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Stock Picking Competition for 2009 – My 4 Stock Picks

Happy New Year!

I know that I said that I wouldn’t be posting today, but a few fellow personal finance/investing bloggers contacted me to participate in a stock picking competition.  What’s involved with the competition?  Basically each blogger will pick 4 of their favorite stocks for 2009 and we’ll follow the performance (or lack there of) on a periodic basis throughout the year.

Note that the stock picks below are not recommendations to buy.  Please do your own due diligence before purchasing any equities.

My 4 Stock Picks

  1. Hanfeng Evergreen (HF.TO) – This company creates high yielding fertilizer for the Chinese market.  I’ve been watching this stock for a couple years now and it seems to be oversold relative to their (profitable) earnings.  This stock has the possibility of making a comeback providing that the Chinese market makes a partial recovery.  If the markets don’t cooperate in 2009, then this stock could go down even further.  Price as of closing Dec 31, 2008: $5.63
  2. Johnson and Johnson (JNJ) – Now that I have my exciting stock out of the way, time to go to the boring large cap stuff.  Johnson and Johnson manufactures ‘staple’ items like Tylenol, Johnson baby products, band aid, Listerine and other popular skin care products.  Even in a recession, I believe that people will continue to buy these products.  JNJ also offers a sustainable dividend at an attractive yield.  Price as of closing Dec 31, 2008: $59.83
  3. Husky Energy (HSE.TO) – This is my pick for some energy sector exposure.  Even though the potential global recession throughout 2009 could keep oil prices depressed, I like Husky Energy’s oil properties and their profitability.  Their dividend doesn’t hurt either. Price as of closing Dec 31, 2008: $30.87
  4. Power Financial (PWF.TO) – This holding company has large positions in IGM Financial, Great West Life, Canada Life and London Life.  It offers a generous sustainable dividend and I believe that this stock has been irrationally oversold.  Hopefully PWF will recover in 2009. Price as of closing Dec 31, 2008: $23.90

There you have it, my 4 stock picks for 2009.  Personally, I think a large cash position will be important in 2009 so that opportunities can seized when the time comes.  Do you have any favorite stocks for 2009?

If you would like to test the waters in the stock market, but not ready to use real money, checkout Wall Street Survivor.  It’s a free stock trading game that I’ve used to practice trading.  They even offer real money as prizes for top performers.

Here are the stock picks from the other bloggers involved:

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FrugalTrader About the author: FrugalTrader is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

{ 15 comments… add one }

  • RJ January 1, 2009, 2:43 pm

    Almost all your picks are on my top watch list/holdings but here are my 4 stock picks.

    Rogers: One of Canada’s leading telecommunication companies, nr. 1 wireless provider and cable provider. It has attractive yield 2.9% currently and it is expected that they will increase their dividend again this year, like they have the several past years.

    Manulife: Canada’s largest insurance company, has taken a big beating. Currently looking at purchasing some AIG assests, very strong position in the emerging market. Manulife is the worlds largest insurance company in terms of Market Cap. Very attractive yield over 5% currently.

    Husky and JNJ my other two picks.

  • Four Pillars January 1, 2009, 3:57 pm

    Good luck with the competition. I think your picks should be sufficient for 2nd place! :)

  • Dividend Growth Investor January 1, 2009, 3:58 pm

    Nice list. Good luck in 2009:-)

  • Chiko January 1, 2009, 5:14 pm

    I think Apple Inc. (AAPL) will continue to be one of the most innovative companies in 2009. So I on board with Apple Inc.

  • Steve - Montreal January 1, 2009, 6:07 pm

    My 4 will be:
    1. MRK
    2. IMO
    3. Shoppers drugmart
    4. CAE

    I do own both MRK and IMO.

  • John January 1, 2009, 6:59 pm

    Although those are great companies to have in any portfolio, I think your 4 choices are way to conservative to win any 1 year (short term) stock picking contests. I would encourage you to pick up something really beaten up and hope for a run in 2009. A pick in a sector like materials or energy should be solid going forward. Ask your readers for recomendations on their top flyer for 2009 and go for the gusto.

    JMO.

    Have a great 2009 and I wish your blog much success in the New Year.

    Cheers

  • lenk519 January 3, 2009, 9:56 am

    my picks pfe gnbt adm lmt

  • Dan January 5, 2009, 5:12 pm

    Interesting picks. I think they’re very reasonable and commend you for not “swinging for the fences” just to win the competition!

  • nobleea January 8, 2009, 12:42 pm

    I would pick:

    First Quantum (T.FM)
    Weatherford (WFT)
    Encana (T.ECA)
    Harvest Energy (T.HTE.UN)

  • J-Vancouver January 13, 2009, 2:45 pm

    My picks:

    Sino Forest Corp- TRE.TO
    Migao – MGO.TO
    Petrominerales – PMG.TO
    Kingsway Financial – KFS.TO

  • paulines-stocks January 18, 2009, 8:22 pm

    My picks:
    Ford Motor Company
    Walmart
    Canadian Western Bank
    MicroSoft

  • paulines-stocks January 19, 2009, 6:13 pm

    And I would also include Research in Motion

  • Amit August 7, 2009, 4:44 pm

    Although late in the game as I read this post only recently, at the beginning of the year, my picks would have been:-

    SQM – Chemicals
    RYN – REIT Diversified (Timber related REIT – Timber has outperformed Small Cap Value stocks in last many decades)
    NLY – Mortgage Investment
    STON – Personal Services

    In addition to being good companies, they pay good dividends and I own all of them in my permanent portfolio. Good luck with the competition.

  • mlgreen8753 September 27, 2009, 8:27 pm

    One of my stock picks would be Mentor Capital (MNTR). Their capital investment in Quantum Immunologics could be good for the company’s stock prices.

  • ku chow January 17, 2010, 9:57 am

    ATK
    HLO
    SUV
    VER

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