate public offerings.

Going forward, the company plans to complete metallurgical study test work and finalization of the process flow sheet at the El Quevar project during the second quarter of 2011. Furthermore, the company expects to continue drilling of priority targets identified during the expanded drilling program.

All the three analysts covering the stock recommend buying it and foresee the stock gaining around 262% over the next 12 months with a consensus target price of $79.55. Dahlman Rose & Co reiterated its buy rating on the stock recently with a price target of $117.4. Moreover, the stock has already gained 178.5% during the past one year.

>>To see these stocks in action, visit the 9 Diversified Stocks With 100% Buy Ratings portfolio on Stockpickr.

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