3 Income Plays With Strong Upside

By Takeover Analyst:What follows is an analysis of some of the most liquid income plays. The companies below have current ratios above 3 and dividend yields above 2%. They cover a variety of industries: mining, semiconductors, biotechnology and consumer goods. Freeport McMoRan (FCX) is the most favored on The Street, followed by Amgen (AMGN).

By Takeover Analyst:What follows is a list of companies specialized in basic materials that have varying degrees of upside. They cover multiple industries: gold, silver, and lumber. Some firms, like Weyerhaeuser, face significant uncertainty while others have limited downside. Still others are appropriately valued by the market. I find myself most bullish about Barrick Gold due to inflationary fears, the company's strong brand, and low multiples complemented by minimal volatility.

By Takeover Analyst:What follows is a list of basic materials companies that have, by my calculations, significant upside. They cover a variety of industries: chemicals, mining and steel. All of the firms, save Dow Chemical (DOW), are rated a "buy" or better. This is largely due to industry volatility and fourth quarter weakness. All ratings are sourced from T1 Banker. Dow Chemical

By Takeover Analyst:What follows is a list of utilities that I find have very limited upside at the current moment. While they appear attractive at first glance due to their low betas and high dividend yields, they carry a significant amount of risk due to regulatory, competitive, and commodity volatility. Overall, reward does not outweigh risk, so I would definitely recommend holding out until all signs of a double dip dissipate.

By Takeover Analyst:What follows is a list of transportation companies with promising potential. I continue to be bullish on railroads and thus expect them to outperform airplanes and mail delivery service. In agreement with the Street, I prefer CSX Corp. (CSX) the most out of these three companies. All ratings are sourced from T1 Banker. CSX Corp.

By Takeover Analyst:We take a closer look at a list of volatile companies with 30% upside or more. The firms are deemed to be volatile due to their having betas that are double that of the broader market. They cover diverse industries: automobiles, aluminum, and computer hardware. All ratings are sourced from T1 Banker. Based on my review of the fundamentals, I am most bullish about Ford, given its excellent leadership and overly depressed multiples. Ford

By Takeover Analyst:What follows is a list of large-cap companies that have yielded positive returns for the year to date. They cover a variety of industries: Communications, mining and oil well services and equipment.

By Takeover Analyst:We look at three firms operating in the consumer goods sector. They cover a range of industries: specialty retailing, food products, and agricultural processors. Staples (SPLS), the only company not related to the food sector, is preferred on the Street with a "buy" rating. Based on my review of the fundamentals and multiples analysis, I similarly find the most attractive risk/reward for Staples.