Monday, April 09, 2007

Investors Blog Network (IBN) Festival # 4 - The Million Dollar Portfolio Edition

Welcome to the Investors Blog Network (IBN) Festival #4 - The Million Dollar Portfolio Edition. As background, the Investors Blog Network is a consortium of 27 bloggers, many who are primarily focused on stock investing. Several personal finance bloggers with interest in stock investments, such as me, are also part of the IBN Feedburner Network.

For this edition, I have asked that submissions be about a specific stock to be purchased in the Million Dollar Portfolio Challenge. For reference, the investment strategy to win the contest is different than a long term investment strategy. However, virtually all the submissions were stocks the submitter would put in their own portfolio. This is a testament to the Investors Blog Network and each submitter's unwavering investment philosophy.

Here are the stock picks submitted in the order received:

Avnet (AVT) - My Wealth Builder submits Avnet, which distributes electronic components, enterprise network and computer products, software, and embedded subsystems. This stock is one of my top buys using a modified Unemotional Growth system, based on the book the Unemotional Investor, by Robert Sheard. The stock is up over 35% since January 22, 2006, when I purchased it for $26.11 a share. I sold the stock in early March for a 36% gain, but plan to buy it again once the market resumes an upward trend.

Bruker BioSciences (BRKR) - Biohealth Investor submits Bruker BioSciences: Earnings Growing, Insiders Buying. On February 22nd, the company announced an increase of 80% in net income per diluted share for 2006 over the prior year, and expects earnings growth of 40% for 2007. This is the type of growth that drives small caps to mid-cap status.

Intuit (INTU) - Stock Market Beat offers INTU: We've Got Intuition. The price of Intuit is highly seasonal. It usually gets cheaper during tax season and rises afterwards, possibly presenting an opportunity to buy shares with one's refund in April.

Apple (AAPL) - FIRE Finance presents Gamble on CNBC Million Dollar Challenge , which shares his single stock pick for the contest. One reason FIRE likes Apple is that it has a quite an impressive product line. Several products are in the pipeline which leverage already existing technologies and products.

Millicom International (MICC) - Trade Radar presents Millicom International (MICC) - more growth on the way. MICC offers prepaid cell phone service in emerging markets. With respect to telecom, these markets are growing at faster rates than the developed countries of Europe and the US and Millicom is benefiting handsomely. With a beta over 5, they always have the potential for a good pop.

Gol Linhas Aereas Inteligentes (GOL) - One Guy's Investments presents Bear Stearns Downgrades, Time to Buy (GOL). At a trading PE of about 18 and a very large and growing market to address, he is convinced that the shares are a very reasonable buy here -- the analysts might be wrong on the estimates that give this a forward PE of about 10, but in the long run this is one of the stocks in his portfolio that he is most convinced has a bright future.

Apple (AAPL) - The Digerati Life presents Did You Own Apple Before The iPhone Announcement? Although she missed the price gain with the announcement of the iPhone, Silicon Valley Blogger doesn't plan to miss any gains by Apple during this contest:-)

Lumera (LMRA) - Online Stock Trading offers Swing Trade LMRA - Lumera Corp, which submits a stock that had a significant run up since October, 2006, and then pulled back about 50%. One of the main trading patterns he uses has been put into play this month, and he is buying the stock. (Although this is a great pick, it doesn't meeting the $500 million dollar market capitalization required. I will get an alternate pick from Online Stock Trading later this week.)

In addition, these three members of the IBN Network did not participate with a stock pick and offered advice about choosing stocks. Again, in the order received:

The Skilled Investor presents Searching for superior investment fund managers is a waste of your money and time. He offers that investing in market indices via low cost ETFs (exchange traded funds) is the best option for non-professional investors.

Stock Gumshoe presents Stock Gumshoe -- New and Improved, which is a new blog associated with One Guy's Investments. It's purpose is track the performance of all the "teaser" companies he sleuths out here as the Stock Gumshoe. Now one can see how well all the authors that tout stocks in newsletters are really doing.

Investors Trip submits Save Time with the Stock Market Search Engine that he has developed because of frustration with links unrelated to a stock in Google Search. The Stock Market Search Engine solves this problem because the search index lists websites only that are related to the stock market. A great tool to use and investigate stocks one is considering, including those for the Million Dollar Portfolio Challenge.

IBN Network Portfolio Status

Here is the status of the IBN Network Million Dollar Portfolio:

Portfolio OpenedMarch 21, 2007
Stocks Purchased Avnet (AVT)
Bruker BioSciences (BRKR)
Intuit (INTU)
Apple (AAPL)
Millicom International (MICC)
Gol Linhas Aereas Inteligentes (GOL)
Cash PositionAbout 30% with 2 stocks to be purchased
Portfolio Value$1,048,000 (top 29% in ranking)
Gain to Date4.8% (3.6 % from bonus bucks)

If the IBN Network Portfolio should win a weekly prize or the Million Dollar grand prize, the winnings will be split among those that submitted picks and the portfolio success will be reported in My Wealth Builder:-)

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This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

1 comment:

FIRE Finance said...

Thanks for the mention. Hopefully we will become a weekly winner at the CNBC competition!