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Party on! 3 hot stocks that will build on a big 2013


Investors routinely have to decide whether it’s better to let winners run, or to take profits and reinvest them in the next big idea. For Jim Jubak, senior markets editor at Moneyshow.com, the answer to that question is not a matter of either/or, but a matter of both.

As we discuss in the attached video, MoneyShow.com has asked their team of experts for stock picks that outperformed in 2013 and are poised do the same in 2014. Here is a small selection of their favorites:

Canadian National Railway (CNI)

“Pretty much everything,” is how Jubak describes the booming shipments of oil, grains and automobiles this Montreal-based railroad is moving. “For 2014 it looks like oil is going to continue to drive it,” he adds, predicting continued momentum could see this stock rise another 20% this year.

Jubak isn’t the only one eying Canadian National Railway. None other than Microsoft founder (and billionaire) Bill Gates also owns a $5 billion block of this business.

That said, Yahoo Finance data shows about 80% of analysts who follow Canadian National Railway currently rate it “hold,” or “neutral.” In addition, another derailment by a train carrying oil could prove to be costly and disruptive.

Check out more on this pick from Moneyshow.com HERE.
Ligand (LGND)

Jubak says this red-hot biotech firm from San Diego has not seen its best days yet, even though shares of Ligand have gone from $20 to almost $60 in past 12 months alone.  

“In some way (Ligand) is a kind of fund in itself,” he says. “They’ve got about 90 fully funded partnerships and the biggest chunk (about 40%) of that is in oncology, but you get a piece of everything.”

While some might look at Ligand and see a stock that’s down 40% over the past decade (having slumped from $120 in 2004), Jubak sees nothing but upside for this one thanks to “an already huge pipeline” that’s still growing.

Check out more on this pick from Moneyshow.com HERE.

Mannkind (MNKD)

His final momentum pick is an admitted “gamble” but Jubak says an expected April Fool’s Day announcement by the FDA could be a windfall for Mannkind’s first-inhaled insulin treatment.  

“This has been a six year process with the FDA, not all of it good,” he says.  “This is a gamble.”   

Apparently, it’s a gamble that many investors are unwilling to take, given the unpredictability of FDA panels as well as a stock that has already more than doubled in the past year.

“What I really like to do is find momentum in value plays and vice versa,” he concludes.

Check out more on this pick from Moneyshow.com HERE.

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