China Micro-Cap Picks for 2010

Happy Holidays! As we head into the end of the year it's time to start making predictions for 2010.

But first, I want to discuss picks I made over the past year. I have to admit that I paid more for a couple of companies than I should have. But I think that's because my ability to pick bottoms is better than my ability to pick tops, which is why I dropped everything, including my final exams, heading into March 2009 to buy the most undervalued companies I could find.

I think making predictions last year was easier, because I was confident that China, Russia and crude oil would bottom and lift the rest of the world economy as governments moved to provide stimulus. I probably could have said anything was a buy and come out ahead.

But the past is the past. What does the coming year look like?

You probably won't like this answer, but it's hard to say, at least in terms of broad trends. Obviously, I could make guesses about some things, but I want to be known for talking only about things that are worth talking about.

That said, it doesn't require broad predictions to identify specific companies that are priced as if they are stagnant or worse.

I figure that buying these companies and closing one's eyes for the next year is a better strategy than anything that you'll see on TV.