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The Warren Buffett stock pick strategy is so easy it is unexplainable why investors worldwide cannot copy it. His philosophy is simple. He looks for value and holds for the long term. The trick to his stock pick is how he places value on a business. He has the ability to look beyond the fiscal reports and view a business in its entirety. He can foresee a steady revenue stream.

From 1997 until 2005 Warren Buffett purchased physical silver through his investment company Berkshire Hathaway. He accumulated silver between $4-$6 per ounce. He eventually owned 37% of the world’s supply of silver. He controlled such a large amount of silver that the monthly lease rate for silver peaked at 1.5%-2%. He was able to lease his silver to manufacturers who were in a bind for physical supply and they agreed to replace the silver in 30 or 90 days for 1.5% to 2% per 30 days. It was absolute genius on his part. Eventually he sold the silver at $7.50. He later apologized to his stockholders that he sold out too early.

This aspect of Warren Buffett shows that he would interested in purchasing mining stocks from Canada. Canadian mining stocks offer value. They do not have the name recognition of the larger companies so they often trade at a price less than their proven deposits. The deposits are located in a stable political environment. Environmental and labor issues are not likely to limit production. Canadian mining stocks offer the stability that Warren Buffett desires and other United States investors should be looking at them closely.

Warren Buffett looks for profit margins that are high and rising. He looks for stocks that are selling at a 25% discount to their intrinsic value. Precious metals prices are rising on the back of a cyclical bull market. The Federal Reserve is determined to keep interest rates low. This will lead to a weak dollar and higher inflation. These are the elements that are fueling the precious metals bull market and which will keep profit margins increasing for Canadian mining stocks. Buying Canadian mining stocks for less than the value of their proven deposits is a true bargain.

Warren Buffett has become one of the richest men in the world with his philosophy to “buy low and sell high”. He has accomplished this by sticking to his focus on value. Canadian mining stocks offer the value that Warren Buffett seeks. Shrewd United States investors should be investing in Canadian mining stocks to follow the famous Buffett stock pick strategy.

Buy low and sell high. Start on the path to building wealth.

Nicolas

Nicolas is Stocktipr.com co-founder, a finance community to share and discover best stock tips through the power of their unique algorithm and social networking.

What do they do?

Quoted partly from their homepage, Sino Clean Energy is a “commercial producer and distributor of coal-water slurry fuel (“CWSF”) commonly referred to as Coal Water Mixture (“CWM”) which is a clean fuel that consists of fine coal particles suspended in water. Our clean fuel is used in boilers and furnances to generate steam and heat for commercial, industrial, residential, and government clients throughout China.”

Why invest in them?

They are a great play on alternative energy. They have no debt. Their return on equity was 195.74% for the last 12 months. Their net profit margin was also 31.20% for the same period. They are ranked as the #1 US-Listed Chinese stock with highest return on equity (http://www.cnanalyst.com/2010/12/top-10-us-listed-chinese-stocks-with-highest-return-on-equity-scei-scok-gprc-kun-hgsh-dq-cyou-cnet-s.html). Their costs are cheaper than coal but they still support the local coal industry.

They are supported by the government with subsidies. President Hu Jintao pledged to curb carbon dioxide emissions by a notable margin during the UN summit. They also have strong expertise and knowledge of processing different types of coal. Their process is proprietary and gives them an advantage over their competition.

They recently completed a stock offering of $33 million on December 29, 2010. Remember they have no debt, but they can use this money to expand their production facility. They will continue to increase production and bring more revenue to their business. This is a definite way to play energy in the chinese market.

Technically, it has hit a bottom at $5.50. Just a month ago it was at $10. The PE ratio is below 4 and the long term weekly chart is showing a nice uptrend. Their revenue for 2009 was $26.7 million. The 2010 revenue is expected to be at least $105 million.

Being a chinese stock, you have to be thinking about the Orient Paper fiasco and RINO with the report by Muddy Waters. Sinco Clean Energy is using Ernst & Young to assist with financial reporting in accordance with the Sarbanes-Oxley Act of 2002. By this fact alone, they have made themselves much more transparent compared to other chinese stocks. They will be reporting their finances to the same degree of US companies.

Problems?

On November 16, 2010, Mr. Yong Li resigned as a member of the Board of Directors of the Company. He resigned for personal reasons and there were no disagreements with the company. Although this looks quite mutual, we do not know any of the specifics to his resignation. I suggest buying and holding until it hits $9-$10. If there continues to be good news on this stock, you can play the longer term.

Disclosure: I own SCEI

What do they do?

