Power Maxx Blog

Many of my long time readers will know, that about a month ago I posted a couple of articles on my top 5 stock picks, with large cap stocks here, and small cap stocks here. I am by no means an investment professional, but I have done well over the years, and I wanted to take the time to look at where those stocks have gone from that time that I spoke about them.

You should always consult an investment professional before making any financial decisions, and I cannot be held responsible for any trades made using the information provided to you.

For all of these picks, I’m going to use November 18th as a start date, which is when I first posted about them, giving about a month’s time frame for the update.

First, I’m going to take a look at the small caps, as they are the hardest hit in this type of environment. Here is my list:

• Birchcliff Energy - BIR
• BIO MS Medical - MS
• Bankers Petroleum - BNK
• Timminco LTD - TIM
• Absolute Software - ABT

So let’s go in order here:

Birchcliff Energy - BIR - a natural gas company, with great growth potential, large stake is owned by Seymour Schulich, and he is constantly increasing that position. November 18th: $5.22 - December 16th: $4.82 - Loss of 9.42% - not a big loss by any means, and the company still has great growth potential, with no balance sheet issues to be mentioned.

BIO MS Medical - MS - November 18th: $2.54 - December 16th: $2.64 - Gain of 1.96% - This company has held up incredibly well during the recession, and is positive. That alone should tell you something.

Bankers Petroleum - BNK - November 18th: $1.05 - December 16th: $0.68 - Loss of 35.24% - A big loss here, but it is simply because it is a small cap oil stock. It’s output is ever increasing, as is its income. Still a stock that I am holding for the long term.

Timminco LTD - TIM - November 18th: $7.00 - December 16th: $3.60 - Loss of 48.86% - The darling of the TSX in 2007, now has lost a significant chunk of its value. It has been a heavily shorted stock hence the drop, but production is ever increasing and once they start exceeding market expectations, expect a sharp jump in price.

Absolute Software - ABT - November 18th: $2.98 - December 16th: $3.30 - Gain of 10.86% - A solid tech growth that has been devalued un-necessarily. Once things turn around, expect it to re-trace its previous highs, as it was expected to surpass those before the downturn even hit.

Now for the large caps. These ones are such a steal right now, because just like the growth stocks, they have been devalued and they will retrace their highs as they are all solid companies. They will be the ones that will first start to re-gain their losses as confidence is restored. Let’s see how they’re doing.

1. General Electric - NYSE:GE - November 18th: $16.11 - December 16th: $17.30 - Gain of 8.05% - Not a bad gain on a large cap for 1 month! Combine that with a 7% dividend, and you’ve got a winner!!
2. Johnson & Johnson - NYSE:JNJ -November 18th: $60.05 - December 16th: $58.28 - Loss of 2.86% - Not a big loss, definitely a safe place for your money, and a modest 3% dividend. Still a long term hold if you ask me.
3. Caterpillar Inc. - NYSE:CAT - November 18th: $36.96 - December 16th: $42.30 - Gain of 14.39% - Got a big gain on Obama’s infrastructure plans. A real winner with a 4% dividend too.
4. Bank of America - NYSE:BAC - November 18th: $16.42 - December 16th: $13.94 - Loss of 16.14% - At the end of the day its still a bank, but the biggest bank in America. Don’t expect this one to turn around just yet, but with an almost 10% dividend, its not a bad place to park your money while you wait for a turnaround.
5. Energy Transfer Partners - NYSE:ETP - November 18th: $35.61 - December 16th: $34.83 - Loss of 2.16% - Not a large loss, and they’re not going anywhere anytime soon. Still has a 10% dividend.

Compare all these numbers to the losses they posted in the 6 months prior, and you’ll see that these are definitely starting to turn around and become more attractive. I’ll do another update in a month to see where we’re at!!

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