It’s Stock Picking Time (for 2012)

We traditionally select stocks at the end of the summer, before the beneficiaries go back to school or off to college (or even graduate school). This allows the a chance to earn money over the summer because the equation is 1) trustee contributes $500 2) beneficiary contributes up to $500 3) trustee matches up to $500. The matching concept has worked well at aligning interest in these investments because it is “their” money, too.

SIX STOCKS FOR 2012

1. Facebook (FB) – oversold, still has enormous momentum long term

2. Royal Dutch Shell (RDS.B) strong dividend (5.4%), good cost control, focus on liquid to oil. No foreign withholding on “B” ADR shares because they are out of the UK which has zero withholding (this is a UK ADR)

3. Metro PCS (PCS) – plays on no prepaid plan smartphones, buyout candidate (right size)

4. P&G (PG) – great consumer products company, being shaken up, good dividend (3.3%)

5. Toronto Dominion Bank (TD) – top North American (US and Canada) bank in terms of safety, dividend of (3.4%), good financial performance (this is a Canadian ADR)

6. Sasol (SSL) 4.51% – can play Africa growth and also gas to fuel synthetic gap to leverage low gas prices (this is a South African ADR)

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