Holiday Portfolio Gets Warm Welcome

Chesapeake Energy(CHK Quote) is a top natural gas producer in the U.S., and it continues to show good growth in production and reserves. In addition, Chesapeake's recent purchase of Columbia Natural Resources and its core position in Appalachia should add to growth in 2006 and beyond. The risk here is a continued warm winter and a decline in natural gas prices. However, in my view, that would create another good entry point for the stock.

Compass Bancshares(CBSS Quote) is the laggard in the group so far, but it still is up nicely for the first two weeks. Watch first-quarter numbers and listen for any hints of combination talk with other Southern regional banks. The move might not happen quickly, but this is a bank that eventually should be a part of a larger system.

Microsoft(MSFT Quote) should benefit from a new technology product cycle and its continued cash generation from core products. While there are no guarantees, another special dividend or regular dividend boost should provide support for the stock as well.

Finally, the best performer in the portfolio this year is the old laggard, Pfizer(PFE Quote). More a bounce from its depressed state than a move based on fundamentals, it is nonetheless a welcome move higher.

The Readers Will Speak

I received scores of emails from readers with picks for the sixth stock in the Holiday Portfolio this year; so many, in fact, that I'm still sorting and deciding. As a result, you'll get a special edition of the Holiday Portfolio next week with a look at the readers' top choice, as well as some of the more memorable reader picks over the coming year.

Happy Martin Luther King Jr. Day!

Company/Ticker	Recent Price	Price 12/31/2005	Change	Indicated Ann. Div.	Current Yield
Altria (MO:NYSE)	76.35	$74.72	2.18%	$3.20	4.19%
Chesapeake Energy (CHK:NYSE)	32.3	31.73	1.80%	$0.20	0.62%
Compass Bancshares (CBSS:Nasdaq)	48.63	48.25	0.79%	$1.40	2.88%
Microsoft (MSFT:Nasdaq)	27.14	26.15	3.79%	$0.36	1.33%
Pfizer (PFE:NYSE)	24.58	23.32	5.40%	$0.96	3.91%
Performance Y-T-D			2.79%		2.58%
Source: TSC Research, Company Reports