A look forward into the 2013:
- Facebook (FB): Raise your hand if you have never heard of Facebook. Exactly. The company’s worldwide reach is stunning: now more than 1 billion users and 500 million on mobile. I believe the real investment belongs in mobile advertising as Facebook continues to grow exponentially. It’s amazing that the company made $0 in 2011 in mobile advertising. I believe in 2012 mobile revenue will exceed $500 million and should continue to grow strongly into 2013. Facebook is my top pick for 2013.
- Yahoo (YHOO): Another company looking to grow through display advertising. The company recently hired Marissa Mayer from Google (GOOG), and I believe the stock is looking to finally breakout after trading in the sub-$20 price range in recent years. As a frequent Yahoo user, I’ve witnessed changes that have been happening quickly. I think the new mail platform is much easier and smoother than its previous version. The Yahoo homepage, which is not yet fully functional, looks to be much improved. As a turnaround play, I don’t see a better company.
- Tesla Motors (TSLA): I believe this is a bit more speculative, but provides access to an industry with a new look and feel that hasn’t changed in over a century. The automobile industry may have finally hit some competition. Tesla is a luxury-electric vehicle company that sells a beautiful sedan from Silicon Valley. Reservations for the vehicle are approaching their 20,000 unit estimate for 2013. In fact, the company may need to raise their numbers, as the vehicle was recently named Motor Trend’s car of the year.
- Sodastream (SODA): Continuing the theme of changing industry standards, Sodastream is the first company to penetrate the home carbonation market in the US. The company’s sales continue to grow worldwide with the US market consisting of about 33% of their revenues. Using the razor blade model, the company looks to bring retailers consumers for repeat business, which is something that retailers cherish. The company’s Q4 earnings look to be stellar, in my opinion, as many retailers reported sellouts of the company’s machines during the holiday season.
- Zillow (Z): With the housing market looking stronger, I believe this company should gain traction in the real estate market. I find this is a great tool for consumers and agents to use when looking to buy or sell homes across the US. Although monetization has been slow, I expect to see this company gain greater traction in 2013.
The investments discussed are held in client accounts as of December 31. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
Clearbrook Capital Advisors LLC is a registered investment advisor based in Massachusetts. The firm seeks to employ an investment strategy that balances bottom-up stock selection with an evaluation of general market conditions. Eric Steiman is the founder and the Managing Member of Clearbrook.
Clearbrook believes in balancing the fundamentals of bottom-up investing against the backdrop of stock market cycles. Clearbrook applies methods of technical analysis in its security selection and market analysis. Generally, the firm seeks investment in companies whose securities it believes are undervalued by the market and can be acquired at a discount to its estimate of intrinsic value. Additionally, Clearbrook will engage in short selling opportunities if it feels certain securities or the market as a whole may be set to decline.