, one featuring diversification, not single-digit wonders. I am talking about
of the portfolio challenge here at TheStreet.com.
I have been a critic of most of the contests I have seen because they are totally unrealistic. A contest should be about being smart, picking stocks that can work -- admittedly for the short term -- that can make you
about new stocks. That can make us
learn about new stocks. That's how I used it, something that I included in the handbook for people who came to work for Cramer Berkowitz (an outfit I have
affiliation with because I can't own stocks given my high-profile jobs talking about stocks).
Cramer: I Can't Get Enough 'Beat the Street'
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It's incredible how strong the portfolio that won was. Let's go over the victory. First was
; if you are thinking about manufacturing plays, you almost always think of
. But how about Eaton? This is a quintessential weak-dollar stock that makes terrific hydraulic products for engine components. It's a
with a wider product portfolio. I thank the contestant for bringing this 11 P/E stock to all of our attention.
. As someone who has been possessed by the need by steel companies for scrap metal --
just bought a company -- I don't know how I missed this one. Up 33% the week of the contest, the stock's extended. On a pullback, isn't this one a natural given the hot steel market? Look at
!! Maybe this is the next big one?
's been such a dog that I know I for one had given up on it. But you don't give up on a telco play that meets numbers and orders up a giant buyback when the float is small. Well done. Another pullback call that makes sense given the 21% gain.
? It was supposed to be a big loser here. Volumes were way down. But the contestant spotted a business model that seems like it can generate more revenue than I thought possible. What a pick ahead of a quarter that should have been a bomb. The stock seems ready for even more of a takeoff.
. This hasn't been a favorite of mine. But so what? It was a clairvoyant play on higher oil prices, and one that simply has to be remembered as a terrific option call on oil prices next time they drift down.
The trade out? Miraculous. A short play that got closed out before the big run in stocks.
Here's my take; this is how a game should be played. We can learn from these winners. We can learn from this player,
My prediction? Forget the gurus. What's Nascar buying?
And when are you going to go up against him for $5,000?
Am I shilling for the contest? No, I am saying, this is how I learn about new stocks. This is how you can learn new stocks.
And this is how you can learn from others, while you are at it.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Metalico to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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