Investment Guru David Dreman wrote a column for Forbes entitled Big Cap Comeback, like Jeremy Grantham and Donald Yacktman, he too advises investors look value among the big cap value players.
In particular, he recommended the following stocks:
Read the David Dreman’s article Big Cap Comeback at Forbes.com
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In particular, he recommended the following stocks:
Apache(APA) explores for oil and gas, with foreign operations now contributing more than half of its 583,000 barrels a day (oil equivalent) of production. Revenue last year was $8.6 billion; reserves at year-end came to 6.8 barrels of oil equivalent per share. Apache has expanded production from its largest discovery to date, the Qasr Field in Egypt's Western Desert. The stock trades at nine times its likely 2010 earnings and yields 0.6%.
Devon Energy Corp. (DVN, Financial) also produces oil and gas and has a stake in natural gas processing. The company is in the process of selling $4.5 billion to $7.5 billion of deepwater reserves in the Gulf of Mexico. Proceeds will be used to expand domestic onshore natural gas reserves. The stock is trading at 11 times likely 2010 earnings (not counting any nonrecurring gains from the Gulf sale). The yield is 1%. Reserves per share: 6.4 barrels equivalent.
Banco Santander (STD, Financial),a bank that started in Spain, has reached out across the globe. Now 40% of earnings come from Latin America and 25% from Spain. The stock has been beaten down by the debt crisis in Greece and an overreaction to Spain's designation as one of the so-called Piigs (Portugal, Ireland, Italy, Greece and Spain). Trading at nine times trailing earnings and yielding an attractive 7.8%, this bank should be a strong holding over the next few years.
Defense contractor Lockheed Martin (LMT, Financial) gets three-fifths of its revenue ($45.2 billion last year) from sales to the U.S. military. International operations account for 15% of revenue; the balance comes from other government agencies to do everything from running disaster training to managing Social Security payments and sorting data for the 2010 census. Management expects international sales to rise to 20% within a few years. The stock trades at 11.1 times trailing earnings and yields 3%.
Read the David Dreman’s article Big Cap Comeback at Forbes.com
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and David Dreman for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
