What will be the best stock picks for 2011? I don’t know yet but I can tell you that I didn’t make the right choices in 2010 for our stock pick competition! So before I write about my best stock picks for 2011, I’ll review what happened in 2010 with my stock picks…
When bad news comes in waves
I still believe I had good picks for 2010 and that, over the long run, those companies will perform. The proof is almost there as my 3 loser picks (RIM, MFC and GS) had grown in dramatic fashion over the last quarter. Too little, too late, I’m stuck with a losing hand for 2010!
RIM was hit big time as Apple entered in the smartphone ring with a huge uppercut. Bad news and rumors are now driving down RIM stocks towards the bottom of the pile. Fortunately, the company showed positive results and the stock is now back up.
When I first wrote about my best stock picks, I thought Manulife’s problems were over. I thought 2010 would be a great year for them and that the management team was strong enough to overcome their maelstrom…. Bad move, Manulife got hit by more bad news and was eventually downgraded by Moodys.
My last bad news bearer is one of the strongest investment banks that survived 2008 credit crisis; Goldman Sachs. If the SEC didn’t fill a lawsuit against them, they would have been pretty good in 2010. The stock is now back to where it was at the beginning of 2010, so just a small loss for a great stock pick…
And the Winner is….
Here’s the final result of our 2010 stock pick contest. If you click on each name, you will get their latest post on the stock pick competition. Wild Investor is winning our stock competition this year but one of my reader beat all of us: Brian end-up with 94%! (here’s his picks: RHIE, ISCO, BTIM, ACTC)
Intelligent Speculator -0.45%
The Financial Blogger -1.64%
Wild Investor 27.15%
Million Dollar Journey 3.79%
Where Does All My Money Go 26.56%
Four Pillars -35.25%
Zach Stocks 20.87%
My Traders Journal 10.39%
Dividend Growth Investor 26.08%
HUZ – Silver ETF, There is a problem with gold
I’m not a big fan of commodities. Why? Because they are based on pure speculation…but this is also the goal of our stock pick contest, isn’t? I’m taking a Silver ETF because I think it is undervalued compared to gold. The price of silver usually follows gold by 1/16 and now we are at…. 1/46! So either the price of gold is too high, or the price of silver is too low. I’m betting on the latter.
RIM – Research in Motion Strikes Back!
I still believe RIM is a good stock pick. And I think that it will be one of the best stock picks in 2011. RIM is the best player in emerging markets and now that the economy is restarting, they should increase their sales. At least Apple shouldn’t be able to play in this market for now as the iPhone cost and network coverage are too expensive for emerging markets for now.
CVX – Chevron, For those who are scared
I am slowly converting to dividend investing with my latest buy; The Dividend Guy Blog. I have a Chevron stock analysis over at this blog and I think this will be a good stock pick to stabilize my gambles. I think that Chevron will continue to pay a good dividend and the stock should be stable throughout the year. Therefore, it will be a good pick if silver or RIM fail at some point ;-).
POT – Potash, once investors are converted to believers, it will blow!
In 2010, we almost lost the biggest potassium producer in the world with the hostile bid by BHP Billiton. While this event helped Potash to be one of the best stock picks in 2010, its value will increase as the commodity will continue to rise. Potash seems like a good bet for such a competition.
Here’s the chart with all the participants. If you click on each name, you will get more details on their stock picks (more to come in the upcoming days 😉 )
Last year, a few readers posted their picks, I want to encourage you to do it and I’ll offer a prize to the winner if you can beat our group of bloggers for the 2011 Best stock pick contest. If you want to participate, you simply have to put your 4 stock picks in the comment section and use the tweet box on the top of this blog (or the following: Best Stocks Picks 2011 Contest @FinancialBlogr : http://bit.ly/gooxCw. Enter your 4 stock picks in the comment section to be in!) . I like Apple products, do you?
disclaimer: I do hold RIM in my portfolio (and Chevron is on it’s way!)
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