For the last 4 years, I’ve hosted some of the best personal finance/investing blogs (and Financial Uproar) for a little stock picking contest. I once promised chips to the winner, but like that ever happened. So instead they get a ridiculously terrible prize, like a slightly used tube of Aim Toothpaste, specifically the one I keep around to clean my headlights.
We had our first lady winner of the contest last year, once and for all proving to all the men’s rights advocates that it’s officially no longer a man’s world. Next thing we all know women will be voting and wearing skirts that stop above the knee. OVER MY DEAD BODY.
This year I opened the contest up a little more, inviting some readers in on the action, as well as finding some new bloggers. There are almost 20 entries this year, so let’s get the ball rolling. I’ll list everyone else’s picks (with a little detail, if it was provided) and then go into a little detail about my own.
Save. Spend. Splurge.
(“Boring stuff this year” she says. Not sure I’d count two mid-tier oil producers as boring, but I’m not about to argue with the defending champion.)
My Own Advisor
Canadian Oil Sands
Freedom 35 Blog
iShares Capped Energy ETF
(Somebody is going all in on energy)
(Get used to Penn West. It’s a popular pick this year.)
(Andrew picked Logitech because it’s the company that made his computer mouse. I mention this because I’m sure it will trounce his other picks he put thought into)
Don’t Quit Your Day Job
Credit Acceptance Corp
Boomer and Echo
(After finishing in last place in 2014, Robb went boring this year. It’s the My Own Advisor strategy.)
Russia ETF (RSX)
Russia Small-Cap ETF (RSXJ)
S&P 500 ETF (SPY)
(In Soviet Russia, Russia ETF picks you!)
Sturm, Ruger and Company
(Sturm, Ruger, and Company sells guns. Officially the most badass pick since Sustainable PF won the contest with medical marijuana in 2012)
My Pennies My Thoughts
Blog reader Jeff
Blog reader Ben
Black Diamond Group
Blog reader Doug
Hudson Bay Company
And now… what you’ve all been waiting for…
Pictures of scantily clad ladies!
No, wait. That’s not right. It’s Nelson’s stock picks. I get more space because I own this blog. Finally, ownership pays off.
I originally wrote about Village Farms here.
I thought Village Farms was cheap at $1.10 per share, but didn’t pull the trigger on it. One of my readers pointed out that there might be selling pressure from an insider who said he was going to sell a bunch of shares, and I wasn’t really bullish on the price of tomatoes. I pledged to wait until the stock fell below $1 per share.
And it did just that. Shares closed the year at $0.85 each. I don’t own this in real life yet, but that’s due to laziness and being busy over the holidays more than anything. By the time you read this my order for shares will be in.
Hudson Bay Company
And there are more words about Hudson Bay here.
You can read the linked to piece for more details, but I think Hudson Bay is stupid cheap because the market isn’t valuing its real estate. The now ex-CEO (and current Chairman) has been pledging for months that the company is about to spin out the stores into a REIT, which I think shoots the stock an easy 30% higher immediately. The retail results are pretty good too, especially in the U.S.
Disclaimer: I own this one.
And it’s another stock I’ve already wrote about.
OH HEY, CHANNELING MY INNER BUFFETT FROM LIKE THE 70s.
When I looked at the owner of the Winnipeg Free Press the stock traded at $4 per share. I liked the name but preached patience, thinking the stock would fall when the dividend inevitably got cut. It was paying a nickel per share per month, and I figured a cut to four cents.
I got the general call right, but I was surprised by the depth of the dividend cut, going all the way down to $0.08 per quarter. But still, it’s an 11% yield, and earnings should be enough to cover it. There are also a few possible catalysts, but mostly it’s just a contrarian play on an industry that nobody likes.
Don’t own any of this one yet, but I’m not opposed to buying it at these levels.
Words about Penn West.
Only three of us picking Penn West. Not bad!
I thought Penn West was cheap at $4.10, when I bought shares for the first time for the Uproar Fund. I averaged down last week, picking up another 1,000 shares at $2.45. I think it’s ripe for a takeover from one of the majors, who could swoop in and offer $5 per share for it and snatch it up. Book value is $11.11 per share, and at least I got one last big dividend before it got cut to $0.03 per share.
I wasn’t sure about picking it because so many others have it, but it’s too cheap to ignore.
And there you have it. Feel free to mock any and all picks in the comments. Trash talk is also encouraged.