Teleflex (TFX) is a global provider of medical technology products.  They allow healthcare providers to improve patient outcomes, reduce infections, and enhance safety.  They develop medical devices for hospitals and healthcare providers.  They serve over 140 counties.

They carry a broad-based platform of medical products.  They categorize them into four groups: Critical Care, Surgical Care, Cardiac Care, and OEM and Development Services.  Critical care represents their largest group of products: vascular access, anesthesia, urology, and respiratory care applications;  Surgical Care includes surgical instruments and devices; Cardiac Care includes cardiac assist devices and equipment.  They also design and manufacture instruments and devices for other medical device manufacturers.

Why buy?
For the short-term, hey have a strong support line at $50 and they can easily hit $55 without a hitch.  There is good volume for it to continue trending up.  On December 9, there was a huge bump up which becomes a great support going forward.

For the long-term, you are playing a pretty positive market ahead.  You have a lot of people going into retirement especially the baby boomers.  There will be a huge increase of demand for medical goods as the population ages.  As you wait for the stock to appreciate, you will get a nice 2.7% dividend.

I suggest selling if it goes below $50.  Otherwise, this is a great long-term hold.

The stock market is moving back up.
People want to start investing again.
Fundamentals are good for this stock.

Disclosure: I have naked put @ JAN 50 on this stock.

Ma-Bell has finally officially got rid of it’s exclusivity with the Apple Iphone.  Starting at the end of the year, verizon will also be a carrier of the Apple Iphone.  We already see the market reacting to this news with a quick jump in the stock market price for verizon (VZ) and a downward slope for AT&T (T).

I have a short position on AT&T at $28.50.  I’m not normally a short-term trader but I feel this trade makes since at this time.  The market is bound to correct after a huge uptrend.  AT&T and Verizon are on the high of the stoichastics and their volume is dropping off.  Even great stocks need to correct!

Also, check out Apple Ipad Secrets for both Apple Iphone and Apple Ipod news.

Disclosure: I have a short position of AT&T (T).

Daqo New Energy Corporation, DQ, is a small company that just sold 8 million ADRs for the share price of $9.50 on the New York Stock Exchange. It’s already moved up to $10.25 at the end of the day. The company has been profitable through the downturn of alternative energy. They area leading polysilicon manufacturer based in China. They are based in the suburbs of Chongqing- a place where businesses can operate at lower costs. While polysilicon prices have dropped over 68% since 2008, they continued to make more revenue. In 2009, they had income of over $30 million.

Now that they have gone public, they have more money to grow and expand to other solar products. Their first polysilicon production line was an output of 1,500 in July 2008. The second production line was built in 2009. By the end of 2010, they expect to have production output of 10,000 tons of high-purity polysilicon and they hope to reach 15,300 tons by 2011.

The management team has a pretty good line up. It’s not your normal business people that try to move the stock up. All of them have extensive experience in electronics – a mindset of the engineer. These are qualities necessary to grow a small company. They need the brains – plus they have the money to grow. They are definitely a small company starting in 2008 but there is a great potential for them to grow big.

Profitable – PE of less than 3 (at the time I write) – I’d start a position in it today.

We saw a massive drop in the stock market yesterday – dropping as much as 1000 points. Today we see furthur markdown of the stocks. As more people get worried, I see better valued stocks and better bargains. This is a great time to start stock picking for valued stocks. We are at stock prices from 10 years ago. If you are playing the long-term, this is a great market. If you are playing the short-term, there’s still more downturn and you can play the short side.

I see support on the SPY at 106, but if that breaks, the next support is 102. If we break these supports, we are in for more drops in the stock market. While it can continue to go down, you know we have the support of the government to prop up wall street. I doubt we will see the lows of 2009 ever again.

Here’s a couple stocks to look at: IGOI and JMBA. JMBA has been falling down since hitting a high of $3.83. It’s at $2.70 currently and it has big support there. Jamba Juice also is making big strides to become profitable. Their smoothie business continues to improve, they have new offerings of teas & coffees, and should be a major player as the US economy improves.

IGOI is still pretty undervalued at these levels. It just had earnings announcement yesterday. It stated it will be fully in Wal-mart by the end of May, it has got into Office Depot and Office Max, and it is planning to get into international markets. Link to original article.

Coure D’Alene, CDE, is a commodity stock play on the gold and silver market. Their past couple years of results have not been too lucrative as they have been holding lots of gold and silver as reserves and the prices went down the roof, but the future looks might brighter with the recent gains in commodity prices. They are currently stockpiling their reserves until they find a good time to sell. They do not hedge their commodities.

