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
- 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
- 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
- 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
- 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: