At the beginning of 2010, I picked 4 top stocks as part of a blogger stock picking competition. With the market rally thus far in 2010, one would assume that all my picks are up, but unfortunately, that is not the case. Here are the details.
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 and has remained down for 2010 thus far. As of Oct 1st, 2010, this stock trades at $0.40 which represents a 51.2% 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.
MFC is another stock that has been very disappointing thus far as I expected it to bounce back strong by the end of the year. The only bright side of the stock is the dividend. As of October 1st, MFC closed at $12.76 with $0.39 in dividends. This represents a 32% loss 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 Oct 1st, CVE closed at $30.30 with a $0.40 dividend representing a 15.8% 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
Although this was a risky play, it has worked out so far! As of Oct 1st, QLT closed at $6.32 representing a 20.8% gain.
With 2 of the 4 picks taking a huge losses, the whole portfolio is negative year to date ( -11.65%). With only a few months left in the year, I don’t suspect this portfolio will return to black.
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