Talk about a challenge… at the beginning of the year, a group of finance bloggers got together and created a competition. We were to pick 4 stocks for 2009 and see who got the highest returns by year end. It is hard enough to predict what stocks are good for a month out, but for a year…
As you may remember, after last quarter -9% result, I told you I was satisfied with where we were sitting. Remember this is 4 stocks to buy in 2009, so it is a marathon not a race. So guess where we stand in 2009 after 2 full quarters…
As of market ending June 30, 2009, my stocks for 2009 are up a whopping 41.45%…
Yes you read correctly. Even more impressive is the 50% returns we experienced for quarter 2 alone. We can also compare that to the 3 major markets for the year: Dow -3.75%, Nasdaq 16.36%, S&P 500 1.78%.
While most of these high returns are due to the market showing some signs of recovering and oil creeping higher, I highly believe that these stocks still have not even reached anywhere near their peak.
4 Stock Breakdown
AK Steel – AKS (105.9%) Free Trend Analysis
By far the greatest gainer out of the bunch. To be honest, I have no real clue to why AKS made such a huge jump, but despite the freeze in demand for their service, the company still sees a return to profit before year end. That seems outright scary to me.
Technical-wise AKS looks to have clearly passed the $15 resistance I first pointed to at the beginning of the year. Right now we are experiencing a healthy higher lows higher high situation. As long as we can push pass $22, there should be clear sailing ahead.
Schlumberger Limited – SLB (27.83%) Free Trend Analysis
As we enter into the summer months and particularly where oil does fairly well, SLB should do good. That is exactly what I was predicting to happen and it looks like it will continue. Look for a strong 3rd quarter for SLB.
Technical-wise SLB is riding the 50 SMA and sitting right above the 200 SMA. As long as SLB can manage to stay ahead of the 200 SMA we should be good. A bounce here could get us a quick jump to $63.
Bank of America – BAC (-6.25%) Free Trend Analysis
While we made a good jump in the 2nd quarter, Bank of America is probably the one stock, out of all 4, with the most room to move. There is still a lot of jumble and mess to sort through, but barring anything unforeseen, I can almost garuantee you that BAC will be much higher come end of 2009.
Technical-wise we are at a somewhat critical point by sitting right under the 200 SMA. Remember that a crossing of this particular SMA usually signifies a change in trend. If we can push pass this line, then look to jump in this thing if you aren’t already.
Can you be somewhat shaky about a stock that still moved up nearly 40% for the year? While I am still bullish on this stock because of its almost-monopoly style stranglehold it has on the DVD rental business, there have been signs of weakness in the stock.
Technical-wise Netflix looks to be funneling in for a possible breakout up or down. At its current point a move pass $42.50 should be good for the stock.
So there you have it. It looks like we are starting to get into the swing of things. I think the 3rd quarter will tell us a lot about how we will finish up for 2009 individually and the stock market as a whole.
Closing Prices as Market Closing 12/31/08 | 3/31/09 | 6/30/09
- AKS – 9.32 | 7.12 | 19.19
- SLB – 42.33 | 40.62 | 54.11
- BAC – 14.08 | 6.82 | 13.20
- NFLX – 29.89 | 42.92 | 41.34
Other Competing Bloggers
|3||The Wild Investor||
|4||Where Does All My Money Go||28.52|
|5||The Financial Blogger||
|6||Million Dollar Journey||4.76|
|7||Dividend Growth Investor||
|9||My Traders Journal||