With China in talks to build 50,000 skyscrapers over the next 15 years and Japan in need of a major reconstruction in the wake of the earthquakes and tsunami, Wayne Kaufman, chief market analyst at John Thomas Financial, said he is a fan of the materials.
Cliffs Natural —“They are the producer of iron ore, which is used to make steel,” Kaufman told CNBC.
Walter Energy —“They are a metallurgical coal producer, [which is] also used to make steel.”
Celanese —“They are the producer of chemicals used in cements and plastic bottles,” he explained. “Water quality is very poor [in Japan], so they’ll need water bottles.”
Beyond Reconstruction: Sports and Food Picks
In the meantime, Lance Helfert, president and co-founder of West Coast Asset Management, said he likes companies in the sports sector.
“Nike is a great example of a company that is just a marketing machine,” Kaufman recommended. “It’s growing internationally...and they haven’t had an issue with raising prices in the commodity environment we’re in.”
In addition, Helfert also likes Hormel .
“They’ve increased their dividend for almost 53 years,” he said of the firm. “They’ve been able to pass it on to the consumers, and because they are in the lower side of the food environment, they’re still the low-cost leader.”
Scorecard—What They Said:
- Helfert's Previous Appearance on CNBC (Feb. 25, 2011)
- Kaufman's Previous Appearance on CNBC (Feb. 11, 2011)
More Market Intelligence:Cramer: 6 'Obvious' Trades Working Right NowArt Cashin: Investors Flocking to the Dow, Not DollarMore Upside for Energy and Industrials: Stock Picker
CNBC Data Pages:
No immediate information was available for Helfert or Kaufman.