Thursday, December 17, 2009

10 Blue Chips That Boomed in a Brutal Decade

Blue Chip Stock #1 -
AmBev (
ABV; +850%)

Companhia de Bebidas das Americas (ABV) is translated to “the American Beverage Company” and commonly known simply as AmBev. This company dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol. Additionally, the company sells Pepsi brands, Lipton iced tea and other beverages that include mineral water and sports drinks. Along with Brazil, AmBev sells its products in some 13 other countries, including the South and Central American countries of Argentina, Peru, Ecuador, Uruguay and Venezuela.

This Latin American beverage giant has seen explosive growth of +850% since 1999, but this emerging market has shown no signs of slowing down. Expect even bigger gains in the years ahead.

Blue Chip Stock #2 -
Apple (
AAPL; +660%)

Ten years ago, no one could have imagined the iPod or iPhone. And even Apple (AAPL) probably couldn’t imagine a surge of about 660% in shares across a down decade. It’s easy to see why Apple is leading the tech revolution, from digital media distribution to smart phones to personal computing.

Looking forward, the company continues to grow its iPhone footprint and plans to launch a do-it-all e-reader that could put Amazon’s Kindle to shame. I expect continued success for AAPL in 2010.

Blue Chip Stock #3 -
AutoZone (
AZO; +390%)

AutoZone (AZO) operates approximately 4,100 stores in the U.S. and Puerto Rico. As auto sales have plummeted dramatically, more people are relying on aging vehicles to get around. The result is a huge increase in demand for parts and maintenance — and huge sales for Autozone.

AZO stock leaped almost 400% in the past decade and is in for a nice run in 2010 as new vehicle sales remain sluggish and auto parts are in high demand.

Blue Chip Stock #4 - Cognizant Tech Solutions (CTSH; +870%)

As outsourcing has become increasingly necessary for businesses to remain profitable, Cognizant Tech Solutions (CTSH) has seen booming growth of almost 900% in the last ten years. Cognizant is a leading IT firm that provides a wide array of data and software services to businesses around the world. It offers its services to all manner of businesses, including financial services, health care, manufacturing and logistics, retail, telecommunications and the media.

The company enjoys big margins because most of Cognizant Tech’s software development centers and employees are located in India, although it has other development facilities in Argentina, China, Hungary and even a small operation in the U.S. As corporations continue to look overseas for workers to save costs, I expect CTSH to soar in 2010.

Blue Chip Stock #5 - Express Scripts (ESRX; +980%)

Express Scripts (ESRX) has surged almost 1,000% since 1999 as pharmaceutical sales have skyrocketed. ESRX is North America’s leading provider of pharmacy benefit management services. Besides providing customers with home delivery, benefit design consultation and disease management services, to name a few, it also provides various specialty services like patient care.

Drugs and similar treatments have seen recession-proof sales, and as health care reform brings greater coverage and access to pharmaceuticals in the years ahead, ESRX should see continued success.

Blue Chip Stock #6 -
GoldCorp (
GG; +1,430)

The current gold surge is nothing compared with the +1,430 jump inGoldCorp (GG) shares over the past decade. GoldCorp is one of the largest precious-metal mining companies in the world, operating mainly in Canada and South America. The company produces more than 2.3 million ounces of gold annually and has about 45 million ounces in proved and probable reserves. But don’t be fooled by the name — GoldCorp also owns 1.2 billion ounces of proved and probable silver reserves and 1.4 billion pounds of copper reserves.

I don’t have to tell you how hot gold is right now, but please note that silver and copper prices have been on a tear lately as well. The diverse mining operations of GoldCorp make it a great investment for 2010 and beyond.

Blue Chip Stock #7 -
OxyPete (
OXY; +820%)

Amid all the ebb and flow of oil prices, Occidental Petroleum(OXY) has managed to post stunning gains of 820% over the last decade. Currently, the company has proven reserves of 2.9 billion barrels of oil equivalent in the U.S., the Middle East and Latin America. The company also owns 76% of OxyVinyls, which is the top North American producer of polyvinyl chloride (PVC) resin.

As commodity prices continue to surge on a weak dollar, I expect more success for OxyPete in the months and years ahead.

Blue Chip Stock #8 - Quest Diagnostics (DGX; +700%)

An aging population and a greater emphasis on preventative care created breakneck growth of 700% for Quest Diagnostics (DGX) in the past decade. This company is the leading provider of independent diagnostic testing in the U.S. It has built a network of more than 2,000 patient service centers across the country, offering its customers a wide array of routine and specialty laboratory tests and services.

With health care reforms imminent, I expect the market to favor Quest even more in 2010 and beyond.

Blue Chip Stock #9 - Sociedad Quimica y Minera (SQM; +1,450%)

Sociedad Quimica y Minera (SQM) is a Chilean chemical stock that started making its money with specialty fertilizers and iodine sales. This business was profitable enough, but its huge access to lithium is what really boosted shares in the last decade — to the tune of almost 1,500% gains in 10 years. Lithium is a key component in fast-charging batteries for cell phones and laptops, as well as hybrid vehicle batteries.

SQM has customers in more than 100 countries and generates most of its sales outside Chile, and should see continued success in the years ahead.

Blue Chip Stock #10 - Southwestern Energy (SWN; 4,900%)

Yeah, the Dow is down 10% in 10 years. But don’t think that means buy and hold is dead — if you invested $10,000 in Southwestern Energy (SWN) a decade ago, you’d be sitting on about $500,000 today! This company is almost strictly a natural gas company–and that natural gas is the cleanest — burning fossil fuel. With the world's increasing attention to green power sources, the future is extremely bright for this booming stock. And with cold weather descending across America, SWN will certainly see “brisk" business in the short-term.

December 14, 2009

By Louis Navellier, Editor, Blue Chip Growth

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