Making money by throwing darts at stock tables will be tough in 2008 if market gains are as modest as we predict they'll be. Instead, it will be a year in which the spoils go to the most-astute stock pickers. In that vein, we present our best bets for 2008 (listed in alphabetical order; stock prices are to November 12). See A Winning Crop for 2007 to see how our '07 picks fared.

RELATED LINKS
	A Winning Crop for 2007
	Where to Invest in 2008
	2008 Bond Forecast

AT&T (symbol T)

AT&T says it's everywhere, from "Japaridelphia" to "Chilondoscow." It's also in the middle of the hullabaloo surrounding Apple's fast-selling iPhone. AT&T may not reap enormous profits right away from its exclusive deal to be the wireless carrier of choice for the iPhone. But as Apple cuts iPhone prices even more, AT&T is likely to attract millions of additional customers. With 65.7 million mobile-phone subscribers, AT&T has established wireless as its main focus. It won't be long, in fact, before wireless services surpass AT&T's declining land-line phone business.

AT&T's empire now includes Ma Bell, four original Baby Bells, the wireless network and the Yellow Pages. Its next move will be into entertainment and programming. Despite its huge size (market value: $238 billion), this ever-changing company should deliver earnings growth of 8% to 12% a year for some time. The stock, which yields 3.7%, could reach $50 over the next year.

CEMEX (CX)

The world is spending like mad on roads, schools, airports and power plants, and suppliers of basic materials are benefiting. From a humble start in 1906, Mexico-based Cemex has become the world's largest producer of ready-mix concrete. Ready-mix, the stuff that comes in bags, is ideal for small jobs anywhere. Cemex is also a global force in traditional cement, which is used for giant building projects, such as bridges and tunnels, and in aggregates, which are used for road paving. Cemex has been hurt by the housing recession in the U.S., which accounts for about 25% of its sales and profits, but sales in Eastern Europe and South America are a growing part of its revenue mix. That makes Cemex a way to invest in global economic growth.

Cemex's earnings have tripled since 2003, but they were down 10% in the most recent quarter from the year-earlier period. As a result, Cemex's American depositary receipts have slumped 34% since June. But Cemex predicts that 2008 will be better. The stock should rise to $35 in the coming year.

CONSOL ENERGY CNX)

Coals to Newcastle? It's no joke. U.S. coal exports rose 11% in 2007, with shipments out of East Coast ports up 29%. Germany, the Netherlands and, yes, England are among the big buyers. High-sulfur Appalachian coal works just fine in high-tech, scrubber-equipped European power plants. With their currencies so strong, Europeans have no problem paying an average of $54 a ton for Appalachian coal, which commands $45 a ton in the U.S. Consol is the largest coal exporter, and its mines are concentrated in the east, so its coal has a relatively short distance to travel on the way to Europe.

Consol's shares nearly doubled in 2007. But with analysts expecting profits to rise sharply in 2008, the stock has more room to run.

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POSTED BY: Irwin (December 24, 2007 04:29 AM)
1. In the Kiplinger's Personal Finance magazine (January 2008) XTO Energy price as of Nov. 12th shows as $63. XTO price hasn't been above $54. this year. Assume this is a typo. 2. Consol Energy price in the magazine as of Nov. 12th shows as $56. CNX price now as of Dec. 21st is more than $71. Do you still recommend CNX as a buy for 2008?

POSTED BY: Thomas M. Anderson (December 26, 2007 12:49 PM)
Thanks for your comments, Irwin. This is Tom Anderson, associate editor of Kiplinger's magazine. The share price for XTO listed in my colleague Jeffrey R. Kosnett's article was correct at the time of publication. On Dec. 14, after the January issue went to press, XTO Energy performed a 5-for-4 stock split. A stock split doesn't alter the value of a shareholder's stake, but it increases the number of shares outstanding and reduces the stock price in proportion to the split. You are correct, adjusted for the split, XTO shares haven't been above $54 in 2007. But pre-split share prices reached a closing high of $67.07 November 2, which is $53.66 when adjusted for the split. Jeff will answer your Consol question when he returns from vacation on January 8. We appreciate your interest.

POSTED BY: Irwin Schechtel (December 29, 2007 04:35 AM)
Tom, Thanks for your reply and explanation. I should have done some more research. Looking forward to Jeff's response.

POSTED BY: dick belisle (January 16, 2008 10:51 AM)
stanley has not made garage door openers for 10 years today intel lost 10+% in the market is it still a good buy?

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