by Larry Oxenham, Publisher
STOCK PICKS, DOES ANYBODY KNOW?
If you took the players in the cartoon I would be the Platypus who wishes I could be a Vulture but, in the past, allowed stock brokers to make a Lemming out of me.
At the moment I have a stock account plugged into an insurance company, one we designed toward emerging markets. I have had this for about 20 years, never adjust it although my insurance guy and I discuss it, and it has done okay.
I also have a very small TD Ameritrade account in which I have ‘guessed’ fairly well sometimes and not at others.
HERE IS WHAT MY ‘STRATEGY’ HAS CONSISTED OF:
- A year ago I read a financial columnist – can’t recall his name – who recommended several stocks. I bought them just because I liked the way he presented his words and they have consistently lost money for the past year. In fact, I am just selling them because they are almost back to what I paid and I can place the money elsewhere. The stock symbols are: DHX and FSC, both financial stocks, and SANW, a food company. I may regret this last one because they just signed agreements in some of the former Eastern Bloc Soviet countries and may do well.
- I also made some purchases I am very happy with and may make sense to you:
- When the oil market collapsed at the beginning of 2016 I bought Chesapeake Oil (CHK) for about $3 a share. It has been consistently over $4 ever since.
- Also bought the oil based Devon Energy (DVN) for about $22 a share and it is now at $39 and holding.
- Also bought a very little known company called SDRL, which stands for SeaDrill, for about $2.80. It is now at about $3.15 and has not returned to $3.00 since then (although, if it does I’ll buy more). This company does the open ocean drilling for the big guys like Shell and others. They will probably never be a splashy company but will always do well … I think.
- And I just bought an ’emerging’ company called AMD – Advanced Micro Devices -, a Silicon Valley company that was left for dead when the PC market slowed down. But they are at the forefront of the rapidly growing Virtual Reality wave and should be a great company for years to come. Experts say you should buy at about $5.25 but I bought for less than $5.10.
- I also recently bought a stock called KMI, Kinder Morgan, Inc., because Warren Buffet bought $440,000,000 worth of their shares. I paid $18 a share and it is now around $20. KMI is in oil, gas and consumable fuels so growth is mild but should do well in the long run. Good enough for Warren, good enough for me.
- I also bought some shares of Qualcomm because they ‘own’ the technology behind just about every cell phone in the world and ambitiously research and find new ways to grow. I bought them – QCOM – for about $48 a share and they are now at $54.
- Finally, I bought a company called Cryolife because a doctor at one of my seminars told me about them. CryoLife is involved in manufacturing, processing, and distribution of implantable living tissues and medical devices used in cardiac surgical procedures, and sells products in more than 80 countries worldwide. They seem to have a bright future. I bought them – CRY – for about $10 a share and they have risen steadily to about $12.35 and should continue upward for years.
From this you can tell I am no expert. I don’t study charts all day. I don’t do deep financial models because I’m not smart enough.
But I do believe the companies that have survived through the recent financial turmoil are also poised to survive the disastrous money-printing policies of our Federal Government and our insufferably incompetent political leaders.
I believe the right technology and health stocks will always do well and that the oil related companies will not only survive but thrive because they will also move into renewables.
I believe there will also be another deep stock ‘crash’ sometime in the next 18 months at which time these stocks will probably return to the prices I originally paid for them … and then I’ll buy some more.
At the moment I am mainly buying and holding because I don’t have the huge numbers of shares that would permit monster profits on every move. Warren Buffett and other heavies are not in any danger from me at this point, but heck, he started small!
Hope this proves helpful. We are actively looking for our readers to bring us examples of what they are doing successfully so we can share with our readers.
So I admit to being a Platypus but also think buying smart assures a good chance in the long run. Then, when my stocks go way up I can tell you I am now Vulture …