Top 5 Defensive Stocks To Buy For 2014

LONDON -- It's been called the Great Rotation, the switching of investors' appetite from government bonds into equities.

Investors have been losing faith in the safety of bonds, as quantitative easing has pushed interest rates to unprecedented lows and stoked fears of future inflation. At the same time, the newly minted money has found a home in equities, especially since Mario Draghi reduced tail risk by saying the European Central Bank would do whatever it took to save the euro.

A significant feature is the preference of investors for shares in defensive sectors that are paying decent yields. They enable shareholders to enjoy the income and relative safety associated with bonds in more normal times.

That's chased the price of such stocks to exceptional highs. Fortunately, the growth opportunities for defensive sectors in emerging markets mean investors don't need to be unduly concerned about valuations.

Top 5 Defensive Stocks To Buy For 2014: 3SBio Inc.(SSRX)

3SBio Inc., a biotechnology company, engages in the research, development, manufacture, and distribution of pharmaceutical products in the People?s Republic of China. Its products include EPIAO, an injectable recombinant human erythropoietin to stimulate the production of red blood cells in patients with anemia and to reduce the need for blood transfusions; and TPIAO, a recombinant human thrombopoietin to treat chemotherapy-induced thrombocytopenia. The company also offers Intefen, a recombinant interferon alpha-2a product for the treatment of carcinoma of the lymphatic or hematopoietic system and viral infectious diseases; Inleusin, a recombinant human IL-2 product to treat renal cell carcinoma, metastatic melanoma, and thoratic fluid build-up caused by cancer and tuberculosis; and Iron Sucrose Supplement for treating anemia associated with iron deficiency, as well as for patients with end-stage renal disease requiring iron replacement therapy. In addition, its product pi peline comprises a high dosage EPIAO; NuPIAO, a second-generation EPIAO; TPIAO to treat idiopathic thrombocytopenic purpura; NuLeusin for metastatic melanoma and metastatic renal cell carcinoma; human papilloma virus vaccine for the prevention of cervical cancer; and an anti-TNF monoclonal antibody product candidate for treating rheumatoid arthritis, psoriasis, and other inflammatory diseases. Further, the company?s product pipeline includes Feraheme, an in-licensed intravenous iron replacement therapeutic agent used to treat iron deficiency anemia in chronic kidney disease patients and in patients requiring hemodialysis; and Nephoxil, an iron-based phosphate binder for the treatment of hyperphosphatemia in patients with ESRD. It sells its products directly, as well as through its network of distributors to various healthcare providers, including hospitals, clinics, and dialysis centers. The company was founded in 1993 and is headquartered in Shenyang, the People?s Republic of China.

Advisors' Opinion:

• [By Hilary Kramer]

  3SBio (NASDAQ:SSRX) is based in China, so it has suffered from the uncertainties that have hit the stock market there, but it’s a solid company that should achieve strong growth for years to come. The majority of sales come from two strong products, EPIAO and TPIAO, which have both benefited from improved regulations and access in China. 3SBio should increase revenues in excess of 20% over the next two years, but the stock is attractively valued at only 12 times the 2012 estimate of 95 cents a share. SSRX is an attractive buy at current prices.

Top 5 Defensive Stocks To Buy For 2014: Paradigm Gold Ltd (PDM.AX)

Paradigm Metals Limited engages in the exploration of mineral resource properties primarily in New South Wales and Queensland, Australia. It primarily explores for copper, gold, silver, tungsten, magnetite, lead, and zinc ores. The company�s key projects include the Frogmore project located near Boorowa; and the Yellow Mountain gold project located to the north-northwest of Condobolin, central New South Wales. It is also involved in exploring for copper-gold deposits and rare earth elements in the Cloncurry belt of northwest Queensland, as well as holds interests in the Kangiara project located to the north of the township of Yass, New South Wales. The company, formerly known as Paradigm Gold Limited and changed its name to Paradigm Metals Limited in May 2007. Paradigm Metals Limited is based in West Perth, Australia.

Top 10 Valued Companies To Own For 2014: Basicnet(BCNT.MI)

BasicNet S.p.A., together with its subsidiaries, engages in the trademark license management in the branded casual and leisurewear, sportswear, footwear, and accessories sector. The company?s brand portfolio comprises Kappa, Robe di Kappa, K-Way, Superga, AnziBesson, Lanzera, and Jesus Jeans. It also operates and manages various franchised retail outlets, as well as distributes of its products through a network of independent licensees companies worldwide. In addition, the company is involved in the operational management of the Basic Village property complex in Turin. BasicNet S.p.A. is based in Torino, Italy.

Top 5 Defensive Stocks To Buy For 2014: Taylor Wimpey(TW.L)

Taylor Wimpey plc operates as a homebuilding company primarily in the United Kingdom and Spain. Its product range includes high-rise condominiums, single family homes, townhomes, full service country club communities, apartments, and five bedroom houses. The company offers its products under Taylor Wimpey, George Wimpey, and Bryant Homes brands in the United Kingdom and Spain. Taylor Wimpey plc manages a portfolio of approximately 170,000 land plots across the United Kingdom and Spain. The company was founded in 1880 and is headquartered in High Wycombe, the United Kingdom.

Top 5 Defensive Stocks To Buy For 2014: M Health Ltd(MHL.AX)

Orca Energy Limited engages in the exploration and evaluation of minerals, oil and gas, and uranium opportunities in Australia and Kyrgyzstan. The company holds a 22.5% interest in the East Kokmoinok Uranium license in the Kyrgyz Republic; and 100% interest in three petroleum licenses covering an area of approximately 6,000 square kilometers located in the Kyrgyz Republic. It also holds licenses in the onshore Cooper Basin, South Australia. The company was formerly known as Monitor Energy Limited and changed its name Orca Energy Limited in August 2011. Orca Energy Limited was incorporated in 1985 and is based in West Perth, Australia.