By purchasing only stocks that have made stock split announcements, Neal Macneale has seen the portfolio in his 2-for-1 newsletter return almost three times the S&P 500 for the past 12 years,with its 7.8% annualized return.
With no new stock splits announced over the past month, the advisor has reviewed his current holdings and reviews four that he feels are particularly timely for new purchase.
"There were no split announcements in October so there won’t be a new buy recommendation for a new position in the 2 for 1 portfolio.
"This is unfortunate because now is the time to be buying. There are some terrific bargains in stocks right now. Here are a few ideas for your consideration from among our previous purchases.
"Many of the stocks already in the portfolio are now selling at fire-sale prices. I also looked over all the splits announced over the last year and there are companies, not picked for 2 for 1 at the time, that now are very attractive.
"Of all 30 stocks in the portfolio, plus an additional twelve splits announced over the last year, there are four that especially deserve your attention. I would buy any or all of them depending on your situation. I don’t list them in any particular order.
"Graham Corp. (NYSE: GHM) was bought for the portfolio in August and has been absolutely hammered since then. It now sells at its Jan. ’06 level for only twice its book value. It has no debt, and it is in a business that is not going away.
"Integral Systems (NASDAQ: ISYS) was my September buy and has \dropped only slightly since then. I recommend it again because of its very strong balance sheet and its recession proof business.
"Rofin-Sinar Technologies (NASDAQ: RSTI) makes all sorts of industrial and medical lasers. It split last January and is now selling for less than half its price at the time of the split.
"Robins & Meyers (NYSE: RBN) makes industrial equipment used in oil well drilling, pharmaceutical processing, and food and drug packaging.
"Both Rofin-Sinar and Robins & Myers have exceptionally strong balance sheets and should plow right through any recession.
"I emphasize again; if you have cash or are reallocating out of other asset classes, now is the time to buy, and these four stocks would all be good candidates for current purchases."