Earlier this year they significantly expanded the production at Palmerjo and started operations at the Kensington mine. If you know commodities, the average gold to silver ratio is 16:1 which would mean silver would have to multiply to at least 3x the current price. It has been stated that gold will move up to $5,000 over the next decade. Their new mining operations have break-even point at $900 gold and silver at $8.50 an ounce. These break-even prices are very conservative. If gold and silver never rise, they would still be profiting at the current mining costs.

Technically, the stock price is undervalued. It just broke out of support at $17.50. Other than the downturn in 2009, the last time was 2003 when it was in the $18 level. The volume continues to look good – It doesn’t look like it will be stopping anytime soon.

Currencies are looking negative. The world is running on debt. Greece needs money to prevent a default. California continues to be desperate to raise cash. PIGS is next in line to require a bailout. United States continues to print billions of dollars to make up for the mortgage crisis.

There is a bunch of problems right now but there is always a way to profit. Institutional investors like gold mining stocks. This includes George Soros and Jim Rogers. Invest like the big guys that make money and buy CDE.

Disclosure: I own CDE (of course!).

Play the generic pharmaceutical market! President Obama recently passed healthcare reform in the United States. This requires everyone to get health insurance. One of the things the bill does to save money is to allow subsidies on drugs and medicines. An additional money saver is to allow subsidies on generic medication.

Lannett CO (LCI) is one of the few generic medication manufactures in the United States. They just recently got approved for their generic medication of Zofran, an injectable GlaxoSmithKline drug used to minimize nausua. Zofran sold about $58 million last year. Last year they mate their first profit after two years of disappointing earnings and getting FDA warnings for their generic drugs. Do you think out of that $58 million people will by willing to switch to a generic version that costs at least 20% less? You betcha! It’s pretty easy to see that their stock can easily double if they took 10% of that Zofran market share.

Other fundamental things that look good – cash is decent and debt is at a reasonable level. Technicals show a bottoming at $4.40 and there’s strong support going back 10 years. Their net income has increased for in a qtr-to-qtr basic for the past year. It also has doubled from the past quarter. With the low stock price and continuing drugs to come aboard the generic medication line, this might be a great time to get in.

Activision Blizzard continues to bring in good news. They received an upgrade from the street on last Wednesday. Here’s what they got to say: “Activision Blizzard has gained 18% during the past year, trailing major benchmarks. The stock trades at a price-to-book ratio of 1.4 and a price-to-sales ratio of 3.4, 73% and 48% discounts to peer averages. It’s also cheap based on projected earnings.” Link. – http://www.thestreet.com/_yahoo/story/10731104/1/honda-activision-mt-ratings-upgrades.html

World of Warcraft continues to make them millions of dollars. They must have the best marketing/sales/product team in the industry. In the past week, they created a new horse called the ‘Celestial Steed.’ They charged WoW players $25 to buy it. In just four hours, they made over $2 million dollars off it. It must have took the designer maybe 1-2 days to design the 3D horse model. Even if it took him a week, they still made tons more than the price to pay the designer to create it. I’m sure Activision will continue to find ways to monetize their games. It’s definitely a model that will be built into future gaming.

They also have a few big hits coming out at the end of the year. Star Craft II is planned to be released in the late summer or fall. Disablo III is planned to come out early next year. The next expansion to World of Warcraft is set to be released for the holidays. There’s still plenty of time to get in before all the action happens, but you can bet the second half of 2010 will be big for the company.

Gamestop is already selling pre-orders for Starcraft II. If you are an avid gamer, you can get into the beta just by pre-ordering the game. They will give you a beta key to start warming up your keyboard touches and mouse clicks. It has already been a hit on Amazon as a ‘Bestseller’ being ranked in the top 200 sellers in video games. They also still have Call of Duty: Modern Warfare 2 making tons of cash. It got recently rated ‘Best Successful Launch in Video Games’ by making over $400 million within one day. It surpassed Grand Theft Auto which had the record at over $300 million.

What can they do for the early part of 2010?

I’d hope they have started creating games for the iPad and moved into the mobile phone field. You can bet Electronic Arts is establishing themselves in these fields after lackluster sales from their console games. Activision has to continue to make strong games that sell. Short-term the outlook is cloudy, but the stock charts have shown strong support to keep the price up. Long-term this stock is a keeper. You have the most popular computer games being released from Blizzard. They will all sure be hits when they come out.

Let’s see what the earnings say on May 6th.

Disclosure: I’m in ATVI and I have puts in ERTS