With the 2009 stock picking competition over and done with, the same group of bloggers wanted try it again in 2010. As my last years result was mediocre relative to the market, I’ll still take the 20% that I gained. This years picks will be along the same lines, but perhaps a little more aggressive.
What do I expect from the market in 2010? I’m still waiting for that pullback, but I’m not so sure that we’ll see a test of the March 2009 lows. Having said that, we may see some gain in the TSX in 2010, but I doubt that it will be anywhere close to the 30% returns of 2009.
My Top 4 Stock Picks for 2010
- Hanwei Energy (HE.TO) – This Chinese company provides products and services for the oil pipeline transportation, wind and coal energy industries. Even though they have been oversold, they maintain a strong balance sheet. They currently trade at less than half their book value, carry no long term debt, and have $0.28/share cash on their balance sheets. Trading price as of Dec 31, 2009: $0.82.
- Manulife Financial (MFC.TO) – Most of you have probably heard of Manulife Financial as they are the largest insurance company in Canada (in terms of market cap). I believe that Manulife has been oversold but hopefully return to strength in 2010. Trading price as of Dec 31, 2009: $19.33.
- Cenovus Energy (CVE.TO) – I picked Cenovus as my oil play. Never heard of them? Neither did I until I looked up the constituents of the energy index. Encana recently split into two companies; ECA is now a natural gas company while all the oil and gas assets have gone to CVE. Trading price as of Dec 31, 2009: $26.50.
- QLT Inc (QLT.TO) – This is a riskier play of the batch as I picked them solely on their financial statements. QLT is a pharmaceutical company that creates and commercializes eye treatments. They trade below their book value, have no long term debt, and carry $3.81/share in cash on their balance sheet. Trading price as of Dec 31, 2009: $5.23
Note that I own some of the stocks listed above and they are not recommendations to buy.
Here are some stock picks from other bloggers:
- Where Does All My Money Go
- Dividend Growth Investor
- Four Pillars
- Zach Stocks
- The Wild Investor
- The Intelligent Speculator
What are your favorite stocks for 2010?