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Top Stock Picks 2010 Quarterly Update (April)


At the beginning of 2010, I picked 4 top stocks as part of a blogger stock picking competition.  As I was playing to win this year, I picked some pretty aggressive stocks which has come back to haunt me.

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.

As a penny stock, this one was expected to have a lot of volatility.  Unfortunately, it has moved severely to the downside due to an extremely disappointing earnings report.   As of April 1st, 2010, this stock trades at $0.39 which represents a 47.6% loss thus far (ouch!).  Disclaimer:  I own a small position in HE.

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.

I expected MFC to come back strong with the other financial stocks, but it has remained relatively weak.  I’m content that it has managed to squeak out a small gain thus far in 2010. As of April 1st, MFC closed at $20.25 representing a 5.4% gain including dividend.  Disclaimer:  I own shares of MFC held in my SM portfolio.

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.

CVE was my pure energy play of the group and seemed like a logical pick as an ECA spinoff.  As of April 1st, CVE closed at $28.12 representing a 6.9% gain including dividend.

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

To be honest, I forgot I picked this stock until I reviewed the original post.  As of April 1st, QLT closed at $5.31 representing a 1.5% gain.

Due to the drastic drop in my penny stock pick, the whole portfolio was negative for the quarter ( -8.45%).  However, the year is still young, who knows where we’ll be by the end of the year.

Here are some other results from other bloggers:

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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.

{ 4 comments… add one }

  • steve April 2, 2010, 1:40 pm

    If you are still bullish on HE.TO shouldn’t you be buying more? Good stocks going down is what you want to see…opportunity to buy a good stock on sale.

    Buy when there’s blood in the streets!

  • Melissa April 2, 2010, 7:20 pm

    This reply is not related to this post.

    Hi FT, I wasn’t sure of where to post this as I want your readers to read this but it is not directly related to this specific post.

    Thank you very much for the info you have given me recently (via private email) it has really helped me reshape my finances, take better control of my mortgage debt and better prepare for my retirement. I was able to take your tips and then do more research on your site to meet my needs.

    For over 20 years I had been ‘paying’ (via huge MERs + admin fees) a financial advisor who did not give me info that I got from you, your site and a couple of other sites for free!

    I am proud to say that ended a month ago

    Keep up the great work with this blog. I am very appreciative of your willingness to help others with their finances and your desire to share your information with us.

    Sincerely – Melissa

  • Mike 4P April 2, 2010, 9:05 pm

    Thanks for being worse than me! :P

  • FrugalTrader FrugalTrader April 3, 2010, 8:14 am

    steve, i’m not sure I’m bullish on HE right now. Their interim financial statements show that they are burning through cash. However, their outlook for 2010 is a bit better (for what it’s worth).

    Melissa, thanks for the kind words, and I’m glad that we can help.

    Mike, lol, hopefully we’ll move up the rankings as the year progresses!

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