| |
 |
  |
|
| News Articles Stocks DRPs Brokers Links Free Newsletters |
| Rothery Report: Login Learn More Performance Sample Subscribe Contact Us |
Active at Passive Prices
Unbundling ETFs 2008
5 Stingy Stocks for 2008
5 Graham Stocks for 2008
Is your index too active?
Graham's Simple Way
Canadian Graham Stocks
5 Stingy Stocks for 2007
8 Graham Stocks for 2007
Top SPPs
The Simple Way
A hole in your IPO?
Monkey Business
8 Stingy Stocks for 2006
Graham Stock Gainers
Blue-Chip Blues
Are Dividends Safe?
SPPs for 2005
Graham's Simplest Way
Selling Graham Stocks
RRSP Money Market Funds
Stingy Stocks for 2005
High Performance Graham
Intelligent Indexing
Unbundling Canadian ETFs
A history of yield
A Dynamic Duo
Canadian Graham Stock
Dividends at Risk
Thrifty Value Stocks
Stocks in Short Supply
The New Dividend
Hunting Goodwill
SPPs for 2003
RRSP: don't panic
Desirable Dividends
Stingy Selections 2003
10 Graham Picks
Growth Eh?
Timing Disaster
Dangerous Diversification
The Coffee Can Portfolio
Down with the dogs
Stingy Selections
Frugal Funds
Graham Revisited
Just Spend It
Ticker Temptation
Stock Mortality
Focus on Fees
SPPs for the Long Term
Seeking Solid Stocks
Relative Strength
The VR Approach
The Irrational Investor
Value Investing
Eye on PI
MoneySense Articles
Income 2008
Small stocks, big profits
Cdn Top 200 2008
US Top 500 2008
Value that sizzles
So simple it works
Income 100
No assembly required
Investing by the book
Cdn Top 200 2007
US Top 500 2007
Invest like the masters
A simple way to get rich
Top Trusts 2006
Stocks for cannibals
Car bites dogs
Cdn Top 200 2006
US Top 1000 2006
So easy, so profitable
Top Trusts 2005
Dogs of the Dow
Top 200 2005
Money for nothing
Yield of dreams
Return of the master
Advisor's Edge Articles
Passive Rebundling
Doing the math
Norm Speaks
Last year I attempted to achieve success by hand picking twelve value stocks from the S&P500. Well, I managed to avoid the success part. My twelve picks lost an average of 1.92% from December 5, 2001 to December 5, 2002. Mind you, this was much better than the S&P500 which fell by 22.12% over the same period. Normally outperforming the index by 20.20% would be cause for celebration but a loss is still a loss. To add insult to injury, the stocks selected by my trusty dartboard gained 2.87% over the same period.
Last year's stingy picks: Alberto-Culver (ACV), Allegheny Technologies (ATI), Cardinal Health (CAH), CVS Corp (CVS), Engelhard (EC), FedEx (FDX), Humana (HUM), SYSCO Corp (SYY), VF Corp (VFC), W.W. Grainger (GWW), WellPoint Health Networks (WLP) and Worthington Industries (WOR).
Last year's dartboard picks: Alberto-Culver (ACV), Big Lots (BLI), Burlington Resources (BR), Charter One Financial (CF), Citizens Communications Co (CZN), FMC Corp (FMC) HCA Inc. (HCA), Hercules Inc (HPC), Lincoln National Corp (LNC), Meredith Corp (MDP), UnitedHealth Group (UNH) and Zions Bancorp (ZION).
Undaunted by my crushing defeat, I've selected a new list of stingy picks. This year, I'm sticking to S&P500 stocks with debt-to-equity ratios of less than 0.5, current ratios of more than two, and interest coverage ratios of more than two. Also, I demand positive cash flow, some earnings and a price-to-sales ratio of less than one.
With the aid of the MSN.com stock screener, ten stocks were found that passed my tests on December 5, 2002. I should note that I currently own shares in Apple Computer due to its very strong balance sheet.
Stingy Picks: Apple Computer (AAPL), Circuit City Group (CC), Crane Co. (CR), Dollar General Corporation (DG), Limited Brands, Inc. (LTD), Liz Claiborne, Inc (LIZ), Nucor (NUE), Quintiles Transnational Corp. (QTRN), Reebok International Ltd. (RBK) and VF Corporation (VFC).
My nemesis is back with ten picks from S&P500.
The Dartboard's picks: AFLAC Incorporated (AFL), AmerisourceBergen Corporation (ABC), Bank of New York Company (BK), Chiron Corporation (CHIR), Consolidated Edison (ED), Fiserv (FISV), Illinois Tool Works (ITW), KeySpan Corporation (KSE), QUALCOMM Incorporated (QCOM) and United Technologies Corporation (UTX)
Which portfolio will win? Value or blind luck? Only time will tell.
Date: Jan 2003
|
|
| About Legal | Contact Us |
A Dan Hallett and Associates Inc. publication. Norm Rothery, Ph.D., CFA, is the Chief Investment Strategist at Dan Hallett and Associates Inc. (DH&A) and the founder of StingyInvestor.com. DH&A is registered as Investment Counsel in the province of Ontario. Norm, DH&A, or related-parties may have an interest in the securities mentioned. More...