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“Looking Backwards to see forwards- Stock Picks from

2005 and 2006, how good did they do?” / B. Morgan

Sources: Forbes, SmartMoney, Fortune, Morningstar & MSN


Money.

I did some reviews of stock picks for 2005-6, now that it is getting close to the
new year (2007), here is some of what I found in my research.
-Brian Morgan

First Source: Forbes Magazine 2006


Investment= $80,000 Yield= $21,700 YTD%= 27.13%
Forbes Article called “Desert Island Stock Picks 2006”,
by Marketocracy, author Matt Rand, January 10, 2006.

Ten Stock Picks from Marketocracy users:


RNWK, DEZ, NTO, NSS, COP, EGY, UNT, CLDN, USAK, AAPL.

My Note: Using normal stock investing rules, like dumping a stock as it reaches
8% below your original purchase price, these are the YTD% winners from above:

46% RNWK
DEZ – Merger with Yamana in March = ?
16% NTO
NSS – paid $66 per share for merger in December - ?
25% COP
84% EGY
-5% UNT
37% CLDN
- 8% USAK (lost 39% YTD)
22% AAPL

In my figures below I am tossing out DEZ and NSS as I don’t know the
particulars about their mergers, and therefore have not investigated the yields or
losses from these mergers.

An investment of $10,000 for each of the stocks would have given you a gross
yield of $101,700, or a profit of $21,700. An overall gross 27.13% gain for the
year. Total invested = $80,000, gross profit/gain = $21,700.

Second Source: Smart Money Magazine 2005


Investment= $120,000 Yield= $3,262 YTD%= 2.68%
The online magazine SmartMoney.com did an article in 2005 called “Where to
invest 2005?” by Russell Pearlman and Evelyn Twitchell. Here are their stock
picks for 2005.

Symbol 2005 YTD% $ Return from $10,000


C -0.47 % 9,953
GE -1.66 % 9,834
BAX 3.05 % 10,350
GSK 3.53 % 10,353
DEO 0.70 % 10,070
MCD 2.12 % 10,212
CAT 9.72 % 10,972
DE -6.23 % 9,377
NSC 8.60 % 10,860
PCAR -7.65 % 9,235
ACN 1.92 % 10,192
UNH 18.54 % 11,854

Total Gross Returns = $ 123,262.00


Gross Gain = $3,262
Gross Gain = 2.68 % (2005 YTD)

Third Source: Fortune Magazine 2005


Investment= $100,000 Yield= $22,600 YTD%= 22.60%
“10 Rock Solid Stocks” written by Jon Birger & David Stires for Fortune
Magazine Online. Article date: December 28, 2005, picks for 2006.

Their Picks…$10,000 invested in each stock…

Sym 2006 YTD % Gross $ Gain


MO 14 % $11,400
ADM 33 % $13,300
BRKB 29 % $12,900
C 11 % $11,100
LLY -4 % $9600
HPQ 40 % $14,000
KMI 15 % $11,500
NSC 14 % $11,400
PD 70 % $17,000
WM 4% $10,400

Total Gross Return= $122,600


Gross Gain = $22,600
Gross Gain = 22.60% YTD (12/16/2006)
(See next page)
Fourth Source: Morningstar “Fund Spy” 2005
Investment= $180,000 Yield= $7,469 YTD%= 4.15%
“Stock Picks from Nine Great Managers (2005)” by Russell Kinnel, September
13, 2005; Morningstar “Fund Spy” 2005.

Sym Gross $ Gain


CFIMX -105.63
MMC -364.70
JNJ -447.20
LMVTX 622.80
CFC -707.80
MFOCX 1066.80
WMT -1213.20
WVALX -532.4
FRE -1065.40
OAKVX -145.30
AZO 111.40
FMILX 1202.80
DNA 7296
FPPTX 878.8
TASCX 971.90
CCRN 268.00
BOGLX 205.10
CKR -573.50
(MXO?) ?
(ATTS?) ?

Total Invested = $180,000


Total Gross Return = $187,468.47
Total Gross Profit = $7,468.77
Total Gross Gain % = 4.15%

Fifth Source: MSN Money 2005


Investment= $110,000 Yield= $36,800 YTD%= 33.45%
“12 Picks from Top Newsletters for 2006” by Michael Brush, date 12-28-2005.
MSN Money Online.

Sym YTD% Gross $


AEOS 111 11,100
COP 25 2500
BR ? ?
Sym YTD% Gross $
HANS 70 7000
GIL 14 1400
NTRI 79 7900
GOOG 16 1600
JDSU -7 -700
TSM 12 1200
HD -1 -100
JOYG 11 1100
BRG 38 3800

Total Gross Yield with Principal = $146,800


Total Gross Gain = $36,800
Total Gross YTD % = 33.45%

_________________________________________________

Where to find these authors online:

Matt Rand http://www.forbes.com/bow (Forbes Online)

Jon Birger http://money.cnn.com/index.html (CNN Money Online, Search


Name)

David Stires http://money.cnn.com/index.html (CNN Money Online, Search His


Name)

Michael Brush http://moneycentral.msn.com/content/common/P78796.asp


(MSN Money Online)

Here is my investment information resource online:

http://www.esnips.com/web/Investments

My Notes: most financial advisors will tell you to expect a “prudent” 7.5% gain
per year on investments in the stock market. Clearly there are potentials for
greater gains in my opinion. I recommend reading the hardcopy and online
website for Investors Business Daily, I am a new investor.
Brian Morgan 12-15-2006

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