Right now, one sector offers some of the greatest values in the market. These stocks are trading at a 36% discount to the S&P 500's 2009 P/E ratio. And one stock in this sub-niche is poised to outdo all others. Here's why...
by The Investment U Research Team
In perhaps one of the few success stories that will come from the bankruptcy of General Motors (OTC: GMGMQ), Saturn will be sold to Penske Automotive Group (NYSE: PAG).
As a brand Saturn was supposed to reinvent GM, but unfortunately it became the other way around. GM’s poor product construction remade Saturn. The brand suffered from it’s inconsistent products.
If Penske can turn their success in racing and autos into improving the product quality of Saturn, they may well have gone home with the “Belle of the Ball.”
In many ways Saturn was one of the best aspects of GM. Through their focus on satisfaction and loyalty, Saturn truly “got” why customers came back – Their dealers recognized the importance of the relationship. And customers responded.
As an owner of almost 300 auto franchises, Penske should understand the sales side of autos more than most. If they can retool GM’s failed products and quality focus, we could look back in ten years to see Saturn taking the position it was designed to fill – that of a automotive leader – instead of an also ran.
Penske represents a substantial value, being down almost 40% from its high in 2007, and the addition of Saturn makes this company one to look at for long-term growth options.
Symbols mentioned in this article: GMGMQ and PAG.
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The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
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