Looking at one analyst’s picks for 2006

Bloomberg News columnist John Dorfman, president of Dorfman Investments in Boston, is out with his top stock picks for the New Year. Since his 2005 picks have pulled in a 13 percent return and the new crop includes some nice dividend yields, let’s take a look at a couple of Dorfman’s favorites that meet up with some of the EnviroInvestors criteria: Devon Energy (DVN), an oil and gas titan, is giving back to the environment by recycling water from natural gas wells for habitat creation, and spent $2 million to build an island for whooping cranes using dredged material from a canal in Mesquite Bay. Dorfman likes its sky-high growth since 2001 and thinks there’s still room for more with Devon trading at 11 times earnings. Analysts have a strong-forward outlook for Devon, predicting forward P/E of just seven times earnings. Devon also pays a small .30 dividend. … Though Dorfman’s list includes plenty of stocks we can’t second, Schnitzer Steel Industries (SCHN) (including the Pick N Pull chain of auto wrecking yards) is also worth a look, especially if like us you’re one of those investors who enjoys the idea of buying a company that once sold you that still-pristine used radiator for your 1989 K-car. The recycling firm trades at just seven times earnings, with a small dividend to boot. …

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