I tend to be contrary to doing the predictable. It may be the Scotch, Dutch, Irish, or Italian decendency that makes me that way, and I will let you decide. I did not want to do the big 2010 "roundtable list" and throw a dozen names at you. I thought it better to give you one good idea from public information.
On December 7th, Bloomberg News reported that McDERMOTT International Inc,(Symbol MDR - price $24.01) whose price has doubled this year, will seperate itself into two distinct companies. One will be named J. Ray McDERMOTT and be in the offshore Oil & Gas engineering business. The other will be Babcock and Wilcox Company which builds reactors for the US Navy and the government. This will allow Babcock to have a better opportunity to win more government bids and also make it a desirable takeover target. Analysts think that J.Ray McDERMOTT could be worth $21.00 and Babcock $12.00 a share at the breakup. Well do the math, and you could come up with a fairly low risk one year investment with a 38% return plus any rise in the stocks, in a year that they say there could be some rough sledding in the market.
I beleive (MDR) should earn a spot in your investment lineup in 2010.
Please comment with your good idea stock for 2010.
All the best , Freewilly
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