Holiday Portfolio: More Nice Than Naughty

Is Mister Softee back? Microsoft (MSFT Quote) is up nearly 15% and has shown some signs of sustained interest. While a new product cycle didn't happen in 2006, the company does hold some promise of new products in the coming year, and new alliances may present opportunities for patient investors. In short, Microsoft may make it onto the "nice" list in 2007.

Un-Energetic

Although Chesapeake Energy (CHK Quote) is one of the nation's largest -- and smartest -- natural gas producers, the stock has been the dog of the Holiday Portfolio in 2006. Volatile natural gas prices and the company's continued aggressive acquisition posture have certainly contributed to the sluggishness. A recent equity offering that didn't trade well has also presented a challenge to a company trying to rebuild investor confidence.

Those variables may have temporarily stalled this stock, but CEO Aubrey McClendon has skillfully positioned Chesapeake for the future. His efforts should pay off beginning in 2007 as the company begins to harvest the assets from recent acquisitions. Next year will be a critical one for Chesapeake if it hopes to retain its position among America's energy-producing elite.

Readers Rally

The readers' pick this year was General Electric (GE Quote), a name that should generally track the economy. However, its diverse business lines -- one of the company's greatest strengths in a challenging market -- have occasionally been a liability, as the conglomerate has become too complex for many investors to understand.

That said, solid leadership and business units leveraged to the economy should help GE track the market in the coming months. Since Thanksgiving, GE has been among the best performers in the portfolio.

Happy Holidays

We will take one final look at this edition of the Holiday Portfolio come New Year's Day, when I'll also introduce the 2007 portfolio. If you have suggestions for the 2007 Holiday Portfolio, shoot me an email. I'll pick what I consider to be the most compelling argument for a stock from one reader -- so don't give me just a name. Give me your reasons. Your name may show up come New Year's Day.

Until then, remember that this is the time of year for friends and family. Enjoy your holiday and the spirit of the season. May all your dreams come true during the holiday season and in the coming year. Thanks for reading!