Five of 2016’s Top Stocks--Revealed

But after such great runs, should you be buying more shares?

5) Companhia de Saneamento Basico de Sao Paolo (NYSE: SBS)• Water and waste

management in Sao Paolo, Brazil

• First half returns: 102%

The Catalysts &

PrognosisThe Catalysts in 2016

The stock had been decimated by currency woes, a slumping economy, and a drought.

Costs have been reduced significantly, there has now been relief from drought, and the company has been able to enact a significant rate increase.

The Prognosis Going Forward

With oil and iron ore prices recovering, so too is the Brazilian economy.

Currently trades for just 10 times future earnings, and 7 times free cash flow.

Could be a good bet for a patient investor.

4) Wi-LAN Inc (Nasdaq: WILN)• Patent licensing

for technology services.

• First half returns: 110%

The Catalysts &

PrognosisThe Catalysts in 2016

The company has acquired a portfolio of patents—namely Qimonda and Freescale—which have drastically increased Wi-LAN’s offerings.

A number of licensing partnerships have been announced since January.

On April 4th, the company received a beneficial ruling on a major TV patent.

The Prognosis Going Forward

The company looks cheap, trading at 6 times expected earnings and 5 times trailing free cash flow.

However, it’s worth noting that a court’s rulings will always have a large sway on results, and investors need to be comfortable with that.

3) Axiall Corp. (NYSE: AXLL)• Chemical maker• First half returns:

116%

The Catalysts &

PrognosisThe Catalysts in 2016

The company rebuffed buyout offers from Westlake Chemical (NYSE: WLK) in January.

In June, a South Korean company also went public with a purchase offer.

Three days later, on June 10th, Axiall agreed to be purchased by Westlake.

The Prognosis Going Forward

The acquisition was an all-cash deal for $33 per share.

Today, the stock trades for about $32.50, meaning there is only about a 1.5% upside.

It’s best to look elsewhere for your investing dollars

2) Talen Energy (NYSE: TLN)• Coal and nuclear

energy company• First half returns:

129%

The Catalysts &

PrognosisThe Catalysts in 2016

On March 31st, management let it be known that it was looking for potential buyers.

On June 3rd, Riverstone Holdings announced that it was taking Talen private.

The Prognosis Going Forward

Riverstone agreed to pay $14 per share for Talen.

Currently, shares trade for about $13.60 per share, meaning there is only about a 3% potential upside.

It’s best to look elsewhere for your investing dollars.

1) Quad/Graphics (NYSE: QUAD)• Printing and

media company• First half returns:

167%

The Catalysts &

PrognosisThe Catalysts in 2016

The stock was down 60% in 2015, as the print business has been disrupted.

However, cost reductions of over $100 million, coupled with earnings beats and up-beat guidance has warmed investors up.

Management has stated their commitment to paying the 5.2% dividend.

The Prognosis Going Forward

The numbers look promising: Quad trades for 21 times future earnings, 4 times free cash flow, and it offers a big dividend that only eats up 22% of free cash flow.

However, the company needs to find a way to continue staying relevant in the digital age.

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