One of our readers commented recently that I had earned his respect because I always tracked and posted my bad picks not just the good picks. I have been told this often but it is not so uncommon in better publications. Barron's weekly and Fortune Magazine both do the same. It's only fair, and should be standard operating procedure. I have not seen James Cramer do it but then he makes thousands of recommendations so how can he track anything?
I also think that in a blog you have the opportunity to establish a dialogue with readers and might even learn something. I have learned plenty from readers and colleagues alike. So having exposed some of my failings in the past month I thought I would look back and and review some of my successful picks.
When I posted Chasing value: Aluminum Corporation of China ADS eleven months ago in March, ACH was $22.98. It closed yesterday at $39.03 for a 70% gain. It had reached a 52-week high of $90.95 in between. We took some money off the table at $88 and are now playing with the 'house money'. This one has worked out great.
One of my stock alerts was triggered last February when Anadarko Petroleum hit $42 and I posted Anadarko Petroleum - hmmm, getting interesting followed by Chasing value: Anadarko Petroleum - got it! when I actually let it be known I had purchased it in several portfolios at $40. APC has been as high as $68 but closed yesterday at $55.10. We have not sold any but this still made for a nice 38% gain.
Check out the original stories. Both of the stocks belong on your watch list for sure. I think that APC may still be a value today with a trailing P/E of 7.23, and net profit margins of 24% and the same ROE. It is trading higher today. ACH is a little pricier so I might not jump in today. However, I remember saying that before and watching it shoot up to $90 shortly thereafter. Once you're into either of these companies, they should continue to be rewarding for many years. Both pay dividends.
Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. To find potential opportunities and verify my track record read Chasing Value or Serious Money. Disclosure: I do own shares of ACH and APC.
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Reader Comments (Page 1 of 1)
2-08-2008 @ 7:19PM
Mr. noitall said...
Don't forget about PDS, another one of your picks that's been a great one so far this year.