Happy New Year!As the calendar rolls from 2007 to 2008, we all make New Year's resolutions. I'm no different, with 2008 being the year I will finally get back into shape, spend more time with my wife and daughter (and expected twins boys midyear) and spend more time with the loyal readers of the TheStreet.com and RealMoney.com. Let's begin 2008 with one last look at the five stocks selected at the beginning of 2007. Then, I will wipe the slate clean and pick five news stocks to follow in the new year. But before I do so, let's take a quick look at the purpose and process of this TSC tradition. The concept behind the holiday portfolio is simple: I select a group of five stocks that I believe deserve watching over the next 12 months, and I follow them -- regardless of their performance -- throughout the year. I'll revisit the portfolio on each market holiday and, at times, make comments about the stocks in RealMoney's Columnist Conversation. The only way a stock is removed from the portfolio is if it merges with another company or ceases to trade on a major exchange. The portfolio serves two purposes. First, it follows the fundamental progress of a group of stocks over a lengthy period of time. My hope is that the portfolio will serve as a forum for in-depth discussion of investment decisions and company strategy and reinforce the importance of ongoing portfolio analysis. Second, it provides an opportunity to look at both short-term trading strategies and longer-term investment strategies with the same stocks.
Revelry in the Rearview MirrorWhile 2007 is history, a quick look at the final tallies for the annual portfolio just concluded seems appropriate. (Last week's
Looking AheadI begin the 2008 season with two holdovers from 2007. The first, Altria ( MO), will not surprise anyone who has read this column for the past several years. I continue to believe this consumer staples company provides terrific growth and income balance for a core equity investment portfolio, and management continues to provide solid leadership. I will also keep Bank of America. The beaten-up financials deserve a look into 2008. While I could have picked any one of a number of financials, keeping BofA allows me to remain consistent. Moreover, I think the dividend is relatively safe, albeit with little growth into 2008.
|Recent Price||Price 12/31/2006||Price Change||Current Dividend||Current Yield||Yield At Cost|
|Bank of America (BAC:NYSE)||$41.42||$53.39||-22.42%||$2.56||6.18%||4.79%|
|Carrizo Oil & Gas (CRZO:Nasdaq)||$54.51||$29.02||87.84%||$-||0.00%||0.00%|
|*Adjusted for Kraft Transaction |
**Purchase price in private transaction
Source: Company Reports, Bloomberg, TSC Research
|Recent Price||Current Dividend||Current Yield|
|Advanced Micro Devices (AMD:NYSE)||$7.35||--||--|
|Bank of America (BAC:NYSE)||$41.42||$2.56||6.18%|
|Cheniere Energy Partners (CQP:AMEX)||$15.80||$1.70||10.76%|
|Equity Residential Properties (EQR:NYSE)||$37.04||$1.93||5.21%|
|Source: Company Reports, Bloomberg, TSC Research|