Hot Sectors for M&A Activity in 2010: Portfolio Manager

As we approach 2010, which stocks should you be considering for your portfolio? Eric Cinnamond, portfolio manager at Intrepid Capital Funds, and Alan Lancz, president of Alan B. Lancz & Associates, shared their best picks.

“The time to take risk was last year,” Cinnamond told CNBC.

“This year is becoming much more difficult in the small cap territory to find those nice discounts to intrinsic values. We’re being very selective.”

Cinnamond said he is looking for companies with more visibility, and consistent businesses versus cyclical companies that seem to have already priced in a strong recovery.

In the meantime, Lancz said investors should look into income dividend-oriented companies.

To find dividend stocks, "you have to go as far as looking globally. And a couple of our favorites are global entities,” Lancz said.

Lancz said he expects a pick up in M&A activity in the New Year; and added energy and telecom are two sectors that offer good potential.

Cinnamond Likes:

CSG Systems

Lancz Likes:

France Telecom

China Mobile


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No immediate information was available for Cinnamond or Lancz.